[Federal Register Volume 71, Number 37 (Friday, February 24, 2006)]
[Notices]
[Pages 9630-9631]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-2653]


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SMALL BUSINESS ADMINISTRATION


Small Business Size Standards: Waiver of the Nonmanufacturer Rule

AGENCY: U.S. Small Business Administration.

ACTION: Notice of denial to waive the Nonmanufacturer Rule for 
Forklifts Manufacturing.

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SUMMARY: The U.S. Small Business Administration (SBA) is denying a 
request for a waiver of the Nonmanufacturer Rule for Forklifts 
Manufacturing based on our recent discovery of a small business 
manufacturer for this class of products. Denying this waiver will 
require recipients of contracts set aside for small businesses, 
service-disabled veteran-owned small businesses, or SBA's 8(a) Business 
Development Program to provide the products of small business 
manufacturers or processors on such contracts.

DATES: This notice of denial is effective March 13, 2006.

FOR FURTHER INFORMATI0N CONTACT: Edith Butler, Program Analyst, by 
telephone at (202) 619-0422; by FAX at (202) 481-1788; or by e-mail at 
[email protected].

SUPPLEMENTARY INFORMATION: Section 8(a)(17) of the Small Business Act 
(Act),

[[Page 9631]]

15 U.S.C. 637(a)(17), requires that recipients of Federal contracts set 
aside for small businesses, service-disabled veteran-owned small 
businesses, or SBA's 8(a) Business Development Program provide the 
product of a small business manufacturer or processor, if the recipient 
is other than the actual manufacturer or processor of the product. This 
requirement is commonly referred to as the Nonmanufacturer Rule.
    The SBA regulations imposing this requirement are found at 13 CFR 
121.406(b). Section 8(a)(17)(b)(iv) of the Act authorizes SBA to waive 
the Nonmanufacturer Rule for any ``class of products'' for which there 
are no small business manufacturers or processors available to 
participate in the Federal market.
    As implemented in SBA's regulations at 13 CFR 121.1202 (c), in 
order to be considered available to participate in the Federal market 
for a class of products, a small business manufacturer must have 
submitted a proposal for a contract solicitation or received a contract 
from the Federal government within the last 24 months. The SBA defines 
``class of products'' based on a six digit coding system. The coding 
system is the Office of Management and Budget North American Industry 
Classification System (NAICS).
    The SBA received a request on October 3, 2005 to waive the 
Nonmanufacturer Rule for Forklifts Manufacturing. In response, on 
November 3, 2005, SBA published in the Federal Register a notice of 
intent to waive the Nonmanufacturer Rule for Forklifts Manufacturing. 
SBA explained in the notice that it was soliciting comments and sources 
of small business manufacturers of this class of products. In response 
to that November 3, 2005 notice, SBA received a comment from a small 
business manufacturer indicating that it has furnished this product to 
the Federal government. Accordingly, based on the available 
information, SBA has determined that there is a small business 
manufacturer of this class of products, and, is therefore denying the 
class waiver of the Nonmanufacturer Rule for Forklifts Manufacturing, 
NAICS 333924.

    Dated: February 14, 2006.
Karen C. Hontz,
Associate Administrator for Government Contracting.
 [FR Doc. E6-2653 Filed 2-23-06; 8:45 am]
BILLING CODE 8025-01-P