[Federal Register Volume 71, Number 81 (Thursday, April 27, 2006)]
[Notices]
[Pages 24889-24890]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-6343]


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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 waiver of the Nonmanufacturer Rule for certain 
Petroleum Products.

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SUMMARY: The U.S. Small Business Administration (SBA) is granting a 
request for a waiver of the Nonmanufacturer Rule for Industrial Gases 
Manufacturing; Refinery Gases made in Petroleum Refineries; Cyrogenic 
Tanks, Heavy Gauge Metal Manufacturing; Liquid Oxygen Tanks 
Manufacturing; Liquefied Petroleum Gases (LPG) Cylinders Manufacturing; 
Bulk Storage Tanks, Heavy Gauge Metal, Manufacturing; Gas Storage 
Tanks, Heavy Gauge Metal, Manufacturing; and Cylinders, Pressure, Heavy 
Gauge Metal, Manufacturing.
    The effect of a waiver would be to allow otherwise qualified 
regular dealers to supply the products of any domestic manufacturer on 
a Federal contract set aside for small businesses; service-disabled 
veteran-owned small businesses or SBA's 8(a) Business Development 
Program.

DATES: This waiver is effective May 12, 2006.

FOR FURTHER INFORMATION 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), 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 January 10, 2006 to waive the 
Nonmanufacturer Rule for Industrial Gases Manufacturing; Refinery Gases 
made in Petroleum Refineries; Cyrogenic Tanks, Heavy Gauge Metal 
Manufacturing; Liquid Oxygen Tanks Manufacturing; Liquefied Petroleum 
Gases (LPG) Cylinders Manufacturing; Bulk Storage Tanks, Heavy Gauge 
Metal, Manufacturing; Gas Storage Tanks, Heavy Gauge Metal, 
Manufacturing; and Cylinders, Pressure, Heavy Gauge Metal, 
Manufacturing.
    In response, on February 24, 2006 SBA published in the Federal 
Register a notice of intent to waive the Nonmanufacturer Rule for 
Industrial Gases Manufacturing; Refinery Gases made in Petroleum 
Refineries; Cyrogenic Tanks, Heavy Gauge Metal Manufacturing; Liquid 
Oxygen Tanks Manufacturing; Liquefied Petroleum Gases (LPG) Cylinders 
Manufacturing; Bulk Storage Tanks, Heavy Gauge Metal, Manufacturing; 
Gas Storage Tanks, Heavy Gauge Metal, Manufacturing; and Cylinders, 
Pressure, Heavy Gauge Metal, Manufacturing. SBA explained in the notice 
that it was soliciting comments and sources of small business 
manufacturers of these classes of products. In response to this notice, 
comments were received from interested parties. SBA has determined that 
there are no small business manufacturers of these classes of products, 
and is therefore granting the waiver of the Nonmanufacturer Rule for 
Industrial Gases Manufacturing; Refinery Gases made in Petroleum 
Refineries; Cyrogenic Tanks, Heavy Gauge Metal Manufacturing; Liquid 
Oxygen Tanks Manufacturing; Liquefied Petroleum Gases (LPG) Cylinders 
Manufacturing; Bulk Storage Tanks, Heavy Gauge Metal,

[[Page 24890]]

Manufacturing; Gas Storage Tanks, Heavy Gauge Metal, Manufacturing; and 
Cylinders, Pressure, Heavy Gauge Metal, Manufacturing, (NAICS) codes 
325120, 324110 and 332420.


    Authority: 15 U.S.C. 637(a)(17).

    Dated: April 20, 2006.
Karen C. Hontz,
Associate Administrator for Government Contracting.
[FR Doc. E6-6343 Filed 4-26-06; 8:45 am]
BILLING CODE 8025-01-P