[Federal Register Volume 71, Number 218 (Monday, November 13, 2006)]
[Notices]
[Page 66214]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-19056]


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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 Personal 
Computers.

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SUMMARY: The U.S. Small Business Administration (SBA) is denying a 
request for a waiver of the Nonmanufacturer Rule for Personal Computers 
based on our discovery of small business manufacturers for this class 
of product. 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.

DATE: This notice of denial is effective November 28, 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 
edith.butler@sba.gov.

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 September 21, 2006, to waive the 
Nonmanufacturer Rule for Personal Computers. In response, on October 
12, 2006, SBA published in the Federal Register a notice of intent to 
waive the Nonmanufacturer Rule for Personal Computers. SBA explained in 
the notice that it was soliciting comments and sources of small 
business manufacturers of this class of product. In response to that 
October 12, 2006 notice, SBA received comments from small business 
manufacturers indicating that they have furnished this product to the 
Federal Government.
    Accordingly, based on the available information, SBA has determined 
that there are small business manufacturers of this class of product, 
and, is therefore denying the class waiver of the Nonmanufacturer Rule 
for Personal Computers, NAICS code 334111.

    Dated: November 6, 2006.
Arthur E. Collins,
Acting Associate Administrator for Government Contracting.
 [FR Doc. E6-19056 Filed 11-9-06; 8:45 am]
BILLING CODE 8025-01-P