[Federal Register Volume 72, Number 25 (Wednesday, February 7, 2007)]
[Notices]
[Pages 5786-5787]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-2028]


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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 
Demountable Cargo Containers Manufacturing (Dry Freight Containers/
Connex Boxes).

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SUMMARY: The U.S. Small Business Administration (SBA) is denying a 
request for a waiver of the Nonmanufacturer Rule for Demountable Cargo 
Containers Manufacturing (Dry Freight Containers/Connex Boxes) based on 
our recent discovery of small business manufacturers 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 February 22, 2007.

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), 15 U.S.C. Sec.  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 
Sec.  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 Sec.  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 December 7, 2006, to waive the 
Nonmanufacturer Rule for Demountable Cargo Containers Manufacturing 
(Dry Freight Containers/Connex Boxes). In

[[Page 5787]]

response, on December 21, 2006, SBA published in the Federal Register a 
notice of intent to waive the Nonmanufacturer Rule for Demountable 
Cargo Containers Manufacturing (Dry Freight Containers/Connex Boxes). 
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 December 21, 2006 notice, SBA received comments from small 
business manufacturers indicating that it has 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 products, and, is therefore denying the 
class waiver of the Nonmanufacturer Rule for Demountable Cargo 
Containers Manufacturing (Dry Freight Containers/Connex Boxes), NAICS 
336212.

    Dated: February 2, 2007.
Arthur Collins,
Acting Associate Administrator for Government Contracting.
 [FR Doc. E7-2028 Filed 2-6-07; 8:45 am]
BILLING CODE 8025-01-P