[Federal Register Volume 78, Number 244 (Thursday, December 19, 2013)]
[Notices]
[Pages 76886-76887]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-29873]


-----------------------------------------------------------------------

SMALL BUSINESS ADMINISTRATION


Small Business Size Standards: Waiver of the Nonmanufacturer Rule

AGENCY: U.S. Small Business Administration.

ACTION: Notice of Final Action: Granting Class Waiver of the 
Nonmanufacturer Rule for Commercial-Type Ovens, Ranges, and Gas ranges 
as listed under the North American Industry Classification System 
(NAICS) code 333318 (Other Commercial and Service Industry Machinery 
Manufacturing).

-----------------------------------------------------------------------

SUMMARY: The U.S. Small Business Administration (SBA) is granting a 
class waiver of the Nonmanufacturer Rule for Ovens, commercial-type, 
Ranges, commercial-type, and Gas ranges, commercial-type, Product or 
Service Code (PSC) 7310 (Food Cooking, Baking, and Serving Equipment), 
under NAICS code 333318 (Other Commercial and Service Industry 
Machinery Manufacturing). The basis for the waiver is that there are 
not two or more small business manufacturers that have been awarded or 
have performed a contract to supply this class of products to the 
Federal Government within the past 24 months, or that have submitted an 
offer on a solicitation for this class of products within that time 
frame. The effect of this waiver is to allow otherwise qualified small 
businesses to supply the products of any manufacturer on a Federal 
contract set aside for small businesses, Service-Disabled Veteran-Owned 
(SDVO) small businesses, Participants in SBA's 8(a) Business 
Development (BD) Program, or Women-Owned Small Business (WOSB) 
concerns.

DATES:  Effective Date: This waiver is effective on the date this 
notice is published.

FOR FURTHER INFORMATION CONTACT: Mr. Edward Halstead, Procurement 
Analyst, by telephone at (202) 205-9885 or email at 
[email protected].

SUPPLEMENTARY INFORMATION: Sections 8(a)(17) and 46 of the Small 
Business Act (the Act), 15 U.S.C. 637(a)(17) and 657s, and SBA's 
implementing regulations require that recipients of

[[Page 76887]]

Federal supply contracts set-aside for small businesses, SDVO small 
businesses, WOSB concerns, or Participants in the SBA's 8(a) BD 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. See 13 CFR 121.406(b), 125.15(c), 127.505. 
Sections 8(a)(17)(B)(iv)(II) and 46(a)(4)(B) of the Act authorize SBA 
to waive the Nonmanufacturer Rule for any ``class of products'' (known 
as a ``class waiver'') for which there are no small business 
manufacturers or processors available to participate in the Federal 
market. 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. 13 
CFR 121.1202(c). SBA defines ``class of products'' as an individual 
subdivision within a NAICS Industry Number as established by the Office 
of Management and Budget in the NAICS Manual. 13 CFR 121.1202(d). In 
addition, SBA uses PSCs to further identify particular products within 
the NAICS Code to which a waiver would apply. SBA may then identify a 
specific item with a PSC and NAICS code to which a class waiver would 
apply.
    SBA received a request to waive the Nonmanufacturer Rule for 
commercial ovens and broilers, PSC 7310, under NAICS code 333319 (Other 
Commercial and Service Industry Machinery Manufacturing). (Note: On 
October 1, 2012, the NAICS code for Ovens, commercial-type, 
manufacturing, Ranges, commercial-type, manufacturing and Gas ranges, 
commercial-type, manufacturing changed from 333319 to 333318.)
    On May 22, 2013, SBA published in the Federal Register a notice of 
intent to waive the Nonmanufacturer Rule for the above-listed class of 
products. 78 FR 12108. SBA announced in the notice that it was 
soliciting comments and sources of small business manufacturers of this 
class of products. In addition, SBA used the Dynamic Small Business 
Search (DSBS) database to conduct independent market research. This 
research did not reveal any small business manufacturers that 
participated in the Federal market during the previous 24 months.
    In response to this notice, SBA received two comments. One 
respondent, a small business commercial appliance equipment dealer, 
claimed their market research found no small business manufacturers of 
this type of equipment that had conducted business with the Federal 
government within 24 months prior to June 1, 2013. Both respondents 
supported the granting of a class waiver of the Nonmanufacturer Rule 
for commercial-type ovens, ranges, and gas ranges. Both respondents 
stated that a class waiver of the Nonmanufacturer Rule would increase 
set-aside contract opportunities for all small businesses in an 
industry dominated by large businesses.
    SBA considered all of the comments submitted, and after conducting 
thorough market research analysis, has concluded that there are no 
small business manufacturers of Commercial-type Ovens, Ranges, and Gas 
ranges. As a result, SBA is granting a class waiver of the 
Nonmanufacturer Rule for Commercial-type Ovens, Commercial-type Ranges, 
and Commercial-Type Gas ranges, under PSC 7310, NAICS Code 333318. The 
effect of this class waiver is to allow otherwise qualified small 
businesses to supply the products of other than small manufacturers or 
processors on intended small business set-aside contracts. However, it 
must be emphasized that this class waiver of the Nonmanufacturer Rule 
does not waive other legal requirements applicable to Government 
procurements, such as the Buy American Act and the Trade Agreements 
Act.

Judith A. Roussel,
Director, Office of Government Contracting.
[FR Doc. 2013-29873 Filed 12-18-13; 8:45 am]
BILLING CODE 8025-01-P