[Federal Register Volume 83, Number 105 (Thursday, May 31, 2018)]
[Rules and Regulations]
[Page 24919]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-11658]
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SMALL BUSINESS ADMINISTRATION
13 CFR Part 121
Class Waiver of the Nonmanufacturer Rule
AGENCY: U.S. Small Business Administration.
ACTION: Notification of waiver of the Nonmanufacturer Rule for positive
airway pressure devices.
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SUMMARY: The U.S. Small Business Administration (SBA) is granting a
class waiver of the Nonmanufacturer Rule (NMR) for Positive Airway
Pressure Devices and Supplies Manufacturing. This U.S. industry
comprises establishments primarily engaged in manufacturing Continuous
Positive Airway Pressure (CPAP) devices, Bi-level Positive Airway
Pressure (BiPAP) devices, and other products intended to treat sleep
apnea by keeping a person's airways open during sleep.
DATES: This action is effective July 2, 2018.
FOR FURTHER INFORMATION CONTACT: Carol J. Hulme, Program Analyst, by
telephone at 202-205-6347; or by email at [email protected].
SUPPLEMENTARY INFORMATION: Section 8(a)(17) and 46 of the Small
Business Act (Act), 15 U.S.C. 637(a)(17) and 657, and SBA's
implementing regulations require that recipients of Federal supply
contracts (except those valued between $10,000 and $250,000) set aside
for small business, service-disabled veteran-owned small business
(SDVOSB), women-owned small business (WOSB), economically disadvantaged
women-owned small business (EDWOSB), historically underutilized
business zones (HUBZones) or participants in the SBA's 8(a) Business
Development (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 (NMR). 13 CFR 121.406(b).
Sections 8(a)(17)(B)(iv)(II) and 46(a)(4)(B) of the Act authorize SBA
to waive the NMR for a ``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 been awarded a contract to
supply the class of products within the last 24 months. The SBA defines
``class of products'' based on a combination of (1) the six digit North
American Industry Classification System (NAICS) code, (2) the four
digit Product Service Code (PSC), and (3) a description of the class of
products.
On February 27, 2017, SBA received a request to waive the NMR for
Positive Airway Pressure Devices and Supplies under NAICS codes 339112
(surgical and medical instrument manufacturing) and 339113 (surgical
appliance and supplies manufacturing), and PSC 6515 (medical and
surgical instrument, equipment and supplies). According to that
request, along with supporting documentation, there were no small
business manufacturers or processors of CPAP devices in the Federal
market.
On September 18, 2017 (82 FR 43637), the U.S. Small Business
Administration (SBA) issued a Notice of Intent to grant a class waiver
for CPAP, BiPAP and other sleep apnea devices.
As revealed by the two comments submitted in response to the
document, there are no small business manufacturers or processors of
this product in the Federal market. The first comment, dated October
19, 2017, did not include domestic small business manufacturers capable
of meeting the requirement. The second comment did not identify any
manufacturers.
Therefore, in the absence of a small business manufacturer of these
products, a class waiver is necessary to allow otherwise qualified
regular dealers to supply the product of any manufacturer on a Federal
contract set aside for small business, service-disabled veteran-owned
small business (SDVOSB), women-owned small business (WOSB),
economically disadvantaged women-owned small business (EDWOSB),
historically underutilized business zones (HUBZones) or participants in
the SBA's 8(a) Business Development (BD) program.
More information on the NMR and Class Waivers can be found at
https://www.sba.gov/contracting/contracting-officials/non-manufacturer-rule/non-manufacturer-waivers.
David Wm. Loines,
Acting Director, Office of Government Contracting.
[FR Doc. 2018-11658 Filed 5-30-18; 8:45 am]
BILLING CODE 8025-01-P