[Federal Register Volume 85, Number 76 (Monday, April 20, 2020)]
[Pages 21913-21914]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-08304]



[Docket No. SBA-2020-0014]

Class Waiver of the Nonmanufacturer Rule

AGENCY: U.S. Small Business Administration.

ACTION: Notice of intent to waive the Nonmanufacturer Rule for diabetic 
test strips.


SUMMARY: The U.S. Small Business Administration (SBA) is considering 
granting a request for a class waiver of the Nonmanufacturer Rule (NMR) 
for diabetic test stripes under North American Industry Classification 
(NAICS) code 325413 and Product Service Code (PSC) 6515. If granted, 
the class waiver would allow otherwise qualified regular dealers to 
supply the waived item on certain small business contracts, regardless 
of the business size of the manufacturer.

DATES: Comments and source information must be submitted by May 20, 

ADDRESSES: You may submit comments and source information via the 
Federal Rulemaking Portal at https://www.regulations.gov. If you wish 
to submit confidential business information (CBI) as defined in the 
User Notice at https://www.regulations.gov, please submit the 
information to Carol Hulme, Attorney Advisor, Office of Government 
Contracting, U.S. Small Business Administration, 409 Third Street SW, 
8th Floor, Washington, DC 20416. Highlight the information that you 
consider to be CBI and explain why you believe this information should 
be held confidential. SBA will review the information and make a final 
determination as to whether the information will be published.

FOR FURTHER INFORMATION CONTACT: Carol Hulme, Attorney Advisor, by 
telephone at 202-205-6347; or by email at [email protected].

SUPPLEMENTARY INFORMATION: Sections 8(a)(17) and 46 of the Small 
Business Act (Act), 15 U.S.C. 637(a)(17) and 657s, and SBA's 
implementing regulations, found at 13 CFR 121.406(b), require that 
recipients of Federal supply contracts provide the product of a small 
business manufacturer or processor if the recipient of the set-aside 
contract is not the actual manufacturer or processor of the product, 
This requirement is commonly referred to as the Nonmanufacturer Rule 
(NMR). 13 CFR 121.406(b). The NMR applies to a contract issued as a 
small business set-aside (except as stated below); a service-disabled 
veteran-owned small business (SDVOSB) set-aside or sole-source 
contract; a Historically Underutilized Business Zone (HUBZone) set-
aside or sole source contract; a women-owned small business (WOSB) or 
economically disadvantaged women-owned small business (EDWOSB) set-
aside or sole source contract; or 8(a) set-aside or sole source 
contract; a partial set-aside; or a set-aside of an order against a 
multiple award contract. The NMR does not apply to small business set-
aside acquisitions with an estimated value between the micro-purchase 
threshold and the simplified acquisition threshold.
    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. The SBA defines ``class of products'' based on a 
combination of (1) the six-digit NAICS code, (2) the four-digit PSC, 
and (3) a description of the class of products. A waiver would not have 
any effect on the requirements in 13 CFR 121.406(b)(1)(i) through (iii) 
or on requirements external to the Act that involve domestic sources of 
supply, such as the Buy American Act, 41 U.S.C. 8301-8305, or the Trade 
Agreements Act, 19 U.S.C. 2501 et. seq.
    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.
    SBA has received a request for a class waiver for diabetic testing 
strips. The applicable NAICS Code is 325413 and the PSC is 6515 as 
there are no small businesses that manufacturer this product. A search 
of the Federal marketplace revealed there are no small business 
manufacturers that can manufacture and supply this product to the 
Federal government.
    SBA invites the public to comment on this pending request to waive 
the NMR for diabetic testing strips. The public may comment or provide 
source information on any small business manufacturers of this class of 
products that are available to participate in the Federal market. The 
public comment period will run for 30 days after the date of 
publication in the Federal Register.
    More information on the NMR and class waivers can be found at 

[[Page 21914]]


David Loines,
Director, Office of Government Contracting.
[FR Doc. 2020-08304 Filed 4-17-20; 8:45 am]