[Federal Register Volume 85, Number 138 (Friday, July 17, 2020)]
[Notices]
[Page 43634]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-15535]
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SMALL BUSINESS ADMINISTRATION
[Docket No. SBA-2020-0014]
Class Waiver of the Nonmanufacturer Rule
AGENCY: U.S. Small Business Administration.
ACTION: Notification of waiver of the Nonmanufacturer Rule for diabetic
test strips.
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SUMMARY: The U.S. Small Business Administration (SBA) is granting a
class waiver of the Nonmanufacturer Rule (NMR) for diabetic test strips
under North American Industry Classification System (NAICS) code 325413
and Product Service Code (PSC) 6515. This U.S. industry comprises
establishments primarily engaged in manufacturing diabetic test strips.
DATES: This action is effective August 17, 2020.
FOR FURTHER INFORMATION CONTACT: Carol J. Hulme, Attorney Advisor, 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 657s, and SBA's
implementing regulations require that recipients of Federal supply
contracts issued as a small business set-aside (except as stated
below), service-disabled veteran-owned small business (SDVO SB) set-
aside or sole source contract, Historically Underutilized Business Zone
(HUBZone) set-aside or sole source contract, WOSB (women-owned small
business) or economically disadvantaged women-owned small business
(EDWOSB) set-aside or sole source contract, 8(a) set-aside or sole
source contract, partial set-aside, or set aside of an order against a
multiple award contract 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). Note
that 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. 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 received a request to waive the NMR for diabetic testing strips
under NAICS code 325413 and PSC 6515. According to that request,
submitted with supporting information, there are no small business
manufacturers of these items in the Federal market.
On April 20, 2020 (85 FR 08304), the SBA issued a Notice of Intent
to grant a class waiver for diabetic test strips. SBA received no
comments in response to the Notice. Therefore, in the absence of a
small business manufacturer of diabetic test strips, this class waiver
is necessary to allow otherwise qualified regular dealers to supply the
product of any manufacturer on a Federal contract or order set aside
for small business, SDVOSB, WOSB, EDWOSB, HUBZone or participants in
the SBA's 8(a) Business Development Program. SBA's waiver of the
nonmanufacturer rule has no effect on the requirements in 13 CFR
121.406(b)(1)(i) to (iii) and on requirements external to the Small
Business Act which involve domestic sources of supply, such as the Buy
American Act or the Trade Agreements Act.
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,
Director, Office of Government Contracting.
[FR Doc. 2020-15535 Filed 7-16-20; 8:45 am]
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