[Federal Register Volume 86, Number 218 (Tuesday, November 16, 2021)]
[Notices]
[Pages 63436-63437]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-24971]


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SMALL BUSINESS ADMINISTRATION

[Docket No. SBA-2020-0048]


Termination of Nonmanufacturer Rule Class Waiver

AGENCY: U.S. Small Business Administration.

ACTION: Notification of intent to terminate the class waiver to the 
Nonmanufacturer Rule for radiology equipment.

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SUMMARY: The U.S. Small Business Administration (SBA) is considering 
terminating a class waiver of the Nonmanufacturer Rule (NMR) for 
irradiation apparatus manufacturing, computerized axial tomography (CT/
CAT) scanners manufacturing; CT/CAT (computerized axial tomography) 
scanners manufacturing; fluoroscopes manufacturing; fluoroscopic X-ray 
apparatus and tubes manufacturing; generators, X-ray, manufacturing; 
irradiation equipment manufacturing; X-ray generators manufacturing; 
and X-ray irradiation equipment manufacturing under manufacturing 
categorized under North American Industry Classification System (NAICS) 
code 334517 and Product Service Code (PSC) 6525.

DATES: Comments and source information must be submitted on or before 
xx/xx/xxxx.

ADDRESSES: You may submit comments and source information via the 
Federal Rulemaking Portal at https://www.regulations.gov under Docket 
ID SBA-2020-1148]. If you wish to submit confidential business 
information (CBI) as defined in the User Notice at http://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: An awardee of a Federal small business set-
aside contract valued over $250,000.00, service-disabled veteran-owned 
small business contract, HUBZone contract, women-owned small business 
contract, or 8(a) contract must provide its own product or that of a 
small business manufacturer unless a waiver is in place. If the above-
identified class waiver is terminated, small businesses will no longer 
be authorized to provide the product of any manufacturer regardless of 
size on the identified items, unless a Federal contracting officer 
obtains an individual waiver to the NMR.
    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, found at 13 
CFR 121.406(b), 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 but continues to apply to socioeconomic 
categories over the micropurchase 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.
    In accordance with the SBA's regulations at 13 CFR 121.1204(a)(7), 
SBA will periodically review existing class waivers to the NMR to 
determine whether small business manufacturers or processors have 
become available to participate in the Federal market. Upon receipt of 
information that such a small business manufacturer or processor 
exists, the SBA will announce its intent to terminate the NMR waiver 
for a class of products. 13 CFR 121.1204(a)(7)(ii). Unless public 
comment reveals no small business exists for the class of products in 
question, SBA will publish a Final Notice of Termination in the Federal 
Register.
    On October 31, 2007, the SBA published in the Federal Register a 
notice of intent to waiver the Nonmanufacturer Rule for Irradiation 
Apparatus Manufacturing (X-Ray Equipment and Supplies). The comments 
submitted in response failed to establish the existence of a small 
business manufacturer of these products. As such, on December 26, 2007, 
after the comment and notice period passed, SBA issued a class waiver 
for those products effective January 10, 2008. That notice can be found 
at 77 FR 73057.
    On April 20, 2020, SBA received a request to terminate the 
previously issued waiver. The requester provided information that 
established the existence of a small business manufacturer of the 
identified products. Thus SBA is proposing to terminate the class 
waiver for irradiation apparatus manufacturing, computerized axial

[[Page 63437]]

tomography (CT/CAT) scanners manufacturing; CT/CAT (computerized axial 
tomography) scanners manufacturing; fluoroscopes manufacturing; 
fluoroscopic X-ray apparatus and tubes manufacturing; generators, X-
ray, manufacturing; irradiation equipment manufacturing; X-ray 
generators manufacturing; and X-ray irradiation equipment manufacturing 
under NAICS code 334517 and PSC 6525. The public is invited to comment 
or provide source information on the proposed termination of the NMR 
waiver for these products.
    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. 2021-24971 Filed 11-15-21; 8:45 am]
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