[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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