[Federal Register Volume 87, Number 31 (Tuesday, February 15, 2022)]
[Notices]
[Pages 8630-8631]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-03202]


-----------------------------------------------------------------------

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.

-----------------------------------------------------------------------

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. 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.

DATES: Comments and source information must be submitted on or before 
03/09/2022.

ADDRESSES: You may submit comments and source information via the 
Federal Rulemaking Portal at https://www.regulations.gov under Docket 
ID SBA-2020-0048. 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 sba.gov">Carol-Ann.Hulme@sba.gov.

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, 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

[[Page 8631]]

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 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 
Nonmanufacturer rule (sba.gov).

Wallace D. Sermons, II,
Acting Director, Office of Government Contracting.
[FR Doc. 2022-03202 Filed 2-14-22; 8:45 am]
BILLING CODE P