[Federal Register Volume 87, Number 93 (Friday, May 13, 2022)]
[Notices]
[Pages 29424-29425]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-10329]


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SMALL BUSINESS ADMINISTRATION

[Docket No.: SBA-2020-0048]


Termination of Nonmanufacturer Rule Class Waiver

AGENCY: Small Business Administration.

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

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SUMMARY: The U.S. Small Business Administration (SBA) is 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. As 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: Termination of the class waiver is effective immediately.

FOR FURTHER INFORMATION CONTACT: Carol 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, 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 set-aside or sole source contract, Historically Underutilized 
Business Zone set-aside or sole source contract, women-owned small 
business or economically disadvantaged women-owned small business 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). 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 set-aside and sole source 
acquisitions over the micro-purchase 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. SBA identifies a ``class of products'' based on a 
combination of the six-digit NAICS code and a description of the class 
of products. As implemented in SBA's regulations at 13 CFR 121.1202(c), 
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, 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, SBA published in the Federal Register a notice 
of intent to waive the NMR for Irradiation Apparatus Manufacturing (X-
Ray Equipment and Supplies) with NAICS code 334517 and PSC 6525. 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. Effective January 5, 2022, SBA ceased using 
PSCs to classify products covered by class waivers.
    On April 20, 2020, SBA received a request to terminate the 
previously issued waiver under NAICS code 334517 for Irradiation 
Apparatus Manufacturing. The requester provided information that 
established the existence of a small business manufacturer of the 
identified products. On February 15, 2022, SBA published notice of its 
intent to terminate the class waiver with the public comment period 
closing on March 9, 2022. That notice can be found at 87 FR 8630. 
However, there were no comments submitted.
    Thus, SBA is terminating 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. As the 
above-identified class waiver is terminated, small businesses will need 
to comply with the NMR where applicable, unless a Federal Contracting 
Officer obtains an individual waiver to the NMR.

[[Page 29425]]

    More information on the NMR and class waivers can be found at 
https://www.sba.gov/partners/contracting-officials/small-business-procurement/nonmanufacturer-rule.

Wallace D. Sermons II,
Acting Director, Office of Government Contracting.
[FR Doc. 2022-10329 Filed 5-12-22; 8:45 am]
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