[Federal Register Volume 87, Number 110 (Wednesday, June 8, 2022)]
[Notices]
[Pages 34921-34922]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-12317]


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SMALL BUSINESS ADMINISTRATION

[Docket No. SBA-2021-0012]


Small Business Size Standards: Termination of Nonmanufacturer 
Rule Class Waiver

AGENCY: U.S. Small Business Administration.

ACTION: Notice of termination of class waiver to the Nonmanufacturer 
Rule.

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SUMMARY: The U.S. Small Business Administration (SBA) is terminating a 
class waiver of the Nonmanufacturer Rule (NMR) for Furniture Frames and 
Parts, Metal, Manufacturing under North American Industry 
Classification System (NAICS) code 337215 and Product Service Code 
(PSC) 7195; Furniture Frames, Wood, Manufacturing under NAICS code 
337215 and PSC 7195; Furniture Parts, Finished Plastics, Manufacturing 
under NAICS code 337215 and PSC 7195; Furniture, Factory-type (e.g., 
cabinets, stools, tool stands, work benches), Manufacturing under NAICS 
code 337127 and PSC 7110; Furniture, Hospital (e.g., hospital beds, 
operating room furniture) Manufacturing under NAICS code 339113 and PSC 
7195; and Furniture, Laboratory-type (e.g., benches, cabinets, stools, 
tables) Manufacturing under NAICS code 337127 and PSC 7195. 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: The termination of the class waiver takes effect immediately.

FOR FURTHER INFORMATION CONTACT: Carol Hulme, Program Analyst, by 
telephone at 202-205-6347; or by email at [email protected].

SUPPLEMENTARY INFORMATION: Sections 8(a)(17) and 46 of the Small 
Business Act (the Act), 15 U.S.C. 637(a)(17) and 657, and SBA's 
implementing regulations found at 13 CFR 121.406(b) require that 
recipients of Federal supply

[[Page 34922]]

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 February 24, 2006, SBA issued in the Federal Register a notice 
of intent to waive the NMR for Furniture Frames and Parts, Metal, 
Manufacturing under NAICS code 337215 and PSC 7195; Furniture Frames, 
Wood, Manufacturing under NAICS code 337215 and PSC 7195; Furniture 
Parts, Finished Plastics, Manufacturing under NAICS code 337215 and PSC 
7195; Furniture, Factory-type (e.g., cabinets, stools, tool stands, 
work benches), Manufacturing under NAICS code 337127 and PSC 7110; 
Furniture, Hospital (e.g., hospital beds, operating room furniture) 
Manufacturing under NAICS code 339113 and PSC 7195; and Furniture, 
Laboratory-type (e.g., benches, cabinets, stools, tables) Manufacturing 
under NAICS code 337127 and PSC 7195. The notice can be found at 71 FR 
9631. After the comment and notice period passed, SBA issued a class 
waiver for those products on June 27, 2006 (71 FR 36599).
    On October 6, 2019, SBA received a request to terminate the 
previously issued waiver. The requester provided information that 
established the existence of small business manufacturers of the 
identified products. These small businesses have submitted bids on 
Federal solicitations within the past 24 months. Based on this 
information, SBA published a notice in the Federal Register on February 
15, 2022, seeking comments on the termination of the class waiver for 
Furniture Frames and Parts, Metal, Manufacturing under NAICS code 
337215 and PSC 7195; Furniture Frames, Wood, Manufacturing under NAICS 
code 337215 and PSC 7195; Furniture Parts, Finished Plastics, 
Manufacturing under NAICS code 337215 and PSC 7195; Furniture, Factory-
type (e.g., cabinets, stools, tool stands, work benches), Manufacturing 
under NAICS code 337127 and PSC 7110; Furniture, Hospital (e.g., 
hospital beds, operating room furniture) Manufacturing under NAICS code 
339113 and PSC 7195; \1\ and Furniture, Laboratory-type (e.g., benches, 
cabinets, stools, tables) Manufacturing under NAICS code 337127 and PSC 
7195.\2\ That notice can be found at 87 FR 8628. There was one public 
comment submitted by a small business manufacturer of products listed 
under the identified NAICS codes. That comment was in support of 
termination of the class waiver.
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    \1\ At the time the initial waiver was issued in 2006, the 
applicable NAICS code was 339111. That code changed to 339113 in 
2007.
    \2\ At the time the initial waiver was issued in 2006, the 
applicable NAICS code was 339111. That code changed to -337127 in 
2007. The Notice of Intent to terminate the class waiver published 
on February 15, 2022, inadvertently classified it under 339113.
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    Thus, SBA is terminating the class waiver for Furniture Frames and 
Parts, Metal, Manufacturing under NAICS code 337215 and PSC 7195; 
Furniture Frames, Wood, Manufacturing under NAICS code 337215 and PSC 
7195; Furniture Parts, Finished Plastics, Manufacturing under NAICS 
code 337215 and PSC 7195; Furniture, Factory-type (e.g., cabinets, 
stools, tool stands, work benches), Manufacturing under NAICS code 
337127 and PSC 7110; Furniture, Hospital (e.g., hospital beds, 
operating room furniture) Manufacturing under NAICS code 339113 and PSC 
7195; and Furniture, Laboratory-type (e.g., benches, cabinets, stools, 
tables) Manufacturing under NAICS code 337127 and PSC 7195. 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.
    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. 2022-12317 Filed 6-7-22; 8:45 am]
BILLING CODE 8026-03-P