# Small Business Size Standards; Waiver of the Nonmanufacturer Rule > Briefs, arguments, decisions, and more. URL: https://www.frixlaw.com/law-library/documents/fr%3A94-18066 ## Record - **Collection:** Federal Register - **Document type:** Uncategorized Document - **Published:** July 27, 1994 ## Text SMALL BUSINESS ADMINISTRATION 13 CFR Part 121 Small Business Size Standards; Waiver of the Nonmanufacturer Rule AGENCY: Small Business Administration. ACTION: Waiver of the Nonmanufacturer Rule for television receiving sets and compact disc players. ----------------------------------------------------------------------- SUMMARY: The Small Business Administration (SBA) is establishing a waiver of the Nonmanufacturer Rule for television receiving sets and compact disc players. The basis for a waiver for these classes of products is that there are no small business manufacturers or processors available to supply them to the Federal Government. The effect of these waivers is to allow otherwise qualified regular dealers to supply the products of any domestic manufacturer on a Federal contract set aside for small businesses or awarded through the SBA 8(a) Program for television receiving sets or compact disc players. EFFECTIVE DATE: July 27, 1994. This class waiver applies to all solicitations dated on or after July 27, 1994. FOR FURTHER INFORMATION CONTACT: James Parker, Procurement Analyst, U.S. Small Business Administration, 409 3rd Street, SW., Washington DC, 20416, Tel: (202) 205-6465. SUPPLEMENTARY INFORMATION: Public Law 100-656, enacted on November 15, 1988, incorporated into the Small Business Act the previously existing regulation that recipients of Federal contracts set aside for small businesses or the SBA 8(a) Program must provide the products of a small business manufacturer or processor, if the recipient is other than the actual manufacturer or processor. This requirement is commonly referred to as the Nonmanufacturer Rule. The SBA regulations which implement this requirement are found at 13 CFR 121.906(b) and 121.1106(b). Section 8(a)(17)(B)(iv)(II), 15 U.S.C. 637(a)(17)(B)(iv)(II), provides for waiver of this requirement by SBA for any ``class of products'' for which there are no small business manufacturers or processors available to participate in the Federal procurement market. To be considered available to participate in the Federal procurement market on these classes of products, a small business manufacturer must have submitted a proposal for a contract solicitation or received a contract from the Federal Government within the last 24 months. The SBA defines ``class of products'' based on two coding systems. The first is the Office of Management and Budget Standard Industrial Classification Manual, and the second is the Product and Service Code established by the Federal Procurement Data System. The SBA was originally asked to process 15 class waivers of these Nonmanufacturer Rule, and sources were found for all but these remaining two classes: (1) Television receiving sets and (2) compact disc players. Regarding television receiving sets, the SBA sought small business sources by contacting the General Services Administration's Federal Supply Service in Fort Worth, Texas. The SBA also researched its Procurement Automated Source System (PASS) and the Thomas Register. In addition, SBA published a notice seeking potential sources in the May 6, 1994, Commerce Business Daily and an intent to grant a class waiver in the April 22, 1994, Federal Register, 59 FR 19150. After a 15-day comment period, two comments were received received. Both comments regarded the existence of a small business manufacturer of health care televisions. These televisions are wall- or ceiling-mounted and are normally used in hospitals, nursing homes and dialysis facilities. Although health care televisions may be purchased and used by individuals in their homes, these televisions are not normally used in households for home entertainment. Two marketing firms for these televisions confirmed that these televisions are not considered household items and are not marketed to individuals for home entertainment. After reviewing the marketing information for health care televisions, it has become apparent that they are in a different category from household television receiving sets. Based on the absence of small business manufacturers, SBA is establishing a class waiver for television receiving sets (SIC code 3651, PSC code 7730) pursuant to Section 8(a)(17)(B)(iv)(ii) of the Small Business Act, 15 U.S.C. 637(a)(17)(B)(iv)(II). The effect of this class waiver is to allow otherwise qualified regular dealers to supply the products of any domestic manufacturer on a Federal contract set aside for small businesses or awarded through the SBA 8(a) Program for household television receiving. This waiver will be in effect indefinitely, but is subject to review by SBA. Regarding compact disc players, the SBA sought small business sources by contacting the General Services Administration's Federal Supply Service in Fort Worth, Texas. The SBA also researched the PASS and the Thomas Register. In addition, SBA published a notice seeking potential sources in the May 9, 1994, Commerce Business Daily and an intent to grant a class waiver in the April 22, 1994, Federal Register, 59 FR 19150. After a 15-day comment period, no comments were received. Based on the absence of small business manufacturers, SBA is establishing a class waiver for compact disc players (SIC code 3651, PSC code 7730) pursuant to the statutory authority cited above. The effect of this class waiver is to allow otherwise qualified regular dealers to supply the products of any domestic manufacturer on a Federal contract set aside for small businesses or awarded through the SBA 8(a) Program for compact disc players. This waiver will be in effect indefinitely, but is subject to review by SBA. Dated: July 19, 1994. Thomas A. Dumaresq, Associate Administrator for Government Contracting. [FR Doc. 94-18066 Filed 7-26-94; 8:45 am] BILLING CODE 8025-01-M --- Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/fr%3A94-18066. Public record. Not legal advice.