Small Business Size Standards; Waiver of the Nonmanufacturer Rule

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 Routers and Switches.

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SUMMARY: This document advises the public that the Small Business

Administration (SBA) is establishing a waiver of the Nonmanufacturer

Rule for Routers and Switches. The basis for a waiver is that no small

business manufacturers are available to participate in the Federal

market for these products. The effect of a waiver will allow otherwise

qualified nonmanufacturers 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.

EFFECTIVE DATE: February 12, 1997.

ADDRESSES: David Wm. Loines, Procurement Analyst, U.S. Small Business

Administration, 409 3rd Street SW, Washington, DC 20416, Tel: (202)

205-6475.

FOR FURTHER INFORMATION CONTACT: David Wm. Loines, Procurement Analyst,

(202) 205-6475, FAX (202) 205-7324.

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 procurement must provide the product

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 imposing

this requirement are found at 13 CFR 121.406(b). Section 303(h) of the

law provides for waiver of this requirement by SBA for any ``class of

products'' for which there are no small business manufacturers or

processors in the Federal market. To be considered available to

participate in the Federal 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. The second is the Product

and Service Code (PSC) established by the Federal Procurement Data

System.

The SBA was asked to issue a waiver for Routers and Switches

because of an apparent lack of any small business manufacturers or

processors for them within the Federal market. The SBA searched its

Procurement Automated Source System (PASS) for small business

participants and found none. We then published a document in the

Federal Register on November 22, 1996 (61 FR 59382), of our intent to

grant a waiver for these classes of products unless new information was

found. The proposed waiver covered Routers and Switches. The document

described the legal provisions for a waiver, how SBA defines the

market, and asked for small business participants of these classes of

products. After the 15-day comment period, no small businesses were

identified for Routers and Switches. This waiver is being granted

pursuant to statutory authority under section 303(h) of Public Law 100-

656 for Routers and Switches. The waiver will last indefinitely but is

subject to both an annual review and a review upon receipt of

information that the conditions required for a waiver no longer exist.

If such information is found, the waiver may be terminated.

Judith A. Roussel,

Associate Administrator for Government Contracting.

[FR Doc. 97-3458 Filed 2-11-97; 8:45 am]

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