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: Notice to waive the Nonmanufacturer Rule for Towers, Telegraph

Apparatus, Turbines, Cellular Handsets and Telephones, Automobile Motor

Vehicles, Motor Trucks, and Radiotelephones.

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SUMMARY: This notice advises the public that the Small Business

Administration (SBA) is establishing a waiver of the Nonmanufacturer

Rule for Towers, Telegraph Apparatus, Turbines, Cellular Handsets and

Telephones, Automobile Motor Vehicles, Motor Trucks, and

Radiotelephones. 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: July 20, 1998.

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

Administration, 409 3rd Street S.W., Washington, DC 20416, Tel: (202)

205-6475.

FOR FURTHER INFORMATION CONTACT: David Wm. Loines, (202) 205-6475.

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 Towers, Telegraph

Apparatus, Turbines, Cellular Handsets and Telephones, Automobile Motor

Vehicles, Motor Trucks, and Radiotelephones because of an apparent lack

of any small business manufacturers or processors for them within the

Federal market. The SBA searched its Procurement Marketing and Access

Network (PRO-net) for small business participants and found none. We

then published a notice in the Federal Register on April 23, 1998 (vol.

63, no. 78, p. 20139), of our intent to grant a waiver for these

classes of products unless new information was found. The proposed

waiver covered Towers, Telegraph Apparatus, Turbines, Cellular Handsets

and Telephones, Automobile Motor Vehicles, Motor Trucks, and

Radiotelephones. The notice 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 Towers, Telegraph Apparatus, Turbines, Cellular Handsets

and Telephones, Automobile Motor Vehicles, Motor Trucks, and

Radiotelephones. This waiver is being granted pursuant to statutory

authority under section 303(h) of Public Law 100-656 for Towers,

Telegraph Apparatus, Turbines, Cellular Handsets and Telephones,

Automobile Motor Vehicles, Motor Trucks, and Radiotelephones. 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. 98-19236 Filed 7-17-98; 8:45 am]

BILLING CODE 8025-01-U