DATE: December 6, 2000

FROM: Barry McVay, CPCM

SUBJECT: Small Business Administration; Waiver of Nonmanufacturer Rule for Various Items

SOURCE: Federal Register, December 6, 2000, Vol. 65, No. 235, page 76184

AGENCIES: Small Business Administration (SBA)

ACTION: Proposed Waiver of the Nonmanufacturer Rule

SUMMARY: The SBA is considering granting a waiver of the nonmanufacturer rule for surge arresters, current and voltage transformers, disconnected switches, sultotransformers, power transformers (multiple winding type), insulator assemblies for transmission lines (porcelain and polymer type), and stacking post insulators. after a search of the Procurement Marketing and Access Network (PRO-Net (http://pro-net.sba.gov)) failed to identify any small business manufacturers of these items.

EDITOR'S NOTE: The SBA's regulations in Title 13 of the Code of Federal Regulations (CFR), Business and Credit Administration. The SBA regulation on the nonmaufacturing rule is in Part 121, Small Business Size Regulations, under paragraph (b) of 13 CFR 121.406, How Does a Small Business Concern Qualify to Provide Manufactured Products Under Small Business Set-Aside or MED [Minority Enterprise Development] Procurements? The SBA regulation on the waiver of the nonmanufacturer rule is 13 CFR 121.1202, When Will a Waiver of the Nonmanufacturer Rule Be Granted for a Class of Products?

DATES: Submit comments and sources must be submitted on or before December 12, 2000.

ADDRESSES: Submit comments and sources to Edith Butler, Program Analyst, U.S. Small Business Administration, 409 3rd Street SW, Washington, DC 20416, 202-619-0422.

FOR FURTHER INFORMATION CONTACT: Edith Butler, Program Analyst, 202-619-0422, or fax: 202-205-6845.

SUPPLEMENTAL INFORMATION: Public Law 100-656, enacted November 15, 1988, requires recipients of federal contracts that are set-aside for small businesses or are awarded through the SBA's 8(a) program for disadvantaged small businesses to provide the product of a small business manufacturer or processor if the recipient is not the actual manufacturer or processor. This is called the "nonmanufacturer rule" (see paragraph (f) of Federal Acquisition Regulation (FAR) 19.102, Size Standards). However, the law permits SBA to waive this requirement for any "class of products" if there are no small business manufacturers or processors in the federal market. The SBA considers a small business manufacturer or processor to be in the federal market if it submitted a proposal or received a contract from the federal government within the last 24 months.

The SBA is inviting the public to comment or provide information on potential small business sources for the following "classes of products" (included are the corresponding North American Industry Classification System (NAICS) codes and the Standard Industrial Classification (SIC) codes for these items; the SIC was superseded by the NAICS on October 1, 2000 -- see the May 15, 2000, FEDERAL CONTRACTS DISPATCH "Small Business Administration; North American Industry Classification System (NAICS) Small Business Size Standards"): surge arresters (SIC 3643, NAICS 335931); current and voltage transformers (SIC 3612, NAICS 335311); disconnect switches (SIC 3613, NAICS 335313); sutotransformers (SIC 3612, NAICS 335311); power transformers (multiple winding type) (SIC 3612, NAICS 335311); insulator assemblies for transmission lines (porcelain and polymer type) (SIC 3264/3644, NAICS 327113/335932); and stacking post insulators (SIC 3264, NAICS 3327113).

FOR FURTHER INFORMATION CONTACT: Barry McVay at 703-451-5953 or by e-mail to BarryMcVay@FedGovContracts.com.

Copyright 2000 by Panoptic Enterprises. All Rights Reserved.

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