DATE: November 3, 2004

SUBJECT: Small Business Administration; Termination of Proposed Nonmanufacturer Rule Waiver for Power-Driven Handtools Manufacturing

SOURCE: Federal Register, November 3, 2004, Vol. 69, No. 212, page 64124

AGENCIES: Small Business Administration (SBA)

ACTION: Notice

SUMMARY: The SBA is terminating consideration of a proposed waiver of the nonmanufacturer rule for power-driven handtools manufacturing under North American Industry Classification System (NAICS) code 333991 because of its recent discovery of a small business manufacturer for this class of products. Recipients of contracts set aside for small or 8(a) businesses will continue to be required to provide the products of small business manufacturers or processor on such contracts.

EDITOR'S NOTE: For more on the proposed waiver of the nonmanufacturer rule for paint and paint manufacturing, see the July 28, 2004, FEDERAL CONTRACTS DISPATCH "Small Business Administration; Waiver of the Nonmanufacturer Rule for Power-Driven Handtool Manufacturing."

The SBA regulation on the nonmanufacturer rule is in Title 13 of the Code of Federal Regulations (CFR), Business and Credit Administration, Part 121, Small Business Size Standards, under paragraph (b) of 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?

A complete list of products for which the nonmanufacturer rule has been waived is available at http://www.sba.gov/GC/approved.html.

DATE: The consideration of the proposed waiver is terminated effective November 18, 2004.

FOR FURTHER INFORMATION CONTACT: Edith Butler, Program Analyst, 202-619-0422; fax: 202-481-1788; or e-mail: edith.butler@sba.gov.

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. 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.

SBA published a notice in the Federal Register on July 28, 2004, that it was considering granting a nonmanufacturing rule waiver for power-driven handtools manufacturing under NAICS code 333991. In response to that notice, SBA discovered that there is a small business manufacturer of that class of products. Therefore, SBA is terminating the consideration of the nonmanufacturer rule waiver for NAICS 333991.

FOR FURTHER INFORMATION CONTACT: Panoptic Enterprises at 703-451-5953 or by e-mail to Panoptic@FedGovContracts.com.

Copyright 2004 by Panoptic Enterprises. All Rights Reserved.

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