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Proposed Rule

Small Business Size Standards; Waiver of the Nonmanufacturer Rule

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Small Business Administration.


Proposed waiver of rule.


The Small Business Administration (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. The basis for a waiver of the Nonmanufacturer Rule for these products is that there are no small business manufacturers or processors Start Printed Page 76185available to supply these products to the Federal Government. The effect of a waiver would be to allow an otherwise qualified Nonmanufacturer to supply other than the product of a domestic small business manufacturer or processor on a Federal contract set aside for small businesses or awarded through the SBA 8(a) Program. The purpose of this document is to solicit comments and potential source information from interested parties.


Comments and sources must be submitted on or before December 12, 2000.


Edith Butler, Program Analyst, U.S. Small Business Administration, 409 3rd Street SW., Washington, DC 20416, Tel: (202) 619-0422.

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Edith Butler, Program Analyst, (202) 619-0422, FAX (202) 205-6845.

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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 a 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 North American Industry Classification System (NAICS). The second is the Product and Service Code (PSC) established by the Federal Procurement Data System.

The Small Business Administration is currently processing a request for a waiver of the Nonmanufacturer Rule for 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 Insluators (SIC 3264, NAICS 3327113), and invites the public to comment or provide information on potential small business manufacturers for these products.

In an effort to identify potential small business manufacturers, the SBA has searched Procurement Marketing & Access Network (PRO-Net) and the SBA will publish a notice in the Commerce Business Daily. The public is invited to comment or provide source information to SBA on the proposed waiver of the Nonmanufacturer Rule for these classes of products.

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Dated: November 21, 2000.

Luz A. Hopewell,

Associate Administrator for Government Contracting.

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[FR Doc. 00-30779 Filed 12-5-00; 8:45 am]