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Proposed Rule

Small Business Size Standards; Waiver of the Nonmanufacturer Rule

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Small Business Administration.


Notice of intent to waive the Nonmanufacturer Rule for small arms ammunition manufacturing.


The Small Business Administration (SBA) is considering granting a waiver of the Nonmanufacturer Rule for small arms ammunition manufacturing. The basis for waivers is that no small business manufacturers are supplying these classes of products to the Federal government. The effect of a waiver would be to allow otherwise qualified regular dealers 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. The purpose of this notice of intent is to solicit comments and potential source information from interested parties.


Comments and sources must be submitted on or before June 19, 2002.


Address comments to Edith Butler, Program Analyst, U.S. Small Business Administration, 409 3rd Street, SW, Washington, DC 20416.

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Edith Butler, Program Analyst, (202) 619-0422, FAX (202) 205-7280.

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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 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 six digit coding systems.

The first coding system is the Office of Management and Budget North American Industry Classification System (NAICS). The second is the Product and Service Code established by the Federal Procurement Data System.

The Small Business Administration is currently processing a request to waive the Nonmanufacturer Rule for Small Arms Ammunition Manufacturing, North American Industry Classification System (NAICS) 332992. The public is invited to comment or provide source information to SBA on the proposed waiver of the nonmanufacturer rule for this NAICS code.

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Luz A. Hopewell,

Associate Administrator for Government Contracting.

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[FR Doc. 02-14246 Filed 6-6-02; 8:45 am]