SBA Seeks Information on Nonmanufacturer Rule Waiver

The Small Business Administration is proposing to retract a class waiver of the nonmanufacturer rule for all other miscellaneous electrical equipment and component manufacturing, under North American Industry Classification System code 335999.


The nonmanufacturer rule (see 13 CFR 121.406(b) and 125.15(c)) requires recipients of federal supply contracts set aside for small businesses, service-disabled veteran-owned small businesses, women-owned small businesses, or participants in SBA’s 8(a) Business Development Program to provide the product of a small business manufacturer or processor, if the recipient is other than the actual manufacturer or processor of the product. However, SBA can waive the rule for any ‘‘product or class’’ for which there are no small business manufacturers or processors available to participate in the federal market.

According to a request, there is at least one small business manufacturer of the various supplies listed under all other miscellaneous electrical equipment and component manufacturing that has conducted business with the government within the previous 24 months. Also, SBA conducted independent research and discovered other small business manufacturers for these types of items.

SBA invites the public to comment or provide source information on the proposed retraction. Comments and source information are due August 1, 2013.

For more information, see SBA’s notice at 78 FR 42817.

About William Van Huis

Bill Van Huis is a Senior Writer/Analyst for Wolters Kluwer Law & Business who tracks and analyzes new regulations impacting federal government contracting. He also follows court decisions involving bid protests and contract disputes. You can find his work in WK publications like Government Contract Reports and the FAR and DFARS Matrix Tools. Bill is a Certified Professional Contracts Manager, and he has a law degree from Southern Illinois University, where he graduated summa cum laude. Prior to joining WK, Bill worked both inside and outside state and local government in the areas of procurement and municipal finance. Bill also worked as a staff attorney for the Illinois Supreme Court.
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