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Barry McVay's FEDERAL CONTRACTS DISPATCH

DATE: February 20, 2001

FROM: Barry McVay, CPCM

SUBJECT: Small Business Administration; Waiver of Nonmanufacturer Rule for Aerospace Ball and Roller Bearings

SOURCE: Federal Register, February 20, 2001, Vol. 66, No. 34, page 10811

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 aerospace ball and roller bearings 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 nonmanufacturer 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?

For more on another recent proposed nonmanufacturer rule waiver, see the December 6, 2000, FEDERAL CONTRACTS DISPATCH "Small Business Administration; Waiver of Nonmanufacturer Rule for Various Items."

DATES: Submit comments and sources must be submitted on or before March 5, 2001.

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 aerospace ball and roller bearings (consisting of, but not limited to, annular ball bearings, ball bearings, cylindrical ball bearings, linear ball bearings, linear roller bearings, needle roller bearings races, roller bearings, tapered roller bearings and thrust roller bearings) covered by Standard Industrial Classification (SIC) 3562, and North American Industry Classification System (NAICS) 332991. (EDITOR'S NOTE: 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").

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

Copyright 2001 by Panoptic Enterprises. All Rights Reserved.

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