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Panoptic Enterprises' FEDERAL CONTRACTS DISPATCH

DATE: September 27, 2002

SUBJECT: Small Business Administration; Reconsideration of the Waiver of the Nonmanufacturer Rule for Bearings, Plain, Unmounted and Bearings, Mounted

SOURCE: Federal Register, September 27, 2002, Vol. 67, No. 188, page 60855

AGENCIES: Small Business Administration (SBA)

ACTION: Notice and Request for Comments

SUMMARY: On May 30, 2002, SBA waived the nonmanufacturer rule for bearings, plain, unmounted and bearings, mounted, under North American Industry Classification System (NAICS) 333613, thus allowing otherwise qualified nonmanufacturers to supply the products of any domestic manufacturer on a federal contract set aside for small business or awarded through the SBA's 8(a) program. Subsequently, SBA has become aware of the possible existence of a small business manufacturer for bearings, plain, unmounted. The SBA has decided to notify the public of this small business manufacturer and solicit comments from interested parties. In the meantime, the waiver of the nonmanufacturing rule will remain in effect.

EDITOR'S NOTE: For more on the waiver that is being reconsidered, see the May 30, 2002, FEDERAL CONTRACTS DISPATCH "Small Business Administration; Waiver of the Nonmanufacturer Rule for Bearings, Plain, Unmounted and Bearings, Mounted."

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.

DATES: Comments and sources must be submitted on or before October 11, 2002.

ADDRESSES: Send comments and sources to Edith G. Butler, Program Analyst, Small Business Administration, 409 3rd Street, SW, Washington, DC 20416.

FOR FURTHER INFORMATION CONTACT: Edith G. Butler, 202-619-0422.

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 published a notice in the Federal Register on April 4, 2002, of its intent to grant a waiver for bearings, plain, unmounted and bearings, mounted within North American Industry Classification System (NAICS) 333613 unless information on potential small business sources was provided. Since no potential small business sources for these items were identified during the comment period, SBA granted the waiver on May 30, 2002.

Since then, SBA has learned of a possible small business manufacturer for bearings, plain, unmounted. The SBA has decided to notify the public of this small business manufacturer and solicit comments from interested parties on the capabilities of the firm and its size. In the meantime, the waiver of the nonmanufacturing rule will remain in effect.

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

Copyright 2002 by Panoptic Enterprises. All Rights Reserved.

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