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Panoptic Enterprises' FEDERAL CONTRACTS DISPATCH

DATE: April 4, 2002

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

SOURCE: Federal Register, April 4, 2002, Vol. 67, No. 65, page 16063

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 bearings, plain, unmounted and bearings, mounted. The basis for the proposed waiver is that no small business manufacturers are currently supplying these products to the government, and 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 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 no later than April 15, 2002.

FOR FURTHER INFORMATION CONTACT: Edith Butler, Program Analyst, U.S. Small Business Administration, 409 3rd Street, SW, Washington, DC 20416; 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. 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 bearings, plain, unmounted and bearings unmounted, North American Industry Classification System (NAICS) 333613. In an effort to identify potential small business manufacturers, the SBA will publish a notice in FedBizOpps (http://www.FedBizOpps.gov).

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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