DATE: July 25, 2003

SUBJECT: Small Business Administration; Waiver of the Nonmanufacturer Rule for Ammunition (Except Small Arms) Manufacturing

SOURCE: Federal Register, July 25, 2003, Vol. 68, No. 143, page 43981

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 ammunition (except small arms) manufacturing under North American Industry Classification System (NAICS) code 332993 because no small business manufacturers are currently supplying these classes of products to the federal government. This waiver would allow 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.

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.

For more on the recent intent to terminate the nonmanufacturer rule waiver for small arms ammunition manufacturing, see the July 9, 2003, FEDERAL CONTRACTS DISPATCH Small Business Administration; Termination of Nonmanufacturer Rule Waiver for Small Arms Ammunition Manufacturing.

DATE: Comments and sources must be submitted on or before August 8, 2003.

ADDRESSES: Send 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; fax: 202-205-7280.

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 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.

SBA is inviting the public to comment or provide information on potential small business sources for small arms manufacturing covered by NAICS code 332993.

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

Copyright 2003 by Panoptic Enterprises. All Rights Reserved.

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