[Federal Register Volume 70, Number 144 (Thursday, July 28, 2005)]
[Notices]
[Pages 43735-43736]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-14916]


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SMALL BUSINESS ADMINISTRATION


Small Business Size Standards: Waiver of the Nonmanufacturer Rule

AGENCY: U.S. Small Business Administration.

ACTION: Notice of intent to terminate waiver of the Nonmanufacturer 
Rule for Sporting and Athletic Goods Manufacturing.

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SUMMARY: The U.S. Small Business Administration (SBA) is considering 
terminating the waiver of the Nonmanufacturer Rule for Sporting and 
Athletic Goods Manufacturing based on our recent discovery of a small 
business manufacturer for this class of products. Terminating this 
waiver will require recipients of contracts set aside for small 
businesses, service-disabled veteran-owned small businesses, or SBA's 
8(a) Business Development Program to provide the products of small 
business manufacturers or processors on such contracts.

DATES: Comments and sources must be submitted on or before August 15, 
2005.

FOR FURTHER INFORMATI0N CONTACT: Edith Butler, Program Analyst, by 
telephone at (202) 619-0422; by FAX at (202) 481-1788; or by e-mail at 
[email protected].

SUPPLEMENTARY INFORMATION: Section 8(a)(17) of the Small Business Act, 
(Act) 15 U.S.C. 637(a)(17), requires that recipients of Federal 
contracts set aside for small businesses, service-disabled veteran-
owned small businesses, or SBA's 8(a) Business Development Program 
provide the product of a small business manufacturer or processor, if 
the recipient is other than the actual manufacturer or processor of the 
product. This requirement is commonly referred to as the 
Nonmanufacturer Rule.
    The SBA regulations imposing this requirement are found at 13 CFR 
121.406 (b). Section 8(a)(17)(b)(iv) of the Act authorizes SBA to waive 
the Nonmanufacturer Rule for any ``class of products'' for which there 
are no small business manufacturers or processors available to 
participate in the Federal market.
    As implemented in SBA's regulations at 13 CFR 121.1204, in order to 
be considered available to participate in the Federal market for a 
class of products, a small business manufacturer must have submitted a 
proposal for a contract solicitation or received a contract from the 
Federal government within the last 24 months. The SBA defines ``class 
of products'' based on six digit coding systems. The first coding

[[Page 43736]]

system is the Office of Management and Budget North American Industry 
Classification System (NAICS). The second is the Product and Service 
Code established by the Federal Procurement Data System.
    The SBA received a request on July 15, 2004 to waive the 
Nonmanufacturer Rule for Sporting and Athletic Goods Manufacturing. In 
response, on July 30, 2004, SBA published in the Federal Register a 
notice of intent to the waiver of the Nonmanufacturer Rule for Sporting 
and Athletic Goods Manufacturing.
    SBA explained in the notice that it was soliciting comments and 
sources of small business manufacturers of this class of products. In 
response to this notice, comments were received from interested 
parties. SBA had determined from these sources that there were no small 
business manufacturers of this class of products, and therefore granted 
the waiver of the Nonmanufacturer Rule for Sporting and Athletic Goods 
Manufacturing, NAICS 339920.
    Recently, SBA discovered the existence of a small business 
manufacturer of this class of products. Accordingly, based on the 
available information, SBA has determined that there is a small 
business manufacturer of this class of products, and is therefore 
considering terminating the class waiver of the Nonmanufacturer Rule 
for Sporting and Athletic Goods Manufacturing, NAICS 339920.

    Authority: 15 U.S.C. 637(a)(17).

    Dated: July 22, 2005.
Nancyellen Gentile,
Acting Associate Administrator for Government Contracting.
[FR Doc. 05-14916 Filed 7-26-05; 8:45 am]
BILLING CODE 8025-01-P