[Federal Register Volume 73, Number 121 (Monday, June 23, 2008)]
[Notices]
[Pages 35433-35434]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-14116]


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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 Waiver of the Nonmanufacturer Rule for Other Aircraft 
Parts and Auxiliary Equipment Manufacturing (Drones and Aircraft 
Launching Equipment), Product Service Codes 1550 and 1720.

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[[Page 35434]]

SUMMARY: The U.S. Small Business Administration (SBA) is granting a 
waiver of the Nonmanufacturer Rule for Other Aircraft Parts and 
Auxiliary Equipment Manufacturing (Drones and Aircraft Launching 
Equipment).
    The basis for waiver is that no small business manufacturers are 
supplying this class of product to the Federal government. The effect 
of a waiver would be to allow otherwise qualified regular dealers to 
supply the products of any manufacturer on a Federal contract set aside 
for small businesses; service-disabled veteran-owned small businesses 
or SBA's 8(a) Business Development Program.

DATE: This waiver is effective July 8, 2008.

FOR FURTHER INFORMATION CONTACT: Pamela M. McClam, Program Analyst, by 
telephone at (202) 205-7408; by FAX at (202) 481-4783; 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 121.1202(c), 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 
system is the Office of Management and Budget North American Industry 
Classification System (NAICS). The second is the Product and Service 
Code required as a data entry field by the Federal Procurement Data 
System.
    The SBA received a request on May 2, 2008, to waive the 
Nonmanufacturer Rule for Other Aircraft Parts and Auxiliary Equipment 
Manufacturing (Drones, Miscellaneous Aircraft Accessories and 
Components, and Aircraft Launching Equipment).
    In response, on May 16, 2008, SBA published in the Federal Register 
a notice of intent to waive the Nonmanufacturer Rule for Other Aircraft 
Parts and Auxiliary Equipment Manufacturing (Drones and Aircraft 
Launching Equipment). SBA explained in the notice that it was 
soliciting comments and sources of small business manufacturers of this 
class of products. One comment was received regarding our intent to 
waive Miscellaneous Aircraft Accessories and Components, Product 
Service Code 1680. Based on the information in that comment, SBA has 
determined that there are small business manufacturers of Product 
Service Code 1680 and will not be granting a waiver. No comments were 
received regarding Product Service Codes 1550 and 1720, therefore SBA 
is granting the waiver of the Nonmanufacturer Rule for Other Aircraft 
Parts and Auxiliary Equipment Manufacturing (Drones and Aircraft 
Launching Equipment) NAICS code 336413, Product Service Codes 1550 and 
1720.

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

Karen Hontz,
Director for Government Contracting.
 [FR Doc. E8-14116 Filed 6-20-08; 8:45 am]
BILLING CODE 8025-01-P