Class Waiver of the Nonmanufacturer Rule, 69113-69114 [2021-26371]
Agencies
[Federal Register Volume 86, Number 231 (Monday, December 6, 2021)]
[Notices]
[Pages 69113-69114]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-26371]
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SMALL BUSINESS ADMINISTRATION
[Docket No. SBA-2021-0012]
Class Waiver of the Nonmanufacturer Rule
AGENCY: U.S. Small Business Administration.
ACTION: Notice of change to the Nonmanufacturer Rule.
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SUMMARY: In the interest of efficiency and transparency the U.S. Small
Business Administration intends to eliminate the use of Product Service
Codes (PSC) to determine whether an item falls within a class waiver.
DATES: This action is effective January 5, 2022.
FOR FURTHER INFORMATION CONTACT: Carol J. Hulme, Attorney Advisor, by
telephone at (202) 205-6347 or by email at [email protected].
SUPPLEMENTARY INFORMATION: Section 8(a)(17) and 46 of the Small
Business Act (Act), 15 U.S.C. 637(a)(17) and 657s, and SBA's
implementing regulations require that recipients of Federal supply
contracts issued as a small business set-aside (except as stated
below), service-disabled veteran-owned small business (SDVO SB) set-
aside or sole source contract, Historically Underutilized Business Zone
(HUBZone) set-aside or sole source contract, WOSB (women-owned small
business) or economically disadvantaged women-owned small business
(EDWOSB) set-aside or sole source contract, 8(a) set-aside or sole
source contract, partial set-aside, or set aside of an order against a
multiple award contract 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
[[Page 69114]]
Nonmanufacturer Rule (NMR). 13 CFR 121.406(b). Note that the NMR does
not apply to small business set-aside acquisitions with an estimated
value between the micro-purchase threshold and the simplified
acquisition threshold but continues to apply to socioeconomic
categories above the micropurchase threshold.
Sections 8(a)(17)(B)(iv)(II) and 46(a)(4)(B) of the Act authorizes
SBA to waive the NMR for a class of products for which there are no
small business manufacturers or processors available to participate in
the Federal market. As defined in 13 CFR 121.1202(d), a ``class of
products'' is an individual subdivision within a North American
Industry Classification System (NAICS) Industry Number as established
by the Office of Management and Budget in the NAICS Manual. SBA has
previously identified class waivers using a combination of (1) the six-
digit NAICS code, (2) the four-digit PSC, and (3) a description of the
class of products.
To improve consistency in the application of class waivers SBA will
no longer use PSCs to classify products covered by class waivers.
Instead, as provided in its regulations, SBA will use the NAICS as its
classification system to identify products covered by class waivers.
More information on the NMR and Class Waivers can be found at
https://www.sba.gov/contracting/contracting-officials/non-manufacturer-rule/non-manufacturer-waivers.
David Wm. Loines,
Director, Office of Government Contracting.
[FR Doc. 2021-26371 Filed 12-3-21; 8:45 am]
BILLING CODE 8026-03-P
