Notice2022-12317
Small Business Size Standards: Termination of Nonmanufacturer Rule Class Waiver
Primary source
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Published
June 8, 2022
Issuing agencies
Small Business Administration
Abstract
The U.S. Small Business Administration (SBA) is terminating a class waiver of the Nonmanufacturer Rule (NMR) for Furniture Frames and Parts, Metal, Manufacturing under North American Industry Classification System (NAICS) code 337215 and Product Service Code (PSC) 7195; Furniture Frames, Wood, Manufacturing under NAICS code 337215 and PSC 7195; Furniture Parts, Finished Plastics, Manufacturing under NAICS code 337215 and PSC 7195; Furniture, Factory-type (e.g., cabinets, stools, tool stands, work benches), Manufacturing under NAICS code 337127 and PSC 7110; Furniture, Hospital (e.g., hospital beds, operating room furniture) Manufacturing under NAICS code 339113 and PSC 7195; and Furniture, Laboratory-type (e.g., benches, cabinets, stools, tables) Manufacturing under NAICS code 337127 and PSC 7195. As the above-identified class waiver is terminated, small businesses will no longer be authorized to provide the product of any manufacturer regardless of size on the identified items, unless a Federal Contracting Officer obtains an individual waiver to the NMR.
Full Text
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<title>Federal Register, Volume 87 Issue 110 (Wednesday, June 8, 2022)</title>
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[Federal Register Volume 87, Number 110 (Wednesday, June 8, 2022)]
[Notices]
[Pages 34921-34922]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-12317]
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SMALL BUSINESS ADMINISTRATION
[Docket No. SBA-2021-0012]
Small Business Size Standards: Termination of Nonmanufacturer
Rule Class Waiver
AGENCY: U.S. Small Business Administration.
ACTION: Notice of termination of class waiver to the Nonmanufacturer
Rule.
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SUMMARY: The U.S. Small Business Administration (SBA) is terminating a
class waiver of the Nonmanufacturer Rule (NMR) for Furniture Frames and
Parts, Metal, Manufacturing under North American Industry
Classification System (NAICS) code 337215 and Product Service Code
(PSC) 7195; Furniture Frames, Wood, Manufacturing under NAICS code
337215 and PSC 7195; Furniture Parts, Finished Plastics, Manufacturing
under NAICS code 337215 and PSC 7195; Furniture, Factory-type (e.g.,
cabinets, stools, tool stands, work benches), Manufacturing under NAICS
code 337127 and PSC 7110; Furniture, Hospital (e.g., hospital beds,
operating room furniture) Manufacturing under NAICS code 339113 and PSC
7195; and Furniture, Laboratory-type (e.g., benches, cabinets, stools,
tables) Manufacturing under NAICS code 337127 and PSC 7195. As the
above-identified class waiver is terminated, small businesses will no
longer be authorized to provide the product of any manufacturer
regardless of size on the identified items, unless a Federal
Contracting Officer obtains an individual waiver to the NMR.
DATES: The termination of the class waiver takes effect immediately.
FOR FURTHER INFORMATION CONTACT: Carol Hulme, Program Analyst, by
telephone at 202-205-6347; or by email at <a href="/cdn-cgi/l/email-protection#723113001d1e5f331c1c5c3a071e1f17320110135c151d04"><span class="__cf_email__" data-cfemail="0a496b786566274b646424427f66676f4a79686b246d657c">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION: Sections 8(a)(17) and 46 of the Small
Business Act (the Act), 15 U.S.C. 637(a)(17) and 657, and SBA's
implementing regulations found at 13 CFR 121.406(b) require that
recipients of Federal supply
[[Page 34922]]
contracts issued as a small business set-aside (except as stated
below), service-disabled veteran-owned small business set-aside or sole
source contract, Historically Underutilized Business Zone set-aside or
sole source contract, women-owned small business or economically
disadvantaged women-owned small business 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 Nonmanufacturer Rule (NMR).
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 set-aside and sole source acquisitions over the
micro-purchase threshold.
Sections 8(a)(17)(B)(iv)(II) and 46(a)(4)(B) of the Act authorize
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. SBA identifies a ``class of products'' based on a
combination of the six-digit NAICS code and a description of the class
of products. As implemented in SBA's regulations at 13 CFR 121.1202(c),
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 been awarded a contract to
supply the class of products within the last 24 months.
In accordance with the SBA's regulations at 13 CFR 121.1204(a)(7),
SBA will periodically review existing class waivers to the NMR to
determine whether small business manufacturers or processors have
become available to participate in the Federal market. Upon receipt of
information that such a small business manufacturer or processor
exists, SBA will announce its intent to terminate the NMR waiver for a
class of products. 13 CFR 121.1204(a)(7)(ii). Unless public comment
reveals no small business exists for the class of products in question,
SBA will publish a Final Notice of Termination in the Federal Register.
On February 24, 2006, SBA issued in the Federal Register a notice
of intent to waive the NMR for Furniture Frames and Parts, Metal,
Manufacturing under NAICS code 337215 and PSC 7195; Furniture Frames,
Wood, Manufacturing under NAICS code 337215 and PSC 7195; Furniture
Parts, Finished Plastics, Manufacturing under NAICS code 337215 and PSC
7195; Furniture, Factory-type (e.g., cabinets, stools, tool stands,
work benches), Manufacturing under NAICS code 337127 and PSC 7110;
Furniture, Hospital (e.g., hospital beds, operating room furniture)
Manufacturing under NAICS code 339113 and PSC 7195; and Furniture,
Laboratory-type (e.g., benches, cabinets, stools, tables) Manufacturing
under NAICS code 337127 and PSC 7195. The notice can be found at 71 FR
9631. After the comment and notice period passed, SBA issued a class
waiver for those products on June 27, 2006 (71 FR 36599).
On October 6, 2019, SBA received a request to terminate the
previously issued waiver. The requester provided information that
established the existence of small business manufacturers of the
identified products. These small businesses have submitted bids on
Federal solicitations within the past 24 months. Based on this
information, SBA published a notice in the Federal Register on February
15, 2022, seeking comments on the termination of the class waiver for
Furniture Frames and Parts, Metal, Manufacturing under NAICS code
337215 and PSC 7195; Furniture Frames, Wood, Manufacturing under NAICS
code 337215 and PSC 7195; Furniture Parts, Finished Plastics,
Manufacturing under NAICS code 337215 and PSC 7195; Furniture, Factory-
type (e.g., cabinets, stools, tool stands, work benches), Manufacturing
under NAICS code 337127 and PSC 7110; Furniture, Hospital (e.g.,
hospital beds, operating room furniture) Manufacturing under NAICS code
339113 and PSC 7195; \1\ and Furniture, Laboratory-type (e.g., benches,
cabinets, stools, tables) Manufacturing under NAICS code 337127 and PSC
7195.\2\ That notice can be found at 87 FR 8628. There was one public
comment submitted by a small business manufacturer of products listed
under the identified NAICS codes. That comment was in support of
termination of the class waiver.
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\1\ At the time the initial waiver was issued in 2006, the
applicable NAICS code was 339111. That code changed to 339113 in
2007.
\2\ At the time the initial waiver was issued in 2006, the
applicable NAICS code was 339111. That code changed to -337127 in
2007. The Notice of Intent to terminate the class waiver published
on February 15, 2022, inadvertently classified it under 339113.
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Thus, SBA is terminating the class waiver for Furniture Frames and
Parts, Metal, Manufacturing under NAICS code 337215 and PSC 7195;
Furniture Frames, Wood, Manufacturing under NAICS code 337215 and PSC
7195; Furniture Parts, Finished Plastics, Manufacturing under NAICS
code 337215 and PSC 7195; Furniture, Factory-type (e.g., cabinets,
stools, tool stands, work benches), Manufacturing under NAICS code
337127 and PSC 7110; Furniture, Hospital (e.g., hospital beds,
operating room furniture) Manufacturing under NAICS code 339113 and PSC
7195; and Furniture, Laboratory-type (e.g., benches, cabinets, stools,
tables) Manufacturing under NAICS code 337127 and PSC 7195. As the
above-identified class waiver is terminated, small businesses will no
longer be authorized to provide the product of any manufacturer
regardless of size on the identified items, unless a Federal
Contracting Officer obtains an individual waiver to the NMR.
More information on the NMR and class waivers can be found at
<a href="https://www.sba.gov/partners/contracting-officials/small-business-procurement/nonmanufacturer-rule">https://www.sba.gov/partners/contracting-officials/small-business-procurement/nonmanufacturer-rule</a>.
Wallace D. Sermons II,
Acting Director, Office of Government Contracting.
[FR Doc. 2022-12317 Filed 6-7-22; 8:45 am]
BILLING CODE 8026-03-P
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