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SMALL BUSINESS ADMINISTRATION

Small Business Administration

NOTICE: NOTICES

ACTION: Waiver of the Nonmanufacturer Rule for Other Aircraft Parts and Auxiliary Equipment Manufacturing:

DOCUMENT 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.

SUBJECT CATEGORY: Small Business Size Standards: Waiver of the Nonmanufacturer Rule

DOCUMENT 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; servicedisabled veteranowned small businesses or SBA's 8(a) Business Development Program.

SUMMARY: (Drones and Aircraft Launching Equipment, Product Service Codes 1550 and 1720),

DOCUMENT BODY: [[Page 35434]]

SUPPLEMENTAL 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, servicedisabled 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 sixdigit 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. E814116 Filed 62008; 8:45 am]
BILLING CODE 802501P

FOR FURTHER INFORMATION CONTACT Pamela M. McClam, Program Analyst, by telephone at (202) 2057408; by FAX at (202) 4814783; or by email at Pamela.McClam@sba.gov.