[Federal Register Volume 76, Number 91 (Wednesday, May 11, 2011)]
[Notices]
[Pages 27372-27373]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-11142]


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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 to the Nonmanufacturer Rule for GEN II and GEN 
III Image Intensifier Tubes.

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SUMMARY: The U. S. Small Business Administration (SBA) is granting a 
class waiver of the Nonmanufacturer Rule for GEN II and GEN III Image 
Intensifier Tubes, Product Service Code (PSC) 5855, Night Vision 
Equipment under North American Industry Classification System (NAICS) 
code 333314 (Optical Instrument and Lens Manufacturing). The basis for 
the waiver is that no small business manufacturers are supplying this 
class of products to the Federal government. The effect of this waiver 
will be to allow otherwise qualified small businesses to supply the 
products of any manufacturer on a Federal contract set aside for small 
businesses, Service-Disabled Veteran-Owned (SDVO) small businesses, 
Participants

[[Page 27373]]

in SBA's 8(a) Business Development (BD) Program, or Women-Owned Small 
Business (WOSB) concerns.

DATES: This waiver is effective May 26, 2011.

FOR FURTHER INFORMATION CONTACT: Ms. Amy Garcia, Procurement Analyst, 
by telephone at (202) 205-6842; by Fax at (202) 481-1630; 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), and SBA's implementing regulations require 
that recipients of Federal supply contracts set aside for small 
businesses, SDVO small businesses, Participants in the SBA's 8(a) BD 
Program, or WOSBs, 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. 13 CFR 121.406(b), 125.15(c), 127.505. 
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.
    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. 13 CFR 
121.1202(c). The SBA defines ``class of products'' based on the Office 
of Management and Budget's NAICS.
    The SBA received a request on August 13, 2010, to waive the 
Nonmanufacturer Rule for GEN II and GEN III Image Intensifier Tubes 
under Product Service Code (PSC) 5855, Night Vision Equipment, Emitted 
and Reflected Radiation, under North American Industry Classification 
System (NAICS) code 333314 (Optical Instrument and Lens Manufacturing).
    On August 27, 2010, SBA published in the Federal Register a notice 
of intent to waive the Nonmanufacturer Rule for the above listed item. 
75 FR 21427 (2010). SBA explained in the notice that it was soliciting 
comments and sources of small business manufacturers of this class of 
products. In addition, SBA conducted market research using the Dynamic 
Small Business Search (DSBS) database and no small business 
manufacturers that participate in the Federal market were identified. 
Lastly, on September 16, 2010, SBA posted a Sources Sought notice on 
http://www.fbo.gov that it was soliciting comments and sources of small 
business manufacturers of this class of products.
    In response to these notices, SBA received comments from fourteen 
(14) sources. One respondent, a large business, was identified as a 
manufacturer of GEN III image intensifier tubes. Thirteen (13) 
respondents were identified as small business suppliers, distributors, 
or integrators of GEN II and/or GEN III image intensifier tubes, night 
vision systems and/or related equipment. Of these respondents, three 
(3) sources requested that additional related items be considered for 
waiver: PVS-14, PVS-17, and AVS-9 night vision systems. However, SBA 
has identified, through market research, and as a result of findings in 
this case, that one or more small business manufacturers or component 
assemblers exist for PVS-14, PVS-17, and AVS-9 night vision systems, 
and, as such, these items do not qualify to be waived under the 
Nonmanufacturer Rule. 13 CFR 121.406(b), 125.15(c), 127.505. One (1) 
respondent claimed to be a small business manufacturer of GEN II image 
intensifier tubes. However, upon further investigation, the source does 
not qualify as a manufacturer under 13 CFR 121.406(b). Thus, no small 
business manufacturers of GEN II or GEN III image intensifier tubes 
that participate in the Federal market were identified.
    Consequently, SBA has determined that there are no small business 
manufacturers of these classes of products, and is therefore granting 
the waiver of the Nonmanufacturer Rule for GEN II and GEN III Image 
Intensifier Tubes under PSC 5855, Night Vision Equipment, NAICS code 
333314 (Optical Instrument and Lens Manufacturing).

    Dated: April 29, 2011.
John W. Klein,
Director, Office of Government Contracting.
[FR Doc. 2011-11142 Filed 5-10-11; 8:45 am]
BILLING CODE 8025-01-P