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Non-Manufacturer Rule Class Waiver List 2019

By November 24, 2022Uncategorized

The U.S. Small Business Administration (SBA) terminates a Nonmanufacturer Rule (NMR) class exemption for furniture frames and parts, metal, manufacturing under Canada`s North American Industry Classification System (NAICS) Code 337215 and Product Service Code (PSC) 7195; furniture frames, made of wood, manufactured to NAICS code 337215 and PSC 7195; furniture parts, finished plastics, manufactured to NAICS 337215 code and PSC 7195; factory-type furniture (e.g., cabinets, stools, tool racks, workbenches), manufactured to NAICS 337127 code and PSC 7110; furniture, hospital furniture (e.g., hospital beds, operating room furniture) manufactured under NAICS 339113 code and PSC 7195; and furniture, laboratory types (e.g., benches, cabinets, stools, tables) manufactured under NAICS code 337127 and PSC 7195. As the above class exemption ends, small businesses are no longer eligible to supply a manufacturer`s product, regardless of size, on identified items, unless a federal contractor obtains an individual exemption for NMR. Other thresholds may also apply. See, for example, FAR 19,502 for rules for acquisitions under $3,500 that do not need to be reserved for small businesses, and for acquisitions from required sources of supply, such as scrap metal for the purchase of blind or severely disabled persons. Special rules also apply to GSA Federal Supply Schedule contracts, see FAR 8.405-5. In order to improve consistency in the application of block exemptions, the SBA will no longer use points of single contact to classify products covered by block exemptions. Instead, as required by its regulations, the BSO will use NAICS as a classification system to identify products affected by class exemptions. 1. At the time of the first exemption in 2006, the applicable NAICS code was 339111. This code was changed to 339113 in 2007. Notification of termination of class waiver of non-manufacturer rule.

On 6 October 2019, the SBA received a request to terminate the current NMR class exemption for the above-mentioned products. According to demand, there are small enterprisesmanufacturers to participate in the domestic market for these products. According to the information provided by the applicant to the SBA, several small manufacturers have made these products available to the federal authorities in the last 24 months. – Receives a waiver of this requirement pursuant to paragraph (b)(5) of 13 CFR 121.406. It can be quite difficult to meet the SBA`s requirements with respect to the non-supplier rule. And non-compliance can lead to the loss of a contract, termination of the contract, and other unfortunate consequences. Therefore, it is important to remain clear about the products covered by these class derogations. In the interest of efficiency and transparency, the U.S.

Small Business Administration intends to eliminate the use of Product Service Codes (PSCs) to determine whether an item is covered by a class exemption. The SBA administrator has delegated the authority to grant exemptions to the SBA`s Director of Government Procurement. Accordingly, requests for derogation should be addressed to the Director of Public Procurement of the SBA. See FAR 19.505(c)(4)(ii) for more information on where to handle individual exemption requests. See SBA 8a Mentor Protected Joint Venture Rules 13 CFR 124.513 & 13 CFR 121.103.] Without exemption, a bidder for a small business supply contract must generally manufacture at least 50% of the product itself or supply the product to a small business made in the United States. Many waivers under $150,000 are for branded items (for example, computers) that are clearly not manufactured by small businesses in the United States. It may be a mistake to just look at the NAICS code and stop there. In determining whether the non-manufacturer rule applies, it may play a role in whether the NAICS code is a NAICS manufacturing or delivery code. However, it is important to realize that the NAICS code assigned by CO is not the end of the story. The courts will also consider a number of other factors, including whether the principality, if not all, of the value of the contract is due to the party requiring the supply of finished goods.

Rotech Healthcare, Inc. v. USA, 71 Fed. Cl. 393 (July 24, 2006) Note that if a tender includes a NAICS code with a size standard, the non-supplier rule requires that a supplier seeking coverage under the rule meet the size standard required by the NAICS code for the relevant contract. York Telecom Corp. v. US, 130 Fed.

Cl. 186 (January 11, 2017) FAR 19.505(2) contains specific rules for kits. In addition to the other rules.” If the final product purchased is a consumables kit or other products, 50% of the total value of the kit components must be manufactured by small companies in the United States or surrounding areas.