13 CFR 121.1202 - When will a waiver of the Nonmanufacturer Rule be granted for a class of products?

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§ 121.1202 When will a waiver of the Nonmanufacturer Rule be granted for a class of products?
(a) A waiver for a class of products (class waiver) will be granted when there are no small business manufacturers or processors available to participate in the Federal market for that class of products.
(b) Federal market means acquisitions by the Federal Government from offerors located in the United States, or such smaller area as SBA designates if it concludes that the class of products is not supplied on a national basis.
(1) When considering the appropriate market area for a product, SBA presumes that the entire United States is the relevant Federal market, unless it is clearly demonstrated that a class of products cannot be procured on a national basis. This presumption may be particularly difficult to overcome in the case of manufactured products, since such items typically have a market area encompassing the entire United States.
(2) When considering geographic segmentation of a Federal market, SBA will not necessarily use market definitions dependent on airline radius, political, or SBA regional boundaries. Market areas typically follow established transportation routes rather than jurisdictional borders. SBA examines the following factors, among others, in cases where geographic segmentation for a class of products is urged:
(i) Whether perishability affects the area in which the product can practically be sold;
(ii) Whether transportation costs are high as a proportion of the total value of the product so as to limit the economic distribution of the product;
(iii) Whether there are legal barriers to transportation of the item;
(iv) Whether a fixed, well-delineated boundary exists for the purported market area and whether this boundary has been stable over time; and
(v) Whether a small business, not currently selling in the defined market area, could potentially enter the market from another area and supply the market at a reasonable price.
(c) Available to participate in the context of the Federal market means that contractors exist that have been awarded or have performed a contract to supply a specific class of products to the Federal Government within 24 months from the date of the request for waiver, either directly or through a dealer, or who have submitted an offer on a solicitation for that class of products within that time frame.
(d) Class of products is an individual subdivision within an NAICS Industry Number as established by the Office of Management and Budget in the NAICS Manual.
[61 FR 3286, Jan. 31, 1996, as amended at 65 FR 30863, May 15, 2000]

Title 13 published on 2014-01-01

The following are only the Rules published in the Federal Register after the published date of Title 13.

For a complete list of all Rules, Proposed Rules, and Notices view the Rulemaking tab.

  • 2014-06-12; vol. 79 # 113 - Thursday, June 12, 2014
    1. 79 FR 33647 - Small Business Size Standards: Inflation Adjustment to Monetary Based Size Standards
      GPO FDSys XML | Text
      SMALL BUSINESS ADMINISTRATION
      Interim Final Rule with request for comments.
      Effective Date: This rule is effective July 14, 2014. Comment Date: Comments must be received on or before August 11, 2014.
      13 CFR Part 121

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United States Code

Title 13 published on 2014-01-01

The following are ALL rules, proposed rules, and notices (chronologically) published in the Federal Register relating to 13 CFR 121 after this date.

  • 2014-06-25; vol. 79 # 122 - Wednesday, June 25, 2014
    1. 79 FR 35963 - Advisory Small Business Size Decisions
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      SMALL BUSINESS ADMINISTRATION
      Proposed rule.
      Comments must be received on or before August 25, 2014.
      13 CFR Part 121