SBA Eliminates Use of Product Service Codes For Nonmanufacturer Rule Class Waivers

As January 5, 2022, SBA will no longer use Product Service Codes (PSCs) to classify products covered by class waivers for the nonmanufacturer rule. SBA’s rationale for discontinuing PSC’s to classify class waivers is to “improve consistency in the application of class waiver.” SBA will use North American Industry Classification System codes (NAICS) as its sole classification system to identify products covered by class waivers going forward. Notification of the change of SBA’s rule was published in the Federal Register on December 6, 2021.

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Event: The Ins & Outs of the Nonmanufacturer Rule

The nonmanufacturer rule is one that is commonly misunderstood in the federal government contracting realm. But it is also one we encounter quite often in our role assisting federal contractors.

On September 21, please join my colleague, Steven Koprince, and me as we dive deep into the nonmanufacturer role, tackling the ins and the outs of the rule and answering some of your questions surrounding it. The webinar will be hosted by our friends at the Iowa State University CIRAS PTAC, and it is easy to register: just click here.

We Can Work It Out? Proposed Class Waiver of Nonmanufacturer Rule for Exercise Equipment

Following up on its proposed waiver of the nonmanufacturer rule for laptops in December (which we covered here), the SBA is now proposing waivers for exercise equipment, sophisticated walkie-talkies, and more.

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GAO: Trade Agreements Act Inapplicable to Small Business Set-Asides

It’s no secret that federal government contracting has the reputation of being a seemingly endless morass of regulations. In fact, the confusion frequently associated with federal contracting was on full display in a recent GAO protest that implicated the SBA’s nonmanufacturer rule, the Buy American Act, and the Trade Agreements Act. In a procurement that invited bids from both large and small businesses, a large business contractor argued that the application of certain small business contracting regulations would unfairly advantage the small business participants.

GAO disagreed, and dismissed the protest because any advantage was the result of the regulations operating as intended. Sometimes it pays to be a small business.

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