In a recent decision, the Small Business Administration’s Office of Hearings and Appeals (OHA) reviewed the requirements to establish that a company is a manufacturer of a product under SBA’s rules. In particular, there is a requirement that a company use “its own facilities” in manufacturing the product. But how does a company establish it will use its own facilities?
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Event: Limitations on Subcontracting and the Nonmanufacturer Rule Webinar hosted by Texas El Paso APEX Accelerators, June 6, 10:00-11:30am MDT
For small businesses and their teammates, few topics in government contracting are as confusing as the limitations on subcontracting for set-aside and socioeconomic sole source contracts. And if that isn’t stressful enough, the “LoS” is an area of heavy enforcement: get it wrong, and a contractor can face major penalties. The nonmanufacturer rule is another commonly misunderstood rule in the federal government contracting realm–but also, one we encounter quite often in our role assisting federal contractors.
In this course, government contracts attorneys, Nicole Pottroff & Stephanie Ellis, from Koprince McCall Pottroff LLC, will help you make sense of the limitations on subcontracting and nonmanufacturer rule. Using a step-by-step process and plenty of examples to bring these rules to life will help you ensure both understanding and compliance. Hope you will join us! Registration link here.
SBA Final Rule Updates Employee-Based Size Standards, but not for Nonmanufacturer Rule
This month, SBA issued a final rule updating its size standards for multiple NAICS codes in the manufacturing industries and industries with employee-based size standards in other sectors (except wholesale trade and retail trade). As the final rule explains in great detail, SBA increased some of the NAICS code’s size standards and retained others. Additionally, SBA decided to retain an employee based size standard for the nonmanufacturer rule. Let’s take a closer look.
Continue readingSBA Updates Size Standards for Wholesale Trade and Retail Trade
SBA has issued new size standards for industries in the Wholesale Trade and Retail Trade sectors. The interesting thing about these size standards is that they don’t apply to federal procurement actions. Instead, there is a different size standard for supply contracts. So, did SBA see fit to increase the supply-contract size standard?
Continue readingBack to Basics: The Nonmanufacturer Rule
To qualify as a small business under most set-aside or sole-source contracts seeking manufactured products or supplies, SBA’s regulations require an offeror to be the item’s manufacturer or, alternatively, comply with the nonmanufacturer rule.
In this post, we’ll discuss qualifying under the nonmanufacturer rule.
Continue readingSBA Proposes to Eliminate Some Nonmanufacturer Rule Class Waivers
SBA is currently considering terminating some class waivers for its small business Nonmanufacturer Rule, as it has received information to established the existence of small business manufacturers of
the subject products.
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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