1 Understanding the NonManufacturer Rule NMR SBA 1
1 Understanding the Non-Manufacturer Rule (NMR) “SBA 1 st First Wednesday Virtual Learning 2017”
Hosts 2 Dwight A. Johnson, Procurement Center Representative SBA Office of Government Contracting, Area IV, Omaha sbalearning@sba. gov (402) 221 -7206 Jan Kaiser, Procurement Center Representative SBA Office of Government Contracting, Area IV, Chicago sbalearning@sba. gov (312) 353 -7442
Welcome to “SBA Virtual Learning 2017” 3 1. Questions answered during the final 10 minutes. 2. Technical problems? Contact the moderator with a note or call AT&T Connect Support at 1 -888 -796 -6118. 3. Page numbers stated for those working of hard copies of the program. 4. We cover the “SBA Quick Reference” slides as time allows. 5. For more SBA training visit the SBA Learning Center
Reminders 4 1. SBA approves joint ventures of 8(a) firms only. Do not ask any other small business JVs for evidence of SBA approval. 2. Contracting Officers - Remember to go into e. SRS at https: //www. esrs. gov/ and review, accept or reject ISRs and SSRs for the reporting period ending on SEPT 30 2016. 3. To locate the Area Director for the SBA’s Office of Government Contracting which covers where you are located visit the following site: https: //www. sba. gov/content/pcr-area-directors
A Resource Partner 5 • The Association of Procurement Technical Assistance Centers posts past “First Wednesday” programing. Check this link for past programs: http: //www. aptac-us. org/for-contracting-officerssbawebinar-library/ • Contracting officer resources: “How PTACs partner with federal agencies”: http: //www. aptac-us. org/federal-partners/ • Find your nearest Procurement Technical Assistance Center at this site: http: //www. aptac-us. org
1102 FIRST WEDNESDAY VIRTUAL LEARNING SERIES 2016” 9: 30 to 10: 30 Central Time 6 FY 2017 Date Topic 1 October 5, 2016 Understanding the Nonmanufacturer Rule 2 November 2, 2016 Market Research: Using FPDS & DSBS 3 December 7, 2016 New All SB Mentor-Protégé Program 4 January 11, 2017 Subcontracting Plan Evaluation 5 February 1, 2017 8(a) Business Development 6 March 1, 2017 SDVOSB 7 April 12, 2017 SBA Surveillance Reviews 2017 8 May 3, 2017 WOSB 9 June 7, 2017 HUBZones 10 July 12, 2017 SB Subcontracting Compliance 11 August 2, 2017 Certificates of Competency The program schedule above is for information only and may change.
One Continuous Learning Point 7 Self-service: Fill in your name on the certificate slide and save. You submit your request for training credit IAW your agency policy, i. e. FAITAS. Phoning in only? Send an email immediately to the link at sbalearning@sba. gov to verify your participation. If you listen in groups, send emails of participants in an excel document. Post program email. This contains a time sensitive. wmv recording, a transcript of the program, along with another copy of the program Power. Point.
Presenter 8 Jon Haitsuka Office of Contract Assistance Office of Government Contracting U. S. Small Business Administration Washington, D. C. e. Mail: jon. haitsuka@sba. gov Phone: (202) 401 -1420
Overview 9 Key Definitions Regulations, Laws Applicability Waivers
What is a Manufacturer? 10 A manufacturer is a concern that produces a product, with its own facilities, performs primary activities, including the assembly of parts and components, into the end item being acquired.
What is a Non-Manufacturer? 11 Not a broker Does not produce the product Primarily engaged in retail or wholesale and normally sells type of product being supplied Takes ownership or possession of the item(s) with its personnel, equipment or facilities in a manner consistent with industry practice Will supply the end product of a small business manufacturer or processor made in U. S.
Who is a Kit Assembler? 12 When the manufactured item being acquired is a kit of supplies, or other goods provided an offeror for a special purpose, the offeror cannot exceed 500 employees, and 50 percent of the total value of the components of the kit must be a small business under the size standards for the NAICS codes of the components being assembled. The offeror doesn’t need to be the manufacturer of any items assembled
Who is Retailer and Wholesaler? 13 Retailer -- a person who is authorized to sell someone else’s goods and/or services Wholesaler -- An intermediary (gobetween) which sells to other intermediaries, such as a firm that buys from a manufacturer and sells to a retailer
Applicability of the NMR 14 Small business set-asides on supply contracts, orders, BPAs over $150 k The NMR will be applied when a small business nonmanufacturer will provide the end item of: a small business manufacturer an other than small business manufacturer under a waiver (an existing class waiver or individual –or solicitation specific-waiver) Does not apply to full and open solicitations
Applicable Size Standards. NMR 15 A small business non-manufacturer must meet size standards that apply to acquisitions covered by the NMR. A small business non-manufacturer (500 or less employees) will provide the end item of: a small business manufacturer (as regulated by SBA’s Table of Size Standards 13 C. F. R. § 121 whether the size standard is 500 employees or not) an other than small business manufacturer under a waiver The size standard for a non-manufacturer is 500 or less employees. In any case, a small business nonmanufacturer cannot exceed 500 employees.
Waivers to the NMR 16 There are two types of waivers: Class Waiver Individual Waiver
Class Waivers to the NMR 17 A class waiver applies to all items in a class of products. Class waivers apply to categories of items and continue in effect unless revoked by SBA. A waiver of the NMR for classes of products has no time limitation or duration. Any government agency, business association, or interested party may request a waiver for a class of products. Discovery of even one small business manufacturer for a single item in the class will justify denial of a request for a class waiver.
18 Individual Waivers to the NMR SBA will consider granting in individual waiver when a KO determines no small business manufacturers exist to meet requirement The waiver to the NMR on an individual procurement is provided for in Section 8(a)(17) of the Small Business Act. An individual waiver is narrowly applied to select contract line item numbers (CLINS) for a specific solicitation. A NMR Waiver must be in place prior to receipt of offers in order for a non-manufacturer to qualify as a small business for setaside purposes
19 How to obtain an Individual Waiver 13 C. F. R. 121. 406 and 121. 1202 - 1204 Website: www. sba. gov The basis of granting an individual waiver rests on the market research presented with an agency’s request to justify the claim that no small business manufacturers exist that can meet the procurement requirements
What to Submit 20 Using an SBA NMR request template, submit the following: NMR request on Agency letterhead, signed by a KO Include elements of SBA’s requirements (FAR has limited guidance) Market Research report or memo as an attachment Market research should be based on search for SB manufacturers using the NAICS code for the solicitation Supporting documentation or copies of: FBO Sources Sought / RFI / Vendor Survey including a summary of findings Brand Name Justification for brand name items DSBS search results (don’t search for name brands, use generic terms and remember to search on the NAICS code used for the solicitation) Internet searches (Google, Thomasnet. com, etc. )
What to submit, cont. 21 List of items to be waived – provide specific information including multiple item requests Statement of Work is REQUIRED on contracts expected to exceed a total estimated value of $500, 000 Any other documents that you think would help in the analysis and determination that no small business can produce the end product
Identification of Small Business Sources on Multiple Item Request for a Single Solicitation (Individual Waiver) 22 Each line item must identify whether the end product will be supplied by a small business manufacturer CLINs NSNs SINs One waiver per solicitation
How to Submit 23 Submit NMR waiver requests and attachments to the NMR program email address at: NMRWAIVERS@SBA. GOV Use the solicitation number and agency abbreviation in the subject line – ex: SBA 123 -14 -Q-0001 Waiver Request
”SBA Quick Reference”
Dynamic Small Business Search 25
Summary of CFR regulations 26 SBA size regulations 13 CFR Part 121 HUBZone regulations 13 CFR 126. 616 SBA Certificate of Competency 13 CFR 125. 5 Service-disabled veteran 13 CFR 125. 15(b) 8(a) and SDB regulations 13 CFR 124. 513 Small disadvantaged business 13 CFR 124. 1002(f) WOSB Program 13 CFR 127 SBA Prime Contracting 13 CFR 125. 2 SBA Subcontracting 13 CFR 125. 3
TYPES OF SBA CONTACTS & OFFICES 27 A. SBA Government Contracting Area Offices 1. SBA Procurement Center Representatives (PCRs) 2. SBA Commercial Market Representatives (CMRs) B. SBA District Offices 1. Business Opportunity Specialists (BOS) C. SBA Regional Offices D. SBA Headquarters
Six SBA Government Contracting Areas at hyperlink: https: //www. sba. gov/content/pcr-directory 28
A. SBA Quick Reference - SBA Area Offices cover the following issues 29 1. Size protests (with recertification) FAR 19. 302 13 CFR 121. 1001 13 CFR 121. 1010 2. Locating nearest SBA staffer FAR 19. 4 3. Certificate of Competency FAR 19. 6 13 CFR 125. 5 4. Limitations on Subcontracting Compliance FAR 19. 601 13 CFR 125. 6(f) 5. Receiving copies subcontracting plans FAR 19. 705 -6
B. SBA Quick Reference SBA Procurement Center Representatives (PCRs) 30 FAR 19. 402 Small Business Administration procurement center representatives. (a)(1) The SBA may assign one or more procurement center representatives to any contracting activity or contract administration office to carry out SBA policies and programs… (2) If a SBA procurement center representative is not assigned to the procuring activity or contract administration office, contact the SBA Office of Government Contracting Area Office…. . (b) Upon their request and subject to applicable acquisition and security regulations, contracting officers shall give SBA procurement center representatives…. access to all reasonably obtainable contract….
B. SBA Quick Reference SBA PCRs, cont. 1. SBA PCR coordination records 31 2. Small business set-aside appeals 3. HUBZone set-aside appeals 4. SDVOSB set-aside appeal 5. Reporting bundling to SBA (MATOCs) 6. SBA subcontracting plan reviews-copies 7. SBA subcontracting program review 8. Small business TFD 9. Surveillance review of agency contracting FAR 19. . 501(b) 13 CFR 125. 2 FAR 19. 505 13 CFR 125. 2(b)(7) FAR 19. 1305 FAR 19. 1306 13 CFR 126. 61 FAR 19. 1405 FAR 19. 1406 13 CFR 125. 22 FAR 19. 202 -1(e)(1) 13 CFR 125. 2 FAR 19. 705 -5(3) 13 CFR 125. 2(b)(6)(iii) FAR 19. 705 -6(c) 13 CFR 125. 2(b)(6)(iii)(C) FAR 19. 707(4) 13 CFR 125. 2(b)(6)(iii)(C) FAR 49. 402 -3 (e)(4)) (Termination for default)
Small Business Coordination Forms Sent to SBA PCRs Agency Form Title 1 Commerce CD 570 Small business set-aside review 2 Defense 2579 Small business coordination record 3 Energy 4220. 2 Small Business Review Form 4 GSA 2689 Small Business Analysis Record 5 HHS 653 Small business review Form 6 Homeland Security 700 -22 Small business review Form 7 Interior 1886 Acquisition screening and review form 8 Labor DL 1 -2004 Small Business Procurement Determination. 9 NASA NF 1787 Small business review sheet 10 State DS-1910 Small Business Clearance Form 11 Transportation 4250 Small Business Program Review Form AD-1205 Small Business Program – Procurement Review 2268 Procurement Request Review For Small Business… 12 13 USDA VA
Document that you have provided SBA Area Directors with copies of subcontracting plans 33 A. SBA Government Contracting Area Offices 1. SBA Procurement Center Representatives (PCRs) 2. SBA Commercial Market Representatives (CMRs) B. SBA District Offices 1. Business Opportunity Specialists (BOS) C. SBA Regional Offices D. SBA Headquarters
C. SBA Quick Reference - SBA Commercial Market Representatives (CMRs) link at: (https: //www. sba. gov/content/cmr-directory) 34 1. Prime contractor portfolio management 13 CFR 125. 3 2. Reviews of subcontracting plan holders 13 CFR 125. 3 3. Matchmaking 13 CFR 125. 3 4. SBA SUB-Net link at: http: //www. sba. gov/content/sub-net 5. SBA Subcontracting Opportunities Directory link at: http: //www. sba. gov/subcontracting-directory 6. “SBLO Handbook” link at: http: //www. sba. gov/content/smallbusiness-liaison-officer-handbook
D. SBA Quick Reference – SBA Regional and District Offices 35 Link to district offices at: http: //www. sba. gov/about-offices-list/3
D. SBA Quick Reference - SBA District Offices, cont. 36 To locate SBA 8(a) business development servicing office, check Dynamic Small Business Search at the link: http: //dsbs. sba. gov/dsbs/search/dsp_dsbs. cfm and then local resources at the link http: //www. sba. gov/tools/localassistance/districtoffices
E. SBA Quick Reference - SBA Headquarters 37 1. HUBZone status protests FAR 19. 306 13 CFR 126. 801 2. NAICS code appeal FAR 19. 30 3 13 CFR 121. 1103 3. Non-manufacturer rule waivers FAR 19. 102(f)(1)-(7) 13 CFR 121. 1204 4. SDVOSB status protest FAR 19. 307 13 CFR 125. 23 5. WOSB Program status protest FAR 19. 308/13 CFR 1275. 600
FAR 19. 102 (f ): No class waiver to NMR? Check out an individual waiver* 38
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