U.S. Court expands reach of non-manufacturer rule

A new decision by the U.S. Court of Federal Claims substantially broadens the reach of the Small Business Administration's non-manufacturer rule and may affect many small businesses, according to an alert notice by Venable LLP law firm in Washington, DC.

The court determined that the non-manufacturer rule would apply to all federal procurements that require the provision of manufactured supplies, regardless of whether the procurement also has a services component, Venable stated.

Previously, the SBA had limited the rule’s application to only procurements within manufacturing NAICS codes.

If the court decision stands, many “supplies and services” small business procurements would be subject to the rule’s constraints for the first time. Under current SBA regulations, small businesses can avoid those constraints if the procurement is for both supplies and services.

“‘Any’ procurement for supplies, even if it includes a services component, is now arguably subject to the Non-Manufacturer Rule,” Venable wrote.

More information: Venable alert notice http://goo.gl/gT2i9X

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