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  • Question

    FAR 19.001 Definitions: "Non manufacturer rule" states 13 CFR 121.406, then that means the citation includes all applicable amendments, to include the increase in the dollar threshold. Does this mean that the Non manufacturer rule is $150,000.00?


    Answer

    You are correct in that the FAR convention, FAR 1.108 (e) Citations states that when the FAR cites a statute, Executive order, Office of Management and Budget circular, Office of Federal Procurement Policy policy letter, or relevant portion of the Code of Federal Regulations, the citation includes all applicable amendments, unless otherwise stated. 


    The SBA adopted a new exemption in June 2016 from the Nonmanufacturer Rule.  The nonmanufacturer rule will not apply to small business set asides between $3,500 and $150,000.  In an effort to increase competition, the SBA has exempted small business set-aside contracts from the rule, which means the small business will be able to supply the products of large manufacturers without violating the limitations on subcontracting. 

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