Nonmanufacturer Rule Law and Legal Definition

The requirement that a nonmanufacturer supply the product of a small business concern is commonly referred to as the Nonmanufacturer Rule. In order to qualify as a small business on a small business set-aside, service-disabled veteran-owned set-aside or 8(a) procurement (sole source or competitive), for the acquisition of supplies, an offeror must either manufacture the item in accordance with the limitations on subcontracting or supply the product of a small business made in the United States. This rule was incorporated into the Small Business Act by Section 303 (h) of Public Law 100-656 and Section 210 of Public Law 101-574. However, the Administrator of the SBA can waive this requirement when there are no small business manufacturers or processors available to supply the product to the Federal Government.