XL EagleNonmanufacturer rule (Nonmanufacturer rule (NMR))
Nonmanufacturer rule stands for Nonmanufacturer rule (NMR). The nonmanufacturer rule applies when a small business that does not make the product bids on a small business set-aside or sole-source supply contract. To qualify, the reseller generally must supply the product of a small business manufacturer made in the United States, be primarily engaged in retail or wholesale trade, take ownership of the goods, and have no more than 500 employees.
If no small business makes the item, SBA can grant a waiver for that product class or for a specific buy, which lets resellers offer products from large manufacturers. Waivers are listed by SBA, and the solicitation may say whether one applies.
Why it matters to a small contractor
If you resell supplies on small business set-asides, the manufacturer's size matters, not just yours. Before bidding, ask your distributor whether the maker is a small U.S. business, or check whether an SBA waiver covers the item.
Example
A small supply company bids on a set-aside for janitorial chemicals. They confirm the chemical maker is a small U.S. manufacturer, which keeps their offer eligible under the nonmanufacturer rule.
Nonmanufacturer rule: common questions
What is an NMR waiver?
It is an SBA decision that no small business manufacturer is available for a product, which lets small resellers offer products from other manufacturers on set-asides.
Does the nonmanufacturer rule apply to services?
No. It applies to supply contracts and the supply portion of some mixed contracts. Services use limitations on subcontracting instead.
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