Firm Ineligible Under Non-Manufacturer Rule Due to Use of Foreign-made Products

Non-Manufacturer Rule: Foreign-Made Products Didn’t Qualify

Source: SmallGovCon, By Steve Koprince    March 4, 2015

A contractor did not qualify as a small business under the non-manufacturer rule where it proposed to sell foreign-made products–even though the contractor itself was well below the solicitation’s 500-employee size standard.

In a recent decision, the SBA Office of Hearings and Appeals held that a contractor was ineligible to be awarded a small business set-aside contract for manufactured products because the products were to be manufactured in Turkey.

OHA’s decision in Size Appeal of Novex Enterprises, SBA No. SIZ-5637 (2015) involved an Army procurement for the acquisition of M3 heaters. The solicitation was issued as a small business set-aside under NAICS code 334419 (Other Electronic Component Manufacturing).

Novex Enterprises submitted a proposal.  In its proposal, Novex stated that it would partner with Menatek Yedek Parca International, a manufacturer located in Turkey.  Menatek would manufacture the heaters, which Novex would then sell to the Army. More…..


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