NMR Waiver Approval-1.pdf

Office of Government Contracting and Business Development | 409 3rd Street SW | Washington, DC 20416

July 26, 2022

VIA EMAIL: veronica.maskell@va.gov

Ms. Veronica Maskell Contract Specialist Department of Veterans Affairs Network Contracting Office (NCO) 16 Overton Brooks VAMC 1800 Buckner Square Shreveport, LA 71112

RE: Solicitation VISN 16 – 36C256-22-R-0125

Dear Ms. Maskell:

On June 29, 2022, the Department of Veterans Affairs (VA) submitted a request to the U.S.

Small Business Administration (SBA) for an individual waiver of the Nonmanufacturer Rule (NMR) for the procurement of Leased Digital Signage. The VA identified the applicable North American Industry Classification System (NAICS) code for this procurement as 541519 (Other Computer Related Services –Information Technology Value Added Resellers exception).

Firms supplying products to the Federal Government must either be the manufacturer of the product or (under the NMR) be a small business supplying the goods manufactured by another small business. 15 U.S.C. § 637(a)(17) & 13 C.F.R. § 121.406 (a) & (b). The NMR applies to socioeconomic categories for contracts valued above the micropurchase threshold. The rule applies to both socioeconomic categories and small businesses above the simplified acquisition threshold. 13 C.F.R. § 121.406(c). A waiver to the NMR permits a small business to supply products of another manufacturer, regardless of the size of the manufacturer, to the Federal Government. 15 U.S.C. § 657s & 13 C.F.R. § 121.406(b)(7).

All SBA programs and services are extended to the public on a nondiscriminatory basis.

All SBA programs and services are extended to the public on a nondiscriminatory basis. 2

The procedure for obtaining an individual waiver is provided in 13 C.F.R. § 121.1204. At a minimum, an individual NMR waiver request must include the specific item to be waived, the reason the specific item is required, the proposed solicitation number, the NAICS code, the dollar amount of the procurement, a brief statement of the procurement history, and a Statement of Work (for contracts expected to exceed $500,000). 13 C.F.R. § 121.1204(b)(1).

In addition, the contracting officer must provide a determination that no small business manufacturer can reasonably be expected to offer the product(s) required under the solicitation. This determination must be supported by a narrative of market research and by providing supporting documentation. 13 C.F.R. § 121.1204(b)(1)(iii).

According to VA’s submission, VA plans to procure Leased Digital Signage to provide an online patient/staff healthcare communication system throughout its network of nine (9) medical centers including a significant number of Veterans Outpatient Clinics. The Digital Screen/Signage Program will deliver educational information to patients within the various waiting room environments (Primary Care, Specialty Care, Mental Health, Pharmacy, Operation Room/ICU, etc.). VA’s market research concluded that there are no known small business manufacturers of Digital Signage and that there are multiple authorized distributors designated as Service-Disabled Veteran Owned Small Businesses.

As the VA has shown there are no small businesses that could reasonably meet the specifications of the contract, an individual waiver is appropriate in this instance. This individual waiver applies to this one-time award only and to the specific product identified in the waiver request. This waiver does not apply to modifications to the scope of the contract or other procurement actions. Modifications determined by the contracting officer to be within the scope of the contract will require an additional waiver. 13 C.F.R. § 121.1203(b).

Please note that if this contract has option periods each option period will require submission of a new waiver request and in no case shall a waiver be valid for more than five years. In addition, this waiver must be published with the solicitation so that potential offerors are aware of the waiver and the specific product(s) covered.

The effect of this waiver is to allow an otherwise qualified small business to supply the product of an other-than-small manufacturer or processor on this intended small business set-aside contract. However, it must be emphasized that this waiver of the NMR does not waive other legal requirements applicable to Government procurements, such as the Buy American Act and the Trade Agreements Act. 13 C.F.R. § 121.406(b)(7).

This individual waiver is effective for the duration of the contract and must be used within one year of issuance. Please inform SBA of the date you enter a contract utilizing the waiver, the contract number, and the actual dollar value of the contract. Should you have any

All SBA programs and services are extended to the public on a nondiscriminatory basis. 3 questions or require any additional information, please contact Michael D. Baltzgar of my staff at (202) 821-8180 or michael.baltzgar@sba.gov

Sincerely, Wallace D. Sermons, II Acting Director Office of Government Contracting

Pamela J.

Beavers

Digitally signed by Pamela J. Beavers Date: 2022.07.26 16:56:28 -05'00'