Most explanations of the nonmanufacturer rule are written by lawyers, for the question "is my company eligible?". A reseller faces a narrower and more frequent question on every set-aside supply bid: which suppliers can I quote from? The rule answers it, and the answer often excludes the cheapest supplier.
This guide covers the rule from the sourcing side: when it applies to a solicitation, what it asks of the reseller and of the supplier, how waivers work, and what to put in each supplier request so the facts are on file before the bid goes in. It is part of our guide to sourcing supplier quotes for a government solicitation; a short definition is in what the nonmanufacturer rule is.
This guide describes the rule as written and its effect on sourcing. It is not legal advice; confirm how it applies to a specific solicitation with the contracting officer or counsel.
What is the nonmanufacturer rule?
A rule that lets a small business that does not make a product qualify for a set-aside or sole-source supply contract, provided it supplies the product of a small business manufacturer made in the United States, or a waiver applies. A nonmanufacturer is "a concern, including a supplier, that provides an end item it did not manufacture, process, or produce" (FAR 52.219-33).
The rule exists so that set-aside contracts reach small manufacturers as well as small intermediaries. A small reseller can win a set-aside supply contract, but on many of them it cannot do so by reselling a large manufacturer's product, however available and cheap that product is.
The requirements are in 13 CFR 121.406, the SBA's size regulation, and are put into contracts through the FAR clause 52.219-33, Nonmanufacturer Rule (September 2021), prescribed at FAR 19.507(h).
When does it apply to your bid?
When the solicitation is a set-aside or sole-source award for supplies and includes FAR 52.219-33. The clause is the practical test: if it is in the solicitation, the rule applies to your offer; if it is not, check why before assuming it does not.
| Situation | Does the rule apply? | Source |
|---|---|---|
| Set-aside or sole-source supply contract that includes FAR 52.219-33 | Yes | FAR 52.219-33 |
| Small business set-aside valued between the micro-purchase threshold ($15,000) and the simplified acquisition threshold ($350,000) | No | 13 CFR 121.406(c); thresholds since 1 Oct 2025 |
| SDVOSB, HUBZone, WOSB or 8(a) set-aside in that same value range | The exception in 121.406(c) is written for small business set-asides and does not name these programs; check whether the clause is included | 13 CFR 121.406(c) |
| Unrestricted (full and open) competition | No; the rule applies only to set-aside and sole-source awards | FAR 52.219-33 |
| Services or construction NAICS code | No; the rule applies to supply acquisitions | 13 CFR 121.406 |
The value range in the second row moved on 1 October 2025, when the FAR Council's inflation adjustment raised the micro-purchase threshold to $15,000 and the simplified acquisition threshold to $350,000 (Pillsbury, reporting 90 FR 41872).
The third row is where published guidance contradicts itself. Some secondary sources say the rule applies to every SDVOSB, HUBZone, WOSB and 8(a) set-aside; others quote dollar thresholds that the current regulation does not contain. The regulation's own wording limits the value-range exception to small business set-asides. A reseller bidding on an SDVOSB set-aside should treat the rule as applying whenever the clause is in the solicitation, and ask the contracting officer when it is unclear. The eligibility checks are summarized in can a small business reseller bid on a set-aside supply contract.
What does it require of you as a reseller?
Four things, set out in 13 CFR 121.406(b). The reseller must not exceed 500 employees (150 under the IT value-added reseller exception). It must be primarily engaged in retail or wholesale trade and normally sell the type of item being supplied. It must take ownership or possession of the item with its own personnel, equipment or facilities in a manner consistent with industry practice. And it must supply the end item of a small business manufacturer made in the United States, or obtain a waiver.
The second and third conditions deserve attention from a reseller that holds no stock. "Normally sells the type of item" means a reseller bidding far outside its usual categories may not qualify on that line. "Takes ownership or possession … consistent with industry practice" is a question of fact about how the item reaches the government. How these conditions apply to a particular delivery arrangement, such as direct shipment from the supplier, is a question for counsel or the contracting officer rather than one to settle by assumption.
The fourth condition is the sourcing one, and it moves the question to the supplier.
What does it require of your supplier?
That the item it quotes was made in the United States by a small business. The supplier itself does not have to be a small manufacturer; a distributor can quote. What matters is the manufacturer of the end item.
That turns three facts into requirements of the supplier quote:
| Fact needed | Why | What to ask for |
|---|---|---|
| Who manufactures the end item | The rule looks at the manufacturer, not the distributor | Manufacturer name, CAGE code and part number |
| Where it is manufactured | It must be made in the United States or its outlying areas | Country of manufacture stated on the quote |
| Whether the manufacturer is small | Size is measured under the solicitation's NAICS code size standard | The manufacturer's size status for that NAICS code, or enough to check it in SAM |
A distributor quoting a large manufacturer's brand fails the rule on that line, unless a waiver covers the product. A distributor quoting a small US manufacturer's product passes, provided the distributor can document the manufacturer. A quote that does not say who made the item cannot be used on a line where the rule applies.
Kits. When the end item is a kit of supplies, at least 50% of the total cost of the components must be manufactured in the United States by small businesses (FAR 52.219-33). For kit lines, ask for the manufacturer and cost of each component.
How do waivers work?
There are two kinds, and neither is requested by the reseller for a single bid. An individual waiver applies to one solicitation: the contracting officer determines that no small business manufacturer can reasonably be expected to offer a product meeting the specifications, and the SBA grants the waiver. A class waiver applies to a product or class of products: the SBA determines that no small business manufacturer of it is available to participate in the federal market (13 CFR 121.406(b)(5)).
For sourcing this means two checks. Before treating a large manufacturer's product as unusable, check whether the solicitation states that a waiver applies and whether the product falls under an SBA class waiver. If neither applies, the large manufacturer's product is out for that line. A reseller who believes no small manufacturer exists for an item can raise it with the contracting officer before the due date; the waiver decision is the government's.
How do you build the rule into every supplier request?
Add four fields to the request for any line where FAR 52.219-33 is in the solicitation: the manufacturer and its CAGE code, the manufacturer's part number, the country of manufacture, and the manufacturer's size status under the solicitation's NAICS code. Ask the supplier to state them on the quote, not in a follow-up email, so the quote itself is the record.
Ask for these on every line rather than only on lines you think are at risk. A reseller rarely knows in advance which of a supplier's products are made by small businesses, and asking afterwards costs a round trip that the deadline may not allow.
When the quotes come back, check the fields before comparing prices. A cheaper quote that fails the rule is not a cheaper option for that line, and comparing it with eligible quotes produces a bid price you cannot deliver against. The general approach to comparing quotes on more than price is in total cost of ownership versus lowest price, and the checks to run on a new supplier before relying on its statements are in how to verify a supplier online.
What happens if the sourcing is wrong?
The offer can be found ineligible for the set-aside, an award can be challenged by a competitor, and a reseller that wins on a non-compliant product may be unable to perform without breaching the contract's terms.
The most common cause is a missing fact: a quote that gave a price and a lead time but not the manufacturer, accepted under deadline pressure. Asking for the manufacturer, origin and size on every request removes most of that risk at no cost.
Keep the quote and the request behind each line. If eligibility is questioned after award, the supplier's written statement of manufacturer and origin is the document that shows what the reseller relied on when it bid.
FAQ
What is the nonmanufacturer rule?
A rule under 13 CFR 121.406 and FAR 52.219-33 that lets a small business that does not make a product qualify for a set-aside or sole-source supply contract, provided it supplies the end item of a small business manufacturer made in the United States, or a waiver applies. It also requires the reseller to be primarily engaged in retail or wholesale trade, to normally sell the item, and to have no more than 500 employees.
Does the nonmanufacturer rule apply to SDVOSB set-asides?
The exception in 13 CFR 121.406(c) covers small business set-asides valued between the micro-purchase threshold and the simplified acquisition threshold and does not name SDVOSB, HUBZone, WOSB or 8(a) set-asides. The practical test is whether the solicitation includes FAR 52.219-33; if it does, treat the rule as applying, and ask the contracting officer when unsure.
Can a reseller offer a large manufacturer's product on a set-aside?
Not where the rule applies, unless a waiver covers the product. An individual waiver for one solicitation is requested by the contracting officer and granted by the SBA; a class waiver for a product class is issued by the SBA. Without either, the end item must come from a small business manufacturer in the United States.
What should I ask a supplier to comply with the nonmanufacturer rule?
The manufacturer's name and CAGE code, the manufacturer's part number, the country of manufacture, and the manufacturer's size status under the solicitation's NAICS code, stated on the quote itself. For kits, the manufacturer and cost of each component, since at least 50% of the component cost must be from US small businesses.
What are the thresholds in 2026?
Since 1 October 2025 the micro-purchase threshold is $15,000 and the simplified acquisition threshold is $350,000, following the FAR Council's inflation adjustment. The value-range exception in 13 CFR 121.406(c) is defined by those two thresholds rather than by fixed dollar amounts.
Key takeaways
- The nonmanufacturer rule decides which suppliers a small reseller can quote from on many set-aside supply contracts: the end item must come from a US small business manufacturer unless a waiver applies.
- The practical test is the clause: if FAR 52.219-33 is in the solicitation, the rule applies to your offer.
- Small business set-asides between $15,000 and $350,000 are exempt under 13 CFR 121.406(c); the regulation does not extend that exception to SDVOSB, HUBZone, WOSB or 8(a) set-asides, and secondary sources that say otherwise disagree with one another.
- The reseller must also be primarily engaged in retail or wholesale trade, normally sell the item, and take ownership or possession consistent with industry practice; delivery arrangements are a question for counsel or the contracting officer.
- Ask every supplier for the manufacturer, CAGE code, part number, country of manufacture and manufacturer size status on the quote itself, and check those fields before comparing prices.
- Waivers are the government's decision: individual waivers per solicitation through the contracting officer, class waivers by the SBA.