Sec. 7. Revision to the nonmanufacturer rule
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Section 8(a)(17) of the Small Business Act ( 15 U.S.C. 637(a)(17) ) is amended— in subparagraph (A), by striking any procurement contract and all that follows through section 15 and inserting any procurement contract, which contract has as its principal purpose the supply of a product to be let pursuant to this subsection or subsection (m), or section 15(a), 31, or 36, ; and by adding at the end the following new subparagraph: This paragraph shall not apply to a contract that has as its principal purpose the acquisition of services or construction. .
Section 46(a)(4) of such Act ( 15 U.S.C. 657s(a)(4) ) is amended by striking for supplies from a regular dealer in such supplies and inserting which is principally for supplies from a regular dealer in such supplies, and which is not a contract principally for services or construction . The Administrator of the Small Business Administration shall publish a list of waivers to the requirements of section 8(a)(17) of the Small Business Act ( 15 U.S.C. 637(a)(17) ) granted for a class of products as an appendix to section 121.406 of title 13, Code of Federal Regulations (or any successor regulation).
Not later than 1 year after the date of enactment of this section, the Administrator of the Small Business Administration shall issue any rules necessary to carry out the amendments made by this section. Not later than 1 year after the issuance of the rules required in paragraph (1), the Comptroller General shall— review the compliance of the Small Business Administration with the application of the requirements of section 8(a)(17) of the Small Business Act ( 15 U.S.C. 637(a)(17) ); and submit a report to the Committee on Small Business of the House of Representatives and the Committee on Small Business and Entrepreneurship of the Senate with any recommendations on how to increase compliance with such requirements.
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