1. Home
  2. |Insights
  3. |Nonmanufacturer Rule Applies to Procurements for Services

Nonmanufacturer Rule Applies to Procurements for Services

Client Alert | 1 min read | 09.25.14

In Rotech Healthcare Inc. v. U.S. (Sept. 19), the Court of Federal Claims enjoined the Department of Veterans Affairs from moving forward with a procurement for home oxygen supplies and services issued under a NAICS Code for services, finding that the solicitation violated the statutory "nonmanufacturer rule" (NMR)—a provision that requires nonmanufacturer recipients of small business set-aside contracts for products to provide the products of domestic small business manufacturers or processors. Relying on a 2006 CFC decision instead of a subsequent, unambiguous SBA regulation that limited the NMR to procurements assigned manufacturing or supply NAICS codes, the court explained that Congress intended the NMR to apply to mixed service and supply contracts irrespective of NAICS code.


Insights

Client Alert | 5 min read | 07.20.26

DOJ and DHS Issue Interim Final Rule on State and Local Counter-Drone Authority Under the SAFER SKIES Act

On July 6, 2026, the U.S. Department of Justice (DOJ) and the U.S. Department of Homeland Security (DHS) published an Interim Final Rule (IFR) setting up a new federal framework that allows state, local, Tribal, and territorial (SLTT) law enforcement and correctional agencies to detect, track, and, in some cases, disable or seize drones. The rule directly affects SLTT agencies looking to stand up counter-drone programs, as well as drone and counter-drone technology companies whose products will be subject to federal review and approval. Although the IFR bypassed the Administrative Procedure Act’s standard notice-and-comment process on good cause grounds — citing the statutory 180-day deadline and urgent public safety needs — the rule is already legally binding and effective as of July 1, 2026. The Departments are nonetheless accepting post-promulgation comments through September 4, 2026....