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hello and welcome to the wonderful world of government contracting im your host nancy today were on episode number 61 and were going to talk about what is the non-manufacturer rule but before we get started lets roll the intro [Music] welcome back lets get started so what is the non-manufacturer rule for small business set-asides other than construction or service contracts the prime contractor thats supplying the products to the government is required to cover at least 50 percent five zero percent of the total cost of the manufacturing of those products in order to be considered a manufacturer the non-manufacturer rule is an exception to that requirement this rule allows a small business to supply products it did not manufacture as long as those products came from another small business so you couldnt use a johnson and johnson for example and supply medical products or that type of thing using the non-manufacture rule because they are a large business you would have to use a sm