[Federal Register Volume 59, Number 67 (Thursday, April 7, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-8274]


[[Page Unknown]]

[Federal Register: April 7, 1994]


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SMALL BUSINESS ADMINISTRATION

13 CFR Part 121

 

Small Business Size Standards; Inflation Adjusted Size Standards

AGENCY: Small Business Administration.

ACTION: Final rule.

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SUMMARY: On September 2, 1993, the Small Business Administration (SBA) 
published a proposed rule in the Federal Register, 58 FR 46573, re-
proposing to streamline its size standards by reducing the current 
number of fixed size standard levels from thirty to nine (retaining the 
five existing employee-based levels and establishing four new receipts-
based levels). As a part of the proposed rule, an inflation adjustment 
percentage of 45.8% was applied to most of SBA's receipts-based size 
standard levels and then rounded to the nearest newly established four 
receipts-based levels. The SBA has decided to further review the 
effectiveness of reducing the current number of fixed size standard 
levels in order to simplify the size standards program. However, the 
SBA continues to believe that the application of an inflationary 
adjustment, to account for the effects of inflation since the third 
quarter of 1982, to its receipts-based size standards is still 
warranted. This final rule reflects the SBA's finding that the 
application of an inflation adjustment percentage of 48.2% (based upon 
the latest inflation information) to the receipts-based size standard 
of each and every industry, not otherwise prohibited for change by 
statute, is necessary.

EFFECTIVE DATE: April 22, 1994.

FOR FURTHER INFORMATION CONTACT:Ajoy K. Sinha, Program Analyst, Size 
Standards Staff (202) 205-6618.

SUPPLEMENTARY INFORMATION: On December 21, 1992, SBA published a 
proposed rule in the Federal Register, 57 FR 62515, that sought to 
achieve the twin goals of adjusting SBA's receipt-based size standards 
for inflation and streamlining the SBA size standards system. Following 
a withdrawal of that proposed rule on February 19, 1993 (58 FR 9131) 
and further review of the proposal by the Agency, SBA again published a 
proposed rule in the Federal Register on September 2, 1993, 58 FR 
46573, to accomplish those same dual purposes.
    Pursuant to the September 2, 1993 proposed rule, SBA's current 
system of approximately thirty size standards would first have been 
simplified by reducing the number of different size standards to nine. 
More specifically, SBA's twenty-one different receipts-based size 
standards would have been reduced to only the four most common 
receipts-based size standards--$3.5 million in average annual receipts, 
$7.0 million, $12.5 million, and $17.0 million. In addition, SBA 
proposed to increase the receipts-based size standards for inflation. 
The inflation rate to be applied was then calculated at 45.8 percent. 
This rate covered the period between the third quarter of 1982 (the 
last date for which size standards were adjusted for inflation) and the 
first quarter of 1993 (the most recent data available at the time of 
the publication of the proposed rule).
    The 45.8 percent inflation rate would then have been applied to the 
four remaining receipts-based size standards. This application would 
have in turn generated the four most common receipts-based size 
standards with an inflation adjustment--$5 million, $10 million, $18 
million and $25 million. The inflation adjustment then would have been 
calculated for each of the existing receipts-based size standards, 
except where the Agency is legally prohibited from doing so. Each of 
these standards, preliminarily adjusted for the full inflation rate, 
would have then been modified by reducing or increasing them to the 
closest of the four inflation-adjusted simplified size standards. As a 
result, many industries would have received a net inflation adjustment 
that would have been significantly larger or smaller than the 45.8 
percent inflator.
    After further considering the proposed rule in light of comments 
received, the SBA has concluded that further study is needed on the 
issue of how best to simplify its size standards. In addition, SBA 
feels that the manner in which size standards would have been increased 
for inflation (that is, adjusting upward or downward from a full 
inflation increase to one of the four newly created simplified size 
standards) may not have adequately taken into account the effects of 
inflation on a significant number of industries. Indeed, it believes 
that the need to adjust current size standards for inflation is an 
urgent one. Small business owners have requested quick action. In SBA's 
view, updating such standards as soon as possible is necessary to make 
them more appropriate. Several commenters to the proposed rule 
maintained that the proposed rule was inequitable in that certain 
industries would not have received a full inflationary adjustment. 
These commenters recommended that SBA modify every size standard upward 
to the next highest of the four inflation-adjusted simplified size 
standards, but never downward to give certain industries less than a 
full increase for inflation. While SBA is not convinced that increasing 
each of these size standards upward to the next highest level is the 
appropriate solution, SBA does believe that the concerns raised 
regarding the unequal inflation adjustments are valid.
    Accordingly, the SBA has decided to finalize only that portion of 
the proposed rule that called for an increase in the receipts-based 
size standards due to inflation. In other words, this final rule will 
adjust each of the current twenty-one receipts-based size standards for 
inflation.
    The SBA firmly believes that all possible alternatives should 
continue to be studied and analyzed to determine the most effective 
means by which a true simplification of the numerical size standards, 
related size standard definitional provisions, and the size 
determination process can be achieved. After this review has been 
completed, a new proposal to simplify the size standards may be 
forthcoming with an opportunity for the public to express its views 
regarding such a proposal.
    In the interim, however, the SBA continues to believe in the 
necessity of adjusting the receipts-based size standards to account for 
the effects of inflation since the Agency's last inflationary 
adjustment in 1984. This final rule adopts increases to the receipts-
based size standards to reflect the effects of inflation. As discussed 
in the proposed rule, March 12, 1984 was the last time a general 
inflationary adjustment was applied to the receipts-based size 
standards. The proposed rule took into account available data through 
the first quarter of 1993.
    In an effort to establish receipts-based size standard levels 
reflective of current market conditions, the SBA, based on the 
availability of the U.S. Department of Commerce's most recent inflation 
data, has re-calculated the inflation adjustment percentage to be 
applied to the receipts-based size standards. Thus, taking into account 
available data through the fourth quarter of 1993, SBA calculates the 
inflation adjustment to be 48.2 percent (as opposed to the 45.8 percent 
adjustment calculated in the proposed rule based on the most current 
data available at that time, the first quarter of 1993). As in the 
proposed rule, in determining the rate of inflation, SBA has utilized 
the U.S. Department of Commerce's published Gross Domestic Product 
(GDP) Implicit Price Deflator.
    The methodology used in determining the appropriate inflation 
adjustment is as follows:
    1. Determine the base period used to establish the current size 
standard;
    2. Determine the GDP deflator at the base period and at the most 
recent point in time for which the GDP deflator has been published; and
    3. Apply the calculated inflation adjustment percentage to the 
receipts-based size standard of each and every industry, not otherwise 
prohibited from change by statute.
    The inflation adjustment calculated in this final rule is based on 
the last index value used for the 1984 inflation adjustment and the 
latest available index value. The 1984 adjustment accounted for 
inflation up to the third quarter of 1982. For purposes of this rule, 
the third quarter of 1982 is, therefore, the base period for which SBA 
calculated the amount of inflation that has occurred since the last 
adjustment. The U.S. Department of Commerce's latest data show index 
values of 84.3 for the third quarter of 1982 and 124.9 for the fourth 
quarter of 1993. This change records inflation of 48.2 percent for the 
time between these two periods. Thus, each and every industry having a 
receipts-based size standard, not otherwise prohibited from change by 
statute, first receives an inflationary calculation percentage of 48.2 
percent in this final rule. Finally, where necessary, the inflated size 
standards are rounded to the nearest half million dollar increment. 
This rounding method produces net increases to most industry size 
standards that are slightly above or below the calculated inflation 
rate of 48.2 percent. This methods is selected because it results in an 
increase to each size standard that is as close as possible to the 
calculated 48.2 percent inflationary increase, and is consistent with 
the settled practice of establishing size standards at $0.5 million 
increments. Past inflationary increases in SBA's receipt-based size 
standards have similarly been rounded to the nearest $0.5 million 
increment. See, e.g., 49 FR 5024 (February 9, 1984). The SBA believes 
that this rounding methodology most closely reflects the calculated 
inflation increase. The inflation adjustment adopted by this final rule 
is not intended to and can not be a precise calculation of inflation 
experienced within each and every industry. This is because inflation 
will vary from industry to industry, and measures of these cost and 
price increases are not generally calculated for specific industries, 
as represented by individual Standard Industrial Classification (SIC) 
code designations. SBA feels that the rounding methodology is, 
therefore, the most reasonable application of an inflationary 
adjustment since the inflation measure used for this final rule 
measures only the general rise of prices in the whole economy over an 
extended period of time.
    Three industry categories which SBA has revised since the 1984 
inflation adjustment are being adjusted differently in this final rule 
to correctly increase those industries for inflation through 1993. 
These are the chicken egg production industry, SIC coded 0252; motor 
vehicles dealers (new and used), SIC code 5511; and the industries of 
computer services, SIC codes 7371 through 7379. In developing the 
existing size standards for these industries, SBA used data on industry 
revenues later than the third quarter of 1982. Thus, the existing 
standards take into account the effects of inflation beyond the third 
quarter of 1982. To avoid double-counting for the effects of inflation 
on these size standards, the size standards will be adjusted for 
inflation occurring from the year of the industry data (the base 
period) to the fourth quarter of 1993. The data bases the SBA relied 
upon to establish the size standards for these three categories reflect 
revenues generated during an entire calendar year. Accordingly, the 
average price deflator for the applicable calendar year is used as the 
base period's deflator value for purposes of this inflation 
calculation.
    The size standard for the Chicken Egg industry, SIC code 0252, was 
primarily based on industry data contained in the SBA's 1986 Small 
Business Data Base (56 FR 55617) and became effective on November 29, 
1991. Accordingly, the inflation adjustment for this industry is 
calculated in this final rule based on the inflation between calendar 
year 1986 (the base period) and the fourth quarter of 1993. Using the 
same methodology discussed above, the Implicit Price Deflator for GDP 
increased 28.9 percent during this period based on deflators of 96.9 
for calendar year 1986 and 124.9 for the fourth quarter of 1993. The 
$7.0 million size standard for this industry will, therefore, increase 
to $9.0 million.
    The 1987 Census of Service Industries and 1987 Census of Retail 
Trade Industries, published by the U.S. Department of Commerce's Bureau 
of the Census, were primarily used to establish the size standards for 
Computer Services, SIC codes 7371 through 7379 (57 FR 27907), and for 
Motor Vehicle Dealers (New and Used), SIC code 5511 (57 FR 4837). Their 
size standards became effective on July 23, 1992 and March 11, 1992, 
respectively. Accordingly, the inflation adjustment for these two 
industries will be calculated based on inflation between calendar year 
1987 (the base period) and the end of 1993 in this final rule. Using 
the same methodology discussed above, the Implicit Price Deflator for 
GDP increased 24.9 percent during this period based on deflators for 
calendar year 1987 (the base period) of 100.0 and for the fourth 
quarter of 1993 of 124.9. Based on these calculations, the $14.5 
million size standard for Computer Services will increase to $18 
million and the $17 million size standard for Motor Vehicle Dealers 
(New and Used) will increase to $21 million.
    Two other industries had their size standards further changed after 
the general 1984 inflation adjustment, but these changes were based on 
industry specific data for 1982 and 1984. These are the industries of 
Travel Agencies, SIC code 4724 (53 FR 18820) (1982 data), and Real 
Estate and Managers, SIC code 6531 (50 FR 27418) (1984 data). The SBA 
believes no adjustment is needed to the real estate industry size 
standard to correct for the double-counting of inflation since the 
increment of change in inflation between 1982 and 1984 is insufficient 
to cause a different size standard than the one established in this 
rule.
    An additional issue which is addressed in this final rule is the 
resolution of an employee or revenue-based size standard for industries 
in the computer services industries (SIC codes 7371-7379). On June 23, 
1992, the SBA published an interim final rule in the Federal Register, 
53 FR 27907, establishing a $14.5 million size standard for all nine 
industries in the computer service industries. However, in that rule 
the SBA continued to seek information on the adoption of an employee-
based size standard for some or all of the computer service industries. 
After consideration of the comments received on that issue, the Agency 
believes that it lacks sufficient information regarding procurement 
patterns among this group of industries to justify such a significant 
change as shifting to an employee-based measure of size.
    As discussed above, the SBA is now establishing these industries' 
size standards at $18.0 million in this final rule. In effect, the much 
larger issue of adjusting SBA's size standards for inflation has at 
least partially superseded the issue of whether to use a revenue or 
employee-based size standard for this group of industries. Thus, the 
Agency has decided to first implement an inflation adjusted revenue-
based size standard for these industries and then review its program 
results with these higher size standards in place. At that time, SBA 
may propose an appropriate rule change. SBA believes that the higher 
revenue-based size standards for the computer services industries 
established in this final rule may substantially meet many of the 
concerns of those seeking a employee-based size standard.
    As indicated in the proposed rule, four footnotes (footnotes 8, 12, 
15 and 16) are adjusted to be consistent with the inflationary 
adjustments. Size standards for Offshore Marine Services (part of SIC 
Major Groups 44 and 45), Retail Sale of Aircraft (part of SIC code 
5599), Leasing of Building Space to the Federal Government by Owners 
(part of SIC Major Group 65) and industries without a specific size 
standard listed in SIC Division I-Services, are being established at 
$20.5 million, $7.5 million, $15.0 million, and $5.0 million, 
respectively.
    The SBA notes that the size standards for certain industries have 
either been established by statute or prohibited by statute from change 
until after September 30, 1996. Thus, the size standards for these 
industries will remain at their current levels and will not be 
increased for inflation in this final rule. Title VII of Public Law 
100-656, 102 Stat. 3853, 3889, established the Small Business 
Competitiveness Demonstration Program to test the competitiveness of 
small business on Federal procurements. That program generally 
prohibits a change in size standards before September 30, 1996 for the 
Construction industries (SIC codes 1521-1799); the Engineering, 
Architecture, Surveying and Mapmaking industries (SIC codes 8711, 8712, 
8713, and part of SIC code 7389); and the Refuse Systems and Related 
Services industries (SIC code 4953). A footnote is being added to the 
size standard for SIC code 7389, Business Services, Not Elsewhere 
Classified, to comply with this statutory mandate to retain the $3.5 
million size standard for any surveying and mapping activities which 
may be included in this industry. The description of this industry in 
the Standard Industrial Classification Manual, 1987 includes some 
surveying and mapping activities not included in SIC code 8713, 
Surveying Services. This footnote was not part of the proposed rule due 
to an oversight as to the full impact of this statutory requirement. 
However, the SBA is bound by statutory direction to retain the existing 
$3.5 million size standard for surveying and mapping services whether 
included in SIC code 8713 or SIC code 7389.
    While the Small Business Competitiveness Demonstration Program 
generally requires the size standards of certain industries to remain 
unchanged until 1996, the size standards relating to two of the three 
industries in the engineering category may now be revised as a result 
of recent legislation. Section 850 of Public Law 103-160, the National 
Defense Authorization Act for fiscal year 1994, 107 Stat. 1547, 1726, 
signed into law on November 30, 1993, modified the application of the 
Small Business Competitiveness Demonstration Program as to SIC code 
8711, Engineering Services, to make clear that the subdivisions of 
Standard Industrial Classification code 8711 for (A) engineering 
services-military and aerospace equipment and military weapons; and (B) 
engineering services-marine engineering and naval architecture are not 
part of the Program and modifications to those size standards could be 
made by the SBA.
    In recognition of this statutory change, this final rule gives an 
inflationary adjustment to the size standards for engineering services 
for Military and Aerospace Equipment and Military Weapons, raising it 
from $13.5 million to $20.0 million in average annual receipts, and to 
the size standard for engineering services related to Marine 
Engineering and Naval Architecture, raising it from $9.0 million to 
$13.5 million in average annual receipts. Although the proposed rule 
did not contain a similar proposal, it clearly stated that SBA intended 
to increase all receipt-based size standards by inflation except where 
SBA was constrained from doing so by law. At the time of the 
publication of the proposed rule on September 2, 1993, SBA interpreted 
the requirements relating to the Small Business Competitiveness 
Demonstration Program as prohibiting size standard increases in these 
two subdivisions of SIC code 8711. The size standards that are adopted 
in this final rule reflect the release of these size standards from 
statutory constraints and adjustments for inflation which, over time, 
has eroded the real value of these industries' size standards similar 
to other industries' size standards.
    The other statutory provision which constrains SBA from making 
inflationary adjustments for certain industries is Section 18016 of the 
Comprehensive Omnibus Reconciliation Act of 1986, Public Law 99-272, 
100 Stat. 82, 371, which amended SBA's authority regarding the setting 
of size standards contained in section 3(a) of the Small Business Act, 
15 U.S.C. 632(a). Specifically, pursuant to section 3(a) of the Small 
Business Act, as amended by Public Law 99-272, an agricultural 
enterprise shall be deemed to be a small business concern if, including 
its affiliates, it has annual receipts not in excess of $500,000. SBA 
has complied with that requirement by retaining the size standard for 
both Agricultural Production-Crops (SIC codes 0111-0191), and Livestock 
and Animal Specialties (SIC codes 0212-0291, except SIC code 0211 and 
0252) at $500,000.

Comments to Proposed Rule

    In response to the September 2, 1993 proposed rule, SBA received a 
total of one-hundred and thirty-five comments. A thorough review of 
these comments revealed that out of the one-hundred and thirty-five 
comments received, ninety seven were supportive (71.9%), with over 
fifty commenters citing the inflation adjustment of size standards as a 
reason for supporting the proposal. In addition, about forty commenters 
generally supported the simplification of size standards, but did not 
specifically agree or disagree with the SBA's proposed system for 
simplification. This general support for simplification was not, 
however, the primary focus of any comment. A general supporting 
statement was usually followed or preceded by a comment regarding some 
other specific aspect of the proposal.
    The remaining thirty-eight comments included twenty-five which were 
non-supportive (18.5%) of the proposal, mainly opposing the proposed 
size standard for the travel agencies industry. Thirteen comments 
discussed only issues not included within the proposed rule. SBA's 
evaluation of the public comments yielded the following noteworthy 
issues:
    Although the proposed rule discussed a revision to the size 
standards for over three hundred industries, the SBA received thirty-
three comments (nearly 25 percent of all comments received) 
specifically on the size standard relating to Travel Agencies (SIC code 
4724). The proposed rule would have increased the size standard for 
this industry from $500,000 to $5.0 million in commission-based income, 
or a 900 percent increase. The $5.0 million size standard was proposed 
because it was the lowest of the four receipts-based size standards 
under the proposed simplification of size standards. The majority of 
the comments received on the travel agencies size standard, nineteen or 
nearly 60 percent of the thirty-three comments, opposed increasing the 
size standard by 900 percent. However, twenty-seven of the commenters 
(82 percent) favored increasing the existing size standard by at least 
100 percent.
    The SBA believes that the fourteen comments that agreed with the 
proposed revision of the Travel Agencies size standard, coupled with 
the alternatives recommended in the nineteen opposing comments, 
demonstrate an overwhelming consensus that the existing size standard 
is too low. Most of the comments received opposing the $5 million 
proposed size standard suggested an alternative size standard level 
that would qualify companies as small whose commission-based receipts 
were between $1.0 and $2.0 million. SBA notes that none of those 
submitting opposing comments suggested that the size standard should be 
increased beyond $2.5 million in commission-based income.
    The commenters emphasized that since under the $5.0 million 
proposal all but 100 of the 35,000 travel companies would be considered 
small, the result of increasing the size standard to the proposed level 
would virtually eliminate the benefits provided to smaller companies 
because they would be unable to compete with companies that were from 
10 to 50 times their size. The largest trade association of 
professional travel agents indicated that doubling the standard to $1.0 
million in receipts (commission plus other revenues) would sufficiently 
accommodate the growth in the size of agencies and the need for some 
room to grow by travel agencies that are successful in their initial 
bids for government procurement.
    The SBA fully agrees with the prevailing views of the commenters 
that the current size standard for the travel agency industry is too 
low and that it does not reflect current market conditions within the 
industry. Data from the Louis Harris & Associates 1992 U.S. Travel 
Agency Survey of market conditions indicate that the existing size 
standard includes 89 percent of travel agencies and that the proposed 
size standard would result in the inclusion of 99.8 percent of travel 
agencies. In consideration of the comments reviewed on this specific 
size standard, the SBA believes that an inflationary adjustment of 48.2 
percent coupled with a rounding upwards to the next $0.5 million 
increment establishes the appropriate size standard for this industry. 
Therefore, this final rule establishes a $1.0 million commission-based 
income size standard for the travel agencies industry, SIC code 4724.
    A total of nineteen comments, two from firms involved in the 
construction industry, nine from firms involved in the architectural 
and engineering industries, and eight from firms involved in various 
other industries, were received concerning the SBA's decision not to 
increase the size standards of the construction and engineering 
industries. As specifically stated in the proposed rule, the SBA is 
constrained by statute from increasing the size standards in these 
industries.
    Seventeen commenters requested the SBA to further adjust the size 
standard levels of their respective industries. The most often cited 
industries were: Management Services & Consulting (SIC codes 7341 and 
8742); Testing Laboratories (SIC code 8734); Building Maintenance (SIC 
code 7349); Computer Services (SIC codes 7371-7379); and Security Guard 
Services (SIC code 7381). Many of the reasons cited in support of an 
additional increase to one of these industries' size standards raised 
issues not considered or evaluated by the SBA in proposing the fixed 
size standard levels for purposes of simplification or in adjusting the 
current receipts-based size standards for inflation. The SBA's size 
standards are generally established based on structural characteristics 
of an industry. In reviewing the appropriateness of a size standard of 
a particular industry, the SBA utilizes five primary factors: Industry 
competition, average firm size, start-up costs, distribution of firms 
by size and the impact on the SBA's programs. The SBA does not believe 
that it has the discretion to make changes to size standards based on 
these considerations without first proposing such changes and affording 
the public an opportunity to comment on the basis of such proposals. 
The SBA's proposed rule discussed adjustments to size standards based 
on inflation in the economy as a whole and based on a further 
adjustment to achieve simplicity overall. Neither component of the 
proposed rule discussed characteristics of specific industries.
    For purposes of this rule, a straight inflationary adjustment of 
48.2 percent has been applied to all industries, with a small further 
adjustment for rounding purposes. With the elimination of the 
simplification component of the proposed rule (whereby size standards 
would have been further adjusted to one of the four receipts-based size 
standards) the size standards for the Building Maintenance industry, 
SIC code 7349, becomes $12 million rather than $10 million. The size 
standards of the other industries cited by these commenters either 
remain at the same level as established in the proposed rule or are 
adjusted slightly to achieve the rounding to the nearest $0.5 million. 
The SBA intends to conduct a separate industry study on these 
industries on a priority basis, which may or may not lead to further 
changes in their respective size standards.
    Three commenters specifically expressed concern with the 
disproportionate changes within the size standards resulting from the 
rounding methodology stipulated in the proposed rule to adjust the 
industry size standards to one of the four newly established size 
standard levels. As indicated above, the SBA has decided to give 
further study to the best way to simplify its size standards, and this 
rule does not reduce the number of receipts-based size standards to the 
four proposed standards with their accompanying ``disproportionate'' 
changes as feared by these commenters.
    Eight commenters specifically suggested that the SBA should 
establish a policy to review and adjust the receipts-based size 
standards on a regular and recurring basis. Of the eight commenters, 
these recommended that the size standards be reviewed and adjusted 
every four to six years, one recommended that they be reviewed and 
adjusted biennially, and four suggested annual reviews and adjustments. 
The SBA is continuing its evaluation of a policy to review the impact 
of inflation on a regular and recurring basis. This will be part of 
SBA's further review of the simplification of the size standards.
    As part of its proposal to simplify the size standards, SBA 
attempted to contact all 8(a) Program Participants in the program at 
the time of the proposed rule and requested them to specifically 
address the potential impact of the proposed size standards on smaller-
sized 8(a) firms. Sixteen commenters addressed this issue. Eleven of 
the sixteen commenters maintained that the proposed increase in the 
size standards would be beneficial to smaller-sized firms. Five of the 
sixteen commenters believed that such increases would be adverse to 
smaller-sized firms in that the number of 8(a) firms would increase, 
thus taxing available Federal procurement opportunities and the level 
of SBA assistance. Overall, the prevailing view of all commenting 8(a) 
firms is that the increases in the size standards are necessary and 
beneficial and should be adopted. The SBA believes that any possible 
adverse impact on the smaller-sized 8(a) firms is out weighed by the 
desirability of recognizing the effects of inflation.
    Four commenters suggested that the SBA adopt employee-based 
standards in lieu of receipts-based standards for all industries. 
However, only two commenters provided a rationale for the adoption of 
employee-based standards for all industries. One of these commenters 
indicated that utilizing employee-based standards would eliminate the 
need for periodic inflationary adjustments. The other commenter stated 
that equipment and material purchases required by Federal agencies on 
certain contracts distorted the actual size of a concern by raising a 
concern's receipts without an accompanying increase in actual business 
activity. The decision to use receipts or employees as the size 
standard measure is based on which measure is viewed as the best 
measure of size for firms involved in that particular industry. The 
SBA's policy is to evaluate the size standard measure of an industry on 
a case-by-case basis as part of the SBA's continuing efforts to review 
industry size standards. However, the issue of whether all industries 
should be measured by number of employees will be further explored 
along with other issues on simplifying size standards.
    In response to several comments, this rule publishes the entire set 
of size standards by SIC code designation and their accompanying 
footnotes. The complete size standards table provides the public with 
one convenient set of size standards and eliminates the need to have 
two tables of size standards, one for those size standards revised in 
this final rule and one for those unaffected by this rule.
    Compliance with Executive Orders 12612, 12778, and 12866, the 
Regulatory Flexibility Act (5 U.S.C. 601, et seq.) and the Paperwork 
Reduction Act (44 U.S.C. Ch. 35).

General

    SBA considers that this final rule will have a significant economic 
impact on a substantial number of small entities for purposes of the 
Regulatory Flexibility Act (5 U.S.C. section 601, et seq.). In 
addition, SBA believes that this final rule constitutes a significant 
rule for the purpose of Executive Order 12866. Immediately below, the 
SBA has set forth a summary regulatory impact analysis and a final 
regulatory flexibility analysis of this final rule.

(1) Description of Entities to Which the Rule Applies

    SBA estimates that approximately 20,000 additional firms will be 
considered small as a result of this rule. These firms will be eligible 
to seek available SBA assistance, provided they meet other program 
requirements. Many of these concerns probably had small business status 
in 1984, when the last comprehensive revision of size standards was 
issued by SBA, but have since lost eligibility because of general price 
increases. The current changes, in fact, operate roughly as adjustments 
for price changes (i.e., inflation) since that data. Approximately 
11,000 of the firms gaining eligibility operate in retail trade while 
approximately 9,000 operate in the services industries (Divisions G and 
I, respectively, of the SIC systems of classifying industries). Other 
firms affected by this rule include service firms within the 
agricultural or mining sectors, or firms in those transportation 
industries with receipt-based size standards. Firms becoming eligible 
for SBA assistance as a result of this rule, cumulatively generate $95 
billion in annual sales. This figure is less than 5 percent of the 
total sales in those industries with higher size standards. The new 
size standards would not impose a regulatory burden because they do not 
regulator or control business behavior.

(2) Description of Potential Benefits of the Rule

    The most significant areas of benefits to business obtaining small 
business status as a result of this final rule are in the Federal 
government's procurement arena and the SBA's business loan program. The 
SBA estimates that businesses gaining small business status could 
potentially obtain Federal contracts worth approximately $200 million 
under the small business set-aside program or the 8(a) program. The 
additional competition for many of these procurements may also result 
in a lower price to the government for its procurements which have been 
set aside, but the SBA is not able to quantify this benefit. In the 
SBA's 7(a) Loan Program, it is estimated that 250 loans amounting to 
$100 million could be made to the newly defined small businesses. The 
rule will also make various SBA programs available to business concerns 
who would otherwise be eligible for such programs but for an increase 
in their revenues due to inflation. In other words, the rule reinstates 
business concerns as small that lost their small business status due 
solely to inflation. As such, those firms which would again be eligible 
for SBA assistance and for small business procurement preference 
programs will benefit greatly from this rule.

(3) Description of Potential Costs of the Rule

    The changes in size standards as they impact on government 
procurement should not add any element of cost to the government and, 
in fact, as described above, may reduce the cost to a procuring Federal 
agency. Similarly, the rule should not result in any extra costs with 
respect to the 7(a) loan program. The amount of lending authority SBA 
can make or guarantee is established by appropriation. The competitive 
effects of size standards revisions differ from those normally 
associated with regulations affecting key economic factors such as the 
price of goods and services, costs, profits, growth, innovation, 
mergers, and foreign trade. The change to size standards is not 
anticipated to have any appreciable effect on any of these factors, 
although smaller-sized small businesses or 8(a) firms may be 
unsuccessful in competing for some Federal procurement opportunities 
due to the presence of larger, newly defined small businesses, some of 
which may well be more competitive in winning Federal procurements.

(4) Description of the Potential Net Benefits from the Rule

    From the above discussion, SBA believes that, because the potential 
costs of this rule are minimal, the potential net benefits would 
approach fairly closely the total potential benefits. The impact of the 
new size standard will appear predominantly in the Federal procurement 
area.

(5) Description of Reasons Why This Action is Being Taken and 
Objectives of Rule

    SBA has provided above a statement of the reasons why the new size 
standards are established and a statement of the reasons for and 
objectives of this rule.

(6) Legal Basis for Rule

    The legal basis for this rule is sections 3(a) and 5(b)(6) of the 
Small Business Act, 15 U.S.C. 632(a) and 634(b)(6).

(7) Federal Rules

    There are no Federal rules which duplicate, overlap or conflict 
with this rule. SBA has statutorily been given exclusive jurisdiction 
in establishing size standards.

(8) Significant Alternatives to the Rules

    This final rule establishes the most appropriate individual size 
standard by which to define those small businesses that are eligible 
for SBA's assistance programs. There are no significant alternatives to 
defining a small business.
    The SBA certifies that this final rule will not have federalism 
implications warranting the preparation of a Federal Assessment in 
accordance with Executive Order 12612.
    The SBA further certifies that this final rule will not add any new 
reporting or record keeping requirements under the Paperwork Reduction 
Act of 1980, 44 U.S.C., Chapter 35. For purposes of Executive Order 
12778, the SBA certifies that this final rule is drafted, to the extent 
practicable, in accordance with the standards set forth in section 2 of 
that order.

List of Subjects in 13 CFR Part 121

    Government procurement, Government property, Grant programs--
business, Loan programs--business, Small business.
    Accordingly, part 121 of 13 CFR is amended as follows:

PART 121--[AMENDED]

    1. The authority citation of part 121 continues to read as follows:

    Authority: 15 U.S.C. 632(a), 634(b)(6), 637(a), and 644(c).


Sec. 121.601  [Amended]

    2. Section 121.601 is amended by revising the table of ``Size 
Standards by SIC Industry'' to read as follows:

                     Size Standards by SIC Industry                     
------------------------------------------------------------------------
                                                                 Size   
                                                              standards 
 SIC (*=New SIC                                               in number 
  Code in 1987,       Description (N.E.C.=Not elsewhere           of    
   not used in                   classified)                  employees 
     1972)                                                   or millions
                                                              of dollars
------------------------------------------------------------------------
                                                                        
  For all industries not specifically listed in this table, except for  
                                                                        
                         Division A--Agriculture                        
                                                                        
------------------------------------------------------------------------
Major Group 01--Agricultural Production--Crops                          
                                                                        
------------------------------------------------------------------------
0111............  Wheat....................................      \1\$0.5
0112............  Rice.....................................           .5
0115............  Corn.....................................           .5
0116............  Soybeans.................................           .5
0119............  Cash Grains, N.E.C.......................           .5
0131............  Cotton...................................           .5
0132............  Tobacco..................................           .5
0133............  Sugarcane and Sugar Beets................           .5
0134............  Irish Potatoes...........................           .5
0139............  Field Crops, Except Cash Grains, N.E.C...           .5
0161............  Vegetables and Melons....................           .5
0171............  Berry Crops..............................           .5
0172............  Grapes...................................           .5
0173............  Tree Nuts................................           .5
0174............  Citrus Fruits............................           .5
0175............  Deciduous Tree Fruits....................           .5
0179............  Fruits and Trees Nuts, N.E.C.............           .5
0181............  Ornamental Floriculture Nursery Products.           .5
0182............  Food Crops Grown Under Cover.............           .5
0191............  General Farms, Primarily Crop............           .5
                                                                        
------------------------------------------------------------------------
3Major Group 02--Livestock and Animal Specialties                       
                                                                        
------------------------------------------------------------------------
0211............  Beef Cattle Feedlots (Custom)............         $1.5
0212............  Beef Cattle, Except Feedlots.............           .5
0213............  Hogs.....................................           .5
0214............  Sheep and Goats..........................           .5
0219............  General Livestock, Except Dairy and                 .5
                   Poultry.                                             
0241............  Dairy Farms..............................           .5
0251............  Broiler, Fryer, and Roaster Chickens.....           .5
0252............  Chicken Eggs.............................          9.0
0253............  Turkeys and Turkey Eggs..................           .5
0254............  Poultry Hatcheries.......................           .5
0259............  Poultry and Eggs, N.E.C..................           .5
0271............  Fur-Bearing Animals and Rabbits..........           .5
0272............  Horses and Other Equines.................           .5
0273............  Animal Aquaculture.......................           .5
0279............  Animal Specialties, N.E.C................           .5
0291............  General Farms, Primarily Livestock and              .5
                   Animal Specialties.                                  
                                                                        
------------------------------------------------------------------------
Major Group 07--Agricultural Services                                   
                                                                        
------------------------------------------------------------------------
0711............  Soil Preparation Services................         $5.0
0721............  Crop Planting, Cultivating, and                    5.0
                   Protecting.                                          
0722............  Crop Harvesting, Primarily by Machine....          5.0
0723............  Crop Preparation Service for Market,               5.0
                   Except Cotton Ginning.                               
0724............  Cotton Ginning...........................          5.0
0741............  Veterinary Services for Livestock........          5.0
0742............  Veterinary Services for Animal                     5.0
                   Specialties.                                         
0751............  Livestock Services, Except Veterinary....          5.0
0752............  Animal Specialty Services, Except                  5.0
                   Veterinary.                                          
0761............  Farm Labor Contractors and Crew Leaders..          5.0
0762............  Farm Management Services.................          5.0
0781............  Landscape Counseling and Planning........          5.0
0782............  Lawn and Garden Services.................          5.0
0783............  Ornamental Shrub and Tree Services.......          5.0
                                                                        
------------------------------------------------------------------------
Major Group 08--Forestry                                                
                                                                        
------------------------------------------------------------------------
0811............  Timber Tracts............................         $5.0
0831............  Forest Nurseries and Gathering of Forest           5.0
                   Products.                                            
0851............  Forestry Services........................          5.0
                                                                        
------------------------------------------------------------------------
Major Group 09--Fishing, Hunting, and Trapping                          
                                                                        
------------------------------------------------------------------------
0912............  Finfish..................................         $3.0
0913............  Shellfish................................          3.0
0919............  Miscellaneous Marine Products............          3.0
0921............  Fish Hatcheries and Preserves............          3.0
0971............  Hunting and Trapping, and Game                     3.0
                   Propagation.                                         
                                                                        
------------------------------------------------------------------------
                           Division B--Mining                           
                                                                        
------------------------------------------------------------------------
Major Group 10--Metal Mining                                            
                                                                        
------------------------------------------------------------------------
1011............  Iron Ores................................          500
1021............  Copper Ores..............................          500
1031............  Lead and Zinc Ores.......................          500
1041............  Gold Ores................................          500
1044............  Silver Ores..............................          500
1061............  Ferroalloy Ores, Except Vanadium.........          500
1081............  Metal Mining Services....................         $5.0
1094............  Uranium-Radium-Vanadium Ores.............          500
1099............  Miscellaneous Metal Ores, N.E.C..........          500
                                                                        
------------------------------------------------------------------------
Major Group 12--Coal Mining                                             
                                                                        
------------------------------------------------------------------------
1221*...........  Bituminous Coal and Lignite Surface                500
                   Mining.                                              
1222*...........  Bituminous Coal Underground Mining.......          500
1231*...........  Anthracite Mining........................          500
1241*...........  Coal Mining Services.....................         $5.0
                                                                        
------------------------------------------------------------------------
Major Group 13--Oil and Gas Extraction                                  
                                                                        
------------------------------------------------------------------------
1311............  Crude Petroleum and Natural Gas..........          500
1321............  Natural Gas Liquids......................          500
1381............  Drilling Oil and Gas Wells...............          500
1382............  Oil and Gas Field Exploration Services...         $5.0
1389............  Oil and Gas Field Services, N.E.C........         $5.0
                                                                        
------------------------------------------------------------------------
Major Group 14--Mining and Quarrying of Nonmetallic Minerals, Except    
 Fuels                                                                  
                                                                        
------------------------------------------------------------------------
1411............  Dimension Stone..........................          500
1422............  Crushed and Broken Limestone.............          500
1423............  Crushed and Broken Granite...............          500
1429............  Crushed and Broken Stone, N.E.C..........          500
1442............  Construction Sand and Gravel.............          500
1446............  Industrial Sand..........................          500
1455............  Kaolin and Ball Clay.....................          500
1459............  Clay, Ceramic, and Refractory Minerals,            500
                   N.E.C.                                               
1474............  Potash, Soda, and Borate Minerals........          500
1475............  Phosphate Rock...........................          500
1479............  Chemical and Fertilizer Mineral Mining,            500
                   N.E.C.                                               
1481............  Nonmetallic Minerals Services, Except             $5.0
                   Fuels.                                               
1499............  Miscellaneous Nonmetallic Minerals,                500
                   Except Fuels.                                        
                                                                        
------------------------------------------------------------------------
                        Division C--Construction                        
                                                                        
------------------------------------------------------------------------
Major Group 15--Building Construction--General Contractors and Operative
 Builders                                                               
                                                                        
------------------------------------------------------------------------
,1521...........  General Contractors--Single Family Houses        $17.0
1522............  General Contractors--Residential                  17.0
                   Buildings, Other Than Single-Family.                 
1531............  Operative Builders.......................         17.0
1541............  General Contractors--Industrial Buildings         17.0
                   and Warehouses.                                      
1542............  General Contractors--Nonresidential               17.0
                   Buildings, Other Than Industrial                     
                   Buildings and Warehouses.                            
                                                                        
------------------------------------------------------------------------
Major 16--Heavy Construction Other Than Building Construction--         
 Contractors                                                            
                                                                        
------------------------------------------------------------------------
1611............  Highway and Street Construction, Except          $17.0
                   Elevated Highways.                                   
1622............  Bridge, Tunnel, and Elevated Highway              17.0
                   Construction.                                        
1623............  Water, Sewer, Pipeline, and                       17.0
                   Communications and Power Line                        
                   Construction.                                        
1629............  Heavy Construction, Except Dredging,              17.0
                   N.E.C.                                               
1629............  Dredging and Surface Cleanup Activities..      \2\13.5
                                                                        
------------------------------------------------------------------------
Major Group 17--Construction--Special Trade Contractors                 
                                                                        
------------------------------------------------------------------------
1711............  Plumbing, Heating, and Air-Conditioning..         $7.0
1721............  Painting and Paper Hanging...............          7.0
1731............  Electrical Work..........................          7.0
1741............  Masonry, Stone Setting, and Other Stone            7.0
                   Work.                                                
1742............  Plastering, Drywall, Acoustical and                7.0
                   Insulation Work.                                     
1743............  Terrazzo, Tile, Marble, and Mosiac Work..          7.0
1751............  Carpentry Work...........................          7.0
1752............  Floor Laying and Other Floor Work, N.E.C.          7.0
1761............  Roofing, Siding, and Sheet Metal Work....          7.0
1771............  Concrete Work............................          7.0
1781............  Water Well Drilling......................          7.0
1791............  Structural Steel Erection................          7.0
1793............  Glass and Glazing Work...................          7.0
1794............  Excavation Work..........................          7.0
1795............  Wrecking and Demolition Work.............          7.0
1796............  Installation or Erection of Building               7.0
                   Equipment, N.E.C.                                    
1799............  Special Trade Contractors, N.E.C.........          7.0
                  Base Housing Maintenance\20\.............          7.0
                                                                        
------------------------------------------------------------------------
                      Division D--Manufacturing\3\                      
                                                                        
------------------------------------------------------------------------
Major Group 20--Food and Kindred Products                               
                                                                        
------------------------------------------------------------------------
2011............  Meat Packing Plants......................          500
2013............  Sausages and Other Prepared Meat Products          500
2015*...........  Poultry Slaughtering and Processing......          500
2021............  Creamery Butter..........................          500
2022............  Natural, Processed, and Imitation Cheese.          500
2023............  Dry, Condensed, and Evaporated Dairy               500
                   Products.                                            
2024............  Ice Cream and Frozen Desserts............          500
2026............  Fluid Milk...............................          500
2032............  Canned Specialties.......................        1,000
2033............  Canned Fruits, Vegetables, Preserves,           \4\500
                   Jams, and Jellies.                                   
2034............  Dried and Dehydrated Fruits, Vegetables,           500
                   and Soup Mixes.                                      
2035............  Pickled Fruits and Vegetables, Vegetable           500
                   Sauces and Seasonings, and Salad                     
                   Dressings.                                           
2037............  Frozen Fruits, Fruit Juices, and                   500
                   Vegetables.                                          
2038............  Frozen Specialties, N.E.C................          500
2041............  Flour and Other Grain Mill Products......          500
2043............  Cereal Breakfast Foods...................        1,000
2044............  Rice Milling.............................          500
2045............  Prepared Flour Mixes and Doughs..........          500
2046............  Wet Corn Milling.........................          750
2047............  Dog and Cat Food.........................          500
2048............  Prepared Feeds and Feed Ingredients for            500
                   Animals and Fowls, Except Dogs and Cats.             
2051............  Bread and Other Bakery Products, Except            500
                   Cookies and Crackers.                                
2052............  Cookies and Crackers.....................          750
2053*...........  Frozen Bakery Products, Except Bread.....          500
2061............  Cane Sugar, Except Refining..............          500
2062............  Cane Sugar Refining......................          750
2063............  Beet Sugar...............................          750
2064*...........  Candy and Other Confectionery Products...          500
2066............  Chocolate and Cocoa Products.............          500
2067............  Chewing Gum..............................          500
2068*...........  Salted and Roasted Nuts and Seeds........          500
2074............  Cottonseed Oil Mills.....................          500
2075............  Soybean Oil Mills........................          500
2076............  Vegetable Oil Mills, Except Corn,                1,000
                   Cottonseed, and Soybean.                             
2077............  Animal and Marine Fats and Oils..........          500
2079............  Shortening, Table Oils, Margarine, and             750
                   Other Edible Fats and Oils, N.E.C.                   
2082............  Malt Beverages...........................          500
2083............  Malt.....................................          500
2084............  Wines, Brandy, and Brandy Spirits........          500
2085............  Distilled and Blended Liquors............          750
2086............  Bottled and Canned Soft Drinks and                 500
                   Carbonated Waters.                                   
2087............  Flavoring Extracts and Flavoring Syrups,           500
                   N.E.C.                                               
2091............  Canned and Cured Fish and Seafoods.......          500
2092............  Prepared Fresh or Frozen Fish and                  500
                   Seafoods.                                            
2095............  Roasted Coffee...........................          500
2096*...........  Potato Chips, Corn Chips, and Similar              500
                   Snacks.                                              
2097............  Manufactured Ice.........................          500
2098............  Macaroni, Spaghetti, Vermicelli, and               500
                   Noodles.                                             
2099............  Food Preparations, N.E.C.................          500
                                                                        
------------------------------------------------------------------------
Major Group 21--Tobacco Products                                        
                                                                        
------------------------------------------------------------------------
2111............  Cigarettes...............................        1,000
2121............  Cigars...................................          500
2131............  Chewing and Smoking Tobacco and Snuff....          500
2141............  Tobacco Stemming and Redrying............          500
                                                                        
------------------------------------------------------------------------
Major Group 22--Textile Mill Products                                   
                                                                        
------------------------------------------------------------------------
2211............  Broadwoven Fabric Mills, Cotton..........        1,000
2221............  Broadwoven Fabric Mills, Manmade Fiber             500
                   and Silk.                                            
2231............  Broadwoven Fabric Mills, Wool (Including           500
                   Dyeing and Finishing).                               
2241............  Narrow Fabric and Other Smallwares Mills:          500
                   Cotton, Wool, Silk and Manmade Fiber.                
2251............  Women's Full-Length and Knee-Length                500
                   Hosiery, Except Socks.                               
2252............  Hosiery, N.E.C...........................          500
2253............  Knit Outerwear Mills.....................          500
2254............  Knit Underwear and Nightwear Mills.......          500
2257............  Weft Knit Fabric Mills...................          500
2258............  Lace and Warp Knit Fabric Mills..........          500
2259............  Knitting Mills, N.E.C....................          500
2261............  Finishers of Broadwoven Fabrics of Cotton        1,000
2262............  Finishers of Broadwoven Fabrics of                 500
                   Manmade Fiber and Silk.                              
2269............  Finishers of Textiles, N.E.C.............          500
2273*...........  Carpets and Rugs.........................          500
2281............  Yarn Spinning Mills......................          500
2282............  Yarn Texturizing, Throwing, Twisting, and          500
                   Winding Mills.                                       
2284............  Thread Mills.............................          500
2295............  Coated Fabrics, Not Rubberized...........        1,000
2296............  Tire Cord and Fabrics....................        1,000
2297............  Nonwoven Fabrics.........................          500
2298............  Cordage and Twine........................          500
2299............  Textile Goods, N.E.C.....................          500
                                                                        
------------------------------------------------------------------------
Major Group 23--Apparel and Other Finished Products Made From Fabrics   
 and Similar Materials                                                  
                                                                        
------------------------------------------------------------------------
2311............  Men's and Boys' Suits, Coats and                   500
                   Overcoats.                                           
2321............  Men's and Boys' Shirts, Except Work                500
                   Shirts.                                              
2322............  Men's and Boys' Underwear and Nightwear..          500
2323............  Men's and Boys' Neckwear.................          500
2325*...........  Men's and Boys' Separate Trousers and              500
                   Slacks.                                              
2326*...........  Men's and Boys' Work Clothing............          500
2329............  Men's and Boys' Clothing, N.E.C..........          500
2331............  Women's, Misses', and Juniors' Blouses             500
                   and Shirts.                                          
2335............  Women's, Misses', and Juniors' Dresses...          500
2337............  Women's, Misses', and Juniors' Suits,              500
                   Skirts, and Coats.                                   
2339............  Women's, Misses', and Juniors' Outerwear,          500
                   N.E.C.                                               
2341............  Women's, Misses', Children's, and                  500
                   Infants' Underwear and Nightwear.                    
2342............  Brassieres, Girdles, and Allied Garments.          500
2353*...........  Hats, Caps, and Millinery................          500
2361............  Girls', Children's, and Infants' Dresses,          500
                   Blouses, and Shirts.                                 
2369............  Girls', Children's, and Infants'                   500
                   Outerwear, N.E.C.                                    
2371............  Fur Goods................................          500
2381............  Dress and Work Gloves, Except Knit and             500
                   All-Leather.                                         
2384............  Robes and Dressing Gowns.................          500
2385............  Waterproof Outerwear.....................          500
2386............  Leather and Sheep-Lined Clothing.........          500
2387............  Apparel Belts............................          500
2389............  Apparel and Accessories, N.E.C...........          500
2391............  Curtains and Draperies...................          500
2392............  Housefurnishings, Except Curtains and              500
                   Draperies.                                           
2393............  Textile Bags.............................          500
2394............  Canvas and Related Products..............          500
2395............  Pleating, Decorative and Novelty                   500
                   Stitching, and Tucking for the Trade.                
2396............  Automotive Trimmings, Apparel Findings,            500
                   and Related Products.                                
2397............  Schiffli Machine Embroideries............          500
2399............  Fabricated Textile Products, N.E.C.......          500
                                                                        
------------------------------------------------------------------------
Major Group 24--Lumber and Wood Products, Except Furniture              
                                                                        
------------------------------------------------------------------------
2411............  Logging..................................          500
2421............  Sawmills and Planing Mills, General......          500
2426............  Hardwood Dimension and Flooring Mills....          500
2429............  Special Product Sawmills, N.E.C..........          500
2431............  Millwork.................................          500
2434............  Wood Kitchen Cabinets....................          500
2435............  Hardwood Veneer and Plywood..............          500
2436............  Softwood Veneer and Plywood..............          500
2439............  Structural Wood Members, N.E.C...........          500
2441............  Nailed and Lock Corner Wood Boxes and              500
                   Shook.                                               
2448............  Wood Pallets and Skids...................          500
2449............  Wood Containers, N.E.C...................          500
2451............  Mobile Homes.............................          500
2452............  Prefabricated Wood Buildings and                   500
                   Components.                                          
2491............  Wood Preserving..........................          500
2493*...........  Reconstituted Wood Products..............          500
2499............  Wood Products, N.E.C.....................          500
                                                                        
------------------------------------------------------------------------
Major Group 25--Furniture and Fixtures                                  
                                                                        
------------------------------------------------------------------------
2511............  Wood Household Furniture, Except                   500
                   Upholstered.                                         
2512............  Wood Household Furniture, Upholstered....          500
2514............  Metal Household Furniture................          500
2515............  Mattresses, Foundations, and Convertible           500
                   Beds.                                                
2517............  Wood Television, Radio, Phonograph, and            500
                   Sewing Machine Cabinets.                             
2519............  Household Furniture, N.E.C...............          500
2521............  Wood Office Furniture....................          500
2522............  Office Furniture, Except Wood............          500
2531............  Public Building and Related Furniture....          500
2541............  Wood Office and Store Fixtures,                    500
                   Partitions, Shelving, and Lockers.                   
2542............  Office and Store Fixtures, Partitions,             500
                   Shelving, and Lockers, Except Wood.                  
2591............  Drapery Hardware and Window Blinds and             500
                   Shades.                                              
2599............  Furniture and Fixtures, N.E.C............          500
                                                                        
------------------------------------------------------------------------
Major Group 26--Paper and Allied Products                               
                                                                        
------------------------------------------------------------------------
2611............  Pulp Mills...............................          750
2621............  Paper Mills..............................          750
2631............  Paperboard Mills.........................          750
2652............  Setup Paperboard Boxes...................          500
2653............  Corrugated and Solid Fiber Boxes.........          500
2655............  Fiber Cans, Tubes, Drums, and Similar              500
                   Products.                                            
2656*...........  Sanitary Food Containers, Except Folding.          750
2657*...........  Folding Paperboard Boxes, Including                750
                   Sanitary.                                            
2671*...........  Packaging Paper and Plastics Film, Coated          500
                   and Laminated.                                       
2672*...........  Coated and Laminated Paper, N.E.C........          500
2673*...........  Plastics, Foil, and Coated Paper Bags....          500
2674*...........  Uncoated Paper and Multiwall Bags........          500
2675*...........  Die-Cut Paper and Paperboard and                   500
                   Cardboard.                                           
2676*...........  Sanitary Paper Products..................          500
2677*...........  Envelopes................................          500
2678*...........  Stationery, Tablets, and Related Products          500
2679*...........  Converted Paper and Paperboard Products,           500
                   N.E.C.                                               
                                                                        
------------------------------------------------------------------------
Major Group 27--Printing, Publishing, and Allied Industries             
                                                                        
------------------------------------------------------------------------
2711............  Newspapers: Publishing, or Publishing and          500
                   Printing.                                            
2721............  Periodical: Publishing, or Publishing and          500
                   Printing.                                            
2731............  Books: Publishing, or Publishing and               500
                   Printing.                                            
2732............  Book Printing............................          500
2741............  Miscellaneous Publishing.................          500
2752............  Commercial Printing, Lithographic........          500
2754............  Commercial Printing, Gravure.............          500
2759*...........  Commercial Printing, N.E.C...............          500
2761............  Manifold Business Forms..................          500
2771............  Greeting Cards...........................          500
2782............  Blankbooks, Looseleaf Binders and Devices          500
2789............  Bookbinding and Related Work.............          500
2791............  Typesetting..............................          500
2796*...........  Platemaking and Related Services.........          500
                                                                        
------------------------------------------------------------------------
Major Group 28--Chemicals and Allied Products                           
                                                                        
------------------------------------------------------------------------
2812............  Alkalies and Chlorine....................        1,000
2813............  Industrial Gases.........................        1,000
2816............  Inorganic Pigments.......................        1,000
2819............  Industrial Inorganic Chemicals, N.E.C....        1,000
2821............  Plastics Materials, Synthetic Resins, and          750
                   Nonvulcanizable Elastomers.                          
2822............  Synthetic Rubber (Vulcanizable                   1,000
                   Elastomers).                                         
2823............  Cellulosic Manmade Fibers................        1,000
2824............  Manmade Organic Fibers, Except Cellulosic        1,000
2833............  Medicinal Chemicals and Botanical                  750
                   Products.                                            
2834............  Pharmaceutical Preparations..............          750
2835*...........  In Vitro and In Vivo Diagnostic                    500
                   Substances.                                          
2836*...........  Biological Products, Except Diagnostic             500
                   Substances.                                          
2841............  Soap and Other Detergents, Except                  750
                   Specialty Cleaners.                                  
2842............  Specialty Cleaning, Polishing, and                 500
                   Sanitation Preparations.                             
2843............  Surface Active Agents, Finishing Agents,           500
                   Sulfonated Oils, and Assistants.                     
2844............  Perfumes, Cosmetics, and Other Toilet              500
                   Preparations.                                        
2851............  Paints, Varnishes, Lacquers, Enamels, and          500
                   Allied Products.                                     
2861............  Gum and Wood Chemicals...................          500
2865............  Cyclic Organic Crudes and Intermediates,           750
                   and Organic Dyes and Pigments.                       
2869............  Industrial Organic Chemicals, N.E.C......        1,000
2873............  Nitrogenous Fertilizers..................        1,000
2874............  Phosphatic Fertilizers...................          500
2875............  Fertilizers, Mixing Only.................          500
2879............  Pesticides and Agricultural Chemicals,             500
                   N.E.C.                                               
2891............  Adhesives and Sealants...................          500
2892............  Explosives...............................          750
2893............  Printing Ink.............................          500
2895............  Carbon Black.............................          500
2899............  Chemicals and Chemical Preparations,               500
                   N.E.C..                                              
                                                                        
------------------------------------------------------------------------
Major Group 29--Petroleum Refining and Related Industries               
                                                                        
------------------------------------------------------------------------
2911............  Petroleum Refining.......................     \5\1,500
2951............  Asphalt Paving Mixtures and Blocks.......          500
2952............  Asphalt Felts and Coatings...............          750
2992............  Lubricating Oils and Greases.............          500
2999............  Products of Petroleum and Coal, N.E.C....          500
                                                                        
------------------------------------------------------------------------
Major Group 30--Rubber and Miscellaneous Plastics Products              
                                                                        
------------------------------------------------------------------------
3011............  Tires and Inner Tubes....................     \6\1,000
3021............  Rubber and Plastics Footwear.............        1,000
3052*...........  Rubber and Plastics Hose and Belting.....          500
3053*...........  Gaskets, Packing, and Sealing Devices....          500
3061*...........  Molded, Extruded, and Lathe-Cut                    500
                   Mechanical Rubber Goods.                             
3069............  Fabricated Rubber Products, N.E.C........          500
3081*...........  Unsupported Plastics Film and Sheet......          500
3082*...........  Unsupported Plastics Profile Shapes......          500
3083*...........  Laminated Plastics Plate, Sheet, and               500
                   Profile Shapes.                                      
3084*...........  Plastics Pipe............................          500
3085*...........  Plastics Bottles.........................          500
3086*...........  Plastics Foam Products...................          500
3087*...........  Custom Compounding of Purchased Plastics           500
                   Resins.                                              
3088*...........  Plastics Plumbing Fixtures...............          500
3089*...........  Plastics Products, N.E.C.................          500
                                                                        
------------------------------------------------------------------------
Major Group 31--Leather and Leather Products                            
                                                                        
------------------------------------------------------------------------
3111............  Leather Tanning and Finishing............          500
3131............  Boot and Shoe Cut Stock and Findings.....          500
3142............  House Slippers...........................          500
3143............  Men's Footwear, Except Athletic..........          500
3144............  Women's Footwear, Except Athletic........          500
3149............  Footwear, Except Rubber, N.E.C...........          500
3151............  Leather Gloves and Mittens...............          500
3161............  Luggage..................................          500
3171............  Women's Handbags and Purses..............          500
3172............  Personal Leather Goods, Except Women's             500
                   Handbags and Purses.                                 
3199............  Leather Goods, N.E.C.....................          500
                                                                        
------------------------------------------------------------------------
Major Group 32--Stone, Clay, Glass, and Concrete Products               
                                                                        
------------------------------------------------------------------------
3211............  Flat Glass...............................        1,000
3221............  Glass Containers.........................          750
3229............  Pressed and Blown Glass and Glassware,             750
                   N.E.C.                                               
3231............  Glass Products, Made of Purchased Glass..          500
3241............  Cement, Hydraulic........................          750
3251............  Brick and Structural Clay Tile...........          500
3253............  Ceramic Wall and Floor Tile..............          500
3255............  Clay Refractories........................          500
3259............  Structural Clay Products, N.E.C..........          500
3261............  Vitreous China Plumbing Fixtures and               750
                   China and Earthenware Fittings and                   
                   Bathroom Accessories.                                
3262............  Vitreous China Table and Kitchen Articles          500
3263............  Fine Earthenware (Whiteware) Table and             500
                   Kitchen Articles.                                    
3264............  Porcelain Electrical Supplies............          500
3269............  Pottery Products, N.E.C..................          500
3271............  Concrete Block and Brick.................          500
3272............  Concrete Products, Except Block and Brick          500
3273............  Ready Mixed Concrete.....................          500
3274............  Lime.....................................          500
3275............  Gypsum Products..........................        1,000
3281............  Cut Stone and Stone Products.............          500
3291............  Abrasive Products........................          500
3292............  Asbestos Products........................          750
3295............  Minerals and Earths, Ground or Otherwise           500
                   Treated.                                             
3296............  Mineral Wool.............................          750
3297............  Nonclay Refractories.....................          750
3299............  Nonmetallic Mineral Products, N.E.C......          500
                                                                        
------------------------------------------------------------------------
Major Group 33--Primary Metal Industries                                
                                                                        
------------------------------------------------------------------------
3312............  Steel Works, Blast Furnaces (Including           1,000
                   Coke Ovens), and Rolling Mills.                      
3313............  Electrometallurgical Products, Except              750
                   Steel.                                               
3315............  Steel Wiredrawing and Steel Nails and            1,000
                   Spikes.                                              
3316............  Cold-Rolled Steel Sheet, Strip, and Bars.        1,000
3317............  Steel Pipe and Tubes.....................        1,000
3321............  Gray and Ductile Iron Foundries..........          500
3322............  Malleable Iron Foundries.................          500
3324............  Steel Investment Foundries...............          500
3325............  Steel Foundries, N.E.C...................          500
3331............  Primary Smelting and Refining of Copper..        1,000
3334............  Primary Production of Aluminum...........        1,000
3339............  Primary Smelting and Refining of                   750
                   Nonferrous Metals, Except Copper and                 
                   Aluminum.                                            
3341............  Secondary Smelting and Refining of                 500
                   Nonferrous Metals.                                   
3351............  Rolling, Drawing, and Extruding of Copper          750
3353............  Aluminum Sheet, Plate, and Foil..........          750
3354............  Aluminum Extruded Products...............          750
3355............  Aluminum Rolling and Drawing, N.E.C......          750
3356............  Rolling, Drawing, and Extruding of                 750
                   Nonferrous Metals, Except Copper and                 
                   Aluminum.                                            
3357............  Drawing and Insulating of Nonferrous Wire        1,000
3363*...........  Aluminum Die-Castings....................          500
3364*...........  Nonferrous Die-Castings, Except Aluminum.          500
3365*...........  Aluminum Foundries.......................          500
3366*...........  Copper Foundries.........................          500
3369............  Nonferrous Foundries, Except Aluminum and          500
                   Copper.                                              
3398............  Metal Heat Treating......................          750
3399............  Primary Metal Products, N.E.C............          750
                                                                        
------------------------------------------------------------------------
Major Group 34--Fabricated Metal Products, Except Machinery and         
 Transportation Equipment                                               
                                                                        
------------------------------------------------------------------------
3411............  Metal Cans...............................        1,000
3412............  Metal Shipping Barrels, Drums, Kegs, and           500
                   Pails.                                               
3421............  Cutlery..................................          500
3423............  Hand and Edge Tools, Except Machine Tools          500
                   and Handsaws.                                        
3425............  Saw Blades and Handsaws..................          500
3429............  Hardware, N.E.C..........................          500
3431............  Enameled Iron and Metal Sanitary Ware....          750
3432............  Plumbing Fixture Fittings and Trim.......          500
3433............  Heating Equipment, Except Electric and             500
                   Warm Air Furnaces.                                   
3441............  Fabricated Structural Metal..............          500
3442............  Metal Doors, Sash, Frames, Molding, and            500
                   Trim.                                                
3443............  Fabricated Plate Work (Boiler Shops).....          500
3444............  Sheet Metal Work.........................          500
3446............  Architectural and Ornamental Metal Work..          500
3448............  Prefabricated Metal Buildings and                  500
                   Components.                                          
3449............  Miscellaneous Structural Metal Work......          500
3451............  Screw Machine Products...................          500
3452............  Bolts, Nuts, Screws, Rivets, and Washers.          500
3462............  Iron and Steel Forgings..................          500
3463............  Nonferrous Forgings......................          500
3465............  Automotive Stampings.....................          500
3466............  Crowns and Closures......................          500
3469............  Metal Stampings, N.E.C...................          500
3471............  Electroplating, Plating, Polishing,                500
                   Anodizing, and Coloring.                             
3479............  Coating, Engraving, and Allied Services,           500
                   N.E.C.                                               
3482............  Small Arms Ammunition....................        1,000
3483............  Ammunition, Except for Small Arms........        1,500
3484............  Small Arms...............................        1,000
3489............  Ordnance and Accessories, N.E.C..........          500
3491*...........  Industrial Valves........................          500
3492*...........  Fluid Power Valves and Hose Fittings.....          500
3493............  Steel Springs, Except Wire...............          500
3494............  Valves and Pipe Fittings, N.E.C..........          500
3495............  Wire Springs.............................          500
3496............  Miscellaneous Fabricated Wire Products...          500
3497............  Metal Foil and Leaf......................          500
3498............  Fabricated Pipe and Pipe Fittings........          500
3499............  Fabricated Metal Products, N.E.C.........          500
                                                                        
------------------------------------------------------------------------
Major Group 35--Industrial and Commercial Machinery and Computer        
 Equipment                                                              
                                                                        
------------------------------------------------------------------------
3511............  Steam, Gas, and Hydraulic Turbines, and          1,000
                   Turbine Generator Set Units.                         
3519............  Internal Combustion Engines, N.E.C.......        1,000
3523............  Farm Machinery and Equipment.............          500
3524............  Lawn and Garden Tractors and Home Lawn             500
                   and Garden Equipment.                                
3531............  Construction Machinery and Equipment.....          750
3532............  Mining Machinery and Equipment, Except             500
                   Oil and Gas Field Machinery and                      
                   Equipment.                                           
3533............  Oil and Gas Field Machinery and Equipment          500
3534............  Elevators and Moving Stairways...........          500
3535............  Conveyors and Conveying Equipment........          500
3536............  Overhead Traveling Cranes, Hoists, and             500
                   Monorail Systems.                                    
3537............  Industrial Trucks, Tractors, Trailers,             750
                   and Stackers.                                        
3541............  Machine Tools, Metal Cutting Types.......          500
3542............  Machine Tools, Metal Forming Types.......          500
3543*...........  Industrial Patterns......................          500
3544............  Special Dies and Tools, Die Sets, Jigs             500
                   and Fixtures, and Industrial Molds.                  
3545............  Cutting Tools, Machine Tool Accessories,           500
                   and Machinists' Precision Measuring                  
                   Devices.                                             
3546............  Power-Driven Handtools...................          500
3547............  Rolling Mill Machinery and Equipment.....          500
3548*...........  Electric and Gas Welding and Soldering             500
                   Equipment.                                           
3549............  Metalworking Machinery, N.E.C............          500
3552............  Textile Machinery........................          500
3553............  Woodworking Machinery....................          500
3554............  Paper Industries Machinery...............          500
3555............  Printing Trades Machinery and Equipment..          500
3556*...........  Food Products Machinery..................          500
3559............  Special Industry Machinery, N.E.C........          500
3561............  Pumps and Pumping Equipment..............          500
3562............  Ball and Roller Bearings.................          750
3563............  Air and Gas Compressors..................          500
3564............  Industrial and Commercial Fans and                 500
                   Blowers and Air Purification Equipment.              
3565*...........  Packaging Machinery......................          500
3566............  Speed Changers, Industrial High-Speed              500
                   Drives, and Gears.                                   
3567............  Industrial Process Furnaces and Ovens....          500
3568............  Mechanical Power Transmission Equipment,           500
                   N.E.C.                                               
3569............  General Industrial Machinery and                   500
                   Equipment, N.E.C.                                    
3571*...........  Electronic Computers.....................        1,000
3572*...........  Computer Storage Devices.................        1,000
3575*...........  Computer Terminals.......................        1,000
3577*...........  Computer Peripheral Equipment, N.E.C.....        1,000
3578*...........  Calculating and Accounting Machines,             1,000
                   Except Electronic Computers.                         
3579............  Office Machines, N.E.C...................          500
3581............  Automatic Vending Machines...............          500
3582............  Commercial Laundry, Drycleaning, and               500
                   Pressing Machines.                                   
3585............  Air-Conditioning and Warm Air Heating              750
                   Equipment and Commercial and Industrial              
                   Refrigeration Equipment.                             
3586............  Measuring and Dispensing Pumps...........          500
3589............  Service Industry Machinery, N.E.C........          500
3592............  Carburetors, Pistons, Piston Rings, and            500
                   Valves.                                              
3593*...........  Fluid Power Cylinders and Actuators......          500
3594*...........  Fluid Power Pumps and Motors.............          500
3596*...........  Scales and Balances, Except Laboratory...          500
3599............  Industrial and Commercial Machinery and            500
                   Equipment, N.E.C.                                    
                                                                        
------------------------------------------------------------------------
Major Group 36--Electronic and Other Electrical Equipment and           
 Components, Except Computer Equipment                                  
                                                                        
------------------------------------------------------------------------
3612............  Power, Distribution, and Specialty                 750
                   Transformers.                                        
3613............  Switchgear and Switchboard Apparatus.....          750
3621............  Motors and Generators....................        1,000
3624............  Carbon and Graphite Products.............          750
3625*...........  Relays and Industrial Controls...........          750
3629............  Electrical Industrial Apparatus, N.E.C...          500
3631............  Household Cooking Equipment..............          750
3632............  Household Refrigerators and Home and Farm        1,000
                   Freezers.                                            
3633............  Household Laundry Equipment..............        1,000
3634............  Electric Housewares and Fans.............          750
3635............  Household Vacuum Cleaners................          750
3639............  Household Appliances, N.E.C..............          500
3641............  Electric Lamp Bulbs and Tubes............        1,000
3643............  Current-Carrying Wiring Devices..........          500
3644............  Noncurrent-Carrying Wiring Devices.......          500
3645............  Residential Electric Lighting Fixtures...          500
3646............  Commercial, Industrial, and Institutional          500
                   Electric Lighting Fixtures.                          
3647............  Vehicular Lighting Equipment.............          500
3648............  Lighting Equipment, N.E.C................          500
3651............  Household Audio and Video Equipment......          750
3652............  Phonograph Records and Prerecorded Audio           750
                   Tapes and Disks.                                     
3661............  Telephone and Telegraph Apparatus........        1,000
3663*...........  Radio and Television Broadcasting and              750
                   Communications Equipment.                            
3669*...........  Communications Equipment, N.E.C..........          750
3671............  Electron Tubes...........................          750
3672*...........  Printed Circuit Boards...................          500
3674............  Semiconductors and Related Devices.......          500
3675............  Electronic Capacitors....................          500
3676............  Electronic Resistors.....................          500
3677............  Electronic Coils, Transformers, and Other          500
                   Inductors.                                           
3678............  Electronic Connectors....................          500
3679............  Electronic Components, N.E.C.............          500
3691............  Storage Batteries........................          500
3692............  Primary Batteries, Dry and Wet...........        1,000
3694............  Electrical Equipment for Internal                  750
                   Combustion Engines.                                  
3695*...........  Magnetic and Optical Recording Media.....        1,000
3699............  Electrical Machinery, Equipment, and               750
                   Supplies, N.E.C.                                     
                                                                        
------------------------------------------------------------------------
Major Group 37--Transportation Equipment                                
                                                                        
------------------------------------------------------------------------
3711............  Motor Vehicles and Passenger Car Bodies..        1,000
3713............  Truck and Bus Bodies.....................          500
3714............  Motor Vehicle Parts and Accessories......          750
3715............  Truck Trailers...........................          500
3716............  Motor Homes..............................        1,000
3721............  Aircraft.................................        1,500
3724............  Aircraft Engines and Engine Parts........        1,000
3728............  Aircraft Parts and Auxiliary Equipment,      \17\1,000
                   N.E.C.                                               
3731............  Shipbuilding and Repair of Nuclear               1,000
                   Propelled Ships.                                     
                  Shipbuilding of Nonnuclear Propelled             1,000
                   Ships and Nonpropelled Ships.                        
                  Ship Repair (Including Overhauls and             1,000
                   Conversions) Performed on Nonnuclear                 
                   Propelled and Nonpropelled Ships East of             
                   the 108 Meridian.                                    
                  Ship Repair (Including Overhauls and             1,000
                   Conversions) Performed on Nonnuclear                 
                   Propelled and Nonpropelled Ships West of             
                   the 108 Meridian.                                    
3732............  Boat Building and Repairing..............          500
3743............  Railroad Equipment.......................        1,000
3751............  Motorcycles, Bicycles, and Parts.........          500
3761............  Guided Missiles and Space Vehicles.......        1,000
3764............  Guided Missile and Space Vehicle                 1,000
                   Propulsion Units and Propulsion Unit                 
                   Parts.                                               
3769............  Guided Missile and Space Vehicle Parts           1,000
                   and Auxiliary Equipment, N.E.C.                      
3792............  Travel Trailers and Campers..............          500
3795............  Tanks and Tank Components................        1,000
3799............  Transportation Equipment, N.E.C..........          500
                                                                        
------------------------------------------------------------------------
Major Group 38--Measuring, Analyzing, and Controlling Instruments;      
 Photographic, Medical, and Optical Goods; Watches and Clocks           
                                                                        
------------------------------------------------------------------------
3812*...........  Search, Detection, Navigation, Guidance,           750
                   Aeronautical, and Nautical Systems and               
                   Instruments.                                         
3821*...........  Laboratory Apparatus and Furniture.......          500
3822............  Automatic Controls for Regulating                  500
                   Residential and Commercial Environments              
                   and Appliances.                                      
3823............  Industrial Instruments for Measurement,            500
                   Display, and Control of Process                      
                   Variables; and Related Products.                     
3824............  Totalizing Fluid Meters and Counting               500
                   Devices.                                             
3825............  Instruments for Measuring and Testing of           500
                   Electricity and Electrical Signals.                  
3826*...........  Laboratory Analytical Instruments........          500
3827*...........  Optical Instruments and Lenses...........          500
3829............  Measuring and Controlling Devices, N.E.C.          500
3841............  Surgical and Medical Instruments and               500
                   Apparatus.                                           
3842............  Orthopedic, Prosthetic, and Surgical               500
                   Appliances and Supplies.                             
3843............  Dental Equipment and Supplies............          500
3844*...........  X-Ray Apparatus and Tubes and Related              500
                   Irradiation Apparatus.                               
3845*...........  Electromedical and Electrotherapeutic              500
                   Apparatus.                                           
3851............  Ophthalmic Goods.........................          500
3861............  Photographic Equipment and Supplies......          500
3873............  Watches, Clocks, Clockwork Operated                500
                   Devices, and Parts.                                  
                                                                        
------------------------------------------------------------------------
                                                                        
Major Group 39--Miscellaneous Manufacturing Industries                  
                                                                        
------------------------------------------------------------------------
3911............  Jewelry, Precious Metal..................          500
3914............  Silverware, Plated Ware, and Stainless             500
                   Steel Ware.                                          
3915............  Jewelers' Findings and Materials, and              500
                   Lapidary Work.                                       
3931............  Musical Instruments......................          500
3942............  Dolls and Stuffed Toys...................          500
3944............  Games, Toys, and Children's Vehicles,              500
                   Except Dolls and Bicycles.                           
3949............  Sporting and Athletic Goods, N.E.C.......          500
3951............  Pens, Mechanical Pencils, and Parts......          500
3952............  Lead Pencils, Crayons, and Artists'                500
                   Materials.                                           
3953............  Marking Devices..........................          500
3955............  Carbon Paper and Inked Ribbons...........          500
3961............  Costume Jewelry and Costume Novelties,             500
                   Except Precious Metal.                               
3965*...........  Fasteners, Buttons, Needles, and Pins....          500
3991............  Brooms and Brushes.......................          500
3993............  Signs and Advertising Specialties........          500
3995............  Burial Caskets...........................          500
3996............  Linoleum, Asphalted-Felt-Base, and Other           750
                   Hard Surface Floor Coverings, N.E.C.                 
3999............  Manufacturing Industries, N.E.C..........          500
                                                                        
------------------------------------------------------------------------
 Division E--Transportation, Communications, Electric, Gas, and Sanitary
                                Services                                
                                                                        
------------------------------------------------------------------------
Major Group 40--Railroad Transportation                                 
                                                                        
------------------------------------------------------------------------
4011............  Railroads, Line-Haul Operating...........        1,500
4013............  Railroad Switching and Terminal                    500
                   Establishments.                                      
                                                                        
------------------------------------------------------------------------
Major Group 41--Local and Suburban Transit and Interurban Highway       
 Passenger Transportation                                               
                                                                        
------------------------------------------------------------------------
4111............  Local and Suburban Transit...............         $5.0
4119............  Local Passenger Transportation, N.E.C....          5.0
4121............  Taxicabs.................................          5.0
4131............  Intercity and Rural Bus Transportation...          5.0
4141............  Local Bus Charter Service................          5.0
4142............  Bus Charter Service, Except Local........          5.0
4151............  School Buses.............................          5.0
4173*...........  Terminal and Service Facilities for Motor          5.0
                   Vehicle Passenger Transportation.                    
                                                                        
------------------------------------------------------------------------
Major Group 42--Motor Freight Transportation and Warehousing            
                                                                        
------------------------------------------------------------------------
4212............  Local Trucking Without Storage...........     \7\$18.5
4213............  Trucking, Except Local...................         18.5
4214............  Local Trucking With Storage..............         18.5
4215*...........  Courier Services, Except by Air..........         18.5
4221............  Farm Product Warehousing and Storage.....         18.5
4222............  Refrigerated Warehousing and Storage.....         18.5
4225............  General Warehousing and Storage..........         18.5
4226............  Special Warehousing and Storage, N.E.C...         18.5
4231............  Terminal and Joint Terminal Maintenance            5.0
                   Facilities for Motor Freight                         
                   Transportation.                                      
                                                                        
------------------------------------------------------------------------
Major Group 44--Water Transportation\8\                                 
                                                                        
------------------------------------------------------------------------
4412............  Deep Sea Foreign Transportation of                 500
                   Freight.                                             
4424*...........  Deep Sea Domestic Transportation of                500
                   Freight.                                             
4432*...........  Freight Transportation on the Great                500
                   Lakes--St. Lawrence Seaway.                          
4449*...........  Water Transportation of Freight, N.E.C...          500
4481*...........  Deep Sea Transportation of Passengers,             500
                   Except by Ferry.                                     
4482*...........  Ferries..................................          500
4489*...........  Water Transportation of Passengers, N.E.C          500
4491*...........  Marine Cargo Handling....................        $18.5
4492*...........  Towing and Tugboat Services..............         $5.0
4493*...........  Marinas..................................         $5.0
4499*...........  Water Transportation Services, N.E.C.....         $5.0
                                                                        
------------------------------------------------------------------------
Major Group 45--Transportation by Air\8\                                
                                                                        
------------------------------------------------------------------------
4512*...........  Air Transportation, Scheduled............     \9\1,500
4513*...........  Air Courier Services.....................     \9\1,500
4522*...........  Air Transportation, Nonscheduled.........     \9\1,500
4581*...........  Airports Flying Fields, and Airport               $5.0
                   Terminal Services.                                   
                                                                        
------------------------------------------------------------------------
Major Group 46--Pipelines, Except Natural Gas                           
                                                                        
------------------------------------------------------------------------
4612............  Crude Petroleum Pipelines................        1,500
4613............  Refined Petroleum Pipelines..............        1,500
4619............  Pipelines N.E.C..........................        $25.0
                                                                        
------------------------------------------------------------------------
Major Group 47--Transportation Services                                 
                                                                        
------------------------------------------------------------------------
4724*...........  Travel Agencies..........................     \10\$1.0
4725*...........  Tour Operators...........................          5.0
4729*...........  Arrangement of Passenger Transportation,           5.0
                   N.E.C.                                               
4731*...........  Arrangement of Transportation of Freight          18.5
                   and Cargo.                                           
4741*...........  Rental of Railroad Cars..................          5.0
4783*...........  Packing and Crating......................         18.5
4785*...........  Fixed Facilities and Inspection and                5.0
                   Weighing Services for Motor Vehicle                  
                   Transportation.                                      
4789............  Transportation Services, N.E.C...........          5.0
                                                                        
------------------------------------------------------------------------
Major Group 48--Communications                                          
                                                                        
------------------------------------------------------------------------
4812*...........  Radiotelephone Communications............        1,500
4813*...........  Telephone Communications, Except                 1,500
                   Radiotelephone.                                      
4822............  Telegraph and Other Message                       $5.0
                   Communications.                                      
4832............  Radio Broadcasting Stations..............         $5.0
4833............  Television Broadcasting Stations.........        $10.5
4841*...........  Cable and Other Pay Television Services..        $11.0
4899............  Communications Services, N.E.C...........        $11.0
                                                                        
------------------------------------------------------------------------
Major Group 49--Electric, Gas, and Sanitary Services                    
                                                                        
------------------------------------------------------------------------
4911............  Electric Services........................        \22\4
4922............  Natural Gas Transmission.................         $5.0
4923............  Gas Transmission and Distribution........         $5.0
4924............  Natural Gas Distribution.................          500
4925............  Mixed, Manufactured, or Liquefied                 $5.0
                   Petroleum Gas Production and/or                      
                   Distribution.                                        
4931............  Electric and Other Services Combined.....         $5.0
4932............  Gas and Other Services Combined..........         $5.0
4939............  Combination Utilities, N.E.C.............         $5.0
4941............  Water Supply.............................         $5.0
4952............  Sewerage Systems.........................         $5.0
4953............  Refuse Systems...........................     \11\$6.0
4959............  Sanitary Services, N.E.C.................         $5.0
4961............  Steam and Air-Conditioning Supply........         $9.0
4971............  Irrigation Systems.......................         $5.0
                                                                        
------------------------------------------------------------------------
                       Division F--Wholesale Trade                      
                                                                        
       (Not Applicable to Government procurement of supplies. The       
    nonmanufacturer size standard of 500 employees shall be used for    
             purposes of Government procurement of supplies)            
                                                                        
------------------------------------------------------------------------
Major Group 50--Wholesale Trade--Durable Goods                          
                                                                        
------------------------------------------------------------------------
5012............  Automobiles and Other Motor Vehicles.....          100
5013............  Motor Vehicle Supplies and New Parts.....          100
5014............  Tires and Tubes..........................          100
5015*...........  Motor Vehicle Parts, Used................          100
5021............  Furniture................................          100
5023............  Homefurnishings..........................          100
5031............  Lumber, Plywood, Millwork, and Wood                100
                   Panels.                                              
5032*...........  Brick, Stone, and Related Construction             100
                   Materials.                                           
5033*...........  Roofing, Siding, and Insulation Materials          100
5039............  Construction Materials, N.E.C............          100
5043............  Photographic Equipment and Supplies......          100
5044*...........  Office Equipment.........................          100
5045*...........  Computers and Computer Peripheral                  100
                   Equipment and Software.                              
5046*...........  Commercial Equipment, N.E.C..............          100
5047*...........  Medical, Dental, and Hospital Equipment            100
                   and Supplies.                                        
5048*...........  Ophthalmic Goods.........................          100
5049*...........  Professional Equipment and Supplies,               100
                   N.E.C.                                               
5051............  Metals Service Centers and Offices.......          100
5052............  Coal and Other Minerals and Ores.........          100
5063............  Electrical Apparatus and Equipment,                100
                   Wiring Supplies, and Construction                    
                   Materials.                                           
5064............  Electrical Appliances, Television and              100
                   Radio Sets.                                          
5065............  Electronic Parts and Equipment, N.E.C....          100
5072............  Hardware.................................          100
5074............  Plumbing and Heating Equipment and                 100
                   Supplies (Hydronics).                                
5075............  Warm Air Heating and Air-Conditioning              100
                   Equipment and Supplies.                              
5078............  Refrigeration Equipment and Supplies.....          100
5082............  Construction and mining (Except                    100
                   Petroleum) Machinery and Equipment.                  
5083............  Farm and Garden Machinery and Equipment..          100
5084............  Industrial Machinery and Equipment.......          100
5085............  Industrial Supplies......................          100
5087............  Service Establishment Equipment and                100
                   Supplies.                                            
5088............  Transportation Equipment and Supplies,             100
                   Except Motor Vehicles.                               
5091*...........  Sporting and Recreational Goods and                100
                   Supplies.                                            
5092*...........  Toys and Hobby Goods and Supplies........          100
5093............  Scrap and Waste Materials................          100
5094............  Jewelry, Watches, Precious Stones, and             100
                   Precious Metals.                                     
5099............  Durable Goods, N.E.C.....................          100
                                                                        
------------------------------------------------------------------------
Major Group 51--Wholesale Trade--Nondurable Goods                       
                                                                        
------------------------------------------------------------------------
5111............  Printing and Writing Paper...............          100
5112............  Stationery and Office Supplies...........          100
5113............  Industrial and Personal Service Paper....          100
5122............  Drugs, Drug Proprietaries, and Druggists'          100
                   Sundries.                                            
5131*...........  Piece Goods, Notions, and Other Dry Goods          100
5136............  Men's and Boys' Clothing and Furnishings.          100
5137............  Women's, Children's, and Infants'                  100
                   Clothing and Accessories.                            
5139............  Footwear.................................          100
5141............  Groceries, General Line..................          100
5142............  Packaged Frozen Foods....................          100
5143............  Dairy Products, Except Dried or Canned...          100
5144............  Poultry and Poultry Products.............          100
5145............  Confectionery............................          100
5146............  Fish and Seafood.........................          100
5147............  Meats and Meat Products..................          100
5148............  Fresh Fruits and Vegetables..............          100
5149............  Groceries and Related Products, N.E.C....          100
5153............  Grain and Field Beans....................          100
5154............  Livestock................................          100
5159............  Farm-Product Raw Materials, N.E.C........          100
5162*...........  Plastics Materials and Basic Forms and             100
                   Shapes.                                              
5169*...........  Chemical and Allied Products, N.E.C......          100
5171............  Petroleum Bulk Stations and Terminals....          100
5172............  Petroleum and Petroleum Products                   100
                   Wholesalers, Except Bulk Stations and                
                   Terminals.                                           
5181............  Beer and Ale.............................          100
5182............  Wine and Distilled Alcoholic Beverages...          100
5191............  Farm Supplies............................          100
5192*...........  Books, Periodicals, and Newspapers.......          100
5193*...........  Flowers, Nursery Stock, and Florists'              100
                   Supplies.                                            
5194............  Tobacco and Tobacco Products.............          100
5198............  Paints, Varnishes, and Supplies..........          100
5199............  Nondurable Goods, N.E.C..................          100
                                                                        
------------------------------------------------------------------------
                        Division G--Retail Trade                        
                                                                        
       (Not Applicable to Government procurement of supplies. The       
    nonmanufacturer size standard of 500 employees shall be used for    
             purposes of Government procurement of supplies)            
                                                                        
------------------------------------------------------------------------
Major Group 52--Building Materials, Hardware, Garden Supply, and Mobile 
 Home Dealers                                                           
                                                                        
------------------------------------------------------------------------
5211............  Lumber and Other Building Materials               $5.0
                   Dealers.                                             
5231............  Paint, Glass, and Wallpaper Stores.......          5.0
5251............  Hardware Stores..........................          5.0
5261............  Retail Nurseries, Lawn and Garden Supply           5.0
                   Stores.                                              
5271............  Mobile Home Dealers......................          9.5
                                                                        
------------------------------------------------------------------------
Major Group 53--General Merchandise Stores                              
                                                                        
------------------------------------------------------------------------
5311............  Department Stores........................        $20.0
5331............  Variety Stores...........................          8.0
5399............  Miscellaneous General Merchandise Stores.          5.0
                                                                        
------------------------------------------------------------------------
Major Group 54--Food Stores                                             
                                                                        
------------------------------------------------------------------------
5411............  Grocery Stores...........................        $20.0
5421*...........  Meat and Fish (Seafood) Markets,                   5.0
                   Including Freezer Provisioners.                      
5431............  Fruit and Vegetable Markets..............          5.0
5441............  Candy, Nut, and Confectionery Stores.....          5.0
5451............  Dairy Products Stores....................          5.0
5461*...........  Retail Bakeries..........................          5.0
5499............  Miscellaneous Food Stores................          5.0
                                                                        
------------------------------------------------------------------------
Major Group 55--Automotive Dealers and Gasoline Service Stations        
                                                                        
------------------------------------------------------------------------
5511............  Motor Vehicle Dealers (New and Used).....        $21.0
5521............  Motor Vehicle Dealers (Used Only)........         17.0
5531............  Auto and Home Supply Stores..............          5.0
5541............  Gasoline Service Stations................          6.5
5551............  Boat Dealers.............................          5.0
5561............  Recreational Vehicle Dealers.............          5.0
5571............  Motorcycle Dealers.......................          5.0
5599............  Automotive Dealers, N.E.C.\12\...........          5.0
                                                                        
------------------------------------------------------------------------
Major Group 56--Apparel and Accessory Stores                            
                                                                        
------------------------------------------------------------------------
5611............  Men's and Boys' Clothing and Accessory            $6.5
                   Stores.                                              
5621............  Women's Clothing Stores..................          6.5
5632*...........  Women's Accessory and Specialty Stores...          5.0
5641............  Children's and Infants' Wear Stores......          5.0
5651............  Family Clothing Stores...................          6.5
5661............  Shoe Stores..............................          6.5
5699............  Miscellaneous Apparel and Accessory                5.0
                   Stores.                                              
                                                                        
------------------------------------------------------------------------
Major Group 57--Home Furniture, Furnishings, and Equipment Stores       
                                                                        
------------------------------------------------------------------------
5712............  Furniture Stores.........................         $5.0
5713............  Floor Covering Stores....................          5.0
5714............  Drapery, Curtain, and Upholstery Stores..          5.0
5719............  Miscellaneous Homefurnishings Stores.....          5.0
5722............  Household Appliance Stores...............          6.5
5731*...........  Radio, Television, and Consumer                    6.5
                   Electronics Stores.                                  
5734*...........  Computer and Computer Software Stores....          6.5
5735*...........  Record and Prerecorded Tape Stores.......          5.0
5736*...........  Musical Instrument Stores................          5.0
                                                                        
------------------------------------------------------------------------
Major Group 58--Eating and Drinking Places                              
                                                                        
------------------------------------------------------------------------
5812............  Eating Places, Except Food Service,               $5.0
                   Institutional.                                       
5812............  Food Service, Institutional..............         15.0
5813............  Drinking Places (Alcoholic Beverages)....          5.0
                                                                        
------------------------------------------------------------------------
Major Group 59--Miscellaneous Retail                                    
                                                                        
------------------------------------------------------------------------
5912............  Drug Stores and Proprietary Stores.......         $5.0
5921............  Liquor Stores............................          5.0
5932*...........  Used Merchandise Stores..................          5.0
5941............  Sporting Goods Stores and Bicycle Shops..          5.0
5942............  Book Stores..............................          5.0
5943............  Stationery Stores........................          5.0
5944............  Jewelry Stores...........................          5.0
5945............  Hobby, Toy, and Game Shops...............          5.0
5946............  Camera and Photographic Supply Stores....          5.0
5947............  Gift, Novelty, and Souvenir Shops........          5.0
5948............  Luggage and Leather Goods Stores.........          5.0
5949............  Sewing, Needlework, and Piece Goods                5.0
                   Stores.                                              
5961............  Catalog and Mail-Order Houses............         18.5
5962............  Automatic Merchandising Machine Operators          5.0
5963............  Direct Selling Establishments............          5.0
5983............  Fuel Oil Dealers.........................          9.0
5984............  Liquefied Petroleum gas (Bottled Gas)              5.0
                   Dealers.                                             
5989*...........  Fuel Dealers, N.E.C......................          5.0
5992............  Florists.................................          5.0
5993............  Tobacco Stores and Stands................          5.0
5994............  News Dealers and Newsstands..............          5.0
5995*...........  Optical Goods Stores.....................          5.0
5999............  Miscellaneous Retail Stores, N.E.C.......          5.0
                                                                        
------------------------------------------------------------------------
           Division H--Finance, Insurance, and Real Estate\13\          
                                                                        
------------------------------------------------------------------------
Major 60--Depository Institutions                                       
                                                                        
------------------------------------------------------------------------
                                                               (million)
6021*...........  National Commercial Banks................     \14\$100
6022............  State Commercial Banks...................      \14\100
6029*...........  Commercial Banks, N.E.C..................      \14\100
6035*...........  Savings Institutions, Federally Chartered      \14\100
6036*...........  Savings Institutions, Not Federally            \14\100
                   Chartered.                                           
6061............  Credit Unions, Federally Chartered.......      \14\100
6062............  Credit Unions, Not Federally Chartered...      \14\100
6081............  Branches and Agencies of Foreign Banks...      \14\100
6082............  Foreign Trade and International Banks....      \14\100
6091............  Nondeposit Trust Facilities..............          5.0
6099............  Functions Related to Depositor Banking,            5.0
                   N.E.C.                                               
                                                                        
------------------------------------------------------------------------
Major Group 61--Nondepository Institution                               
                                                                        
------------------------------------------------------------------------
6141............  Personal Credit Institutions.............         $5.0
6153............  Short-Term Business Credit Institutions,           5.0
                   Except Agriculture.                                  
6159............  Miscellaneous Business Credit                      5.0
                   Institutions.                                        
6162............  Mortgage Bankers and Loan Correspondents.          5.0
6163............  Loan Brokers.............................          5.0
                                                                        
------------------------------------------------------------------------
Major Group 62--Security and Commodity Brokers, Dealers, Exchanges and  
 Services                                                               
                                                                        
------------------------------------------------------------------------
6211............  Security Brokers, Dealers and Flotation           $5.0
                   Companies.                                           
6221............  Commodity Contracts Brokers and Dealers..          5.0
6231............  Security and Commodity Exchanges.........          5.0
6282............  Investment Advice........................          5.0
6289............  Services Allied With the Exchange of               5.0
                   Securities or Commodities, N.E.C.                    
                                                                        
------------------------------------------------------------------------
Major Group 63--Insurance Carriers                                      
                                                                        
------------------------------------------------------------------------
6311............  Life Insurance...........................         $5.0
6321............  Accident and Health Insurance............         $5.0
6324............  Hospital and Medical Service Plans.......         $5.0
6331............  Fire, Marine, and Casualty Insurance.....        1,500
6351............  Surety Insurance.........................         $5.0
6361............  Title Insurance..........................         $5.0
6371............  Pension, Health and Welfare Funds........         $5.0
6399............  Insurance Carriers, N.E.C................         $5.0
                                                                        
------------------------------------------------------------------------
Major Group 64--Insurance Agents, Brokers, and Service                  
                                                                        
------------------------------------------------------------------------
6411............  Insurance Agents, Brokers, and Service...         $5.0
                                                                        
------------------------------------------------------------------------
Major Group 65--Real Estate                                             
                                                                        
------------------------------------------------------------------------
6512............  Operators of Nonresidential Buildings....         $5.0
6513............  Operators of Apartment Buildings.........          5.0
6514............  Operators of Dwellings Other Than                  5.0
                   Apartment Buildings.                                 
6515............  Operators of Residential Mobile Home               5.0
                   Sites.                                               
  ..............  Leasing of Building Space to Federal          \15\15.0
                   Government by Owners.                                
6517............  Lessors of Railroad Property.............          5.0
6519............  Lessors of Real Property, N.E.C..........          5.0
6531............  Real Estate Agents and Managers..........      \10\1.5
6541............  Title Abstract Offices...................          5.0
6552............  Land Subdividers and Developers, Except            5.0
                   Cemeteries.                                          
6553............  Cemetery Subdividers and Developers......          5.0
                                                                        
------------------------------------------------------------------------
Major Group 67--Holding and Other Investment Offices                    
                                                                        
------------------------------------------------------------------------
6712............  Offices of Bank Holding Companies........         $5.0
6719............  Offices of Holding Companies, N.E.C......          5.0
6722............  Management Investment Offices, Open-End..          5.0
6726............  Unit Investment Trusts, Face-Amount                5.0
                   Certificate Offices, and Closed-End                  
                   Management Investment Offices.                       
6732............  Educational, Religious, and Charitable             5.0
                   Trusts.                                              
6733............  Trusts, Except Educational, Religious,             5.0
                   and Charitable.                                      
6792............  Oil Royalty Traders......................          5.0
6794............  Patent Owners and Lessors................          5.0
6798............  Real Estate Investment Trusts............          5.0
6799............  Investors, N.E.C.........................          5.0
                                                                        
------------------------------------------------------------------------
                        Division I--Services\16\                        
                                                                        
------------------------------------------------------------------------
Major Group 70--Hotels, Rooming Houses, Camps, and Other Lodging Places 
                                                                        
------------------------------------------------------------------------
7011............  Hotels and Motels........................         $5.0
7021............  Rooming and Boarding Houses..............          5.0
7032............  Sporting and Recreational Camps..........          5.0
7033............  Recreational Vehicle Parks and Campsites.          5.0
7041............  Organization Hotels and Lodging Houses,            5.0
                   on Membership Basis.                                 
                                                                        
------------------------------------------------------------------------
Major Group 72--Personal Services                                       
                                                                        
------------------------------------------------------------------------
7211............  Power Laundries, Family and Commercial...        $10.5
7212............  Garment Pressing, and Agents for                   5.0
                   Laundries and Drycleaners.                           
7213............  Linen Supply.............................         10.5
7215............  Coin-Operated Laundries and Drycleaning..          5.0
7216............  Drycleaning Plants, Except Rug Cleaning..          3.5
7217............  Carpet and Upholstery Cleaning...........          3.5
7218............  Industrial Launderers....................         10.5
7219............  Laundry and Garment Services, N.E.C......          5.0
7221............  Photographic Studios, Portrait...........          5.0
7231............  Beauty Shops.............................          5.0
7241............  Barber Shops.............................          5.0
7251............  Shoe Repair Shops and Shoeshine Parlors..          5.0
7261............  Funeral Service and Crematories..........          5.0
7291*...........  Tax Return Preparation Services..........          5.0
7299............  Miscellaneous Personal Services, N.E.C...          5.0
                                                                        
------------------------------------------------------------------------
Major Group 73--Business Services                                       
                                                                        
------------------------------------------------------------------------
7311............  Advertising Agencies.....................         $5.0
7312............  Outdoor Advertising Services.............          5.0
7313............  Radio, Television, and Publishers'                 5.0
                   Advertising Representatives.                         
7319............  Advertising, N.E.C.......................          5.0
7322*...........  Adjustment and Collection Services.......          5.0
7323*...........  Credit Reporting Services................          5.0
7331............  Direct Mail Advertising Services.........          5.0
7334*...........  Photocopying and Duplicating Services....          5.0
7335*...........  Commercial Photography...................          5.0
7336*...........  Commercial Art and Graphic Design........          5.0
7338*...........  Secretarial and Court Reporting Services.          5.0
7342............  Disinfecting and Pest Control Services...          5.0
7349............  Building Cleaning and Maintenance                 12.0
                   Services, N.E.C.                                     
7352*...........  Medical Equipment Rental and Leasing.....          5.0
7353*...........  Heavy Construction Equipment Rental and            5.0
                   Leasing.                                             
7359*...........  Equipment Rental and Leasing, N.E.C......          5.0
7361............  Employment Agencies......................          5.0
7363*...........  Help Supply Services.....................          5.0
7371*...........  Computer Programming Services............         18.0
7372............  Prepackaged Software.....................         18.0
7373*...........  Computer Integrated Systems Design.......         18.0
7374............  Computer Processing and Data Preparation          18.0
                   and Processing Services.                             
7375*...........  Information Retrieval Services...........         18.0
7376*...........  Computer Facilities Management Services..         18.0
7377*...........  Computer Rental and Leasing..............         18.0
7378*...........  Computer Maintenance and Repair..........         18.0
7379............  Computer Related Services, N.E.C.........         18.0
7381*...........  Detective, Guard, and Armored Car                  9.0
                   Services.                                            
7382*...........  Security Systems Services................          9.0
7383*...........  News Syndicates..........................          5.0
7384*...........  Photofinishing Laboratories..............          5.0
7389*...........  Business Services, N.E.C.\21\............          5.0
                                                                        
------------------------------------------------------------------------
Major Group 75--Automotive Repair, Services, and Parking                
                                                                        
------------------------------------------------------------------------
7513............  Truck Rental and Leasing, Without Drivers        $18.5
7514*...........  Passenger Car Rental.....................         18.5
7515*...........  Passenger Car Leasing....................         18.5
7519............  Utility Trailer and Recreational Vehicle           5.0
                   Rental.                                              
7521*...........  Automobile Parking.......................          5.0
7532*...........  Top, Body, and Upholstery Repair Shops             5.0
                   and Paint Shops.                                     
7533*...........  Automotive Exhaust System Repair Shops...          5.0
7534............  Tire Retreading and Repair Shops.........         10.5
7536*...........  Automotive Glass Replacement Shops.......          5.0
7537*...........  Automotive Transmission Repair Shops.....          5.0
7538............  General Automotive Repair Shops..........          5.0
7539............  Automotive Repair Shops, N.E.C...........          5.0
7542............  Carwashes................................          5.0
7549............  Automotive Services, Except Repair and             5.0
                   Carwashes.                                           
                                                                        
------------------------------------------------------------------------
Major Group 76--Miscellaneous Repair Services                           
                                                                        
------------------------------------------------------------------------
7622............  Radio and Television Repair Shops........         $5.0
7623............  Refrigeration and Air-Conditioning                 5.0
                   Service and Repair Shops.                            
7629............  Electrical and Electronic Repair Shops,            5.0
                   N.E.C.                                               
7631............  Watch, Clock, and Jewelry Repair.........          5.0
7641............  Reupholstery and Furniture Repair........          5.0
7692............  Welding Repair...........................          5.0
7694............  Armature Rewinding Shops.................          5.0
7699............  Repair Shops and Related Services, N.E.C.      \17\5.0
                                                                        
------------------------------------------------------------------------
Major Group 78--Motion Pictures                                         
                                                                        
------------------------------------------------------------------------
7812*...........  Motion Picture and Video Tape Production.        $21.5
7819............  Services Allied to Motion Picture                 21.5
                   Production.                                          
7822*...........  Motion Picture and Video Tape                     21.5
                   Distribution.                                        
7829............  Services Allied to Motion Picture                  5.0
                   Distribution.                                        
7832............  Motion Picture Theaters, Except Drive-In.          5.0
7833............  Drive-In Motion Picture Theaters.........          5.0
7841*...........  Video Tape Rental........................          5.0
                                                                        
------------------------------------------------------------------------
Major Group 79--Amusement and Recreation Services                       
                                                                        
------------------------------------------------------------------------
7911............  Dance Studios, Schools, and Halls........         $5.0
7922............  Theatrical Producers (Except Motion                5.0
                   Picture) and Miscellaneous Theatrical                
                   Services.                                            
7929............  Bands, Orchestras, Actors, and Other               5.0
                   Entertainers and Entertainment Groups.               
7933............  Bowling Centers..........................          5.0
7941............  Professional Sports Clubs and Promoters..          5.0
7991*...........  Physical Fitness Facilities..............          5.0
7993............  Coin-Operated Amusement Devices..........          5.0
7996............  Amusement Parks..........................          5.0
7997............  Membership Sports and Recreation Clubs...          5.0
7999............  Amusement and Recreation Services, N.E.C.          5.0
                                                                        
------------------------------------------------------------------------
Major Group 80--Health Services                                         
                                                                        
------------------------------------------------------------------------
8011............  Offices and Clinics of Doctors of                 $5.0
                   Medicine.                                            
8021............  Offices and Clinics of Dentists..........          5.0
8031............  Offices and Clinics of Doctors of                  5.0
                   Osteopathy.                                          
8041............  Offices and Clinics of Chiropractors.....          5.0
8042............  Offices and Clinics of Optometrists......          5.0
8043*...........  Offices and Clinics of Podiatrists.......          5.0
8049............  Offices and Clinics of Health                      5.0
                   Practitioners, N.E.C.                                
8051............  Skilled Nursing Care Facilities..........          5.0
8052*...........  Intermediate Care Facilities.............          5.0
8059............  Nursing and Personal Care Facilities,              5.0
                   N.E.C.                                               
8062............  General Medical and Surgical Hospitals...          5.0
8063............  Psychiatric Hospitals....................          5.0
8069............  Specialty Hospitals, Except Psychiatric..          5.0
8071............  Medical Laboratories.....................          5.0
8072............  Dental Laboratories......................          5.0
8082*...........  Home Health Care Services................          5.0
8092*...........  Kidney Dialysis Centers..................          5.0
8093*...........  Specialty Outpatient Facilities, N.E.C...          5.0
8099*...........  Health and Allied Services, N.E.C........          5.0
                                                                        
------------------------------------------------------------------------
Major Group 81--Legal Services                                          
                                                                        
------------------------------------------------------------------------
8111............  Legal Services...........................         $5.0
                                                                        
------------------------------------------------------------------------
Major Group 82--Educational Services                                    
                                                                        
------------------------------------------------------------------------
8211............  Elementary and Secondary Schools.........         $5.0
8221............  Colleges, Universities, and Professional           5.0
                   Schools.                                             
8222............  Junior Colleges and Technical Institutes.          5.0
8231............  Libraries................................          5.0
8243............  Data Processing Schools..................          5.0
8244............  Business and Secretarial Schools.........          5.0
8249............  Vocational Schools, N.E.C................          5.0
8299............  Schools and Educational Services, N.E.C..          5.0
8299............  Flight Training Services.................         18.5
                                                                        
------------------------------------------------------------------------
Major Group 83--Social Services                                         
                                                                        
------------------------------------------------------------------------
8322*...........  Individual and Family Social Services....         $5.0
8331............  Job Training and Vocational                        5.0
                   Rehabilitation Services.                             
8351............  Child Day Care Services..................          5.0
8361............  Residential Care.........................          5.0
8399............  Social Services, N.E.C...................          5.0
                                                                        
------------------------------------------------------------------------
Major Group 84--Museums, Art Galleries, and Botanical and Zoological    
 Gardens                                                                
                                                                        
------------------------------------------------------------------------
8412*...........  Museums and Art Galleries................         $5.0
8422*...........  Arboreta and Botanical or Zoological               5.0
                   Gardens.                                             
                                                                        
------------------------------------------------------------------------
Major Group 86--Membership Organizations                                
                                                                        
------------------------------------------------------------------------
8611............  Business Associations....................         $5.0
8621............  Professional Membership Organizations....          5.0
8631............  Labor Unions and Similar Labor                     5.0
                   Organizations.                                       
8641............  Civic, Social, and Fraternal Associations          5.0
8651............  Political Organizations..................          5.0
8661............  Religious Organizations..................          5.0
8699............  Membership Organizations, N.E.C..........          5.0
                                                                        
------------------------------------------------------------------------
Major Group 87--Engineering, Accounting, Research, Management, and      
 Related Services                                                       
                                                                        
------------------------------------------------------------------------
8711*...........  Engineering Services:                                 
                  Military and Aerospace Equipment and             $20.0
                   Military Weapons.                                    
                  Contracts and Subcontracts for                    20.0
                   Engineering Services Awarded Under the               
                   National Energy Policy Act of 1992.                  
                  Marine Engineering and Naval Architecture         13.5
                  Other Engineering Services...............          2.5
8712*...........  Architectural Services (Other Than Naval)          2.5
8713*...........  Surveying Services.......................          2.5
8721*...........  Accounting, Auditing, and Bookkeeping              6.0
                   Services.                                            
8731*...........  Commercial Physical and Biological                    
                   Research:\18\.                                       
                  Aircraft.................................        1,500
                  Aircraft Parts, and Auxiliary Equipment,         1,000
                   and Aircraft Engines and Engine Parts.               
                  Space Vehicles and Guided Missiles, their        1,000
                   Propulsion Units, their Propulsion Units             
                   Parts, and their Auxiliary Equipment and             
                   Parts.                                               
                  Other Commercial Physical and Biological           500
                   Research.                                            
8732*...........  Commercial Economic, Sociological, and             5.0
                   Educational Research.                                
8733*...........  Noncommercial Research Organizations.....          5.0
8734*...........  Testing Laboratories.....................          5.0
8741*...........  Management Services......................          5.0
8742*...........  Management Consulting Services...........          5.0
8743*...........  Public Relations Services................          5.0
8744*...........  Facilities Support Management                      5.0
                   Services\19\.                                        
                  Base Maintenance\20\.....................         20.0
8748*...........  Business Consulting Services, N.E.C......          5.0
                                                                        
------------------------------------------------------------------------
Major Group 89--Services, Not Elsewhere Classified                      
                                                                        
------------------------------------------------------------------------
8999............  Services, N.E.C..........................         $5.0
------------------------------------------------------------------------
Footnotes                                                               
1Size standards preceded by a dollar sign ($) are in millions of dollars
  of annual receipts. All others are in number of employees unless      
  specified otherwise.                                                  
2SIC code 1629--Dredging: To be considered small, a firm must perform   
  the dredging of at least 40 percent of the yardage with its own       
  dredging equipment or equipment owned by another small dredging       
  concern.                                                              
3SIC Division D--Manufacturing: ``Rebuilding on a factory basis or      
  equivalent.'' For rebuilding machinery or equipment on a factory      
  basis, use SIC code applicable for new manufactured product. The      
  appropriate size standard is not limited to manufacturers. Ordinary   
  repair services or preservation operations, however, are not          
  considered rebuilding activities.                                     
4SIC code 2033: For purposes of Government procurement for food canning 
  and preserving under SIC code 2033, the standard of 500 employees     
  shall be exclusive of agricultural labor as defined in section (k) of 
  the Federal Unemployment Tax Act, 68A Stat. 454, 26 U.S.C. (I.R.C.    
  1954) 3306.                                                           
5SIC code 2911: For purposes of Government procurement, the firm may not
  have more than 1,500 employees, nor may it have more than 75,000      
  barrels per day capacity. This capacity may be measured in terms of   
  either crude oil or bona fide feedstocks or both, but the sum total of
  the various petroleum-based inputs into the process may not exceed    
  75,000 barrels. In addition to the direct-owned capacity of the       
  concern in question, counted capacity will include any leased         
  facilities or any facilities made available to the concern under an   
  arrangement such as (but not limited to) an exchange agreement or a   
  throughput, or other form, or processing agreement (whereby another   
  party processes the concern's own crude or feedstocks). Such an       
  arrangement would have the same effect as though such facilities had  
  been leased, and this would have to be included in the concern's own  
  capacity. The total product to be delivered in the performance of the 
  contract must be at least 90 percent refined by the successful bidder 
  from either crude oil or bona fide feedstocks.                        
6SIC code 3011: For purposes of Government procurement, a firm is small 
  for bidding on a contract for pneumatic tires within Census           
  Classification codes 30111 and 30112, provided that:                  
(1) The value of tires within Census Classification codes 30111 and     
  30112 which it manufactured in the United States during the previous  
  calendar year is more than 50 percent of the value of its total       
  worldwide manufacture, (2) the value of pneumatic tires within Census 
  Classification codes 30111 and 30112 which it manufactured worldwide  
  during the preceding calendar year was less than 5 percent of the     
  value of all such tires manufactured in the United States during said 
  period, and (3) the value of the principal product which it           
  manufactured or otherwise produced, or sold worldwide during the      
  preceding calendar year is less than 10 percent of the total value of 
  such products manufactured or otherwise produced or sold in the United
  States during said period.                                            
7SIC code 4212: The component ``Garbage and Refuse, Collecting and      
  Transporting, Without Disposal'' shall have a size standard of $6.0   
  million. This is the same size standard as SIC code 4953, Refuse      
  Systems.                                                              
8Offshore Marine Services: The applicable size standard shall be $20.5  
  million for firms furnishing specific transportation services to      
  concerns engaged in offshore oil and/or natural gas exploration,      
  drilling production, or marine research; such services encompass      
  passenger and freight transportation, anchor handling, and related    
  logistical services to and from the work site or at sea.              
9SIC codes 4512, 4513, and 4522: Includes passenger or cargo            
  transportation requiring the use of one or more helicopters or fixed- 
  wing aircraft. This does not include offshore marine transportation   
  services as defined in footnote 8.                                    
10SIC codes 4724 and 6531: As measured by total revenues, but excluding 
  funds received in trust for an unaffiliated third party, such as      
  bookings or sales subject to commissions. The commissions received    
  would be included as revenue.                                         
\11\SIC code 4953: ``Garbage and Refuse, Collecting and Transporting,   
  Without Disposal,'' a component of SIC code 4212, has the same size   
  standard as SIC code 4953.                                            
\12\SIC code 5599: For retail firms whose principal line of business is 
  the retail sale of aircraft, a $7.5 million size standard shall apply.
\13\Most in Division H: Finance, Insurance and Real Estate--are excluded
  from SBA assistance.                                                  
\14\Major Group 60: As measured by total assets.                        
\15\Major Group 65--Leasing of building space to the Federal Government 
  by Owners: For the purpose of Government procurement, a size standard 
  of $15.0 million in gross receipts is established for owners of       
  building space that is leased to the Federal Government. The standard 
  for these procurements shall apply to the owner of the property and   
  not to those acting as an agent for the owner. There is no size       
  standard concerning the agent in a leasing arrangement.               
\16\Division J--Services: For all industries not specifically listed in 
  this division, the size standard is $5.0 million.                     
\17\SIC codes 7699 and 3728: Contracts for the rebuilding or overhaul of
  aircraft ground support equipment on a contract basis will be         
  classified under SIC code 3728.                                       
\18\SIC code 8731: For research and development contracts requiring the 
  delivery of a manufactured product, the appropriate size standard to  
  use is that of the manufacturing industry in which the specific       
  products is classified.                                               
Research and Development, as defined in the SIC Manual, means laboratory
  or other physical research and development on a contractor fee basis. 
  Research and development for purposes of size determinations does not 
  include the following: economic, educational, engineering, operations,
  systems, or other nonphysical research; or computer programming, data 
  processing, commercial and/or medical laboratory testing.             
For purposes of the Small Business Innovation Research (SBIR) program   
  only, a different definition has been established by law. See Sec.    
  121.7 of these regulations.                                           
Research and development for guided missiles and space vehicles includes
  evaluation and simulation, and other services requiring thorough      
  knowledge of complete missiles and spacecraft.                        
\19\Facilities Management, a component of SIC code 8744, has the        
  following definition: Establishments, not elsewhere classified, which 
  provide overall management and the personnel to perform a variety of  
  related support services in operating a complete facility in or around
  a specific building, or within another business or Government         
  establishment. Facilities management means furnishing three or more   
  personnel supply services which may include, but are not limited to,  
  secretarial services, typists, telephone answering, reproduction or   
  mimeograph service, mailing service, financial or business management,
  public relations, conference planning, travel arrangements, word      
  processing, maintaining files and/or libraries, switchboard operation,
  writers, bookkeeping, minor office equipment maintenance and repair,  
  use of information systems (not programming), etc.                    
\20\SIC code 8744: If one of the activities of base maintenance, as     
  defined below, can be identified with a separate industry, and that   
  activity (or industry) accounts for 50 percent or more of the value of
  an entire contract, then the proper size standard shall be that for   
  the particular industry, and not the base maintenance size standard.  
``Base Maintenance'' constitutes three or more separate activities. The 
  activities may be either service or special trade construction related
  activities. As services, these activities must each be in a separate  
  industry. These activities may include, but are not limited to, such  
  separate maintenance activities as Janitorial and Custodial Service,  
  Protective Guard Service, Commissary Service, Fire Prevention Service,
  Safety Engineering Service, Messenger Service, and Grounds Maintenance
  and Landscaping Service. If the contract involves the use of special  
  trade contractors (plumbing, painting, plastering, carpentering, etc.)
  all such specialized special trade construction activities will be    
  considered a single activity, which is Base Housing Maintenance. This 
  is only one activity of base maintenance and two additional activities
  must be present for the contract to be considered base maintenance.   
  The size standard for Base Housing Maintenance is $7 million, the same
  size standard as for Special Trade Contractors.                       
\21\The size standard for map drafting services, mapmaking (including   
  aerial), and photogrammetric mapping services, part of SIC code 7389, 
  is $3.5 million.                                                      
\22\Million megawatt hours.                                             

    Dated: March 30, 1994.
Cassandra M. Pulley,
Acting Administrator.
[FR Doc. 94-8274 Filed 4-6-94; 8:45 am]
BILLING CODE 8025-01-M