[Federal Register Volume 68, Number 55 (Friday, March 21, 2003)]
[Rules and Regulations]
[Pages 13807-13811]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-6769]



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  Federal Register / Vol. 68, No. 55 / Friday, March 21, 2003 / Rules 
and Regulations  

[[Page 13807]]



SMALL BUSINESS ADMINISTRATION

13 CFR Part 121

RIN 3245-AF02


Small Business Size Standards; Job Corps Centers

AGENCY: Small Business Administration (SBA).

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: The U.S. Small Business Administration (SBA) is establishing a 
$30 million size standard in average annual receipts for Job Corps 
Center activities classified within the ``Other Technical and Trade 
Schools'' industry (North American Industry Classification System 
(NAICS) code 611519). The current size standard for all other 
activities within this industry remains at $6 million in average annual 
receipts.

DATES: This final rule is effective April 21, 2003.

FOR FURTHER INFORMATION CONTACT: Diane Heal, Office of Size Standards, 
at (202) 205-6618 or [email protected].

SUPPLEMENTARY INFORMATION: On November 22, 2002, the SBA issued a rule 
in the Federal Register (67 FR 70330) proposing to establish a $30 
million size standard for Job Corps Center activities classified within 
the ``Other Technical and Trade Schools'' industry (NAICS code 611519). 
The SBA received requests to review the size standard applicable to Job 
Corps Centers from the U.S. Department of Labor (DOL) and three other 
organizations. Job Corps Center contracts account for more than $900 
million annually and represent about 60 percent of the DOL's 
procurement expenditures.
    The requestors sought the SBA's review of the size standard after 
the SBA's Office of Hearings and Appeals (OHA) rendered a decision that 
a Job Corps Center contract was improperly classified under the Base 
Maintenance sub-category of Facilities Support Services. (See NAICS 
Appeal of Global Solutions Network, Inc., SBA No. NAICS-4478, dated 
March 5, 2002.) In that decision, OHA determined that the proper 
classification for an activity that trains individuals in life skills 
and readies them for the job market through academic studies and/or 
technical training is ``Other Technical and Trade Schools,'' NAICS code 
611519. The effect of this decision was to change the size standard for 
Job Corps Center contracts from $20 million to $5 million. (On February 
22, 2002, an inflation adjustment increased the $5 million size 
standard for NAICS 611519 to $6 million and the $20 million size 
standard for Base Maintenance to $23 million. See 67 FR 3041, dated 
January 23, 2002.)
    The SBA reviewed the reasons presented by the requesters to 
increase the $6 million size standard and data on Job Corps Center 
contracts and bidders. Based on an analysis of that information, as 
described in the November 22, 2002, rule, it proposed a $30 million 
size standard specifically for Job Corps Center contracts. The SBA 
received eight comments on the proposed size standard. After giving 
careful consideration to the comments, the SBA has decided to adopt its 
proposed $30 million size standard.

Discussion of Comments on the Proposed Rule

    The SBA received eight comments on the proposed size standard from 
seven business concerns and one Federal agency. In summary, seven 
commenters supported changing the $6 million size standard. Six of 
these commenters supported the proposed size standard of $30 million 
and one commenter recommended a size standard between $12 million and 
$15 million. One commenter opposed the SBA's proposal to establish a 
size standard above $6 million. Below is a summary of the major issues 
raised by the comments on the proposed rule and the SBA's position.

Comments Supporting the Proposed Job Corps Center Size Standard

    Six commenters supported the proposed $30 million size standard for 
Job Corps Centers. Two of these commenters pointed out that many 
successful small business Job Corps Center contractors would exceed the 
size standard because of the average dollar value of these contracts, 
``and therefore either would not be eligible to compete for the center 
they have been running or the contract would no longer be able to be 
let as a small business set-aside.'' In turn, the government would be 
faced with ``remarkable turnover * * * that will actually cost the 
government more in dollars and performance in the long run.'' In 
addition, these commenters pointed out that this turnover has the 
potential for the DOL to eliminate small business set-asides, and thus, 
decrease its contracting dollars to small businesses.
    Four commenters stated that the proposed increased size standard 
will improve the competitiveness of Job Corps Center small businesses. 
They claimed that this change will allow small businesses in this 
activity to grow and achieve stability, to develop economies of scale 
in their operations, to operate more than one center, and to remain in 
the Job Corps Center program. They also contend that a larger base of 
small businesses will encourage more solicitation competition and lower 
prices. Two other commenters supported the SBA's proposal by stating 
that the SBA's analysis captured the industry's characteristics and 
reflected the current status of businesses competing to operate Job 
Corps Centers.
    The SBA agrees with these commenters. As discussed in the proposed 
rule, the average yearly funding for Job Corps Centers is $8.8 million, 
with the funding ranging from $5 million to $44 million. This fact 
substantiates the commenters' claim that after being awarded one 
contract, almost all Job Corps Center small business contractors would 
no longer qualify for the follow-on contract or any Job Corps Center 
requirement that would be set-aside for small businesses. In addition, 
if the size standard remained at $6 million, the DOL would be reluctant 
to set aside any Job Corps Center contract because of the continual 
turnover of small business contractors. The SBA is concerned that a 
viable size standard for Job Corps Centers must address a situation in 
which a small business obtaining a single contract quickly outgrows the 
size standard without being sufficiently ready to compete with larger 
businesses. The size standard needs to be at a level that

[[Page 13808]]

enables a small business to grow to a size to be competitive with other 
businesses in the industry. Most of the comments supported the position 
that a $30 million size standard achieves this result.

Comment Recommending an Alternative Size Standard Between $12 Million 
and $15 Million

    One commenter agreed that the $6 million size standard warranted a 
change, but believed that increasing the size standard to $30 million 
was unrealistic. The commenter proposed that the size standard be 
increased to a level between $12 million and $15 million. The commenter 
believed the DOL will not seriously consider the commenter's business 
in competition with companies whose financial earnings are far closer 
to $30 million. The commenter argued that once a small business has 
obtained and operated a Job Corps Center for 3 or more years, it should 
be well situated to compete with other operators in procuring 
additional Job Corps Center contracts. The commenter also stated that a 
$30 million size standard would allow larger businesses to ``grab'' 
business intended for new and developing companies. The commenter 
believed a size standard between $12 million and $15 million is 
sufficient to allow small businesses to develop economies of scale in 
their operations that improve efficiencies in internal operations as 
well as decrease the costs associated with managing a contract. This 
size standard range would also help small businesses contend with the 
financing requirements set by the DOL because ``as the small business 
increases in size its ability to secure financing--for larger amounts 
and at lower rates--increases.''
    The SBA does not agree with this comment. The SBA agrees with the 
position of many of the other commenters that the proposed $30 million 
size standard will make businesses more competitive by enabling them to 
achieve economies of scale associated with operating two to three Job 
Corps Centers. The DOL's experience with the $20 million size standard 
that it used before the OHA decision mentioned earlier, resulted in 
only a limited number of small business Job Corps Center contractors, 
none of which operate more than one center. The SBA believes that a 
size standard that is less than the previously used $20 million sized 
standard is inadequate for developing small businesses in the Job Corps 
Center sub-industry.
    The SBA does not agree that the proposed size standard will 
substantially impact other small businesses ability to compete for Job 
Corps Center contracts. As discussed in the proposed rule, 87 percent 
of Job Corp Center contract dollars go to businesses over $30 million, 
with only two to four businesses falling within the range between $15 
million and $30 million. The increased competition from a relatively 
few number of businesses between $15 million and $30 million is 
unlikely to diminish opportunities from other small businesses. 
Moreover, as other commenters have noted, businesses with less than $30 
million in size have competitive disadvantages in terms of economics of 
scale and financial requirements set by the DOL.

Comments Opposing a Change in the Job Corps Center Size Standard

    One commenter opposed any change to the current size standard on 
the ground that having one center run by one contractor constituted 
contract bundling. This commenter claimed that ``the DOL for 30 years 
has preferred to operate each of its contract-operated Job Corps 
Centers under one umbrella bundled contract.'' According to the 
commenter, by adopting the proposed size standard the SBA and the DOL 
are denying small businesses in the areas of facilities support, office 
administration, security guard services, janitorial services, 
landscaping services, medical and dental care, and food services from 
participating as Job Corps Center prime contractors.
    The SBA does not agree with this commenter. Bundling is the 
consolidation of two or more contracts into a single procurement that 
will likely preclude small business participation. Here, the nature of 
the Job Corps Center contracts do not constitute contract bundling 
because they were not previously performed under separate smaller 
contracts and small businesses are not precluded from competing on 
these contracts. Bundling would occur for example, if the DOL issued 
one nationwide contract to manage the Job Corps Centers. A contract of 
that nature and scope would render small business participation 
unlikely. Additionally, issues concerning contract bundling relate to 
the structuring of individual procurements and therefore are separate 
from the SBA's determination of the appropriate small business size 
standard for a particular industry. For more information about the 
SBA's efforts to address the impact of contract bundling on small 
businesses, see its recently proposed rule on this issue (68 FR 5134, 
dated January 31, 2003.)

Compliance With Executive Orders 12866, 12988, and 13132, the Paperwork 
Reduction Act (44 U.S.C. Ch. 35) and the Regulatory Flexibility Act (5 
U.S.C. 601-612)

    The Office of Management and Budget (OMB) has determined that the 
proposed rule is not a significant regulatory action for purposes of 
Executive Order 12866. Size standards determine which businesses are 
eligible for Federal small business programs. This rule also is not a 
major rule under the Congressional Review Act, 5 U.S.C. 800. For the 
purpose of the Paperwork Reduction Act, 44 U.S.C. Ch. 35, the SBA has 
determined that this rule would not impose new reporting or record 
keeping requirements. For purposes of Executive Order 12988, the SBA 
has determined that this rule is drafted, to the extent practicable, in 
accordance with the standards set forth in that order. For purposes of 
Executive Order 13132, the SBA has determined that this rule does not 
have any federalism implications warranting the preparation of a 
Federalism Assessment. Our Regulatory Impact Analysis follows.

Regulatory Impact Analysis

i. Is There a Need for the Regulatory Action?

    The SBA is chartered to aid and assist small businesses through a 
variety of financial, procurement, business development, and advocacy 
programs. To effectively assist intended beneficiaries of these 
programs, the SBA must establish distinct definitions of which 
businesses are deemed small businesses. The Small Business Act (15 
U.S.C. 632(a)) delegates to the SBA Administrator the responsibility 
for establishing small business definitions. It also requires that 
small business definitions vary to reflect industry differences. The 
preamble of the proposed rule explained the approach the SBA follows 
when analyzing a size standard for a particular industry (67 FR 70330, 
dated November 22, 2002). Based on that analysis, the SBA believes that 
a $30 million size standard for Job Corps Centers is needed to better 
define small businesses engaged in these activities.

ii. What Are the Potential Benefits and Costs of This Regulatory 
Action?

    The most significant benefit to businesses obtaining small business 
status as a result of this rule is eligibility for Federal small 
business assistance programs. Under this rule, approximately 10 
additional businesses will obtain small business status and become 
eligible for these programs. These include Federal procurement

[[Page 13809]]

preference programs for small businesses, 8(a) firms, small 
disadvantaged businesses (SDB), and small businesses located in 
Historically Underutilized Business Zones (HUBZone). The 10 additional 
businesses may also become eligible for the SBA's financial assistance 
programs. Through the assistance of these programs, small businesses 
may benefit by becoming more knowledgeable, stable, and competitive 
businesses.
    Other Federal agencies also use the SBA's size standards for their 
programs for a variety of regulatory and program purposes. The SBA does 
not have information on each of these uses sufficient to evaluate the 
impact of the size standard change. If an agency believes that a 
different size standard is appropriate for its programs, it must 
contact the SBA. If an agency is seeking to change size standards in a 
general rulemaking context, then the agency should contact the SBA's 
Office of Size Standards (13 CFR 121.901-904). If the agency is seeking 
to change size standards for the purposes of a regulatory flexibility 
analysis, then the SBA's Office of Advocacy should be contacted 
pursuant to section 601(3) of the Regulatory Flexibility Act (RFA). 
Section 601(3) of the RFA requires the agency to consult with the 
Office of Advocacy and provide an opportunity for public comment when 
using a different size standard for the RFA analysis.
    The benefits of a size standard increase to a more appropriate 
level would accrue to three groups: (1) Businesses that benefit by 
gaining small business status from the adopted size standard and use 
small business assistance programs; (2) growing small businesses that 
may exceed the current size standards in the near future and who will 
retain small business status from the adopted size standard; and (3) 
Federal agencies that award contracts under procurement programs that 
require small business status.
    Newly defined small businesses may benefit from the SBA's financial 
programs, in particular its 7(a) Guaranteed Loan Program. Under this 
program, the SBA estimates that $700,000 in new Federal loan guarantees 
could be made to the newly defined small businesses. Because of the 
size of the loan guarantees, most loans are made to small businesses 
well below the size standard. Thus, increasing the size standard to 
include 10 additional businesses may result in only one or two small 
business guaranteed loans to businesses in this industry. As a 
guaranteed loan for larger businesses averages $350,000 for businesses 
in the Other Technical and Trade Schools industry and the Facilities 
Support Services industry, if two of the 10 business applied for a 
loan, the SBA could expect to guarantee an additional $700,000 in 
loans. However, most businesses involved in Job Corps Centers are in 
other industries; thus, their eligibility for SBA loan assistance may 
be under their primary NAICS industry. The newly defined small 
businesses would also benefit from the SBA's Economic Injury Disaster 
Loan program. Since this program is contingent upon the occurrence and 
severity of a disaster, no meaningful estimate of benefits can be 
projected.
    The SBA estimates that businesses gaining small business status 
could potentially obtain Federal contracts worth $53 million per year 
under the small business set-aside program, the 8(a) and HUBZone 
programs, or unrestricted contracts. Federal agencies may benefit from 
the higher size standards if the newly defined and expanding small 
businesses compete for more set-aside procurements. The larger base of 
small businesses would likely increase competition and lower the prices 
on set-aside procurements. A larger base of small businesses may create 
an incentive for Federal agencies to set aside more procurements, thus 
creating greater opportunities for all small businesses. Federal 
contractors with small business subcontracting goals may also benefit 
from a larger pool of small businesses by enabling them to better 
achieve their subcontracting goals at lower prices. No estimate of cost 
savings from these contracting decisions can be made since data are not 
available to directly measure price or competitive trends on Federal 
contracts.
    To the extent that approximately 10 additional businesses could 
become active in Government programs, this may entail some additional 
administrative costs to the Federal Government associated with 
additional bidders for Federal small business procurement programs, 
additional businesses seeking assistance of the SBA's guaranteed 
lending programs, and additional businesses eligible for enrollment in 
the SBA's PRO-Net small business database. Among businesses in this 
group seeking the SBA's assistance, there will be some additional costs 
associated with compliance and verification of small business status 
and protests of small business status. These costs are likely to 
generate minimal incremental costs since mechanisms are currently in 
place to handle these administrative requirements.
    The costs to the Federal Government may be higher on some Federal 
contracts as a result of this rule. With greater numbers of businesses 
defined as small, Federal agencies may choose to set aside more 
contracts for competition among small businesses rather than using full 
and open competition. The movement from unrestricted to set-aside is 
likely to result in competition among fewer bidders for a contract. 
Also, higher costs may result if additional full and open contracts are 
awarded to HUBZone and SDB businesses as a result of a price evaluation 
preference. However, the additional costs associated with fewer bidders 
are likely to be minor since, as a matter of policy, procurements may 
be set aside for small businesses or under the 8(a), and HUBZone 
programs only if awards are expected to be made at fair and reasonable 
prices. In addition, the use of small business set-asides may encourage 
more competitors since small businesses would not have to compete 
against the major businesses in the industry.
    The new size standard may have distributional effects among large 
and small businesses. Although the actual outcome of the gains and 
losses among small and large businesses cannot be estimated with 
certainty, several trends are likely to emerge. First, a transfer of 
some Federal contracts to small businesses from large businesses. Large 
businesses may have fewer Federal contract opportunities as Federal 
agencies decide to set aside more Federal procurements for small 
businesses. Also, some Federal contracts may be awarded to SDB or 
HUBZone businesses instead of large businesses since those two 
categories of small businesses are eligible for price evaluation 
preferences for contracts competed on a full and open basis. Similarly, 
currently defined small businesses may obtain fewer Federal contacts 
due to the increased competition from more businesses defined as small. 
As currently there is only one small business that has a contract for a 
Job Corps Center, this transfer will be offset by initiating a number 
of Federal procurements than can now be set aside for all small 
businesses. The potential transfer of contracts away from large and 
currently defined small businesses would be limited by the number of 
newly defined and expanding small businesses that were willing and able 
to sell to the Federal Government. The potential distributional impacts 
of these transfers could result in up to $53 million, or 5.8 percent of 
total contract dollars of $909 million, being transferred from large 
businesses to small businesses. The SBA

[[Page 13810]]

based this estimate on the per year funding of the businesses that 
currently have Job Corps Center contracts, which would gain small 
business status as a result of this rule.
    The revision to the current size standard for Job Corps Centers is 
consistent with the SBA's statutory mandate to assist small businesses. 
This regulatory action promotes the Administrator's objectives. One of 
the SBA's goals in support of the Administrator's objectives is to help 
individual small businesses succeed through fair and equitable access 
to capital and credit, Government contracts, and management and 
technical assistance. Reviewing and modifying size standards when 
appropriate ensures that intended beneficiaries have access to small 
business programs designed to assist them. Size standards do not 
interfere with State, local, and tribal governments in the exercise of 
their government functions. In a few cases, State and local governments 
have voluntarily adopted the SBA's size standards for their programs to 
eliminate the need to establish an administrative mechanism for 
developing their own size standards.

Final Regulatory Flexibility Analysis

    Under the RFA, this rule may have a significant impact on a 
substantial number of small entities engaged in Job Corps Center 
activities. Immediately below, the SBA sets forth a Final Regulatory 
Flexibility Analysis (FRFA) of this rule addressing the following: (1) 
The reasons and objective of the rule; (2) a description and estimate 
of small entities to which the rule will apply; (3) the projected 
reporting, record keeping, and other compliance requirements of the 
rule; (4) the relevant Federal rules which may duplicate, overlap or 
conflict with the rule; and (5) alternatives to the final rule 
considered by the SBA that minimize the impact on small businesses.
    The size standard may also affect small businesses participating in 
programs of other agencies that use the SBA size standards. As a 
practical matter, however, the SBA cannot estimate the impact of a size 
standard change on each and every Federal program that uses its size 
standards. However, this rule is limited to a specific type of contract 
only issued by the DOL. In cases where an SBA size standard is not 
appropriate, the Small Business Act and the SBA's regulations allow 
Federal agencies to develop different size standards with the approval 
of the SBA Administrator (13 CFR 121.902). For purposes of a regulatory 
flexibility analysis, agencies must consult with the SBA's Office of 
Advocacy when developing different size standards for their programs. 
(13 CFR 121.902(b)(4)).

(1) What Is the Need for and Objective of the Rule?

    The objective of this rule is to establish an appropriate small 
business definition of businesses operating Job Corps Centers, and 
therefore, eligible for Federal small business assistance programs. An 
increase to the current $6 million size standard is needed to provide 
contracting opportunities to the small business segment of businesses 
engaged in or competing for Job Corps Center contracts. Currently, 
there are five businesses in the Job Corps Centers activity that have 
revenues below the current $6 million size standard; however, only one 
of these businesses has a contract to operate a Job Corps Center. This 
business is likely to outgrow the current size standard within the next 
year as its current contract is for $5.8 million per year. This will 
leave only four businesses below the size standard, all having revenues 
below $1 million. None of these businesses have been successful in 
winning a Job Corps Center contract. This, along with the fact that the 
average yearly contract funding is $8.8 million and the minimal funding 
for a Job Corps Center is $5 million, indicates that the size standard 
for Job Corps Centers needs to be greater than the current $6 million.

(2) What Significant Issues Were Raised by the Public Comments in 
Response to the Initial Regulatory Flexibility Analysis (IRFA)?

    The SBA received no comments in response to the IRFA of the 
proposed rule.

(3) What Is the SBA's Description and Estimate of the Number of Small 
Entities to Which the Rule Will Apply?

    The SBA estimates that 35 organizations are engaged in the Job 
Corps Center activity, of which approximately 14 percent are small 
businesses currently at or just below the $6 million in size. With this 
rule, 10 additional businesses will gain small business status. These 
businesses will be eligible to seek available SBA assistance provided 
that they meet other program requirements.
    Based on the relative size of these businesses and the amount of 
Job Corps Center contracting, the SBA estimates that small business 
coverage will increase by $53 million, or 5.8 percent of total 
contracting in this activity. The SBA based this estimate on the per 
year funding of the businesses that currently have Job Corps Center 
contracts and that will gain small business status with this rule.

(4) Will This Rule Impose Any Additional Reporting or Record Keeping 
Requirements on Small Businesses?

    A new size standard does not impose any additional reporting, 
record keeping or other compliance requirements on small entities for 
the SBA's programs. A change in a size standard would not create 
additional costs on a business to determine whether or not it qualifies 
as a small business. A business needs to only examine existing 
information to determine its size, such as Federal tax returns, payroll 
records, and accounting records. Size standards determine ``voluntary'' 
access to the SBA and other Federal programs that assist small 
businesses, but do not impose a regulatory burden as they neither 
regulate nor control business behavior. In addition, this rule does not 
impose any new information collecting requirements from the SBA which 
requires approval by OMB under the Paperwork Reduction Act of 1980, 44 
U.S.C. 3501-3520.

(5) What Are the Steps the SBA Has Taken To Minimize the Significant 
Economic Impact on Small Businesses?

    Most of the economic impact on small businesses will be positive. 
The most significant benefits to businesses that will obtain small 
business status as a result of this final rule are (1) eligibility for 
the Federal Government's procurement preference programs for small 
businesses, 8(a) firms, small disadvantaged businesses, and businesses 
located in a HUBZone; and (2) eligibility for the SBA's financial 
assistance programs such as 7(a), 504 business loans, and Economic 
Injury Disaster Loan assistance. The SBA estimates that businesses 
gaining small business status could potentially obtain Federal 
contracts worth $53 million per year under the small business set-aside 
program, the 8(a) program, the HUBZone program, or unrestricted 
contracts. This represents approximately 5.8 percent of the $909 
million in total Federal expenditures for Job Corps Centers.

(6) Alternatives

(a) What Are the Legal Policies or Factual Reasons for Selecting the 
Alternative Adopted in the Final Rule?
    As stated in the Small Business Act, 15 U.S.C. 632 and 13 CFR part 
121, the SBA establishes size standards based on industry 
characteristics and for non-

[[Page 13811]]

manufacturing concerns on the basis of gross receipts of a business 
concern over a period of 3 years. The facts that the average yearly 
funding for a Job Corps Center is $8.8 million, with funding ranging 
from $5 million to $44 million, and that there are only five businesses 
in this activity with revenues under the current size standard support 
establishing a separate size standard of $30 million.
(b) What Alternatives Did the SBA Reject?
    One commenter recommended a size standard between $12 million and 
$15 million size standard. He believed that once a business obtained 
and operated a Job Corps Center for 3 or more years, it should be well 
situated to compete with other Job Corps Centers operators. A $12 
million to $15 million size standard will allow small businesses to 
develop economies of scale in their operations that improve 
efficiencies in internal operations as well as decrease the costs 
associated with managing a contract.
    The SBA does not consider this a viable alternative. This 
recommendation is less than the $20 million used by the DOL prior to 
the OHA decision mentioned above. The receipts distribution shows that 
87 percent of the Job Corps Center contract dollars go to businesses 
with over $30 million in revenues. If a $15 million size standard were 
adopted, a business that won a second Job Corps Center contract would 
probably exceed the size standard within a year of work on that 
contract.
    By establishing the size standard at $30 million, the SBA will 
create opportunities for the small businesses in an industry where only 
five businesses are below the size standard. Of these five businesses, 
four have revenues below $1 million, with only one of these businesses 
having a Job Corps Center contract. If the SBA retains the current $6 
million size standard, it will not accurately reflect the smaller 
segment of businesses that participate in operating and maintaining Job 
Corps Centers.

List of Subjects in 13 CFR Part 121

    Administrative practice and procedure, Government procurement, 
Government property, Grant programs--business, Loan programs--business, 
Small businesses.


    For the reasons stated in the preamble, amend part 121 of title 13 
of the Code of Federal Regulations as follows:

PART 121--SMALL BUSINESS SIZE REGULATIONS

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

    Authority: 15 U.S.C. 632(a), 634(b)(6), 637(a), 644(c) and 
662(5) and Sec. 304, Pub. L. 103-403, 108 Stat. 4175, 4188.


Sec.  121.201  [Amended]

    2. Amend Sec.  121.201 as follows:
    a. In the table ``Small Business Size Standards by NAICS Industry'' 
under the heading ``Subsector 611--Educational Services,'' revise entry 
611519 to read as follows; and
    b. Add footnote 16 to the end of the table to read as follows:

             Small Business Size Standards by NAICS Industry
------------------------------------------------------------------------
                                                                 Size
                                                    Size      standards
  NAICS         NAICS U.S. industry title        standards    in number
  codes                                         in millions       of
                                                 of dollars   employees
------------------------------------------------------------------------
 
                              * * * * * * *
----------
                   Subsector 611--Educational Services
------------------------------------------------------------------------
 
                              * * * * * * *
----------
   611519  Other Technical and Trade Schools..         $6.0  ...........
   EXCEPT  Job Corps Centers\16\..............    \16\$30.0  ...........
 
                             * * * * * * *
------------------------------------------------------------------------
\16\ NAICS codes 611519--Job Corps Centers. For classifying a Federal
  procurement, the purpose of the solicitation must be for the
  management and operation of a U.S. Department of Labor Job Corps
  Center. The activities involved include admissions activities, life
  skills training, educational activities, comprehensive career
  preparation activities, career development activities, career
  transition activities, as well as the management and support functions
  and services needed to operate and maintain the facility. For SBA
  assistance as a small business concern, other than for Federal
  Government procurements, a concern must be primarily engaged in
  providing the services to operate and maintain Federal Job Corps
  Centers.


    Dated: March 14, 2003.
Hector V. Barreto,
Administrator.
[FR Doc. 03-6769 Filed 3-20-03; 8:45 am]
BILLING CODE 8025-01-P