[Federal Register Volume 69, Number 54 (Friday, March 19, 2004)]
[Proposed Rules]
[Pages 13130-13164]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-5049]



[[Page 13129]]

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Part II





Small Business Administration





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13 CFR Part 121



Small Business Size Standards; Restructuring of Size Standards; 
Proposed Rule

  Federal Register / Vol. 69, No. 54 / Friday, March 19, 2004 / 
Proposed Rules  

[[Page 13130]]


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SMALL BUSINESS ADMINISTRATION

13 CFR Part 121

RIN 3245-AF11


Small Business Size Standards; Restructuring of Size Standards

AGENCY: Small Business Administration (SBA).

ACTION: Proposed rule.

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

SUMMARY: The U.S. Small Business Administration (SBA) proposes to 
modify its small business size standards by establishing size standards 
in terms of the number of employees of a business concern for most 
industries and SBA programs. This change will reduce the number of 
different size standard levels and at the same time simplify size 
standards and their application to Federal Government programs. Under 
this proposal, size standards will range between 50 employees and 1,500 
employees, depending on the industry or SBA program.
    For a limited number of industries, SBA proposes to establish a 
maximum average annual receipts amount (referred to as a receipts cap) 
along with the employee-based size standard. Concerns in those 
industries that meet the employee-based size standard also cannot 
exceed a specific receipts cap to qualify as an eligible small 
business.
    To further simplify size standards, SBA also proposes the 
following: (1) modify the size standard for the Surety Bond Guarantee 
(SBG) Program by replacing the $6 million size standard with the 
requirement that the contractor meet the size standard for its primary 
industry; (2) extend the 125,000 barrels per calendar day component of 
the size standard for petroleum refiners beyond Federal Government 
procurement to all Federal small business programs using SBA's size 
standards; (3) eliminate the special size standard based on market 
share for tire manufacturers that applies to only Federal Government 
procurement; (4) modify three receipts-based size standards and one 
employee-based size standard for the sale or lease of Government 
property; and (5) revise the nonmanufacturer size standard applicable 
to Federal procurements from 500 employees to 100 employees, the size 
standard that applies to wholesale trade businesses for all other SBA 
programs.

DATES: Comments must be received on or before May 18, 2004.

ADDRESSES: Send comments to Gary M. Jackson, Assistant Administrator 
for Size Standards, 409 Third Street, SW., Mail Code 6530, Washington 
DC 20416; by email to [email protected]">restructure.[email protected]; or by 
facsimile at (202) 205-6390. You may also submit comments to 
www.regulations.gov. Upon receipt of a written request under the 
Freedom of Information Act, SBA will make all public comments 
available.

FOR FURTHER INFORMATION CONTACT: Contact the SBA's Office of Size 
Standards at (202) 205-6618 or [email protected].

SUPPLEMENTARY INFORMATION: SBA's 37 small business size standards have 
evolved over the past 40 years from a considerably smaller number that 
applied only to SBA's financial assistance programs and to Federal 
procurement programs. Presently, there are size standards for 1,151 
industries and 11 special financial and procurement programs. Many of 
these size standards resulted from the expansion and development of new 
SBA programs, the increasing size and complexity of the U.S. economy, 
and demands from small businesses to address unique situations.
    SBA's current size standards use two primary measures of business 
size--number of employees and average annual receipts. Financial 
assets, electric generation, and refining capacity are used for a few 
specialized industries. In addition, SBA's Small Business Investment 
Company (SBIC) and the Certified Development Company (CDC) Programs 
determine small business eligibility based on either the industry-based 
size standards or net worth and net income size standards.
    The current structure of SBA's size standards has worked well. 
However, several recurring criticisms suggest that SBA should consider 
improving their current structure. These criticisms raise questions 
about the complexity of determining if a business is small, the 
fairness of defining a business as small in some industries but not 
others, the influence of Federal procurement programs in establishing 
size standards, and the intentional misclassification of Federal 
contracts or the primary industry activity of a business to apply a 
different, and usually a much higher, size standard.
    SBA's last comprehensive attempt to address size standards was in 
the late 1970s and early 1980s. Although SBA considered several 
approaches, it made only a few minor changes. The most important change 
replaced two sets of size standards, one for procurement programs and 
one for financial programs, with a single set for all programs. SBA 
also adjusted receipts-based size standards for inflation and 
formalized a methodology for evaluating size standards.
    In the early 1990s, SBA proposed to streamline size standards with 
nine levels of size standards (four receipts-based size standards and 
five employee-based size standards) similar to one aspect of this 
proposed rule. Public comments tended to favor this approach. However, 
SBA determined that converting receipts-based size standards in effect 
at that time to one of four proposed receipts levels created a number 
of unacceptable anomalies and, therefore, did not adopt it as a final 
rule.
    Currently, SBA's size standards consist of 37 different size levels 
which apply to 1,151 industries and 13 sub-industry activities in the 
North American Industry Classification System (NAICS). In addition, a 
size standard has been established for 11 financial and procurement 
programs. Thirty size standards are based on annual receipts, five are 
based on number of employees, and two are based on other measures. 
Table 1a below summarizes the current receipts-based size standards and 
Table 1b summarizes the current employee-based and other size 
standards.

           Table 1a.--Size Standards Based on Annual Receipts
------------------------------------------------------------------------
                                                 Number of    Number of
                                                 different    industries
                                                 receipts-    covered by
    Range of receipts-based size standards       based size      size
                                                 standards    standards
                                                   in the      in  this
                                                   range        range
------------------------------------------------------------------------
$48.5 million.................................            1            1
$21.5 million to $30 million..................            8           52
$12.5 million to $21 million..................            7           24

[[Page 13131]]

 
$12 million...................................            1           24
$7 million to $11 million.....................            7           46
$6 million....................................            1          337
$1.5 million to $4 million....................            4           18
$0.75 million.................................            1           46
------------------------------------------------------------------------


           Table 1b.--Employee-based and Other Size Standards
------------------------------------------------------------------------
                                                              Number of
                                                              industries
                       Size standard                          covered by
                                                               the size
                                                               standard
------------------------------------------------------------------------
1,500 employees............................................           17
1,000 employees............................................           66
750 employees..............................................           63
500 employees..............................................          388
100 employees..............................................           71
$150 million in assets.....................................            6
4 million megawatt hours...................................            6
------------------------------------------------------------------------

    Most variations in size standards occur among those based on annual 
receipts. In many cases, a specific receipts-based size standard 
applies to only one or a few industries. SBA believes it can simplify 
size standards and make them less complicated by establishing a single 
size standard measure and reducing the number of different size 
standard levels. With fewer size standards, they will be clearer, more 
consistent, and easier to understand, resulting in less confusion to 
users, particularly the non-governmental users, such as small 
businesses. In addition, a single size measure eliminates a problem 
that some concerns encounter when they operate in different industries 
that have different size standard measures. The information technology 
industries provide a good example of this situation. Many information 
technology businesses provide both goods and services. Yet, SBA's size 
standards are based on number of employees for providers of computer 
and peripheral equipment and receipts for providers of computer 
services. Consequently, an information technology business may be small 
for one type of work but not small for a related activity.

Proposal to Use Employee-based Size Standards for All Industries

    SBA proposes to restructure its size standards by establishing an 
employee-based size standard for each industry. The number of employees 
of a business concern is its average number of persons employed for 
each pay period over the firm's latest 12 months and includes the 
employees of all affiliates. Any person on the payroll must be included 
as one employee regardless of hours worked or temporary status. The 
number of employees of a firm in business under 12 months is based on 
the average for each pay period it has been in business. For more 
information on how SBA calculates the employment size of a business, 
see 13 CFR 121.106.
    The size standards currently based on number of employees will be 
retained at their current levels. This proposal converts the current 
size standards that are based on receipts, financial assets, or 
generating capacity to employee-based size standards. SBA proposes to 
establish an employee-based size standard which varies for each 
industry, but is limited to one of the following ten employee levels:

            Table 2.--Proposed Employee Size Standard Levels
------------------------------------------------------------------------
 
------------------------------------------------------------------------
        50            100            150            200           300
       400            500            750          1,000         1,500
------------------------------------------------------------------------

    SBA believes that fewer size standard levels also help to simplify 
size standards. In converting receipts-based size standards to 
employee-based size standards (described further below), five new 
employee size levels (50, 150, 200, 300, and 400) along with the 
current five employee size levels (100, 500, 750, 1,000 and 1,500) 
results in employee-based size standards that equate to about the same 
number of eligible small businesses as does the current receipts-based 
size standards. A fewer number of employee size levels would result in 
a much larger number of businesses gaining or losing small business 
eligibility while a greater number of employee size levels would apply 
to only a small number of businesses and not simplify the size 
standards to the same degree.

Why the SBA Proposes Employee-Based Size Standards for All Industries

    SBA believes that a single measure of size helps make size 
standards less complex. Having a single size measure simplifies the 
structure and enables SBA to establish fewer size standard levels. 
Under a structure composed of one size measure and fewer size standard 
levels, many small businesses that currently operate in several 
industries each with different size standards would in many cases be 
subject to only one or two different size standards under the proposed 
employee-based size standards. SBA believes that the benefits of 
simplification that come from having a single size measure outweigh the 
benefits of retaining multiple size measures.
    Proposing number of employees as the only measure of business size 
departs from SBA's long tradition of using receipts and other non-
employee size measures. SBA has generally utilized receipts as a 
preferred size measure because it constitutes the value of a concern's 
output. Other measures of size are used where receipts tend to skew the 
value added by a concern in the production of goods and services. For 
example, SBA uses number of employees to define a small manufacturing 
concern. For manufacturing, two manufacturers in the same industry with 
the same number of employees can generate significantly different 
receipts depending on the number of stages in their production 
operations. Receipts for a manufacturer in its final production stage 
include the value added by the manufacturer(s) in its earlier 
production stages. This is true even though the value added by the 
final manufacturer may be minor relative to the value of the final 
product. Because of this characteristic of manufacturing, number of 
employees has a stronger correlation to value added than do receipts.
    Several aspects of employee-based size standards support SBA's 
decision to use them as the single measure of size

[[Page 13132]]

for all industries. The single best reason to do so is that they do not 
vary with changing economic conditions. Inflation, for example, has no 
direct impact on employee-based size standards. Similarly, rising costs 
unique to an industry have no direct impact on employee-based size 
standards. An ideal size standard would not affect eligibility, unless 
a company's level of real output of goods and services changes.
    Employment also tends to be a more stable measure of business size. 
Businesses have economic incentives to maintain their workforce as 
business fluctuates to avoid recruitment and training costs. Using 
overtime can satisfy short-term increases in output until management is 
convinced that a permanent increase in business activity justifies 
adding personnel. Most businesses, especially small businesses, display 
a strong commitment to their employees and they are reluctant to change 
employment levels frequently in response to short-term business 
considerations.
    Finally, number of employees is a widely accepted measure of 
business size. More than half of the present SBA size standards are 
expressed in employees. Although employment is an input into the 
production of goods and services, it generally accounts for a 
significant portion of total costs. A business's employment level is a 
representative indicator of its resources as well as its scale of 
operations. In one of the few studies conducted on an appropriate size 
standard measure, two researchers concluded that the number of 
employees of a business had a stronger correlation with the qualitative 
description of a small business (an approach to defining a small 
business preferred by many small business analysts) than did receipts. 
(See ``Definition of Small Business,'' Scott Holmes and Brian Gibson, 
The University of Newcastle, April 5, 2001. The report is available at 
http://www.smallbusiness.org.au/sbc/publications/sbc004a.htm.)

How SBA Determined the Number of Employees for Size Standards With 
Annual Receipts and Other Size Measures

    SBA developed criteria for deciding which of the ten employee size 
standard levels to apply to an industry that currently has a receipts-
based size standard. These criteria were designed to convert a 
receipts-based size standard to an equivalent employee-based size 
standard. The primary tool used to calculate the equivalent employee 
size standard associated with a receipts-based size standard is the 
receipts-to-employee ratio for an industry. Data to calculate these 
ratios were provided to the SBA by the U.S. Bureau of the Census in a 
special tabulation of the 1997 Economic Census (The 1997 Economic 
Census is available at
http://www.census.gov/epcd/www/econ97.html). Since total receipts in an 
industry are provided along with employees in the industry, SBA was 
able to calculate receipts per employee ratios for almost all 
industries covered by this rule. These ratios were next adjusted 8.54% 
to account for inflation that occurred from 1997 to 2002 (the year in 
which receipts-based size standards were last adjusted for inflation). 
SBA used the chain-type price index for gross domestic product (GDP) 
(as published by the U.S. Department of Commerce, Bureau of Economic 
Analysis, and is available at
http://www.bea.gov/bea/ARTICLES/2003/10October/D-Pages/1003DpgC.pdf), 
which is a broad measure of inflation for the economy as a whole. The 
resulting figure was divided into the present receipt-based size 
standard for the industry under review to calculate an employee 
equivalent size standard. This employee equivalent size standard was 
then rounded to the closest of the ten employee size standard levels to 
minimize the difference between the current receipts-based size 
standard and the calculated employee-based size standard.
    The criteria also preserve the common size standard level that SBA 
currently has established for related industries. That is, for closely 
related industries that have the same receipts size standard, SBA has 
proposed an employee size standard that best represents an equivalent 
employee size standard for that group of industries, such as the 
computer services industries.
    Below are the criteria and how SBA applied them to receipts-based 
size standards.

Selection of Employment Size Standard for Industries With a $6 Million 
Size Standard

    For industries with a $6 million size standard, SBA had three 
considerations. The first consideration was whether to propose a 50 
employee size standard for those industries. SBA's methodology for 
evaluating a size standard for a nonmanufacturing industry presumes 
that $6 million in average annual receipts is an appropriate size 
standard. This size standard is generally referred to as the 
``nonmanufacturing anchor size standard.'' SBA considers a size 
standard higher or lower than the anchor level as appropriate for an 
industry when the structural economic characteristics of the industry 
are significantly different from the typical nonmanufacturing industry. 
SBA has decided to retain the concept of an anchor size standard for 
the nonmanufacturing industries as part of its restructuring and 
simplification of size standards. However, SBA proposes that the anchor 
size standard will be expressed in number of employees rather than 
receipts. Based on the ratio of receipts to employees in the 
nonmanufacturing industries, 50 employees is the employee anchor size 
standard for the nonmanufacturing industries. SBA is proposing a 50 
employee size standard for industries currently with a $6 million size 
standard, unless the criteria discussed in the second and third 
considerations are present within an industry.
    SBA's second consideration was whether the size standard should be 
higher than the 50 employee size standard anchor for industries where 
the conversion of receipts to employees produces a figure significantly 
above 50 employees. The SBA has decided to propose a size standard of 
50 employees for industries where the conversion produces an equivalent 
size standard from 51 to 74 employees, since these levels round to the 
closest of the ten proposed employee size standards. For industries 
where the receipts to employees conversion results in a figure of 75 
employees or more, the SBA selected a size standard above 50 employees, 
but only if other information justified the higher size standard. In 
these cases, a higher size standard is appropriate to (1) reflect the 
industrial structure of the industry, or (2) avoid a significant 
reduction in the number of small businesses currently eligible to 
compete for Federal procurements.\1\
---------------------------------------------------------------------------

    \1\ Federal procurement is an appropriate consideration because 
of the special support provided by SBA to small businesses through 
the 8(a) Business Development Program, the Small Disadvantaged 
Business Program, the HUBZone Program, the Small Business Set-Aside 
program and subcontracting programs. Not only has SBA implemented 
policies to assist small businesses to develop through these Federal 
procurement programs, but the businesses themselves have made 
economic and business decisions affecting their eligibility for 
these programs. The SBA wants to avoid taking away small business 
eligibility for Federal procurement programs from a large number of 
small businesses that could otherwise result from this size 
standards restructuring proposal. This consideration is limited to 
industries in which significant Federal Government contracting 
opportunities exist, or with approximately $100 million or more in 
Federal contracting.
---------------------------------------------------------------------------

    SBA's third consideration examined the relationship of the size 
standard with other size standards within an

[[Page 13133]]

industry subsector or industry group (three-digit and four-digit NAICS 
codes, respectively). For several industries with a $6 million size 
standard, SBA decided to propose a size standard greater than 50 
employees in order to maintain the size standard relationship within 
their industry group (such as for the Land Subdivision and Land 
Development industry, NAICS 236110).
    An example of the decision process utilizing the three criteria is 
Barber Shops (NAICS 81211), whose present size standard is $6 million. 
Dividing $6 million by the inflation-adjusted figure of $34,700 
receipts per employee resulted in the equivalent size standard of 172 
employees. This level rounds to 150 employees using the preselected 
employee size standards. However, the SBA believes that a 150 employee 
size standard for barber shops is too high, and that the 50 employee 
proposed anchor size standard better matches the industry structure for 
barber shops, as well as public perception of what constitutes a small 
business in this industry. This industry has one of the largest 
concentrations of very small businesses, where the average size barber 
shop is only three employees.
    By contrast, the present size standard for the Other Airport 
Operations industry (NAICS 488119) has the same $6 million anchor size 
standard. Dividing $6 million by the $56,969 receipts per employee 
resulted in the equivalent size standard of 105 employees, which the 
SBA rounded to 100 employees. The average size firm in this industry 
has 49 employees--more than four times the average size firm of 11 
employees for the nonmanufacturing industries with a $6 million size 
standard. In addition, the 50 employee anchor size standard would 
render approximately 50 currently defined small businesses ineligible 
to compete for Federal procurements that require small business status. 
In FY 2002, the Federal Government awarded more than $280 million in 
contract awards, with small businesses obtaining less than $17 million 
in contracts. A 50 employee size standard would have the unintended 
result of further diminishing the participation of small businesses in 
Federal contracting within this industry activity.
    Three hundred and thirty-seven industries have a size standard of 
$6 million. In applying the above considerations, SBA proposes a 50 
employee size standard for 315 industries, and a higher size standard 
for the remaining 21 industries. The chart below identifies the 21 
industries with a size standard higher than 50 employees and the basis 
for proposing a higher size standard.

 Table 3.--Industries Currently With a $6 Million Size Standard That SBA Proposes a Size Standard Higher Than 50
                                                    Employees
----------------------------------------------------------------------------------------------------------------
                                                                    Proposed         Reason for employee size
          NAICS codes                    NAICS industry          employee  size  standard different from  anchor
                                                                     standard             size standard
----------------------------------------------------------------------------------------------------------------
237210........................  Land Subdivision...............             200  Common size standard for all
                                                                                  industries in Subsector 237
                                                                                  and impact on Federal
                                                                                  procurement.
485111........................  Mixed Mode Transit Systems.....             100  Common size standard for most
                                                                                  transit industries (NAICS
                                                                                  Subsector 485).
485112........................  Commuter Rail Systems..........             100  Common size standard for most
                                                                                  transit industries.
485113........................  Bus and Other Motor Vehicle                 100  High average firm size.
                                 Transit Systems.
485119........................  Other Urban Transit Systems....             100  Common size standard for most
                                                                                  transit industries.
485210........................  Interurban and Rural Bus                    100  High average firm size.
                                 Transportation.
485410........................  School and Employee Bus                     100  High average firm size and
                                 Transportation.                                  common size standard for most
                                                                                  transit industries.
485510........................  Charter Bus Service............             100  Common size standard for most
                                                                                  transit industries.
486210........................  Pipeline Transportation of                  100  High average firm size and
                                 Natural Gas.                                     common size standard with
                                                                                  NAICS 486990, All Other
                                                                                  Pipeline Transportation.
488119........................  Other Airport Operations.......             100  High average firm size and
                                                                                  impact on Federal procurement.
488190........................  Other Support Activities for                100  Common size standard with NAICS
                                 Air Transportation.                              488119 and impact on Federal
                                                                                  procurement.
512131........................  Motion Picture Theatres (except             100  High average firm size.
                                 Drive-In).
518112........................  Web Search Portals.............             150  Common size standard for all
                                                                                  industries in Subsector 518
                                                                                  and impact on Federal
                                                                                  procurement.
561422........................  Telemarketing Bureaus..........             150  High average firm size.
621910........................  Ambulance Services.............             100  High average firm size and
                                                                                  common size standard with
                                                                                  other ambulatory health
                                                                                  services.
711310........................  Promoters of Performing Arts,               100  High average firm size.
                                 Sports, & Similar Events with
                                 Facilities.
713110........................  Amusement and Theme Parks......             100  High average firm size.
713920........................  Skiing Facilities..............             200  High average firm size.
721110........................  Hotels (except Casino Hotels)               100  High average firm size and
                                 and Motels.                                      impact on Federal procurement.
721120........................  Casino Hotels..................             100  High average firm size and
                                                                                  common size standard with
                                                                                  hotels and motels.
812930........................  Parking Lots and Garages.......             100  High average firm size.
----------------------------------------------------------------------------------------------------------------


[[Page 13134]]

Selection of Employment Size Standard for Industries Size Standards 
Above or Below $6 Million

    For industries that have a size standard below $6 million, SBA has 
proposed 50 employees. This would establish the policy that any 
business with 50 or fewer employees is a small business regardless of 
its industry. Only a few industries would be affected by this proposal, 
and we strongly believe that the benefits of simplification outweigh 
any impact on SBA's programs or on other Federal small business 
programs.
    For industries with a size standard above $6 million, SBA 
calculated an equivalent employee size standard based on the ratio of 
receipts to employees. For example, the receipts per employee of a 
computer systems design firm is $152,000. A firm of $21 million equates 
to a firm with 127 employees. Because SBA is proposing to have size 
standards at one of ten employee levels, SBA rounded this figure to the 
nearest employee size standard, or 150 employees.
    For most of these industries, SBA proposes the size standard 
resulting from the receipts per employee ratio. For closely related 
industries (those within the same 4-digit NAICS Industry Group or 3-
digit NAICS Subsector) that currently have a common receipts-based size 
standard, SBA proposes a common employee-based size standard, even 
though a different size standard could be established for each closely 
related industry based on the receipts-to-employee calculation. SBA 
recognizes that small businesses are often eligible for SBA assistance 
in a number of closely related industries, and it simplifies size 
standards if closely related industries have the same size standard. An 
example of this pattern is the computer services industries in which 
businesses typically operate in at least several of the nine computer 
services industries. After reviewing the equivalent employee-based size 
standards for the nine computer services industries, SBA is 
recommending a common size standard of 150 employees for all nine 
computer services industries. Examples of other industries where SBA 
proposes a common size standard include the consulting service 
industries, the trucking industries, the warehousing industries, and 
the waste management industries.

Summary of Proposed Employee Size Standards

    In summary, the major factors influencing the proposed employee 
size standard are:
     A size standard of 50 employees generally 
applies when an industry receipt-based size standard is at the present 
anchor of $6 million in average annual receipts or is less than $6 
million;
     An employee size standard above 50 employees 
applies to an industry with a $6 million size standard if the 
calculated equivalent employee size standard is above 76 employees and 
industry structure, existing size standards relationships, or Federal 
procurement implications merited a size standard above 50 employees.
     An employee size standard for an industry above 
$6 million is based on the calculated equivalent employee-based size 
standard.
     Exceptions to these rules occurred when SBA 
attempted to maintain traditional size standards relationships within 
closely related industries.

Selection of Employment Size Standard for Industries With Size 
Standards Based on Electric Generation and Financial Assets

    The size standard for the industries involved in the generation, 
transmission, or distribution of electric energy (NAICS 221111-221122) 
is 4 million megawatts of total electric output (see footnote 1 of the 
table to size standards in Sec.  121.210). The U.S. Bureau of the 
Census does not publish capacity data on businesses in this industry. 
SBA identified small electric utilities from the U.S. Department of 
Energy's publication ``Financial Statistics of Investor-Owned Electric 
Utilities, 1996'' (available at
http://www.eia.doe.gov/cneaf/electricity/invest/invest --sum.html). SBA 
reviewed publicly available information, such as Security and Exchange 
Commission 10-K reports, to determine the employment levels of small 
electric utilities. Based on this review, SBA is proposing a 1,000 
employee size standard for the electrical generation, transmission, and 
distribution industries. At that employment size, electric utilities 
under the current 4 million megawatt size standard would continue to be 
defined as small without adding other electric utilities as small.
    The size standard for the banking and other credit intermediation 
industries (NAICS 522110--522210, and 522293) is $150 million in 
financial assets (see footnote 8 to the table of size standards in 
Sec.  21.201). The U.S. Bureau of the Census does not publish industry 
financial data on the banking and credit industries. Using asset and 
employment data published by the Federal Deposit Insurance 
Corporation's Statistics on Depository Institutions (available at 
http://www2.fdic.gov/SDI/main4.asp), the average assets per employee of 
smaller banks is about $2.5 million. Based on those data, a $150 
million bank would have, on average, about 60 employees. Applying the 
methodology described above, SBA is proposing a 50 employee size 
standard for banking and other credit intermediation industries since 
that is the nearest of the ten employee size standards proposed by this 
rule.

Proposal To Add a Maximum Average Annual Receipts Cap as an Additional 
Component of the Size Standard for Certain Industries

    SBA further proposes that 31 industries will have a maximum average 
annual receipts amount (referred to as a receipts cap) along with the 
employee-based size standard. To qualify as small, concerns in those 
industries would have to be no greater in size than the employee-based 
size standard and have average annual receipts less than the receipts 
cap amount. SBA proposes that 36 size standards in the following 31 
industries have an annual receipts cap along with the proposed employee 
size standard. Table 4, below, lists those industries and SBA's 
proposed employee size standards and receipts caps.

            Table 4.--Industries With Proposed Receipts Caps
------------------------------------------------------------------------
                                                             Proposed
                                             Proposed         maximum
    NAICS codes      NAICS U.S. industry     number of        annual
                            title            employees     receipts  ($
                                                             million)
------------------------------------------------------------------------
115310............  Support Activities                50             N/A
                     for Forestry.
Except,...........  Forest Fire                      400           $20.0
                     Suppression.
Except,...........  Fuels Management                 400           $20.0
                     Services.

[[Page 13135]]

 
236115............  New Single-Family                150           $35.0
                     Housing
                     Construction
                     (except Operative
                     Builders).
236116............  New Multifamily                  150           $35.0
                     Housing
                     Construction
                     (except Operative
                     Builders).
236117............  New Housing                      150           $35.0
                     Operative Builders.
236118............  Residential                      150           $35.0
                     Remodelers.
236210............  Industrial Building              150           $35.0
                     Construction.
236220............  Commercial and                   150           $35.0
                     Institutional
                     Building
                     Construction.
237110............  Water and Sewer Line             200           $35.0
                     and Related
                     Structures
                     Construction.
237120............  Oil and Gas Pipeline             200           $35.0
                     and Related
                     Structures
                     Construction.
237130............  Power and                        200           $35.0
                     Communication Line
                     and Related
                     Structures
                     Construction.
237210............  Land Subdivision....             200           $35.0
237310............  Highway, Street, and             200           $35.0
                     Bridge Construction.
237990............  Other Heavy and                  200           $35.0
                     Civil Engineering
                     Construction.
Except,...........  Dredging and Surface             150           $22.0
                     Cleanup Activities.
518210............  Data Processing,                 150           $30.0
                     Hosting, and
                     Related Services.
541310............  Architectural                     50            $7.0
                     Services.
541330............  Engineering Services              50            $7.0
Except,...........  Military and                     200           $30.0
                     Aerospace Equipment
                     and Military
                     Weapons.
Except,...........  Contracts and                    200           $30.0
                     Subcontracts for
                     Engineering
                     Services Awarded
                     Under the National
                     Energy Policy Act
                     of 1992.
Except,...........  Marine Engineering               150           $30.0
                     and Naval
                     Architecture.
541511............  Custom Computer                  150           $30.0
                     Programming
                     Services.
541512............  Computer Systems                 150           $30.0
                     Design Services.
541513............  Computer Facilities              150           $30.0
                     Management Services.
541519............  Other Computer                   150           $30.0
                     Related Services.
541611............  Administrative                    50           $10.0
                     Management and
                     General Management
                     Consulting Services.
541612............  Human Resources and               50           $10.0
                     Executive Search
                     Consulting Services.
541613............  Marketing Consulting              50           $10.0
                     Services.
541614............  Process, Physical                 50           $10.0
                     Distribution and
                     Logistics
                     Consulting Services.
541618............  Other Management                  50           $10.0
                     Consulting Services.
541620............  Environmental                     50           $10.0
                     Consulting Services.
541690............  Other Scientific and              50           $10.0
                     Technical
                     Consulting Services.
541990............  All Other                         50           $10.0
                     Professional,
                     Scientific and
                     Technical Services.
561110............  Office                            50           $10.0
                     Administrative
                     Services.
561210............  Facilities Support               400           $40.0
                     Services.
611519............  Other Technical and               50             N/A
                     Trade Schools.
Except,...........  Job Corps Centers...             400           $30.0
------------------------------------------------------------------------

    In some industries, businesses have more latitude in deciding 
whether to hire employees to perform work or to subcontract the work to 
others. For example, general contractors can decide what and how much 
construction work to perform themselves and what work to subcontract to 
others. Under an employee-based size standard, a business may exceed 
the size standard because it decided to perform more work in-house 
while another business performing the same level of work stays under 
the employee size standard because more work is subcontracted. Under 
SBA's Small Business Size Regulations, the employees of a subcontractor 
are not included in counting the number of employees of a business 
(unless affiliation was found between the business and subcontractor). 
SBA recognizes that such decisions and their implications on small 
business status are best made by the management of concerns that will 
be affected. SBA is concerned, however, about cases where businesses 
operating in industries that have greater latitude in subcontracting 
significant portions of work purposely subcontract an unusual amount of 
work relative to customary industry practices to retain small business 
status. Because of this potential, SBA proposes to establish an average 
annual receipts cap along with employee size standards in the 31 
industries listed in Table 4, above.
    In the industries for which SBA proposes an employee-based size 
standards and receipts cap size standard, it expects that most 
businesses which are small under the applicable employee size standard 
will also meet the corresponding receipts cap. The purpose of the 
receipts cap is to prevent businesses from creatively manipulating 
their employment levels to remain small. Without such a receipts cap 
requirement, SBA might otherwise, and inappropriately, provide large 
businesses with assistance that is intended for small businesses, and 
put small businesses in the position of competing against businesses 
that by any consideration are not small. As discussed further below, 
the receipts cap will include almost all businesses under the employee 
size standard, but exclude those businesses that have an inordinate 
amount of receipts for their level of employment.

How the SBA Determined the Maximum Annual Receipts Cap Level for the 
Industry Activities in Table 4 (Above)

    The methodology in determining the receipts caps was to first 
examine the size distribution of firms that are presently in SBA's 
Procurement Marketing and Access (PRO-Net) database which was merged 
with the Department of Defense Central Contractor Registration--the 
SBA's list of small businesses interested in doing business with the 
Federal Government. For each of the 31 industries under review, it has 
data on the number of

[[Page 13136]]

employees and the annual receipts of each firm in that database that is 
active in the industry. SBA analyzed employment and receipts data of 
small businesses near the proposed employee size standard. By 
calculating a receipts to employee ratio for each of these small 
businesses, and then multiplying that ratio by the proposed size 
standard in employees, the SBA was able to estimate at what point a 
small business would lose eligibility under a receipt cap if it were to 
expand to the new size standard limit based on employees. In other 
words, if a business has 110 employees, what level of receipts would it 
produce if it expanded to a proposed 150 employee size standard.
    The proposed receipt caps were designed to permit a majority of the 
small businesses that are presently under the size standard to expand 
to the proposed employee-based size standard without exceeding the 
dollar caps. The receipts caps proposed generally range from 22% to 35% 
higher than the current receipts size standards for those industries 
with a size standard of $15 million or higher, and from 67% to 74% 
higher than the current receipts size standard for those industries 
that have a receipts size standard of $6 million or less. The only 
exemption to this analysis was for the newly established Job Corps 
Centers size standard (part of NAICS 611519). This sub-industry 
consists of a small number of businesses. The current receipts size 
standard fully captures all small businesses under the proposed 
employee size standard for this sub-industry category and is retained 
as the receipts cap.

Simplification of Other Program and Special Size Standards

    SBA has established a number of size standards to meet the needs of 
specific programs or to address special Federal procurement 
considerations. SBA proposes to eliminate or modify six of these size 
standards in an attempt to further simplify size standards and to apply 
consistent size standards for all Federal Government programs and 
purposes.
    1. Surety Bond Guarantee (SBG) Program size standard: SBA proposes 
that any construction (general or special trade) concern or a concern 
performing a contract for services is small provided it meets the size 
standard for the NAICS code for its primary industry. Currently, the 
size standard for the SBG Program is $6 million for performing 
contracts for construction (general or special trades) or services (see 
13 CFR 121.301(d)(1)).
    Federal procurement regulations require a contractor to meet the 
size standard for the NAICS code that best describes the principal 
purposes of the procurement. Therefore, if a contractor bids and is 
successful as a prime contractor on a Federal procurement, it may 
qualify as a small business if it meets the size standard for the 
procurement, even if the size standard exceeds $6 million. Further, 
Sec.  121.305 states ``A concern qualified as small for a particular 
procurement, including an 8(a) subcontract, is small for financial 
assistance directly and primarily relating to the performance of the 
particular procurement.'' SBA's SBG Program is a financial assistance 
program, and contractors awarded Federal contracts requiring a surety 
bond are therefore eligible for SBA's guarantee on the bond, if a 
guarantee is needed, including those with size standards in excess of 
$6 million, provided the contractor meets the size standard for its 
industry.
    However, for SBA to guarantee a surety bond involving a subcontract 
or a bond running to an obligee other than the Federal Government, such 
as a private owner or non-Federal political subdivision or agency, a 
contractor is not eligible for an SBA guarantee unless it meets the 
current $6 million size standard. SBA believes this is inconsistent 
with the intent of its SBG Program because it does not provide 
assistance to small businesses otherwise eligible as small for SBA's 
other financial assistance programs. SBA proposes to eliminate the $6 
million size standard. SBA proposes, rather, that a contractor applying 
for SBA's guarantee meet the size standard for its primary industry for 
any bond (Sec.  121.301(d)). This is consistent with the intent of this 
proposed rule, which is to base all size standards on number of 
employees and have a single size standard for all programs.
    2. Petroleum refining size standard: The size standard for the 
Petroleum Refineries industry (NAICS 324110) is 1,500 employees. In 
addition, for purposes of the Federal Government's procurement of 
refined petroleum products, the refiner may not have more than 125,000 
barrels per calendar day (bpcd) capacity of petroleum-based inputs, 
including crude oil or bona fide feedstocks. This is included in 
Footnote 4 to SBA's current table of small business size standards. SBA 
increased the refining capacity from 75,000 bpcd to 125,000 bpcd, 
effective April 28, 2003 (see 68 FR 15047 dated March 28, 2003, 
available at http://www.sba.gov/size/indexwhatsnew.html#petrol-fr).
    SBA proposes to extend the 125,000 bpcd size standard component to 
all Federal Government programs. Before the April 28, 2003 revision, 
SBA had progressively increased the refining capacity component over a 
number of years. In its last two rulemaking actions pertaining to the 
petroleum refining size standard, SBA's proposed rules included a 
request for comments on whether SBA should retain or eliminate the 
refining capacity component. SBA retained it because industry comments 
have always been very strong in favor of doing so. The petroleum 
refining industry has always affirmed that refining capacity is the 
single best measure of a refiner's size. Further, it is the same 
measure that the U.S. Department of Energy, Energy Information 
Administration, uses to assess the size of refiners and their 
refineries.
    Before proposing to increase the refining capacity component, SBA 
studied the petroleum refining industry to analyze the effect that it 
would have on existing small businesses. The final rule increasing it 
to 125,000 bpcd did not increase the number of small businesses, nor 
did any small businesses lose eligibility. That is, there was no change 
in the number of small refiners. There were other reasons for the rule, 
more fully described in the Federal Register notice cited above. This 
proposed change (footnote 5, Sec.  121.201) is consistent with SBA's 
intention to simplify size standards, by having a single size standard 
apply to an industry for all Federal Government programs and purposes.
    Because the remaining eligibility requirements for petroleum 
refiners are Federal procurement specific, and not part of the size 
standard, SBA does not propose to extend them to other Federal 
programs.
    3. Tire manufacturing size standard: The size standard for the Tire 
Manufacturing (except Retreading) industry (NAICS 326211) is 1,000 
employees. For the Federal Government's procurement of pneumatic tires 
under this NAICS code and within Census Classification codes 30111 and 
30112, SBA has established an alternative size standard based on a 
concern's share of the worldwide tire market (see Footnote 5 to SBA's 
current table of size standards). Tire manufacturers satisfying the 
provisions of this alternative size standard exceed 1,000 employees in 
size. SBA implemented these requirements effective January 18, 1967 
(see 31 FR 15737). SBA believes, based on Federal procurement data, 
that this footnote is no longer necessary. A review of Federal

[[Page 13137]]

contract awards in fiscal years 2001 and 2002 found that all small 
businesses receiving tire supply contracts met the current 1,000 
employee size standard. SBA therefore proposes to eliminate this 
alternative size standard.
    4. Sales or lease of Federal Government property: SBA proposes to 
modify the following three receipts-based and one employee-based size 
standards that pertain to programs involving the sale and lease of 
Federal Government property:
    (a) Size standards for sales or leases of Government property: The 
current size standard for concerns not primarily engaged in 
manufacturing is $6 million (see Sec.  121.502(a)(2)). SBA proposes to 
establish a size standard of 50 employees for those concerns. This is 
consistent with the intent of this proposed rule, which is to base all 
size standards on number of employees. Also, this proposal is 
consistent with the criteria to propose a 50 employee size standard for 
industries that currently have a $6 million size standard unless 
certain conditions exits. SBA does not believe industry or procurement 
factors exist to warrant a different size standard.
    (b) Size standards for the purchase of Government-owned Special 
Salvage Timber: To purchase Government-owned Special Salvage Timber 
from the U.S. Forest Service or the U.S. Bureau of Land Management, a 
concern, with its affiliates, can have no more than 25 employees during 
any of its pay periods for the last twelve months, and must meet other 
requirements as well (see Sec.  121.508). SBA proposes to increase this 
size standard to 50 employees. SBA believes that applying the 50 
employee anchor size standard as a minimum size standard is warranted 
to achieve its overall goal of simplicity and uniformity among the 
various size standards. SBA does not propose to amend any other parts 
of Sec.  121.508, since they are Federal procurement specific 
requirements and not part of the size standard.
    (c) Size standard for leasing of Government land for coal mining: 
Under the current size standard, a concern, together with its 
affiliates, may have no more than 250 employees (see Sec.  121.509(a)). 
SBA proposes increasing this to 300 employees. Retaining 250 employees 
as a size standard would increase the number of size standards overall 
(from 10 to 11), and this would be the only 250 employee size standard. 
SBA has decided to round up this size standard to the 300 employee 
level instead of rounding down to 250 employees to avoid eliminating 
eligibility of currently defined small businesses for this program.
    (d) Size standard for stockpile purchases: Under the current 
standard, a concern, together with its affiliates, may not have average 
annual receipts that exceed $48.5 million (Sec.  121.512(b)). SBA 
proposes to establish a size standard of 400 employees for those 
concerns. Based on the ratio of receipts to employees of businesses 
with $48.5 million or less in receipts ($109,000 receipts per 
employee), this size standard equates to 445 employees. Four hundred 
employees is the closest of the 10 employee-based size standards 
proposed in this rule. SBA believes that the proposed size standard 
would not eliminate the eligibility of currently defined small 
businesses for this program
    5. Nonmanufacturer size standard: The SBA proposes to revise the 
nonmanufacturer size standard from 500 employees to 100 employees. A 
nonmanufacturer is a business that provides a manufactured product to 
the Federal Government that it itself did not manufacture (see Sec.  
121.406(b)). Substantially all nonmanufacturers are in industries 
categorized within the Wholesale Trade industries (NAICS Sector 42). A 
size standard of 100 employees applies to wholesalers for SBA and 
Federal Government programs, except for Federal procurement programs. 
Therefore, to further the simplification of small business size 
standards, the SBA is proposing to eliminate the special 500 employee 
nonmanufacturer size standard by applying the 100 employee size 
standard for Wholesale Trade to Federal procurement programs.
    SBA continues to believe that 100 employees is an appropriate size 
standard for the Wholesale Trade Sector. The average size of a 
wholesaler is 16 employees. Wholesalers with fewer than 100 employees 
comprise 97% of all wholesalers, employ about 50% of all employees, and 
generate one-third of total industry receipts. The relatively small 
share of total industry receipts generated by small wholesalers, 
however, reflects the significantly higher receipts per employee 
generated by larger wholesalers in the industry than by small 
wholesalers. Given the industry share of firms and employment of 
wholesalers with fewer than 100 employees, SBA believes a current 
Wholesale Trade Sector size standard of 100 employees would be an 
appropriate size standard.

Exceptions to the SBA's Proposal To Simplify Size Standards by Basing 
All of Them on Number of Employees

    This proposed rule does not change three size standards, because 
they are either established by statute or reflect unique program 
objectives. To ensure that the public is aware of the reasons for not 
modifying these size standards, SBA explains why it does not propose to 
modify the following:
    1. Agricultural Enterprises: The Small Business Act (15 U.S.C. 
632(a)(1)) states in section 3(a)(1) ``an agricultural enterprise shall 
be deemed to be a small business concern if it (including its 
affiliates) has annual receipts not in excess of $750,000.'' This 
provision applies to concerns in the Crop Production (NAICS Subsector 
111) and Animal Production (NAICS Subsector 112) industries. SBA has no 
authority to modify this Congressionally-mandated size standard.
    2. Net Worth/Net Income: Size standards based on the net worth and 
net income of a business concern are an alternative to SBA's industry-
based size standards for the CDC and SBIC financial assistance programs 
authorized under Title III and Title V of the Small Business Investment 
Act (Pub. L. 100-107). That is, an applicant may qualify as a small 
business if it meets the size standard for its primary industry or the 
net worth and net income size standards. For the CDC program, an 
applicant must meet either: (a) SBA's size standard established for its 
primary industry activity; or (b) have tangible net worth not in excess 
of $7 million and average net income after Federal income taxes for its 
two preceding completed fiscal years not in excess of $2.5 million 
(Sec.  121.301(b)). For assistance under SBA's SBIC Program, an 
applicant must meet either: (a) SBA's size standard established for its 
primary industry activity; or, (b) with its affiliates, have tangible 
net worth not in excess of $18 million and average net income after 
Federal income taxes for its two preceding completed fiscal years not 
in excess of $6 million (Sec.  121.301(c)).
    The alternative net worth and net income size standards for the CDC 
and SBIC programs have been in place for many years and have worked 
well in serving the intended beneficiaries. Most small businesses 
qualifying under the net worth and net income size standards also 
qualify under the industry-based size standards. However, the option to 
qualify as small under the industry-based size standards ensures that a 
small business eligible for other SBA programs is also eligible for 
assistance under the CDC and SBIC Programs. Therefore, SBA believes 
that the net worth and net income size standards should be retained for 
these programs.

[[Page 13138]]

Impact on Small Business Eligibility of the Proposed Rule

    This proposed rule would change the 514 size standards that are 
based on receipts, financial assets, or electric generation. As 
discussed above, the proposed conversion of these receipts-based size 
standards to employee-based size standards attempts to establish an 
employment level that is generally equivalent to the receipts-based 
size standard. Because of variation within industries, some businesses 
will gain or lose small business eligibility. The decision to establish 
only ten employee size standard levels also results in some businesses 
gaining or losing small business eligibility. An analysis of the impact 
of the proposed rule on small business eligibility shows that a 
relatively small number of businesses will be affected. Out of 
approximately 4.4 million businesses in the industries with revised 
size standards, 35,200 businesses could gain and 34,100 could lose 
small business eligibility, with the net effect of 1,110 additional 
businesses defined as small. The 69,300 businesses affected by this 
proposal represent 1.6% of the 4.4 million businesses in industries 
with changing size standards. The regulatory impact and regulatory 
flexibility analyses discussed below describe the impact of this 
proposal in greater detail.

Alternatives to This Proposed Rule

    SBA considered a number of alternative approaches to simplify and 
restructure its size standards. These are briefly described below. SBA 
welcomes comments on these alternatives or other alternatives to 
restructure and simplify size standards.
    1. Retain the existing employee-based size standards, while 
reducing the 30 receipts-based size standards to a fewer number of size 
standard levels, such as four to eight different receipts size 
standards. This approach is similar to SBA's proposals of December 31, 
1992 (57 FR 62522) and September 2, 1993 (58 FR 46573), which SBA did 
not adopt as final rules. As discussed above in this proposed rule, SBA 
believes a single size measure (with a receipts size standards cap for 
a limited number of industries) represents a less complicated set of 
size standards.
    2. Establish size standards by industry category that would 
generally be based on NAICS Industry Sectors or Subsectors, such as the 
size standards of the three Construction Subsectors. Under this 
approach, SBA could establish a size standard by number of employees 
and/or receipts for each industry group, and size standards across 
industries would vary considerably less. This approach would limit 
SBA's ability to fully assess the need for distinct size standards for 
specific industries, especially in the Professional, Scientific, and 
Technical Services Industry Sector.
    3. Base all size standards on number of employees, with no receipts 
cap component. SBA discusses above in this proposed rule why it 
believes a receipts cap along with an employee size standard is needed 
for certain industries.

Request for Comments

    SBA requests comments on its proposal to simplify and restructure 
size standards. Specifically, SBA requests comments on the following 
issues:
    1. Are SBA's small business size standards complex, confusing or 
difficult to use? If so, please describe to what extent the proposed 
rule addresses this concern.
    2. Should all small business size standards be based on number of 
employees?
    3. Do the proposed size standards essentially maintain the level of 
small business eligibility within an industry that currently exists 
under the current receipts-based size standards?
    4. Should there be a receipts cap component for those industries 
where subcontracting and outsourcing opportunities may allow a business 
to remain small but generate an unusually large amount of receipts?
    5. Is it appropriate to apply an additional receipts cap 
requirement for the 31 industries in Table 4, above? Are there other 
industries that SBA should have a receipts cap?
    6. Are the proposed receipts cap levels an appropriate or 
acceptable way to exclude large businesses?
    7. Is one or more of the alternatives that SBA considered 
preferable to the proposed rule? If so, please explain why. What would 
be the impact of SBA's adopting one of the alternatives in place of the 
proposed rule?
    8. Should SBA modify the size standard for its SBG Program and 
require that any construction (general or special trade) concern or 
concern performing a contract for services is small provided it meets 
the size standard for its primary industry?
    9. Should SBA extend to all Federal Programs the 125,000 bpcd 
component of the size standard applicable to the Federal Government's 
procurement of refined petroleum, as described above?
    10. Should the SBA eliminate the 500 employee size standard for 
nonmanufacturers applicable to Federal procurement programs and apply 
the Wholesale Trade Sector size standard of 100 employees?
    11. Should SBA eliminate the special market share size standard for 
tire manufacturers, as described above?
    12. Does the expanded use of employee-based size standards result 
in additional burdens on businesses verifying small business status or 
on Federal agencies that use SBA's size standards? These issues are 
discussed as part of SBA's regulatory impact and regulatory flexibility 
analyses of this proposed rule (see following two sections).

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

    The Office of Management and Budget (OMB) has determined that this 
rule is a significant regulatory action for purposes of Executive Order 
12866. Size standards determine which businesses are eligible for 
Federal small business programs. This is not a major rule under the 
Congressional Review Act, 5 U.S.C. 800. For purposes of Executive Order 
12988, 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, SBA has determined that this 
rule does not have any federalism implications warranting the 
preparation of a Federalism Assessment.
    For purposes of the Paperwork Reduction Act, 44 U.S.C. Ch. 35, SBA 
has determined that this rule would not impose new reporting or record 
keeping requirements. It is important to note, however, that while 
there are no new reporting and record keeping requirements, the size 
status of a business in industries that currently have a receipts-based 
size standard will no longer be based on a concern's Federal Income Tax 
returns, except for those industries whose size standards have receipts 
caps. Rather, proof of eligibility as a small business will be a 
concern's payroll records for the period of measurement specified in 
Sec.  121.106. SBA acknowledges that, in the event it must determine a 
business' employment size status, it may be more difficult to verify 
the accuracy of the payroll records submitted. At times, SBA may 
request a business provide more information to substantiate its 
employment information. SBA estimates that it takes four hours, on 
average, to complete an ``Application for Small Business Size 
Determination'' (SBA Form 355, OMB Approval No. 3245-0101). SBA invites 
comments on

[[Page 13139]]

whether using employee-based size standards for new industries would be 
significantly more burdensome on small businesses and result in 
additional time to complete SBA Form 355. If so, how could SBA reduce 
the burden?

Regulatory Impact Analysis

1. Need for This Regulatory Action
    Small business size standards have become complicated and 
burdensome for many users. Because size standards have become more 
complex over time, SBA believes that they should be made more uniform 
and easier to use. SBA believes that these simplified size standards 
will be less of a hindrance to small businesses that would like to 
participate in Federal small business programs and to personnel 
involved in small business Federal procurement and lending programs.
    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, SBA must establish distinct definitions by which businesses 
are deemed small businesses. The Small Business Act (Act) gives the SBA 
Administrator responsibility for establishing small business 
definitions. The Act also requires that small business definitions vary 
to reflect industry differences. The supplementary information to this 
proposed rule explains how SBA proposes to modify size standards, and 
why it believes that establishing employee-based size standards for all 
industries will be simpler while defining small businesses as equally 
well as the current structure.
2. Potential Benefits and Costs of This Regulatory Action
    Small businesses will benefit because they will find it easier to 
use the small business size standards to determine if they are a small 
business. Also, there will be more common size standards among similar 
industries. Because size standards will be perceived as being less 
confusing and more straightforward, more small businesses will be 
encouraged to participate in Federal Government small business 
programs.
    Other users of SBA's small business size standards, such as Federal 
Government Contracting Officers and commercial lenders that participate 
in SBA's financial assistance programs, will also benefit. There will 
be fewer size standards and they will be able to apply them more easily 
to their needs, and provide better and faster service to small 
businesses in need of assistance.
    In the Federal Government, SBA's size standards are used for 
procurement programs, the Small Business Innovation Research Program 
(SBIR), loan programs, and regulatory flexibility analyses; plus, 
agencies use the size standards for other programmatic purposes. 
Currently, six agencies use small business size standards for various 
programs specific to their agencies. After discussions with each of 
these agencies, SBA believes that this proposed revision of its size 
standards would not negatively impact any of the program objectives of 
these agencies. Three agencies viewed positively the objective of 
simplifying size standards.
    The U.S. Department of Transportation pointed out that certain 
Federal, state and local disadvantaged businesses enterprise (DBE) 
programs administer programs to certify businesses as small DBEs. Most 
of the businesses seeking DBE certification come from the construction 
and services industries that currently have receipts-based size 
standards. The change to employee size standards from receipts size 
standards will require applicants for small DBE certification to state 
their size in terms of number of employees. If a certification office 
questions the employment size of an applicant, the applicant will have 
to substantiate their employment size based on payroll records. A 
review of payroll records is a more time-consuming process than 
reviewing an applicant's Federal Income Tax return when questions arise 
concerning the applicant's receipts size. SBA believes that in most 
cases, the additional time to request and evaluate an applicant's 
employment size will not be substantial. SBA requests comments on the 
use of employee size standards on the DBE certification process and how 
to minimize an additional burden, if any, on the DBE process.
    If an agency believes that a size standard different from an SBA's 
size standard is appropriate for its programs, it must contact SBA. If 
the agency seeks to change size standards in a general rulemaking 
context, then the agency should contact SBA's Office of Size Standards 
(see 13 CFR 121.901-904). If the agency seeks to change size standards 
for the purposes of its analysis under the Regulatory Flexibility Act 
(RFA), then the agency should contact SBA's Office of Advocacy 
(Advocacy) pursuant to section 601(3) of the RFA. Section 601(3) of the 
RFA requires the agency to consult with Advocacy and provide 
opportunity for public comment when it uses a different size standard 
for the RFA analysis.
    Additional costs to the Federal Government will be negligible, if 
any. There will be approximately 1,100 additional small businesses 
under the proposed restructured size standards. This is less than 0.03% 
of the businesses in the affected industries. SBA believes that there 
will be a savings to the Federal Government because there will be fewer 
size standards, all having employee-based measures, which will reduce 
administrative costs.
    In this rule, the SBA also proposes to revise the nonmanufacturer 
size standard from 500 employees to 100 employees. The great majority 
of nonmanufacturers are categorized under Wholesale Trade Sector (NAICS 
Sector 42) in which the size standard for all industries is 100 
employees, except for Federal procurements. To further the 
simplification, SBA is proposing the same size standard of 100 
employees for Federal procurement for wholesale trade industries under 
the nonmanufacturer size standard. This shift from a 500 employee size 
standard to one of 100 employees is estimated to affect 744 firms 
active in Federal procurement based on the SBA's Pro-Net data base of 
firms interested in doing business with the Federal Government. This 
data base includes a total of 30,700 firms in the wholesale trade NAICS 
codes, and a percentage loss of 2.4% would occur if the 100 employee 
size standard were finalized.
    SBA estimates that there will be little distributional effects if 
this proposed rule is adopted. Small business size standards primarily 
serve Federal Government agencies in their procurement programs. 
Federal prime contractors also use them in their subcontracting plans. 
Since there will be less than a 0.03% increase in newly eligible small 
businesses, it is possible that a very limited amount of the Federal 
contracts will transfer from non-small businesses to small businesses.
    The proposed revision to the current size standard structure is 
consistent with SBA's statutory mandate to assist small business. This 
regulatory action promotes the Administration's objectives. One of 
SBA's goals in support of the Administration's objectives is to help 
individual small businesses succeed through fair and equitable access 
to capital and credit. 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, or tribal governments in the exercise of 
their government functions. In a few cases, State and local governments 
and

[[Page 13140]]

political subdivisions have voluntarily adopted SBA's size standards 
for their programs to eliminate the need to establish an administrative 
mechanism to develop their own size standards.

Initial Regulatory Flexibility Analysis

    Under the RFA, this rule, if finalized, could have a significant 
impact on a substantial number of small entities because 35,200 
businesses could gain and 34,100 could lose small business eligibility 
for Federal Government programs. SBA estimates that the net effect will 
be approximately 1,100 more eligible small businesses than at present. 
Immediately below, SBA sets forth an initial regulatory flexibility 
analysis of this rule addressing the following: (1) Need for and 
objective of the rule; (2) description and estimate of the number of 
small entities to which the rule will apply; (3) projected reporting, 
record keeping, and other compliance requirements of the rule; (4) 
relevant Federal rules that may duplicate, overlap, or conflict with 
the rule; and (5) alternatives to allow the Agency to accomplish its 
regulatory objectives while minimizing the impact on small entities.
1. Need for and Objective of the Rule
    Small business size standards have become complicated and difficult 
to apply for many users. Because size standards have become so complex 
and confusing, SBA believes size standards should be more uniform and 
consistent, easier to use, and more reliable. SBA believes that these 
simplified size standards will be less of a hindrance to small 
businesses that would like to participate in Federal small business 
programs. In addition, it will reduce perceived impediments for 
providers of small business assistance who use them, such as personnel 
involved in Federal procurement and commercial lending, and possibly 
increase small business participation in Federal programs.
2. Description and Estimate of the Number of Small Entities To Which 
the Rule Will Apply
    The SBA estimates that the simplification of size standards by 
converting receipt-based size standards to employee-based size 
standards will have a net impact of increasing the number of businesses 
eligible for SBA assistance by 1,100 firms. This includes an additional 
35,200 businesses in 196 industries and the loss of 34,100 businesses 
in 229 industries. Overall, the SBA estimates that a total of 69,300 
businesses could be impacted by this rule in terms of eligibility for 
SBA's programs. Since approximately 4.4 million businesses are active 
in industries covered by this rule, SBA estimates that 1.6% of 
businesses could be affected. However, the great majority of these 
businesses are not involved in SBA's programs in any one year, and the 
actual impact is likely to be only a small proportion of the 69,300 
estimate. SBA's guaranteed loan program, for example, generated 
approximately 55,000 loans in FY 2002, indicating that just over one 
percent of eligible small businesses seek out SBA financial assistance 
in a given year. The SBA's PRO-Net database of small businesses 
interested in Federal procurement includes approximately 200,000 
businesses--again, only a small proportion (about 4%) of businesses 
considered small by the SBA. Overall, SBA estimates that fewer than 
3,000 businesses out of 4.4 million firms will be directly affected if 
these proposed changes were to be finalized, and that about half of 
these businesses would gain eligibility while the other half would lose 
eligibility.
    Although the overall impact will be small relative to the number of 
businesses with revised size standards, certain industries will be 
impacted more than others. In particular, the SBA notes that the two 
restaurant industries, Full Service Restaurants (NAICS 722110) and 
Limited Service Restaurants (NAICS 722211), have the largest number of 
businesses losing eligibility for SBA assistance if this rule were to 
be finalized. In total, these two industries would lose about 14,600 
businesses out of 272,000 businesses in both industries, a loss of 5.4% 
of the total. This stems from SBA's moving from a $6 million size 
standard to a 50 employee size standard in these industries. However, 
even under the new anchor size standard of 50 employees, 252,000 out of 
272,000 businesses in these two restaurant industries would remain 
small and eligible for SBA assistance, almost 93% of the total. Other 
industries with relatively higher proportion of small businesses that 
could lose eligibility include Child Day Care Services (NAICS 624410), 
with a loss of 3.1% of businesses; Golf Courses and Country Clubs 
(NAICS 7138910), with a loss of 10.7% of businesses; Vocational 
Rehabilitation Services (NAICS 624310), with a loss of 20.7% of 
businesses; and Fitness and Recreational Sports Centers (NAICS 713940), 
with a loss of 5.4% of businesses. Among industries gaining 
eligibility, the biggest impact is Offices of Real Estate Agents and 
Brokers (NAICS 531210), with an additional 3,600 businesses out of a 
total of 54,700, or 6.6%.
    Overall, SBA estimates that most industries will experience a very 
small impact from this rule relative to the total number of businesses 
that are active in industries covered by this rule. Among industries 
for which the SBA has industry data provided by the U.S. Bureau of the 
Census, there are a total of 440 industries with 4.4 million 
businesses, or approximately 10,000 businesses in the average industry. 
Of these 440 industries, 198 would have a total impact of fewer than 20 
businesses, while 288 would have a total impact of fewer than 50 
businesses.
    Also in this rule, the SBA proposes to revise the nonmanufacturer 
size standard from 500 employees to 100 employees. The great majority 
of nonmanufacturers are categorized under Wholesale Trade Sector (NAICS 
Sector 42) in which the size standard for all industries is 100 
employees, except for Federal procurements. To further the 
simplification, SBA is proposing the same size standard of 100 
employees for Federal procurements for wholesale trade industries under 
the nonmanufacturer size standard. This shift from a 500 employee size 
standard to one of 100 employees is estimated to affect 744 firms 
active in Federal procurement based on the SBA's PRO-Net data base of 
firms interested in doing business with the Federal Government. This 
data base includes a total of 30,700 firms in the wholesale trade NAICS 
codes, and a percentage loss of 2.4% would occur if the 100 employee 
size standard were finalized.
3. Projected Reporting, Record Keeping, and Other Compliance 
Requirements of the Rule
    The new table with all size standards based on number of employees 
does not impose any additional reporting, record keeping, or compliance 
requirements on small entities. Users may need to revise existing data 
bases that use current size standards. However, this is true anytime 
SBA changes or otherwise modifies a size standard. For example, a much 
more extensive change occurred when SBA converted from the Standard 
Industrial Classification (SIC) system to NAICS effective October 1, 
2000, and later adopted, effective October 1, 2002, the U.S. Office of 
Management and Budget's 2002 modifications to NAICS. SBA was not made 
aware of any user problems with those actions.
    It is important to note, however, that while there are no new 
reporting and record keeping requirements, the size status of a 
business in industries that currently have a receipts-size standard 
will no longer be based on a concern's Federal Income Tax returns, 
except for

[[Page 13141]]

those industries whose size standards have receipts caps. Rather, proof 
of eligibility as a small business will be a concern's payroll records 
for the period of measurement specified in Sec.  121.106. SBA 
acknowledges that, in the event it must determine a business' 
employment size status, it may be more difficult to verify the accuracy 
of the payroll records submitted. At times, SBA may request a business 
to provide more information to substantiate its employment information. 
SBA estimates that it takes four hours, on average, to complete an 
``Application for Small Business Size Determination'' (SBA Form 355). 
SBA invites comments as to whether using employee-based size standards 
for new industries would be significantly more burdensome on small 
businesses and result in additional time to complete a SBA Form 355 
and, if so, how SBA could reduce the burden.
4. Relevant Federal Rules That May Duplicate, Overlap, or Conflict With 
the Rule
    In the Federal Government, SBA's size standards are used for 
procurement programs, the SBIR Program, loan programs, and regulatory 
flexibility analysis; plus, agencies use the size standards for other 
programmatic purposes. Currently, six agencies use small business size 
standards for various programs specific to their agencies. After 
discussions with each of these agencies, SBA believes that this 
proposed revision of its size standards will not negatively impact any 
of the program objectives of these agencies. Three agencies viewed 
positively the objective of simplifying size standards.
    The U.S. Department of Transportation pointed out that certain 
Federal, state, and local governments administer programs to certify 
businesses as small disadvantaged business enterprises (DBE). Most of 
the businesses seeking DBE certification come from the construction and 
services industries that currently have receipts-based size standards. 
The change to employee size standards from receipts size standards will 
require applicants for small DBE certification to state their size in 
terms of number of employees. If a certification office questions the 
employment size of an applicant, the applicant will have to 
substantiate its employment size based on payroll records. A review of 
payroll records is a more time-consuming process than reviewing an 
applicant's Federal Income Tax return when questions arise concerning 
the applicant's receipts size. SBA believes that in most cases, the 
additional time to request and evaluate an applicant's employment size 
will not be substantial. SBA requests comments on the use of employee 
size standards on the DBE certification process and how to minimize an 
additional burden, if any, on the DBE process.
5. Alternatives To Allow the Agency To Accomplish Its Regulatory 
Objectives While Minimizing the Impact on Small Entities
    As discussed above in the Supplementary Information, there are 
three alternatives to the proposed rule: (a) Retain the existing 
employee-based size standards, while reducing the 30 receipts-based 
size standards to a fewer number of size standard levels, such as four 
to eight different receipts size standards; (b) establish size 
standards by industry category that would generally be based on NAICS 
Industry Sectors or Subsectors, such as the size standards of the three 
Construction Subsectors; and (c) base all size standards on number of 
employees, with no receipts cap component.
    SBA believes the proposed size standards based on number of 
employees will simplify size standards and will likely have a minimal 
adverse impact on small entities. The other alternatives SBA considered 
would achieve fewer benefits in terms of simplifying size standards or 
have a much greater impact on the number of businesses either gaining 
or losing small business eligibility.

List of Subjects in 13 CFR Part 121

    Administrative practice and procedure, Government procurement, 
Government property, Grant programs--business, Individuals with 
disabilities, Loan programs--business, Reporting and recordkeeping 
requirements, Small businesses.
    For the reasons set forth in the preamble, SBA proposes to amend 
part 13 CFR Part 121.

PART 121--SMALL BUSINESS SIZE REGULATIONS

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

    Authority: 15 U.S.C. 632(a), 634(b)(6), 636(b), 637(a), 644(c), 
and 662(5); and Sec. 304, Pub. L. 103-403, 108 Stat. 4175, 4188, 
Pub. L. 106-24, 113 Stat. 39.

    2. Revise Sec.  121.201 to read as follows:
    3. Sec.  121.201 What size standards has SBA identified by North 
American Industry Classification System codes?
    The size standards set forth in this section apply to all SBA 
programs unless otherwise specified in this part. The size standards 
themselves are expressed in number of employees. Some of the NAICS 
industries have an additional maximum annual receipts amount. For those 
NAICS industries with additional annual receipts amounts, the business 
concern must not exceed the employee-based size standard and the annual 
receipts amount to qualify as a small business. The number of employees 
and annual receipts amount are together a single size standard, and 
they indicate the maximum allowed for a concern, together with its 
affiliates, to be considered a small business.

------------------------------------------------------------------------
                                                              Maximum
                                          Size standards      average
    NAICS codes      NAICS U.S. industry   in number of       annual
                            title            employees     receipts  ($
                                                             million)
------------------------------------------------------------------------
          Sector 11--Agriculture, Forestry, Fishing and Hunting
------------------------------------------------------------------------
Subsector 111--Crop Production
------------------------------------------------------------------------
111110............  Soybean Farming.....  ..............           $0.75
111120............  Oilseed (except       ..............           $0.75
                     Soybean) Farming.
111130............  Dry Pea and Bean      ..............           $0.75
                     Farming.
111140............  Wheat Farming.......  ..............           $0.75
111150............  Corn Farming........  ..............           $0.75
111160............  Rice Farming........  ..............           $0.75
111191............  Oilseed and Grain     ..............           $0.75
                     Combination Farming.
111199............  All Other Grain       ..............           $0.75
                     Farming.
111211............  Potato Farming......  ..............           $0.75

[[Page 13142]]

 
111219............  Other Vegetable       ..............           $0.75
                     (except Potato) and
                     Melon Farming.
111310............  Orange Groves.......  ..............           $0.75
111320............  Citrus (except        ..............           $0.75
                     Orange) Groves.
111331............  Apple Orchards......  ..............           $0.75
111332............  Grape Vineyards.....  ..............           $0.75
111333............  Strawberry Farming..  ..............           $0.75
111334............  Berry (except         ..............           $0.75
                     Strawberry) Farming.
111335............  Tree Nut Farming....  ..............           $0.75
111336............  Fruit and Tree Nut    ..............           $0.75
                     Combination Farming.
111339............  Other Noncitrus       ..............           $0.75
                     Fruit Farming.
111411............  Mushroom Production.  ..............           $0.75
111419............  Other Food Crops      ..............           $0.75
                     Grown Under Cover.
111421............  Nursery and Tree      ..............           $0.75
                     Production.
111422............  Floriculture          ..............           $0.75
                     Production.
111910............  Tobacco Farming.....  ..............           $0.75
111920............  Cotton Farming......  ..............           $0.75
111930............  Sugarcane Farming...  ..............           $0.75
111940............  Hay Farming.........  ..............           $0.75
111991............  Sugar Beet Farming..  ..............           $0.75
111992............  Peanut Farming......  ..............           $0.75
111998............  All Other             ..............           $0.75
                     Miscellaneous Crop
                     Farming.
-------------------
Subsector 112--Animal Production
------------------------------------------------------------------------
112111............  Beef Cattle Ranching  ..............           $0.75
                     and Farming.
112112............  Cattle Feedlots.....              50  ..............
112120............  Dairy Cattle and      ..............           $0.75
                     Milk Production.
112210............  Hog and Pig Farming.  ..............           $0.75
112310............  Chicken Egg                       50  ..............
                     Production.
112320............  Broilers and Other    ..............           $0.75
                     Meat Type Chicken
                     Production.
112330............  Turkey Production...  ..............           $0.75
112340............  Poultry Hatcheries..  ..............           $0.75
112390............  Other Poultry         ..............           $0.75
                     Production.
112410............  Sheep Farming.......  ..............           $0.75
112420............  Goat Farming........  ..............           $0.75
112511............  Finfish Farming and   ..............           $0.75
                     Fish Hatcheries.
112512............  Shellfish Farming...  ..............           $0.75
112519............  Other Animal          ..............           $0.75
                     Aquaculture.
112910............  Apiculture..........  ..............           $0.75
112920............  Horse and Other       ..............           $0.75
                     Equine Production.
112930............  Fur-Bearing Animal    ..............           $0.75
                     and Rabbit
                     Production.
112990............  All Other Animal      ..............           $0.75
                     Production.
-------------------
Subsector 113--Forestry and Logging
------------------------------------------------------------------------
113110............  Timber Tract                      50  ..............
                     Operations.
113210............  Forest Nurseries and              50  ..............
                     Gathering of Forest
                     Products.
113310............  Logging.............             500  ..............
-------------------
Subsector 114--Fishing, Hunting and Trapping
------------------------------------------------------------------------
114111............  Finfish Fishing.....              50  ..............
114112............  Shellfish Fishing...              50  ..............
114119............  Other Marine Fishing              50  ..............
114210............  Hunting and Trapping              50  ..............
-------------------
Subsector 115--Support Activities for Agriculture and Forestry
------------------------------------------------------------------------
115111............  Cotton Ginning......              50  ..............
115112............  Soil Preparation,                 50  ..............
                     Planting, and
                     Cultivating.
115113............  Crop Harvesting,                  50  ..............
                     Primarily by
                     Machine.
115114............  Postharvest Crop                  50  ..............
                     Activities (except
                     Cotton Ginning).
115115............  Farm Labor                        50  ..............
                     Contractors and
                     Crew Leaders.
115116............  Farm Management                   50  ..............
                     Services.
115210............  Support Activities                50  ..............
                     for Animal
                     Production.
115310............  Support Activities                50  ..............
                     for Forestry.
Except,...........  Forest Fire                  \1\ 400       \1\ $20.0
                     Suppression \1\.
Except,...........  Fuels Management             \1\ 400       \1\ $20.0
                     Services \1\.
-------------------

[[Page 13143]]

 
                            Sector 21--Mining
------------------------------------------------------------------------
Subsector 211--Oil and Gas Extraction
------------------------------------------------------------------------
211111............  Crude Petroleum and              500  ..............
                     Natural Gas
                     Extraction.
211112............  Natural Gas Liquid               500  ..............
                     Extraction.
-------------------
Subsector 212--Mining (except Oil and Gas)
------------------------------------------------------------------------
212111............  Bituminous Coal and              500  ..............
                     Lignite Surface
                     Mining.
212112............  Bituminous Coal                  500  ..............
                     Underground Mining.
212113............  Anthracite Mining...             500  ..............
212210............  Iron Ore Mining.....             500  ..............
212221............  Gold Ore Mining.....             500  ..............
212222............  Silver Ore Mining...             500  ..............
212231............  Lead Ore and Zinc                500  ..............
                     Ore Mining.
212234............  Copper Ore and                   500  ..............
                     Nickel Ore Mining.
212291............  Uranium-Radium-                  500  ..............
                     Vanadium Ore Mining.
212299............  All Other Metal Ore              500  ..............
                     Mining.
212311............  Dimension Stone                  500  ..............
                     Mining and
                     Quarrying.
212312............  Crushed and Broken               500  ..............
                     Limestone Mining
                     and Quarrying.
212313............  Crushed and Broken               500  ..............
                     Granite Mining and
                     Quarrying.
212319............  Other Crushed and                500  ..............
                     Broken Stone Mining
                     and Quarrying.
212321............  Construction Sand                500  ..............
                     and Gravel Mining.
212322............  Industrial Sand                  500  ..............
                     Mining.
212324............  Kaolin and Ball Clay             500  ..............
                     Mining.
212325............  Clay and Ceramic and             500  ..............
                     Refractory Minerals
                     Mining.
212391............  Potash, Soda, and                500  ..............
                     Borate Mineral
                     Mining.
212392............  Phosphate Rock                   500  ..............
                     Mining.
212393............  Other Chemical and               500  ..............
                     Fertilizer Mineral
                     Mining.
212399............  All Other                        500  ..............
                     Nonmetallic Mineral
                     Mining.
-------------------
Subsector 213--Support Activities for Mining
------------------------------------------------------------------------
213111............  Drilling Oil and Gas             500  ..............
                     Wells.
213112............  Support Activities                50  ..............
                     for Oil and Gas
                     Operations.
213113............  Support Activities                50  ..............
                     for Coal Mining.
213114............  Support Activities                50  ..............
                     for Metal Mining.
213115............  Support Activities                50  ..............
                     for Nonmetallic
                     Minerals (except
                     Fuels).
-------------------
                          Sector 22--Utilities
------------------------------------------------------------------------
Subsector 221--Utilities
------------------------------------------------------------------------
221111............  Hydroelectric Power            1,000  ..............
                     Generation.
221112............  Fossil Fuel Electric           1,000  ..............
                     Power Generation.
221113............  Nuclear Electric               1,000  ..............
                     Power Generation.
221119............  Other Electric Power           1,000  ..............
                     Generation.
221121............  Electric Bulk Power            1,000  ..............
                     Transmission and
                     Control.
221122............  Electric Power                 1,000  ..............
                     Distribution.
221210............  Natural Gas                      500  ..............
                     Distribution.
221310............  Water Supply and                  50  ..............
                     Irrigation Systems.
221320............  Sewage Treatment                  50  ..............
                     Facilities.
221330............  Steam and Air-                    50  ..............
                     Conditioning Supply.
-------------------
                         Sector 23--Construction
------------------------------------------------------------------------
Subsector 236--Construction of Buildings
------------------------------------------------------------------------
236115............  New Single-Family                150           $35.0
                     Housing
                     Construction
                     (except Operative
                     Builders).
236116............  New Multifamily                  150           $35.0
                     Housing
                     Construction
                     (except Operative
                     Builders).
236117............  New Housing                      150           $35.0
                     Operative Builders.
236118............  Residential                      150           $35.0
                     Remodelers.
236210............  Industrial Building              150           $35.0
                     Construction.
236220............  Commercial and                   150           $35.0
                     Institutional
                     Building
                     Construction.
-------------------
Subsector 237--Heavy and Civil Engineering Construction
------------------------------------------------------------------------
237110............  Water and Sewer Line             200           $35.0
                     and Related
                     Structures
                     Construction.
237120............  Oil and Gas Pipeline             200           $35.0
                     and Related
                     Structures
                     Construction.
237130............  Power and                        200           $35.0
                     Communication Line
                     and Related
                     Structures
                     Construction.

[[Page 13144]]

 
237210............  Land Subdivision....             200           $35.0
237310............  Highway, Street, and             200           $35.0
                     Bridge Construction.
237990............  Other Heavy and                  200           $35.0
                     Civil Engineering
                     Construction.
Except,...........  Dredging and Surface         \2\ 150       \2\ $22.0
                     Cleanup Activities
                     \2\.
-------------------
Subsector 238--Specialty Trade Contractors
------------------------------------------------------------------------
238110............  Poured Concrete                  100  ..............
                     Foundation and
                     Structure
                     Contractors.
238120............  Structural Steel and             100  ..............
                     Precast Concrete
                     Contractors.
238130............  Framing Contractors.             100  ..............
238140............  Masonry Contractors.             100  ..............
238150............  Glass and Glazing                100  ..............
                     Contractors.
238160............  Roofing Contractors.             100  ..............
238170............  Siding Contractors..             100  ..............
238190............  Other Foundation,                100  ..............
                     Structure, and
                     Building Exterior
                     Contractors.
238210............  Electrical                       100  ..............
                     Contractors.
238220............  Plumbing, Heating,               100  ..............
                     and Air-
                     Conditioning
                     Contractors.
238290............  Other Building                   100  ..............
                     Equipment
                     Contractors.
238310............  Drywall and                      100  ..............
                     Insulation
                     Contractors.
238320............  Painting and Wall                100  ..............
                     Covering
                     Contractors.
238330............  Flooring Contractors             100  ..............
238340............  Tile and Terrazzo                100  ..............
                     Contractors.
238350............  Finish Carpentry                 100  ..............
                     Contractors.
238390............  Other Building                   100  ..............
                     Finishing
                     Contractors.
238910............  Site Preparation                 100  ..............
                     Contractors.
238990............  All Other Specialty              100  ..............
                     Trade Contractors.
Except,...........  Building and                 \3\ 100  ..............
                     Property Specialty
                     Trade Services \3\.
-------------------
                      Sectors 31--33--Manufacturing
------------------------------------------------------------------------
Subsector 311--Food Manufacturing
------------------------------------------------------------------------
311111............  Dog and Cat Food                 500  ..............
                     Manufacturing.
311119............  Other Animal Food                500  ..............
                     Manufacturing.
311211............  Flour Milling.......             500  ..............
311212............  Rice Milling........             500  ..............
311213............  Malt Manufacturing..             500  ..............
311221............  Wet Corn Milling....             750  ..............
311222............  Soybean Processing..             500  ..............
311223............  Other Oilseed                  1,000  ..............
                     Processing.
311225............  Fats and Oils                  1,000  ..............
                     Refining and
                     Blending.
311230............  Breakfast Cereal               1,000  ..............
                     Manufacturing.
311311............  Sugarcane Mills.....             500  ..............
311312............  Cane Sugar Refining.             750  ..............
311313............  Beet Sugar                       750  ..............
                     Manufacturing.
311320............  Chocolate and                    500  ..............
                     Confectionery
                     Manufacturing from
                     Cacao Beans.
311330............  Confectionery                    500  ..............
                     Manufacturing from
                     Purchased Chocolate.
311340............  Non-Chocolate                    500  ..............
                     Confectionery
                     Manufacturing.
311411............  Frozen Fruit, Juice              500  ..............
                     and Vegetable
                     Manufacturing.
311412............  Frozen Specialty                 500  ..............
                     Food Manufacturing.
311421............  Fruit and Vegetable          \4\ 500  ..............
                     Canning \4\.
311422............  Specialty Canning...           1,000  ..............
311423............  Dried and Dehydrated             500  ..............
                     Food Manufacturing.
311511............  Fluid Milk                       500  ..............
                     Manufacturing.
311512............  Creamery Butter                  500  ..............
                     Manufacturing.
311513............  Cheese Manufacturing             500  ..............
311514............  Dry, Condensed, and              500  ..............
                     Evaporated Dairy
                     Product
                     Manufacturing.
311520............  Ice Cream and Frozen             500  ..............
                     Dessert
                     Manufacturing.
311611............  Animal (except                   500  ..............
                     Poultry)
                     Slaughtering.
311612............  Meat Processed from              500  ..............
                     Carcasses.
311613............  Rendering and Meat               500  ..............
                     By-product
                     Processing.
311615............  Poultry Processing..             500  ..............
311711............  Seafood Canning.....             500  ..............
311712............  Fresh and Frozen                 500  ..............
                     Seafood Processing.
311811............  Retail Bakeries.....             500  ..............
311812............  Commercial Bakeries.             500  ..............
311813............  Frozen Cakes, Pies,              500  ..............
                     and Other Pastries
                     Manufacturing.
311821............  Cookie and Cracker               750  ..............
                     Manufacturing.
311822............  Flour Mixes and                  500  ..............
                     Dough Manufacturing
                     from Purchased
                     Flour.
311823............  Dry Pasta                        500  ..............
                     Manufacturing.
311830............  Tortilla                         500  ..............
                     Manufacturing.

[[Page 13145]]

 
311911............  Roasted Nuts and                 500  ..............
                     Peanut Butter
                     Manufacturing.
311919............  Other Snack Food                 500  ..............
                     Manufacturing.
311920............  Coffee and Tea                   500  ..............
                     Manufacturing.
311930............  Flavoring Syrup and              500  ..............
                     Concentrate
                     Manufacturing.
311941............  Mayonnaise, Dressing             500  ..............
                     and Other Prepared
                     Sauce Manufacturing.
311942............  Spice and Extract                500  ..............
                     Manufacturing.
311991............  Perishable Prepared              500  ..............
                     Food Manufacturing.
311999............  All Other                        500  ..............
                     Miscellaneous Food
                     Manufacturing.
-------------------
Subsector 312--Beverage and Tobacco Product Manufacturing
------------------------------------------------------------------------
312111............  Soft Drink                       500  ..............
                     Manufacturing.
312112............  Bottled Water                    500  ..............
                     Manufacturing.
312113............  Ice Manufacturing...             500  ..............
312120............  Breweries...........             500  ..............
312130............  Wineries............             500  ..............
312140............  Distilleries........             750  ..............
312210............  Tobacco Stemming and             500  ..............
                     Redrying.
312221............  Cigarette                      1,000  ..............
                     Manufacturing.
312229............  Other Tobacco                    500  ..............
                     Product
                     Manufacturing.
-------------------
Subsector 313--Textile Mills
------------------------------------------------------------------------
313111............  Yarn Spinning Mills.             500  ..............
313112............  Yarn Texturizing,                500  ..............
                     Throwing and
                     Twisting Mills.
313113............  Thread Mills........             500  ..............
313210............  Broadwoven Fabric              1,000  ..............
                     Mills.
313221............  Narrow Fabric Mills.             500  ..............
313222............  Schiffli Machine                 500  ..............
                     Embroidery.
313230............  Nonwoven Fabric                  500  ..............
                     Mills.
313241............  Weft Knit Fabric                 500  ..............
                     Mills.
313249............  Other Knit Fabric                500  ..............
                     and Lace Mills.
313311............  Broadwoven Fabric              1,000  ..............
                     Finishing Mills.
313312............  Textile and Fabric               500  ..............
                     Finishing (except
                     Broadwoven Fabric)
                     Mills.
313320............  Fabric Coating Mills           1,000  ..............
-------------------
Subsector 314--Textile Product Mills
------------------------------------------------------------------------
314110............  Carpet and Rug Mills             500  ..............
314121............  Curtain and Drapery              500  ..............
                     Mills.
314129............  Other Household                  500  ..............
                     Textile Product
                     Mills.
314911............  Textile Bag Mills...             500  ..............
314912............  Canvas and Related               500  ..............
                     Product Mills.
314991............  Rope, Cordage and                500  ..............
                     Twine Mills.
314992............  Tire Cord and Tire             1,000  ..............
                     Fabric Mills.
314999............  All Other                        500  ..............
                     Miscellaneous
                     Textile Product
                     Mills.
-------------------
Subsector 315--Apparel Manufacturing
------------------------------------------------------------------------
315111............  Sheer Hosiery Mills.             500  ..............
315119............  Other Hosiery and                500  ..............
                     Sock Mills.
315191............  Outerwear Knitting               500  ..............
                     Mills.
315192............  Underwear and                    500  ..............
                     Nightwear Knitting
                     Mills.
315211............  Men's and Boys' Cut              500  ..............
                     and Sew Apparel
                     Contractors.
315212............  Women's, Girls', and             500  ..............
                     Infants' Cut and
                     Sew Apparel
                     Contractors.
315221............  Men's and Boys' Cut              500  ..............
                     and Sew Underwear
                     and Nightwear
                     Manufacturing.
315222............  Men's and Boys' Cut              500  ..............
                     and Sew Suit, Coat
                     and Overcoat
                     Manufacturing.
315223............  Men's and Boys' Cut              500  ..............
                     and Sew Shirt
                     (except Work Shirt)
                     Manufacturing.
315224............  Men's and Boys' Cut              500  ..............
                     and Sew Trouser,
                     Slack and Jean
                     Manufacturing.
315225............  Men's and Boys' Cut              500  ..............
                     and Sew Work
                     Clothing
                     Manufacturing.
315228............  Men's and Boys' Cut              500  ..............
                     and Sew Other
                     Outerwear
                     Manufacturing.
315231............  Women's and Girls'               500  ..............
                     Cut and Sew
                     Lingerie,
                     Loungewear and
                     Nightwear
                     Manufacturing.
315232............  Women's and Girls'               500  ..............
                     Cut and Sew Blouse
                     and Shirt
                     Manufacturing.
315233............  Women's and Girls'               500  ..............
                     Cut and Sew Dress
                     Manufacturing.
315234............  Women's and Girls'               500  ..............
                     Cut and Sew Suit,
                     Coat, Tailored
                     Jacket and Skirt
                     Manufacturing.
315239............  Women's and Girls'               500  ..............
                     Cut and Sew Other
                     Outerwear
                     Manufacturing.
315291............  Infants' Cut and Sew             500  ..............
                     Apparel
                     Manufacturing.
315292............  Fur and Leather                  500  ..............
                     Apparel
                     Manufacturing.
315299............  All Other Cut and                500  ..............
                     Sew Apparel
                     Manufacturing.
315991............  Hat, Cap and                     500  ..............
                     Millinery
                     Manufacturing.
315992............  Glove and Mitten                 500  ..............
                     Manufacturing.

[[Page 13146]]

 
315993............  Men's and Boys'                  500  ..............
                     Neckwear
                     Manufacturing.
315999............  Other Apparel                    500  ..............
                     Accessories and
                     Other Apparel
                     Manufacturing.
-------------------
Subsector 316--Leather and Allied Product Manufacturing
------------------------------------------------------------------------
316110............  Leather and Hide                 500  ..............
                     Tanning and
                     Finishing.
316211............  Rubber and Plastics            1,000  ..............
                     Footwear
                     Manufacturing.
316212............  House Slipper                    500  ..............
                     Manufacturing.
316213............  Men's Footwear                   500  ..............
                     (except Athletic)
                     Manufacturing.
316214............  Women's Footwear                 500  ..............
                     (except Athletic)
                     Manufacturing.
316219............  Other Footwear                   500  ..............
                     Manufacturing.
316991............  Luggage                          500  ..............
                     Manufacturing.
316992............  Women's Handbag and              500  ..............
                     Purse Manufacturing.
316993............  Personal Leather                 500  ..............
                     Good (except
                     Women's Handbag and
                     Purse)
                     Manufacturing.
316999............  All Other Leather                500  ..............
                     Good Manufacturing.
-------------------
Subsector 321--Wood Product Manufacturing
------------------------------------------------------------------------
321113............  Sawmills............             500  ..............
321114............  Wood Preservation...             500  ..............
321211............  Hardwood Veneer and              500  ..............
                     Plywood
                     Manufacturing.
321212............  Softwood Veneer and              500  ..............
                     Plywood
                     Manufacturing.
321213............  Engineered Wood                  500  ..............
                     Member (except
                     Truss)
                     Manufacturing.
321214............  Truss Manufacturing.             500  ..............
321219............  Reconstituted Wood               500  ..............
                     Product
                     Manufacturing.
321911............  Wood Window and Door             500  ..............
                     Manufacturing.
321912............  Cut Stock, Resawing              500  ..............
                     Lumber, and Planing.
321918............  Other Millwork                   500  ..............
                     (including
                     Flooring).
321920............  Wood Container and               500  ..............
                     Pallet
                     Manufacturing.
321991............  Manufactured Home                500  ..............
                     (Mobile Home)
                     Manufacturing.
321992............  Prefabricated Wood               500  ..............
                     Building
                     Manufacturing.
321999............  All Other                        500  ..............
                     Miscellaneous Wood
                     Product
                     Manufacturing.
-------------------
Subsector 322--Paper Manufacturing
------------------------------------------------------------------------
322110............  Pulp Mills..........             750  ..............
322121............  Paper (except                    750  ..............
                     Newsprint) Mills.
322122............  Newsprint Mills.....             750  ..............
322130............  Paperboard Mills....             750  ..............
322211............  Corrugated and Solid             500  ..............
                     Fiber Box
                     Manufacturing.
322212............  Folding Paperboard               750  ..............
                     Box Manufacturing.
322213............  Setup Paperboard Box             500  ..............
                     Manufacturing.
322214............  Fiber Can, Tube,                 500  ..............
                     Drum, and Similar
                     Products
                     Manufacturing.
322215............  Non-Folding Sanitary             750  ..............
                     Food Container
                     Manufacturing.
322221............  Coated and Laminated             500  ..............
                     Packaging Paper and
                     Plastics Film
                     Manufacturing.
322222............  Coated and Laminated             500  ..............
                     Paper Manufacturing.
322223............  Plastics, Foil, and              500  ..............
                     Coated Paper Bag
                     Manufacturing.
322224............  Uncoated Paper and               500  ..............
                     Multiwall Bag
                     Manufacturing.
322225............  Laminated Aluminum               500  ..............
                     Foil Manufacturing
                     for Flexible
                     Packaging Uses.
322226............  Surface-Coated                   500  ..............
                     Paperboard
                     Manufacturing.
322231............  Die-Cut Paper and                500  ..............
                     Paperboard Office
                     Supplies
                     Manufacturing.
322232............  Envelope                         500  ..............
                     Manufacturing.
322233............  Stationery, Tablet,              500  ..............
                     and Related Product
                     Manufacturing.
322291............  Sanitary Paper                   500  ..............
                     Product
                     Manufacturing.
322299............  All Other Converted              500  ..............
                     Paper Product
                     Manufacturing.
-------------------
Subsector 323--Printing and Related Support Activities
------------------------------------------------------------------------
323110............  Commercial                       500  ..............
                     Lithographic
                     Printing.
323111............  Commercial Gravure               500  ..............
                     Printing.
323112............  Commercial                       500  ..............
                     Flexographic
                     Printing.
323113............  Commercial Screen                500  ..............
                     Printing.
323114............  Quick Printing......             500  ..............
323115............  Digital Printing....             500  ..............
323116............  Manifold Business                500  ..............
                     Forms Printing.
323117............  Books Printing......             500  ..............
323118............  Blankbook, Loose-                500  ..............
                     leaf Binder and
                     Device
                     Manufacturing.
323119............  Other Commercial                 500  ..............
                     Printing.
323121............  Tradebinding and                 500  ..............
                     Related Work.
323122............  Prepress Services...             500  ..............
-------------------

[[Page 13147]]

 
Subsector 324--Petroleum and Coal Products Manufacturing
------------------------------------------------------------------------
324110............  Petroleum Refineries       \5\ 1,500  ..............
                     \5\.
324121............  Asphalt Paving                   500  ..............
                     Mixture and Block
                     Manufacturing.
324122............  Asphalt Shingle and              750  ..............
                     Coating Materials
                     Manufacturing.
324191............  Petroleum                        500  ..............
                     Lubricating Oil and
                     Grease
                     Manufacturing.
324199............  All Other Petroleum              500  ..............
                     and Coal Products
                     Manufacturing.
-------------------
Subsector 325--Chemical Manufacturing
------------------------------------------------------------------------
325110............  Petrochemical                  1,000  ..............
                     Manufacturing.
325120............  Industrial Gas                 1,000  ..............
                     Manufacturing.
325131............  Inorganic Dye and              1,000  ..............
                     Pigment
                     Manufacturing.
325132............  Synthetic Organic                750  ..............
                     Dye and Pigment
                     Manufacturing.
325181............  Alkalies and                   1,000  ..............
                     Chlorine
                     Manufacturing.
325182............  Carbon Black                     500  ..............
                     Manufacturing.
325188............  All Other Basic                1,000  ..............
                     Inorganic Chemical
                     Manufacturing.
325191............  Gum and Wood                     500  ..............
                     Chemical
                     Manufacturing.
325192............  Cyclic Crude and                 750  ..............
                     Intermediate
                     Manufacturing.
325193............  Ethyl Alcohol                  1,000  ..............
                     Manufacturing.
325199............  All Other Basic                1,000  ..............
                     Organic Chemical
                     Manufacturing.
325211............  Plastics Material                750  ..............
                     and Resin
                     Manufacturing.
325212............  Synthetic Rubber               1,000  ..............
                     Manufacturing.
325221............  Cellulosic Organic             1,000  ..............
                     Fiber Manufacturing.
325222............  Noncellulosic                  1,000  ..............
                     Organic Fiber
                     Manufacturing.
325311............  Nitrogenous                    1,000  ..............
                     Fertilizer
                     Manufacturing.
325312............  Phosphatic                       500  ..............
                     Fertilizer
                     Manufacturing.
325314............  Fertilizer (Mixing               500  ..............
                     Only) Manufacturing.
325320............  Pesticide and Other              500  ..............
                     Agricultural
                     Chemical
                     Manufacturing.
325411............  Medicinal and                    750  ..............
                     Botanical
                     Manufacturing.
325412............  Pharmaceutical                   750  ..............
                     Preparation
                     Manufacturing.
325413............  In-Vitro Diagnostic              500  ..............
                     Substance
                     Manufacturing.
325414............  Biological Product               500  ..............
                     (except Diagnostic)
                     Manufacturing.
325510............  Paint and Coating                500  ..............
                     Manufacturing.
325520............  Adhesive                         500  ..............
                     Manufacturing.
325611............  Soap and Other                   750  ..............
                     Detergent
                     Manufacturing.
325612............  Polish and Other                 500  ..............
                     Sanitation Good
                     Manufacturing.
325613............  Surface Active Agent             500  ..............
                     Manufacturing.
325620............  Toilet Preparation               500  ..............
                     Manufacturing.
325910............  Printing Ink                     500  ..............
                     Manufacturing.
325920............  Explosives                       750  ..............
                     Manufacturing.
325991............  Custom Compounding               500  ..............
                     of Purchased Resins.
325992............  Photographic Film,               500  ..............
                     Paper, Plate and
                     Chemical
                     Manufacturing.
325998............  All Other                        500  ..............
                     Miscellaneous
                     Chemical Product
                     and Preparation
                     Manufacturing.
-------------------
Subsector 326--Plastics and Rubber Products Manufacturing
------------------------------------------------------------------------
326111............  Unsupported Plastics             500  ..............
                     Bag Manufacturing.
326112............  Unsupported Plastics             500  ..............
                     Packaging Film and
                     Sheet Manufacturing.
326113............  Unsupported Plastics             500  ..............
                     Film and Sheet
                     (except Packaging)
                     Manufacturing.
326121............  Unsupported Plastics             500  ..............
                     Profile Shapes
                     Manufacturing.
326122............  Plastics Pipe and                500  ..............
                     Pipe Fitting
                     Manufacturing.
326130............  Laminated Plastics               500  ..............
                     Plate, Sheet and
                     Shape Manufacturing.
326140............  Polystyrene Foam                 500  ..............
                     Product
                     Manufacturing.
326150............  Urethane and Other               500  ..............
                     Foam Product
                     (except
                     Polystyrene)
                     Manufacturing.
326160............  Plastics Bottle                  500  ..............
                     Manufacturing.
326191............  Plastics Plumbing                500  ..............
                     Fixture
                     Manufacturing.
326192............  Resilient Floor                  750  ..............
                     Covering
                     Manufacturing.
326199............  All Other Plastics               500  ..............
                     Product
                     Manufacturing.
326211............  Tire Manufacturing             1,000  ..............
                     (except Retreading).
326212............  Tire Retreading.....             500  ..............
326220............  Rubber and Plastics              500  ..............
                     Hoses and Belting
                     Manufacturing.
326291............  Rubber Product                   500  ..............
                     Manufacturing for
                     Mechanical Use.
326299............  All Other Rubber                 500  ..............
                     Product
                     Manufacturing.
-------------------
Subsector 327--Nonmetallic Mineral Product Manufacturing
------------------------------------------------------------------------
327111............  Vitreous China                   750  ..............
                     Plumbing Fixture
                     and China and
                     Earthenware
                     Bathroom
                     Accessories
                     Manufacturing......
327112............  Vitreous China, Fine             500  ..............
                     Earthenware and
                     Other Pottery
                     Product
                     Manufacturing.
327113............  Porcelain Electrical             500  ..............
                     Supply
                     Manufacturing.

[[Page 13148]]

 
327121............  Brick and Structural             500  ..............
                     Clay Tile
                     Manufacturing.
327122............  Ceramic Wall and                 500  ..............
                     Floor Tile
                     Manufacturing.
327123............  Other Structural                 500  ..............
                     Clay Product
                     Manufacturing.
327124............  Clay Refractory                  500  ..............
                     Manufacturing.
327125............  Nonclay Refractory               750  ..............
                     Manufacturing.
327211............  Flat Glass                     1,000  ..............
                     Manufacturing.
327212............  Other Pressed and                750  ..............
                     Blown Glass and
                     Glassware
                     Manufacturing.
327213............  Glass Container                  750  ..............
                     Manufacturing.
327215............  Glass Product                    500  ..............
                     Manufacturing Made
                     of Purchased Glass.
327310............  Cement Manufacturing             750  ..............
327320............  Ready-Mix Concrete               500  ..............
                     Manufacturing.
327331............  Concrete Block and               500  ..............
                     Brick Manufacturing.
327332............  Concrete Pipe                    500  ..............
                     Manufacturing.
327390............  Other Concrete                   500  ..............
                     Product
                     Manufacturing.
327410............  Lime Manufacturing..             500  ..............
327420............  Gypsum Product                 1,000  ..............
                     Manufacturing.
327910............  Abrasive Product                 500  ..............
                     Manufacturing.
327991............  Cut Stone and Stone              500  ..............
                     Product
                     Manufacturing.
327992............  Ground or Treated                500  ..............
                     Mineral and Earth
                     Manufacturing.
327993............  Mineral Wool                     750  ..............
                     Manufacturing.
327999............  All Other                        500  ..............
                     Miscellaneous
                     Nonmetallic Mineral
                     Product
                     Manufacturing.
-------------------
Subsector 331--Primary Metal Manufacturing
------------------------------------------------------------------------
331111............  Iron and Steel Mills           1,000  ..............
331112............  Electrometallurgical             750  ..............
                     Ferroalloy Product
                     Manufacturing.
331210............  Iron and Steel Pipe            1,000  ..............
                     and Tube
                     Manufacturing from
                     Purchased Steel.
331221............  Cold-Rolled Steel              1,000  ..............
                     Shape Manufacturing.
331222............  Steel Wire Drawing..           1,000  ..............
331311............  Alumina Refining....           1,000  ..............
331312............  Primary Aluminum               1,000  ..............
                     Production.
331314............  Secondary Smelting               750  ..............
                     and Alloying of
                     Aluminum.
331315............  Aluminum Sheet,                  750  ..............
                     Plate and Foil
                     Manufacturing.
331316............  Aluminum Extruded                750  ..............
                     Product
                     Manufacturing.
331319............  Other Aluminum                   750  ..............
                     Rolling and Drawing.
331411............  Primary Smelting and           1,000  ..............
                     Refining of Copper.
331419............  Primary Smelting and             750  ..............
                     Refining of
                     Nonferrous Metal
                     (except Copper and
                     Aluminum).
331421............  Copper Rolling,                  750  ..............
                     Drawing and
                     Extruding.
331422............  Copper Wire (except            1,000  ..............
                     Mechanical) Drawing.
331423............  Secondary Smelting,              750  ..............
                     Refining, and
                     Alloying of Copper.
331491............  Nonferrous Metal                 750  ..............
                     (except Copper and
                     Aluminum) Rolling,
                     Drawing and
                     Extruding.
331492............  Secondary Smelting,              750  ..............
                     Refining, and
                     Alloying of
                     Nonferrous Metal
                     (except Copper and
                     Aluminum)..........
331511............  Iron Foundries......             500  ..............
331512............  Steel Investment                 500  ..............
                     Foundries.
331513............  Steel Foundries                  500  ..............
                     (except Investment).
331521............  Aluminum Die-Casting             500  ..............
                     Foundries.
331522............  Nonferrous (except               500  ..............
                     Aluminum) Die-
                     Casting Foundries.
331524............  Aluminum Foundries               500  ..............
                     (except Die-
                     Casting).
331525............  Copper Foundries                 500  ..............
                     (except Die-
                     Casting).
331528............  Other Nonferrous                 500  ..............
                     Foundries (except
                     Die-Casting).
-------------------
Subsector 332--Fabricated Metal Product Manufacturing
------------------------------------------------------------------------
332111............  Iron and Steel                   500  ..............
                     Forging.
332112............  Nonferrous Forging..             500  ..............
332114............  Custom Roll Forming.             500  ..............
332115............  Crown and Closure                500  ..............
                     Manufacturing.
332116............  Metal Stamping......             500  ..............
332117............  Powder Metallurgy                500  ..............
                     Part Manufacturing.
332211............  Cutlery and Flatware             500  ..............
                     (except Precious)
                     Manufacturing.
332212............  Hand and Edge Tool               500  ..............
                     Manufacturing.
332213............  Saw Blade and                    500  ..............
                     Handsaw
                     Manufacturing.
332214............  Kitchen Utensil, Pot             500  ..............
                     and Pan
                     Manufacturing.
332311............  Prefabricated Metal              500  ..............
                     Building and
                     Component
                     Manufacturing.
332312............  Fabricated                       500  ..............
                     Structural Metal
                     Manufacturing.
332313............  Plate Work                       500  ..............
                     Manufacturing.
332321............  Metal Window and                 500  ..............
                     Door Manufacturing.
332322............  Sheet Metal Work                 500  ..............
                     Manufacturing.
332323............  Ornamental and                   500  ..............
                     Architectural Metal
                     Work Manufacturing.
332410............  Power Boiler and                 500  ..............
                     Heat Exchanger
                     Manufacturing.

[[Page 13149]]

 
332420............  Metal Tank (Heavy                500  ..............
                     Gauge)
                     Manufacturing.
332431............  Metal Can                      1,000  ..............
                     Manufacturing.
332439............  Other Metal                      500  ..............
                     Container
                     Manufacturing.
332510............  Hardware                         500  ..............
                     Manufacturing.
332611............  Spring (Heavy Gauge)             500  ..............
                     Manufacturing.
332612............  Spring (Light Gauge)             500  ..............
                     Manufacturing.
332618............  Other Fabricated                 500  ..............
                     Wire Product
                     Manufacturing.
332710............  Machine Shops.......             500  ..............
332721............  Precision Turned                 500  ..............
                     Product
                     Manufacturing.
332722............  Bolt, Nut, Screw,                500  ..............
                     Rivet and Washer
                     Manufacturing.
332811............  Metal Heat Treating.             750  ..............
332812............  Metal Coating,                   500  ..............
                     Engraving (except
                     Jewelry and
                     Silverware), and
                     Allied Services to
                     Manufacturers......
332813............  Electroplating,                  500  ..............
                     Plating, Polishing,
                     Anodizing and
                     Coloring.
332911............  Industrial Valve                 500  ..............
                     Manufacturing.
332912............  Fluid Power Valve                500  ..............
                     and Hose Fitting
                     Manufacturing.
332913............  Plumbing Fixture                 500  ..............
                     Fitting and Trim
                     Manufacturing.
332919............  Other Metal Valve                500  ..............
                     and Pipe Fitting
                     Manufacturing.
332991............  Ball and Roller                  750  ..............
                     Bearing
                     Manufacturing.
332992............  Small Arms                     1,000  ..............
                     Ammunition
                     Manufacturing.
332993............  Ammunition (except             1,500  ..............
                     Small Arms)
                     Manufacturing.
332994............  Small Arms                     1,000  ..............
                     Manufacturing.
332995............  Other Ordnance and               500  ..............
                     Accessories
                     Manufacturing.
332996............  Fabricated Pipe and              500  ..............
                     Pipe Fitting
                     Manufacturing.
332997............  Industrial Pattern               500  ..............
                     Manufacturing.
332998............  Enameled Iron and                750  ..............
                     Metal Sanitary Ware
                     Manufacturing.
332999............  All Other                        500  ..............
                     Miscellaneous
                     Fabricated Metal
                     Product
                     Manufacturing.
-------------------
Subsector 333--Machinery Manufacturing \6\
------------------------------------------------------------------------
333111............  Farm Machinery and               500  ..............
                     Equipment
                     Manufacturing.
333112............  Lawn and Garden                  500  ..............
                     Tractor and Home
                     Lawn and Garden
                     Equipment
                     Manufacturing.
333120............  Construction                     750  ..............
                     Machinery
                     Manufacturing.
333131............  Mining Machinery and             500  ..............
                     Equipment
                     Manufacturing.
333132............  Oil and Gas Field                500  ..............
                     Machinery and
                     Equipment
                     Manufacturing.
333210............  Sawmill and                      500  ..............
                     Woodworking
                     Machinery
                     Manufacturing.
333220............  Plastics and Rubber              500  ..............
                     Industry Machinery
                     Manufacturing.
333291............  Paper Industry                   500  ..............
                     Machinery
                     Manufacturing.
333292............  Textile Machinery                500  ..............
                     Manufacturing.
333293............  Printing Machinery               500  ..............
                     and Equipment
                     Manufacturing.
333294............  Food Product                     500  ..............
                     Machinery
                     Manufacturing.
333295............  Semiconductor                    500  ..............
                     Machinery
                     Manufacturing.
333298............  All Other Industrial             500  ..............
                     Machinery
                     Manufacturing.
333311............  Automatic Vending                500  ..............
                     Machine
                     Manufacturing.
333312............  Commercial Laundry,              500  ..............
                     Drycleaning and
                     Pressing Machine
                     Manufacturing.
333313............  Office Machinery               1,000  ..............
                     Manufacturing.
333314............  Optical Instrument               500  ..............
                     and Lens
                     Manufacturing.
333315............  Photographic and                 500  ..............
                     Photocopying
                     Equipment
                     Manufacturing.
333319............  Other Commercial and             500  ..............
                     Service Industry
                     Machinery
                     Manufacturing.
333411............  Air Purification                 500  ..............
                     Equipment
                     Manufacturing.
333412............  Industrial and                   500  ..............
                     Commercial Fan and
                     Blower
                     Manufacturing.
333414............  Heating Equipment                500  ..............
                     (except Warm Air
                     Furnaces)
                     Manufacturing.
333415............  Air-Conditioning and             750  ..............
                     Warm Air Heating
                     Equipment and
                     Commercial and
                     Industrial
                     Refrigeration
                     Equipment
                     Manufacturing......
333511............  Industrial Mold                  500  ..............
                     Manufacturing.
333512............  Machine Tool (Metal              500  ..............
                     Cutting Types)
                     Manufacturing.
333513............  Machine Tool (Metal              500  ..............
                     Forming Types)
                     Manufacturing.
333514............  Special Die and                  500  ..............
                     Tool, Die Set, Jig
                     and Fixture
                     Manufacturing.
333515............  Cutting Tool and                 500  ..............
                     Machine Tool
                     Accessory
                     Manufacturing.
333516............  Rolling Mill                     500  ..............
                     Machinery and
                     Equipment
                     Manufacturing.
333518............  Other Metalworking               500  ..............
                     Machinery
                     Manufacturing.
333611............  Turbine and Turbine            1,000  ..............
                     Generator Set Unit
                     Manufacturing.
333612............  Speed Changer,                   500  ..............
                     Industrial High-
                     Speed Drive and
                     Gear Manufacturing.
333613............  Mechanical Power                 500  ..............
                     Transmission
                     Equipment
                     Manufacturing.
333618............  Other Engine                   1,000  ..............
                     Equipment
                     Manufacturing.
333911............  Pump and Pumping                 500  ..............
                     Equipment
                     Manufacturing.
333912............  Air and Gas                      500  ..............
                     Compressor
                     Manufacturing.
333913............  Measuring and                    500  ..............
                     Dispensing Pump
                     Manufacturing.
333921............  Elevator and Moving              500  ..............
                     Stairway
                     Manufacturing.
333922............  Conveyor and                     500  ..............
                     Conveying Equipment
                     Manufacturing.
333923............  Overhead Traveling               500  ..............
                     Crane, Hoist and
                     Monorail System
                     Manufacturing.

[[Page 13150]]

 
333924............  Industrial Truck,                750  ..............
                     Tractor, Trailer
                     and Stacker
                     Machinery
                     Manufacturing.
333991............  Power-Driven Hand                500  ..............
                     Tool Manufacturing.
333992............  Welding and                      500  ..............
                     Soldering Equipment
                     Manufacturing.
333993............  Packaging Machinery              500  ..............
                     Manufacturing.
333994............  Industrial Process               500  ..............
                     Furnace and Oven
                     Manufacturing.
333995............  Fluid Power Cylinder             500  ..............
                     and Actuator
                     Manufacturing.
333996............  Fluid Power Pump and             500  ..............
                     Motor Manufacturing.
333997............  Scale and Balance                500  ..............
                     (except Laboratory)
                     Manufacturing.
333999............  All Other                        500  ..............
                     Miscellaneous
                     General Purpose
                     Machinery
                     Manufacturing.
-------------------
Subsector 334--Computer and Electronic Product Manufacturing \6\
------------------------------------------------------------------------
334111............  Electronic Computer            1,000  ..............
                     Manufacturing.
334112............  Computer Storage               1,000  ..............
                     Device
                     Manufacturing.
334113............  Computer Terminal              1,000  ..............
                     Manufacturing.
334119............  Other Computer                 1,000  ..............
                     Peripheral
                     Equipment
                     Manufacturing.
334210............  Telephone Apparatus            1,000  ..............
                     Manufacturing.
334220............  Radio and Television             750  ..............
                     Broadcasting and
                     Wireless
                     Communications
                     Equipment
                     Manufacturing.
334290............  Other Communications             750  ..............
                     Equipment
                     Manufacturing.
334310............  Audio and Video                  750  ..............
                     Equipment
                     Manufacturing.
334411............  Electron Tube                    750  ..............
                     Manufacturing.
334412............  Bare Printed Circuit             500  ..............
                     Board Manufacturing.
334413............  Semiconductor and                500  ..............
                     Related Device
                     Manufacturing.
334414............  Electronic Capacitor             500  ..............
                     Manufacturing.
334415............  Electronic Resistor              500  ..............
                     Manufacturing.
334416............  Electronic Coil,                 500  ..............
                     Transformer, and
                     Other Inductor
                     Manufacturing.
334417............  Electronic Connector             500  ..............
                     Manufacturing.
334418............  Printed Circuit                  500  ..............
                     Assembly
                     (Electronic
                     Assembly)
                     Manufacturing.
334419............  Other Electronic                 500  ..............
                     Component
                     Manufacturing.
334510............  Electromedical and               500  ..............
                     Electrotherapeutic
                     Apparatus
                     Manufacturing.
334511............  Search, Detection,               750  ..............
                     Navigation,
                     Guidance,
                     Aeronautical, and
                     Nautical System and
                     Instrument
                     Manufacturing......
334512............  Automatic                        500  ..............
                     Environmental
                     Control
                     Manufacturing for
                     Residential,
                     Commercial and
                     Appliance Use......
334513............  Instruments and                  500  ..............
                     Related Products
                     Manufacturing for
                     Measuring,
                     Displaying, and
                     Controlling
                     Industrial Process
                     Variables..........
334514............  Totalizing Fluid                 500  ..............
                     Meter and Counting
                     Device
                     Manufacturing.
334515............  Instrument                       500  ..............
                     Manufacturing for
                     Measuring and
                     Testing Electricity
                     and Electrical
                     Signals.
334516............  Analytical                       500  ..............
                     Laboratory
                     Instrument
                     Manufacturing.
334517............  Irradiation                      500  ..............
                     Apparatus
                     Manufacturing.
334518............  Watch, Clock, and                500  ..............
                     Part Manufacturing.
334519............  Other Measuring and              500  ..............
                     Controlling Device
                     Manufacturing.
334611............  Software Reproducing             500  ..............
334612............  Prerecorded Compact              750  ..............
                     Disc (except
                     Software), Tape,
                     and Record
                     Reproducing.
334613............  Magnetic and Optical           1,000  ..............
                     Recording Media
                     Manufacturing.
-------------------
Subsector 335--Electrical Equipment, Appliance and Component
 Manufacturing \6\
------------------------------------------------------------------------
335110............  Electric Lamp Bulb             1,000  ..............
                     and Part
                     Manufacturing.
335121............  Residential Electric             500  ..............
                     Lighting Fixture
                     Manufacturing.
335122............  Commercial,                      500  ..............
                     Industrial and
                     Institutional
                     Electric Lighting
                     Fixture
                     Manufacturing.
335129............  Other Lighting                   500  ..............
                     Equipment
                     Manufacturing.
335211............  Electric Housewares              750  ..............
                     and Household Fan
                     Manufacturing.
335212............  Household Vacuum                 750  ..............
                     Cleaner
                     Manufacturing.
335221............  Household Cooking                750  ..............
                     Appliance
                     Manufacturing.
335222............  Household                      1,000  ..............
                     Refrigerator and
                     Home Freezer
                     Manufacturing.
335224............  Household Laundry              1,000  ..............
                     Equipment
                     Manufacturing.
335228............  Other Major                      500  ..............
                     Household Appliance
                     Manufacturing.
335311............  Power, Distribution              750  ..............
                     and Specialty
                     Transformer
                     Manufacturing.
335312............  Motor and Generator            1,000  ..............
                     Manufacturing.
335313............  Switchgear and                   750  ..............
                     Switchboard
                     Apparatus
                     Manufacturing.
335314............  Relay and Industrial             750  ..............
                     Control
                     Manufacturing.
335911............  Storage Battery                  500  ..............
                     Manufacturing.
335912............  Primary Battery                1,000  ..............
                     Manufacturing.
335921............  Fiber Optic Cable              1,000  ..............
                     Manufacturing.
335929............  Other Communication            1,000  ..............
                     and Energy Wire
                     Manufacturing.
335931............  Current-Carrying                 500  ..............
                     Wiring Device
                     Manufacturing.
335932............  Noncurrent-Carrying              500  ..............
                     Wiring Device
                     Manufacturing.
335991............  Carbon and Graphite              750  ..............
                     Product
                     Manufacturing.
335999............  All Other                        500  ..............
                     Miscellaneous
                     Electrical
                     Equipment and
                     Component
                     Manufacturing.
-------------------

[[Page 13151]]

 
Subsector 336--Transportation Equipment Manufacturing \7\
------------------------------------------------------------------------
336111............  Automobile                     1,000  ..............
                     Manufacturing.
336112............  Light Truck and                1,000  ..............
                     Utility Vehicle
                     Manufacturing.
336120............  Heavy Duty Truck               1,000  ..............
                     Manufacturing.
336211............  Motor Vehicle Body             1,000  ..............
                     Manufacturing.
336212............  Truck Trailer                    500  ..............
                     Manufacturing.
336213............  Motor Home                     1,000  ..............
                     Manufacturing.
336214............  Travel Trailer and               500  ..............
                     Camper
                     Manufacturing.
336311............  Carburetor, Piston,              500  ..............
                     Piston Ring and
                     Valve Manufacturing.
336312............  Gasoline Engine and              750  ..............
                     Engine Parts
                     Manufacturing.
336321............  Vehicular Lighting               500  ..............
                     Equipment
                     Manufacturing.
336322............  Other Motor Vehicle              750  ..............
                     Electrical and
                     Electronic
                     Equipment
                     Manufacturing.
336330............  Motor Vehicle                    750  ..............
                     Steering and
                     Suspension
                     Components (except
                     Spring)
                     Manufacturing.
336340............  Motor Vehicle Brake              750  ..............
                     System
                     Manufacturing.
336350............  Motor Vehicle                    750  ..............
                     Transmission and
                     Power Train Parts
                     Manufacturing.
336360............  Motor Vehicle                    500  ..............
                     Seating and
                     Interior Trim
                     Manufacturing.
336370............  Motor Vehicle Metal              500  ..............
                     Stamping.
336391............  Motor Vehicle Air-               750  ..............
                     Conditioning
                     Manufacturing.
336399............  All Other Motor                  750  ..............
                     Vehicle Parts
                     Manufacturing.
336411............  Aircraft                       1,500  ..............
                     Manufacturing.
336412............  Aircraft Engine and            1,000  ..............
                     Engine Parts
                     Manufacturing.
336413............  Other Aircraft Part        \7\ 1,000  ..............
                     and Auxiliary
                     Equipment
                     Manufacturing \7\.
336414............  Guided Missile and             1,000  ..............
                     Space Vehicle
                     Manufacturing.
336415............  Guided Missile and             1,000  ..............
                     Space Vehicle
                     Propulsion Unit and
                     Propulsion Unit
                     Parts Manufacturing.
336419............  Other Guided Missile           1,000  ..............
                     and Space Vehicle
                     Parts and Auxiliary
                     Equipment
                     Manufacturing.
336510............  Railroad Rolling               1,000  ..............
                     Stock Manufacturing.
336611............  Ship Building and              1,000  ..............
                     Repairing.
336612............  Boat Building.......             500  ..............
336991............  Motorcycle, Bicycle              500  ..............
                     and Parts
                     Manufacturing.
336992............  Military Armored               1,000  ..............
                     Vehicle, Tank and
                     Tank Component
                     Manufacturing.
336999............  All Other                        500  ..............
                     Transportation
                     Equipment
                     Manufacturing.
-------------------
Subsector 337--Furniture and Related Product Manufacturing
------------------------------------------------------------------------
337110............  Wood Kitchen Cabinet             500  ..............
                     and Counter Top
                     Manufacturing.
337121............  Upholstered                      500  ..............
                     Household Furniture
                     Manufacturing.
337122............  Nonupholstered Wood              500  ..............
                     Household Furniture
                     Manufacturing.
337124............  Metal Household                  500  ..............
                     Furniture
                     Manufacturing.
337125............  Household Furniture              500  ..............
                     (except Wood and
                     Metal)
                     Manufacturing.
337127............  Institutional                    500  ..............
                     Furniture
                     Manufacturing.
337129............  Wood Television,                 500  ..............
                     Radio, and Sewing
                     Machine Cabinet
                     Manufacturing.
337211............  Wood Office                      500  ..............
                     Furniture
                     Manufacturing.
337212............  Custom Architectural             500  ..............
                     Woodwork and
                     Millwork
                     Manufacturing.
337214............  Office Furniture                 500  ..............
                     (except Wood)
                     Manufacturing.
337215............  Showcase, Partition,             500  ..............
                     Shelving, and
                     Locker
                     Manufacturing.
337910............  Mattress                         500  ..............
                     Manufacturing.
337920............  Blind and Shade                  500  ..............
                     Manufacturing.
-------------------
Subsector 339--Miscellaneous Manufacturing
------------------------------------------------------------------------
339111............  Laboratory Apparatus             500  ..............
                     and Furniture
                     Manufacturing.
339112............  Surgical and Medical             500  ..............
                     Instrument
                     Manufacturing.
339113............  Surgical Appliance               500  ..............
                     and Supplies
                     Manufacturing.
339114............  Dental Equipment and             500  ..............
                     Supplies
                     Manufacturing.
339115............  Ophthalmic Goods                 500  ..............
                     Manufacturing.
339116............  Dental Laboratories.             500  ..............
339911............  Jewelry (except                  500  ..............
                     Costume)
                     Manufacturing.
339912............  Silverware and                   500  ..............
                     Hollowware
                     Manufacturing.
339913............  Jewelers' Material               500  ..............
                     and Lapidary Work
                     Manufacturing.
339914............  Costume Jewelry and              500  ..............
                     Novelty
                     Manufacturing.
339920............  Sporting and                     500  ..............
                     Athletic Goods
                     Manufacturing.
339931............  Doll and Stuffed Toy             500  ..............
                     Manufacturing.
339932............  Game, Toy, and                   500  ..............
                     Children's Vehicle
                     Manufacturing.
339941............  Pen and Mechanical               500  ..............
                     Pencil
                     Manufacturing.
339942............  Lead Pencil and Art              500  ..............
                     Good Manufacturing.
339943............  Marking Device                   500  ..............
                     Manufacturing.
339944............  Carbon Paper and                 500  ..............
                     Inked Ribbon
                     Manufacturing.
339950............  Sign Manufacturing..             500  ..............
339991............  Gasket, Packing, and             500  ..............
                     Sealing Device
                     Manufacturing.
339992............  Musical Instrument               500  ..............
                     Manufacturing.

[[Page 13152]]

 
339993............  Fastener, Button,                500  ..............
                     Needle and Pin
                     Manufacturing.
339994............  Broom, Brush and Mop             500  ..............
                     Manufacturing.
339995............  Burial Casket                    500  ..............
                     Manufacturing.
339999............  All Other                        500  ..............
                     Miscellaneous
                     Manufacturing.
-------------------
                       Sector 42--Wholesale Trade
------------------------------------------------------------------------
Subsector 423--Merchant Wholesalers, Durable Goods
------------------------------------------------------------------------
423110............  Automobile and Other             100  ..............
                     Motor Vehicle
                     Merchant
                     Wholesalers.
423120............  Motor Vehicle                    100  ..............
                     Supplies and New
                     Parts Merchant
                     Wholesalers.
423130............  Tire and Tube                    100  ..............
                     Merchant
                     Wholesalers.
423140............  Motor Vehicle Parts              100  ..............
                     (Used) Merchant
                     Wholesalers.
423210............  Furniture Merchant               100  ..............
                     Wholesalers.
423220............  Home Furnishing                  100  ..............
                     Merchant
                     Wholesalers.
423310............  Lumber, Plywood,                 100  ..............
                     Millwork, and Wood
                     Panel Merchant
                     Wholesalers.
423320............  Brick, Stone, and                100  ..............
                     Related
                     Construction
                     Material Merchant
                     Wholesalers.
423330............  Roofing, Siding, and             100  ..............
                     Insulation Material
                     Merchant
                     Wholesalers.
423390............  Other Construction               100  ..............
                     Material Merchant
                     Wholesalers.
423410............  Photographic                     100  ..............
                     Equipment and
                     Supplies Merchant
                     Wholesalers.
423420............  Office Equipment                 100  ..............
                     Merchant
                     Wholesalers.
423430............  Computer and                     100  ..............
                     Computer Peripheral
                     Equipment and
                     Software Merchant
                     Wholesalers.
423440............  Other Commercial                 100  ..............
                     Equipment Merchant
                     Wholesalers.
423450............  Medical, Dental, and             100  ..............
                     Hospital Equipment
                     and Supplies
                     Merchant
                     Wholesalers.
423460............  Ophthalmic Goods                 100  ..............
                     Merchant
                     Wholesalers.
423490............  Other Professional               100  ..............
                     Equipment and
                     Supplies Merchant
                     Wholesalers.
423510............  Metal Service                    100  ..............
                     Centers and Other
                     Metal Merchant
                     Wholesalers.
423520............  Coal and Other                   100  ..............
                     Mineral and Ore
                     Merchant
                     Wholesalers.
423610............  Electrical Apparatus             100  ..............
                     and Equipment,
                     Wiring Supplies,
                     and Related
                     Equipment Merchant
                     Wholesalers........
423620............  Electrical and                   100  ..............
                     Electronic
                     Appliance,
                     Television, and
                     Radio Set Merchant
                     Wholesalers.
423690............  Other Electronic                 100  ..............
                     Parts and Equipment
                     Merchant
                     Wholesalers.
423710............  Hardware Merchant                100  ..............
                     Wholesalers.
423720............  Plumbing and Heating             100  ..............
                     Equipment and
                     Supplies
                     (Hydronics)
                     Merchant
                     Wholesalers.
423730............  Warm Air Heating and             100  ..............
                     Air-Conditioning
                     Equipment and
                     Supplies Merchant
                     Wholesalers.
423740............  Refrigeration                    100  ..............
                     Equipment and
                     Supplies Merchant
                     Wholesalers.
423810............  Construction and                 100  ..............
                     Mining (except Oil
                     Well) Machinery and
                     Equipment Merchant
                     Wholesalers.
423820............  Farm and Garden                  100  ..............
                     Machinery and
                     Equipment Merchant
                     Wholesalers.
423830............  Industrial Machinery             100  ..............
                     and Equipment
                     Merchant
                     Wholesalers.
423840............  Industrial Supplies              100  ..............
                     Merchant
                     Wholesalers.
423850............  Service                          100  ..............
                     Establishment
                     Equipment and
                     Supplies Merchant
                     Wholesalers.
423860............  Transportation                   100  ..............
                     Equipment and
                     Supplies (except
                     Motor Vehicle)
                     Merchant
                     Wholesalers.
423910............  Sporting and                     100  ..............
                     Recreational Goods
                     and Supplies
                     Merchant
                     Wholesalers.
423920............  Toy and Hobby Goods              100  ..............
                     and Supplies
                     Merchant
                     Wholesalers.
423930............  Recyclable Material              100  ..............
                     Merchant
                     Wholesalers.
423940............  Jewelry, Watch,                  100  ..............
                     Precious Stone, and
                     Precious Metal
                     Merchant
                     Wholesalers.
423990............  Other Miscellaneous              100  ..............
                     Durable Goods
                     Merchant
                     Wholesalers.
-------------------
Subsector 424--Merchant Wholesalers, Nondurable Goods
------------------------------------------------------------------------
424110............  Printing and Writing             100  ..............
                     Paper Merchant
                     Wholesalers.
424120............  Stationary and                   100  ..............
                     Office Supplies
                     Merchant
                     Wholesalers.
424130............  Industrial and                   100  ..............
                     Personal Service
                     Paper Merchant
                     Wholesalers.
424210............  Drugs and Druggists'             100  ..............
                     Sundries Merchant
                     Wholesalers.
424310............  Piece Goods,                     100  ..............
                     Notions, and Other
                     Dry Goods Merchant
                     Wholesalers.
424320............  Men's and Boys'                  100  ..............
                     Clothing and
                     Furnishings
                     Merchant
                     Wholesalers.
424330............  Women's, Children's,             100  ..............
                     and Infants'
                     Clothing and
                     Accessories
                     Merchant
                     Wholesalers.
424340............  Footwear Merchant                100  ..............
                     Wholesalers.
424410............  General Line Grocery             100  ..............
                     Merchant
                     Wholesalers.
424420............  Packaged Frozen Food             100  ..............
                     Merchant
                     Wholesalers.
424430............  Dairy Product                    100  ..............
                     (except Dried or
                     Canned) Merchant
                     Wholesalers.
424440............  Poultry and Poultry              100  ..............
                     Product Merchant
                     Wholesalers.
424450............  Confectionery                    100  ..............
                     Merchant
                     Wholesalers.
424460............  Fish and Seafood                 100  ..............
                     Merchant
                     Wholesalers.
424470............  Meat and Meat                    100  ..............
                     Product Merchant
                     Wholesalers.
424480............  Fresh Fruit and                  100  ..............
                     Vegetable Merchant
                     Wholesalers.
424490............  Other Grocery and                100  ..............
                     Related Products
                     Merchant
                     Wholesalers.
424510............  Grain and Field Bean             100  ..............
                     Merchant
                     Wholesalers.
424520............  Livestock Merchant               100  ..............
                     Wholesalers.
424590............  Other Farm Product               100  ..............
                     Raw Material
                     Merchant
                     Wholesalers.
424610............  Plastics Materials               100  ..............
                     and Basic Forms and
                     Shapes Merchant
                     Wholesalers.

[[Page 13153]]

 
424690............  Other Chemical and               100  ..............
                     Allied Products
                     Merchant
                     Wholesalers.
424710............  Petroleum Bulk                   100  ..............
                     Stations and
                     Terminals.
424720............  Petroleum and                    100  ..............
                     Petroleum Products
                     Merchant
                     Wholesalers (except
                     Bulk Stations and
                     Terminals).........
424810............  Beer and Ale                     100  ..............
                     Merchant
                     Wholesalers.
424820............  Wine and Distilled               100  ..............
                     Alcoholic Beverage
                     Merchant
                     Wholesalers.
424910............  Farm Supplies                    100  ..............
                     Merchant
                     Wholesalers.
424920............  Book, Periodical,                100  ..............
                     and Newspaper
                     Merchant
                     Wholesalers.
424930............  Flower, Nursery                  100  ..............
                     Stock, and
                     Florists' Supplies
                     Merchant
                     Wholesalers.
424940............  Tobacco and Tobacco              100  ..............
                     Product Merchant
                     Wholesalers.
424950............  Paint, Varnish, and              100  ..............
                     Supplies Merchant
                     Wholesalers.
424990............  Other Miscellaneous              100  ..............
                     Nondurable Goods
                     Merchant
                     Wholesalers.
-------------------
Subsector 425--Wholesale Electronic Markets and Agents and Brokers
------------------------------------------------------------------------
425110............  Business to Business             100  ..............
                     Electronic Markets.
425120............  Wholesale Trade                  100  ..............
                     Agents and Brokers.
-------------------
                       Sectors 44-45--Retail Trade
------------------------------------------------------------------------
Subsector 441--Motor Vehicle and Parts Dealers
------------------------------------------------------------------------
441110............  New Car Dealers.....              50  ..............
441120............  Used Car Dealers....              50  ..............
441210............  Recreational Vehicle              50  ..............
                     Dealers.
441221............  Motorcycle Dealers..              50  ..............
441222............  Boat Dealers........              50  ..............
441229............  All Other Motor                   50  ..............
                     Vehicle Dealers.
441310............  Automotive Parts and              50  ..............
                     Accessories Stores.
441320............  Tire Dealers........              50  ..............
-------------------
Subsector 442--Furniture and Home Furnishings Stores
------------------------------------------------------------------------
442110............  Furniture Stores....              50  ..............
442210............  Floor Covering                    50  ..............
                     Stores.
442291............  Window Treatment                  50  ..............
                     Stores.
442299............  All Other Home                    50  ..............
                     Furnishings Stores.
-------------------
Subsector 443--Electronics and Appliance Stores
------------------------------------------------------------------------
443111............  Household Appliance               50  ..............
                     Stores.
443112............  Radio, Television                 50  ..............
                     and Other
                     Electronics Stores.
443120............  Computer and                      50  ..............
                     Software Stores.
443130............  Camera and                        50  ..............
                     Photographic
                     Supplies Stores.
-------------------
Subsector 444--Building Material and Garden Equipment and Supplies
 Dealers
------------------------------------------------------------------------
444110............  Home Centers........              50  ..............
444120............  Paint and Wallpaper               50  ..............
                     Stores.
444130............  Hardware Stores.....              50  ..............
444190............  Other Building                    50  ..............
                     Material Dealers.
444210............  Outdoor Power                     50  ..............
                     Equipment Stores.
444220............  Nursery and Garden                50  ..............
                     Centers.
-------------------
Subsector 445--Food and Beverage Stores
------------------------------------------------------------------------
445110............  Supermarkets and                 150  ..............
                     Other Grocery
                     (except
                     Convenience) Stores.
445120............  Convenience Stores..             150  ..............
445210............  Meat Markets........              50  ..............
445220............  Fish and Seafood                  50  ..............
                     Markets.
445230............  Fruit and Vegetable               50  ..............
                     Markets.
445291............  Baked Goods Stores..              50  ..............
445292............  Confectionery and                 50  ..............
                     Nut Stores.
445299............  All Other Specialty               50  ..............
                     Food Stores.
445310............  Beer, Wine and                    50  ..............
                     Liquor Stores.
-------------------
Subsector 446--Health and Personal Care Stores
------------------------------------------------------------------------
446110............  Pharmacies and Drug               50  ..............
                     Stores.
446120............  Cosmetics, Beauty                 50  ..............
                     Supplies and
                     Perfume Stores.
446130............  Optical Goods Stores              50  ..............

[[Page 13154]]

 
446191............  Food (Health)                     50  ..............
                     Supplement Stores.
446199............  All Other Health and              50  ..............
                     Personal Care
                     Stores.
-------------------
Subsector 447--Gasoline Stations
------------------------------------------------------------------------
447110............  Gasoline Stations                100  ..............
                     with Convenience
                     Stores.
447190............  Other Gasoline                    50  ..............
                     Stations.
-------------------
Subsector 448--Clothing and Clothing Accessories Stores
------------------------------------------------------------------------
448110............  Men's Clothing                    50  ..............
                     Stores.
448120............  Women's Clothing                  50  ..............
                     Stores.
448130............  Children's and                    50  ..............
                     Infants' Clothing
                     Stores.
448140............  Family Clothing                   50  ..............
                     Stores.
448150............  Clothing Accessories              50  ..............
                     Stores.
448190............  Other Clothing                    50  ..............
                     Stores.
448210............  Shoe Stores.........              50  ..............
448310............  Jewelry Stores......              50  ..............
448320............  Luggage and Leather               50  ..............
                     Goods Stores.
-------------------
Subsector 451--Sporting Good, Hobby, Book and Music Stores
------------------------------------------------------------------------
451110............  Sporting Goods                    50  ..............
                     Stores.
451120............  Hobby, Toy and Game               50  ..............
                     Stores.
451130............  Sewing, Needlework                50  ..............
                     and Piece Goods
                     Stores.
451140............  Musical Instrument                50  ..............
                     and Supplies Stores.
451211............  Book Stores.........              50  ..............
451212............  News Dealers and                  50  ..............
                     Newsstands.
451220............  Prerecorded Tape,                 50  ..............
                     Compact Disc and
                     Record Stores.
-------------------
Subsector 452--General Merchandise Stores
------------------------------------------------------------------------
452111............  Department Stores                150  ..............
                     (except Discount
                     Department Stores).
452112............  Discount Department              150  ..............
                     Stores.
452910............  Warehouse Clubs and              150  ..............
                     Superstores.
452990............  All Other General                100  ..............
                     Merchandise Stores.
-------------------
Subsector 453--Miscellaneous Store Retailers
------------------------------------------------------------------------
453110............  Florists............              50  ..............
453210............  Office Supplies and               50  ..............
                     Stationery Stores.
453220............  Gift, Novelty and                 50  ..............
                     Souvenir Stores.
453310............  Used Merchandise                  50  ..............
                     Stores.
453910............  Pet and Pet Supplies              50  ..............
                     Stores.
453920............  Art Dealers.........              50  ..............
453930............  Manufactured                      50  ..............
                     (Mobile) Home
                     Dealers.
453991............  Tobacco Stores......              50  ..............
453998............  All Other                         50  ..............
                     Miscellaneous Store
                     Retailers (except
                     Tobacco Stores).
-------------------
Subsector 454--Nonstore Retailers
------------------------------------------------------------------------
454111............  Electronic Shopping.              50  ..............
454112............  Electronic Auctions.              50  ..............
454113............  Mail-Order Houses...              50  ..............
454210............  Vending Machine                   50  ..............
                     Operators.
454311............  Heating Oil Dealers.              50  ..............
454312............  Liquefied Petroleum               50  ..............
                     Gas (Bottled Gas)
                     Dealers.
454319............  Other Fuel Dealers..              50  ..............
454390............  Other Direct Selling              50  ..............
                     Establishments.
-------------------
                      Sectors 48-49--Transportation
------------------------------------------------------------------------
Subsector 481--Air Transportation
------------------------------------------------------------------------
481111............  Scheduled Passenger            1,500  ..............
                     Air Transportation.
481112............  Scheduled Freight              1,500  ..............
                     Air Transportation.
481211............  Nonscheduled                   1,500  ..............
                     Chartered Passenger
                     Air Transportation.
Except,...........  Offshore Marine Air              150  ..............
                     Transportation
                     Services.
481212............  Nonscheduled                   1,500  ..............
                     Chartered Freight
                     Air Transportation.
Except,...........  Offshore Marine Air              150  ..............
                     Transportation
                     Services.
481219............  Other Nonscheduled                50  ..............
                     Air Transportation.
-------------------

[[Page 13155]]

 
Subsector 482--Rail Transportation
------------------------------------------------------------------------
482111............  Line-Haul Railroads.           1,500  ..............
482112............  Short Line Railroads             500  ..............
-------------------
Subsector 483--Water Transportation \8\
------------------------------------------------------------------------
483111............  Deep Sea Freight                 500  ..............
                     Transportation.
483112............  Deep Sea Passenger               500  ..............
                     Transportation.
483113............  Coastal and Great                500  ..............
                     Lakes Freight
                     Transportation.
483114............  Coastal and Great                500  ..............
                     Lakes Passenger
                     Transportation.
483211............  Inland Water Freight             500  ..............
                     Transportation.
483212............  Inland Water                     500  ..............
                     Passenger
                     Transportation.
-------------------
Subsector 484--Truck Transportation
------------------------------------------------------------------------
484110............  General Freight                  200  ..............
                     Trucking, Local.
484121............  General Freight                  200  ..............
                     Trucking, Long-
                     Distance, Truckload.
484122............  General Freight                  200  ..............
                     Trucking, Long-
                     Distance, Less Than
                     Truckload.
484210............  Used Household and               200  ..............
                     Office Goods Moving.
484220............  Specialized Freight              200  ..............
                     (except Used Goods)
                     Trucking, Local.
484230............  Specialized Freight              200  ..............
                     (except Used Goods)
                     Trucking, Long-
                     Distance.
-------------------
Subsector 485--Transit and Ground Passenger Transportation
------------------------------------------------------------------------
485111............  Mixed Mode Transit               100  ..............
                     Systems.
485112............  Commuter Rail                    100  ..............
                     Systems.
485113............  Bus and Motor                    100  ..............
                     Vehicle Transit
                     Systems.
485119............  Other Urban Transit              100  ..............
                     Systems.
485210............  Interurban and Rural             100  ..............
                     Bus Transportation.
485310............  Taxi Service........              50  ..............
485320............  Limousine Service...              50  ..............
485410............  School and Employee              100  ..............
                     Bus Transportation.
485510............  Charter Bus Industry             100  ..............
485991............  Special Needs                     50  ..............
                     Transportation.
485999............  All Other Transit                 50  ..............
                     and Ground
                     Passenger
                     Transportation.
-------------------
Subsector 486--Pipeline Transportation
------------------------------------------------------------------------
486110............  Pipeline                       1,500  ..............
                     Transportation of
                     Crude Oil.
486210............  Pipeline                         100  ..............
                     Transportation of
                     Natural Gas.
486910............  Pipeline                       1,500  ..............
                     Transportation of
                     Refined Petroleum
                     Products.
486990............  All Other Pipeline               100  ..............
                     Transportation.
-------------------
Subsector 487--Scenic and Sightseeing Transportation
------------------------------------------------------------------------
487110............  Scenic and                        50  ..............
                     Sightseeing
                     Transportation,
                     Land.
487210............  Scenic and                        50  ..............
                     Sightseeing
                     Transportation,
                     Water.
487990............  Scenic and                        50  ..............
                     Sightseeing
                     Transportation,
                     Other.
-------------------
Subsector 488--Support Activities for Transportation
------------------------------------------------------------------------
488111............  Air Traffic Control.              50  ..............
488119............  Other Airport                    100  ..............
                     Operations.
488190............  Other Support                    100  ..............
                     Activities for Air
                     Transportation.
488210............  Support Activities                50  ..............
                     for Rail
                     Transportation.
488310............  Port and Harbor                  200  ..............
                     Operations.
488320............  Marine Cargo                     200  ..............
                     Handling.
488330............  Navigational                      50  ..............
                     Services to
                     Shipping.
488390............  Other Support                     50  ..............
                     Activities for
                     Water
                     Transportation.
488410............  Motor Vehicle Towing              50  ..............
488490............  Other Support                     50  ..............
                     Activities for Road
                     Transportation.
488510............  Freight                           50  ..............
                     Transportation
                     Arrangement.
488991............  Packing and Crating.             100  ..............
488999............  All Other Support                 50  ..............
                     Activities for
                     Transportation.
-------------------
Subsector 491--Postal Service
------------------------------------------------------------------------
491110............  Postal Service......              50  ..............
-------------------
Subsector 492--Couriers and Messengers
------------------------------------------------------------------------

[[Page 13156]]

 
492110............  Couriers............           1,500  ..............
492210............  Local Messengers and             200  ..............
                     Local Delivery.
-------------------
Subsector 493--Warehousing and Storage
------------------------------------------------------------------------
493110............  General Warehousing              200  ..............
                     and Storage.
493120............  Refrigerated                     200  ..............
                     Warehousing and
                     Storage.
493130............  Farm Product                     200  ..............
                     Warehousing and
                     Storage.
493190............  Other Warehousing                200  ..............
                     and Storage.
-------------------
                         Sector 51--Information
------------------------------------------------------------------------
Subsector 511--Publishing Industries (except Internet)
------------------------------------------------------------------------
511110............  Newspaper Publishers             500  ..............
511120............  Periodical                       500  ..............
                     Publishers.
511130............  Book Publishers.....             500  ..............
511140............  Directory and                    500  ..............
                     Mailing List
                     Publishers.
511191............  Greeting Card                    500  ..............
                     Publishers.
511199............  All Other Publishers             500  ..............
511210............  Software Publishers.             150  ..............
-------------------
Subsector 512--Motion Picture and Sound Recording Industries
------------------------------------------------------------------------
512110............  Motion Picture and               100  ..............
                     Video Production.
512120............  Motion Picture and               100  ..............
                     Video Distribution.
512131............  Motion Picture                   100  ..............
                     Theaters (except
                     Drive-Ins).
512132............  Drive-In Motion                   50  ..............
                     Picture Theaters.
512191............  Teleproduction and               100  ..............
                     Other
                     Postproduction
                     Services.
512199............  Other Motion Picture              50  ..............
                     and Video
                     Industries.
512210............  Record Production...              50  ..............
512220............  Integrated Record                750  ..............
                     Production/
                     Distribution.
512230............  Music Publishers....             500  ..............
512240............  Sound Recording                   50  ..............
                     Studios.
512290............  Other Sound                       50  ..............
                     Recording
                     Industries.
-------------------
Subsector 515--Broadcasting (except Internet)
------------------------------------------------------------------------
515111............  Radio Networks......              50  ..............
515112............  Radio Stations......              50  ..............
515120............  Television                       100  ..............
                     Broadcasting.
515210............  Cable and Other                  100  ..............
                     Subscription
                     Programming.
-------------------
Subsector 516--Internet Publishing and Broadcasting
------------------------------------------------------------------------
516110............  Internet Publishing              500  ..............
                     and Broadcasting.
-------------------
Subsector 517--Telecommunications
------------------------------------------------------------------------
517110............  Wired                          1,500  ..............
                     Telecommunications
                     Carriers.
517211............  Paging..............           1,500  ..............
517212............  Cellular and Other             1,500  ..............
                     Wireless
                     Telecommunications.
517310............  Telecommunications             1,500  ..............
                     Resellers.
517410............  Satellite                        100  ..............
                     Telecommunications.
517510............  Cable and Other                  100  ..............
                     Program
                     Distribution.
517910............  Other                            100  ..............
                     Telecommunications.
-------------------
Subsector 518--Internet Service Providers, Web Search Portals, and Data
 Processing Services
------------------------------------------------------------------------
518111............  Internet Service                 150  ..............
                     Providers.
518112............  Web Search Portals..             150  ..............
518210............  Data Processing,                 150           $30.0
                     Hosting, and
                     Related Services.
-------------------
Subsector 519--Other Information Services
------------------------------------------------------------------------
519110............  News Syndicates.....              50  ..............
519120............  Libraries and                     50  ..............
                     Archives.
519190............  All Other                         50  ..............
                     Information
                     Services.
-------------------

[[Page 13157]]

 
                    Sector 52--Finance and Insurance
------------------------------------------------------------------------
Subsector 522--Credit Intermediation and Related Activities
------------------------------------------------------------------------
522110............  Commercial Banking..              50  ..............
522120............  Savings Institutions              50  ..............
522130............  Credit Unions.......              50  ..............
522190............  Other Depository                  50  ..............
                     Credit
                     Intermediation.
522210............  Credit Card Issuing.              50  ..............
522220............  Sales Financing.....              50  ..............
522291............  Consumer Lending....              50  ..............
522292............  Real Estate Credit..              50  ..............
522293............  International Trade               50  ..............
                     Financing.
522294............  Secondary Market                  50  ..............
                     Financing.
522298............  All Other Non-                    50  ..............
                     Depository Credit
                     Intermediation.
522310............  Mortgage and                      50  ..............
                     Nonmortgage Loan
                     Brokers.
522320............  Financial                         50  ..............
                     Transactions
                     Processing,
                     Reserve, and
                     Clearing House
                     Activities.
522390............  Other Activities                  50  ..............
                     Related to Credit
                     Intermediation.
-------------------
Subsector 523--Financial Investments and Related Activities
------------------------------------------------------------------------
523110............  Investment Banking                50  ..............
                     and Securities
                     Dealing.
523120............  Securities Brokerage              50  ..............
523130............  Commodity Contracts               50  ..............
                     Dealing.
523140............  Commodity Contracts               50  ..............
                     Brokerage.
523210............  Securities and                    50  ..............
                     Commodity Exchanges.
523910............  Miscellaneous                     50  ..............
                     Intermediation.
523920............  Portfolio Management              50  ..............
523930............  Investment Advice...              50  ..............
523991............  Trust, Fiduciary and              50  ..............
                     Custody Activities.
523999............  Miscellaneous                     50  ..............
                     Financial
                     Investment
                     Activities.
-------------------
Subsector 524--Insurance Carriers and Related Activities
------------------------------------------------------------------------
524113............  Direct Life                       50  ..............
                     Insurance Carriers.
524114............  Direct Health and                 50  ..............
                     Medical Insurance
                     Carriers.
524126............  Direct Property and            1,500  ..............
                     Casualty Insurance
                     Carriers.
524127............  Direct Title                      50  ..............
                     Insurance Carriers.
524128............  Other Direct                      50  ..............
                     Insurance (except
                     Life, Health and
                     Medical) Carriers.
524130............  Reinsurance Carriers              50  ..............
524210............  Insurance Agencies                50  ..............
                     and Brokerages.
524291............  Claims Adjusting....              50  ..............
524292............  Third Party                       50  ..............
                     Administration of
                     Insurance and
                     Pension Funds.
524298............  All Other Insurance               50  ..............
                     Related Activities.
-------------------
Subsector 525--Funds, Trusts and Other Financial Vehicles
------------------------------------------------------------------------
525110............  Pension Funds.......              50  ..............
525120............  Health and Welfare                50  ..............
                     Funds.
525190............  Other Insurance                   50  ..............
                     Funds.
525910............  Open-End Investment               50  ..............
                     Funds.
525920............  Trusts, Estates, and              50  ..............
                     Agency Accounts.
525930............  Real Estate                       50  ..............
                     Investment Trusts.
525990............  Other Financial                   50  ..............
                     Vehicles.
-------------------
              Sector 53--Real Estate and Rental and Leasing
------------------------------------------------------------------------
Subsector 531--Real Estate
------------------------------------------------------------------------
531110............  Lessors of                        50  ..............
                     Residential
                     Buildings and
                     Dwellings.
531120............  Lessors of                        50  ..............
                     Nonresidential
                     Buildings (except
                     Miniwarehouses).
531130............  Lessors of                       150  ..............
                     Miniwarehouses and
                     Self Storage Units.
531190............  Lessors of Other                  50  ..............
                     Real Estate
                     Property.
Except,...........  Leasing of Building          \9\ 150  ..............
                     Space to Federal
                     Government by
                     Owners \9\.
531210............  Offices of Real                   50  ..............
                     Estate Agents and
                     Brokers.
531311............  Residential Property              50  ..............
                     Managers.
531312............  Nonresidential                    50  ..............
                     Property Managers.
531320............  Offices of Real                   50  ..............
                     Estate Appraisers.
531390............  Other Activities                  50  ..............
                     Related to Real
                     Estate.
-------------------
Subsector 532--Rental and Leasing Services
------------------------------------------------------------------------

[[Page 13158]]

 
532111............  Passenger Car Rental             150  ..............
532112............  Passenger Car                    150  ..............
                     Leasing.
532120............  Truck, Utility                   150  ..............
                     Trailer, and RV
                     (Recreational
                     Vehicle) Rental and
                     Leasing.
532210............  Consumer Electronics              50  ..............
                     and Appliances
                     Rental.
532220............  Formal Wear and                   50  ..............
                     Costume Rental.
532230............  Video Tape and Disc               50  ..............
                     Rental.
532291............  Home Health                       50  ..............
                     Equipment Rental.
532292............  Recreational Goods                50  ..............
                     Rental.
532299............  All Other Consumer                50  ..............
                     Goods Rental.
532310............  General Rental                    50  ..............
                     Centers.
532411............  Commercial Air,                   50  ..............
                     Rail, and Water
                     Transportation
                     Equipment Rental
                     and Leasing.
532412............  Construction, Mining              50  ..............
                     and Forestry
                     Machinery and
                     Equipment Rental
                     and Leasing.
532420............  Office Machinery and              50  ..............
                     Equipment Rental
                     and Leasing.
532490............  Other Commercial and              50  ..............
                     Industrial
                     Machinery and
                     Equipment Rental
                     and Leasing.
-------------------
Subsector 533--Lessors of Nonfinancial Intangible Assets (except
 Copyrighted Works)
------------------------------------------------------------------------
533110............  Lessors of                        50  ..............
                     Nonfinancial
                     Intangible Assets
                     (except Copyrighted
                     Works).
-------------------
       Sector 54--Professional, Scientific and Technical Services
------------------------------------------------------------------------
Subsector 541-- Professional, Scientific and Technical Services
------------------------------------------------------------------------
541110............  Offices of Lawyers..              50  ..............
541191............  Title Abstract and                50  ..............
                     Settlement Offices.
541199............  All Other Legal                   50  ..............
                     Services.
541211............  Offices of Certified             100  ..............
                     Public Accountants.
541213............  Tax Preparation                   50  ..............
                     Services.
541214............  Payroll Services....             100  ..............
541219............  Other Accounting                 100  ..............
                     Services.
541310............  Architectural                     50            $7.0
                     Services.
541320............  Landscape                         50  ..............
                     Architectural
                     Services.
541330............  Engineering Services              50            $7.0
Except,...........  Military and                     200           $30.0
                     Aerospace Equipment
                     and Military
                     Weapons.
Except,...........  Contracts and                    200           $30.0
                     Subcontracts for
                     Engineering
                     Services Awarded
                     Under the National
                     Energy Policy Act
                     of 1992............
Except,...........  Marine Engineering               150           $30.0
                     and Naval
                     Architecture.
541340............  Drafting Services...              50  ..............
541350............  Building Inspection               50  ..............
                     Services.
541360............  Geophysical                       50  ..............
                     Surveying and
                     Mapping Services.
541370............  Surveying and                     50  ..............
                     Mapping (except
                     Geophysical)
                     Services.
541380............  Testing Laboratories             100  ..............
541410............  Interior Design                   50  ..............
                     Services.
541420............  Industrial Design                 50  ..............
                     Services.
541430............  Graphic Design                    50  ..............
                     Services.
541490............  Other Specialized                 50  ..............
                     Design Services.
541511............  Custom Computer                  150           $30.0
                     Programming
                     Services.
541512............  Computer Systems                 150           $30.0
                     Design Services.
541513............  Computer Facilities              150           $30.0
                     Management Services.
541519............  Other Computer                   150           $30.0
                     Related Services.
Except,...........  Information                 \15\ 150  ..............
                     Technology Value
                     Added Resellers
                     \15\.
541611............  Administrative                    50           $10.0
                     Management and
                     General Management
                     Consulting Services.
541612............  Human Resources and               50           $10.0
                     Executive Search
                     Consulting Services.
541613............  Marketing Consulting              50           $10.0
                     Services.
541614............  Process, Physical                 50           $10.0
                     Distribution and
                     Logistics
                     Consulting Services.
541618............  Other Management                  50           $10.0
                     Consulting Services.
541620............  Environmental                     50           $10.0
                     Consulting Services.
541690............  Other Scientific and              50           $10.0
                     Technical
                     Consulting Services.
541710............  Research and                \10\ 500  ..............
                     Development in the
                     Physical,
                     Engineering, and
                     Life Sciences \10\.
Except,...........  Aircraft............           1,500  ..............
Except,...........  Aircraft Parts, and            1,000  ..............
                     Auxiliary
                     Equipment, and
                     Aircraft Engine
                     Parts.
Except,...........  Space Vehicles and             1,000  ..............
                     Guided Missiles,
                     their Propulsion
                     Units, their
                     Propulsion Units
                     Parts, and their
                     Auxiliary Equipment
                     and Parts..........
541720............  Research and                      50  ..............
                     Development in the
                     Social Sciences and
                     Humanities.
541810............  Advertising Agencies              50  ..............
541820............  Public Relations                  50  ..............
                     Agencies.
541830............  Media Buying                      50  ..............
                     Agencies.
541840............  Media                             50  ..............
                     Representatives.
541850............  Display Advertising.              50  ..............
541860............  Direct Mail                       50  ..............
                     Advertising.
541870............  Advertising Material              50  ..............
                     Distribution
                     Services.

[[Page 13159]]

 
541890............  Other Services                    50  ..............
                     Related to
                     Advertising.
541910............  Marketing Research                50  ..............
                     and Public Opinion
                     Polling.
541921............  Photography Studios,              50  ..............
                     Portrait.
541922............  Commercial                        50  ..............
                     Photography.
541930............  Translation and                   50  ..............
                     Interpretation
                     Services.
541940............  Veterinary Services.              50  ..............
541990............  All Other                         50           $10.0
                     Professional,
                     Scientific and
                     Technical Services.
-------------------
           Sector 55--Management of Companies and Enterprises
------------------------------------------------------------------------
Subsector 551--Management of Companies and Enterprises
------------------------------------------------------------------------
551111............  Offices of Bank                   50  ..............
                     Holding Companies.
551112............  Offices of Other                  50  ..............
                     Holding Companies.
-------------------
 Sector 56--Administrative and Support, Waste Management and Remediation
                                Services
------------------------------------------------------------------------
Subsector 561--Administrative and Support Services
------------------------------------------------------------------------
561110............  Office                            50           $10.0
                     Administrative
                     Services.
561210............  Facilities Support          \11\ 400      \11\ $40.0
                     Services \11\.
561310............  Employment Placement              50  ..............
                     Agencies.
561320............  Temporary Help                   500  ..............
                     Services.
561330............  Employee Leasing                 500  ..............
                     Services.
561410............  Document Preparation              50  ..............
                     Services.
561421............  Telephone Answering               50  ..............
                     Services.
561422............  Telemarketing                    150  ..............
                     Bureaus.
561431............  Private Mail Centers              50  ..............
561439............  Other Business                    50  ..............
                     Service Centers
                     (including Copy
                     Shops).
561440............  Collection Agencies.              50  ..............
561450............  Credit Bureaus......              50  ..............
561491............  Repossession                      50  ..............
                     Services.
561492............  Court Reporting and               50  ..............
                     Stenotype Services.
561499............  All Other Business                50  ..............
                     Support Services.
561510............  Travel Agencies.....              50  ..............
561520............  Tour Operators......              50  ..............
561591............  Convention and                    50  ..............
                     Visitors Bureaus.
561599............  All Other Travel                  50  ..............
                     Arrangement and
                     Reservation
                     Services.
561611............  Investigation                    200  ..............
                     Services.
561612............  Security Guards and              500  ..............
                     Patrol Services.
561613............  Armored Car Services             200  ..............
561621............  Security Systems                 200  ..............
                     Services (except
                     Locksmiths).
561622............  Locksmiths..........              50  ..............
561710............  Exterminating and                 50  ..............
                     Pest Control
                     Services.
561720............  Janitorial Services.             500  ..............
561730............  Landscaping Services              50  ..............
561740............  Carpet and                        50  ..............
                     Upholstery Cleaning
                     Services.
561790............  Other Services to                 50  ..............
                     Buildings and
                     Dwellings.
561910............  Packaging and                     50  ..............
                     Labeling Services.
561920............  Convention and Trade              50  ..............
                     Show Organizers.
561990............  All Other Support                 50  ..............
                     Services.
-------------------
Subsector 562--Waste Management and Remediation Services
------------------------------------------------------------------------
562111............  Solid Waste                      100  ..............
                     Collection.
562112............  Hazardous Waste                  100  ..............
                     Collection.
562119............  Other Waste                      100  ..............
                     Collection.
562211............  Hazardous Waste                  100  ..............
                     Treatment and
                     Disposal.
562212............  Solid Waste Landfill             100  ..............
562213............  Solid Waste                      100  ..............
                     Combustors and
                     Incinerators.
562219............  Other Nonhazardous               100  ..............
                     Waste Treatment and
                     Disposal.
562910............  Remediation Services             100  ..............
Except,...........  Environmental               \12\ 500  ..............
                     Remediation
                     Services \12\.
562920............  Materials Recovery               100  ..............
                     Facilities.
562991............  Septic Tank and                   50  ..............
                     Related Services.
562998............  All Other                         50  ..............
                     Miscellaneous Waste
                     Management Services.
-------------------
                     Sector 61--Educational Services
------------------------------------------------------------------------
Subsector 611--Educational Services
------------------------------------------------------------------------

[[Page 13160]]

 
611110............  Elementary and                    50  ..............
                     Secondary Schools.
611210............  Junior Colleges.....              50  ..............
611310............  Colleges,                         50  ..............
                     Universities and
                     Professional
                     Schools.
611410............  Business and                      50  ..............
                     Secretarial Schools.
611420............  Computer Training...              50  ..............
611430............  Professional and                  50  ..............
                     Management
                     Development
                     Training.
611511............  Cosmetology and                   50  ..............
                     Barber Schools.
611512............  Flight Training.....             200  ..............
611513............  Apprenticeship                    50  ..............
                     Training.
611519............  Other Technical and               50  ..............
                     Trade Schools.
Except,...........  Job Corps Centers 13        \13\ 400      \13\ $30.0
611610............  Fine Arts Schools...              50  ..............
611620............  Sports and                        50  ..............
                     Recreation
                     Instruction.
611630............  Language Schools....              50  ..............
611691............  Exam Preparation and              50  ..............
                     Tutoring.
611692............  Automobile Driving                50  ..............
                     Schools.
611699............  All Other                         50  ..............
                     Miscellaneous
                     Schools and
                     Instruction.
611710............  Educational Support               50  ..............
                     Services.
-------------------
              Sector 62--Health Care and Social Assistance
------------------------------------------------------------------------
Subsector 621--Ambulatory Health Care Services
------------------------------------------------------------------------
621111............  Offices of                       100  ..............
                     Physicians (except
                     Mental Health
                     Specialists).
621112............  Offices of                       100  ..............
                     Physicians, Mental
                     Health Specialists.
621210............  Offices of Dentists.              50  ..............
621310............  Offices of                        50  ..............
                     Chiropractors.
621320............  Offices of                        50  ..............
                     Optometrists.
621330............  Offices of Mental                 50  ..............
                     Health
                     Practitioners
                     (except Physicians).
621340............  Offices of Physical,              50  ..............
                     Occupational and
                     Speech Therapists
                     and Audiologists.
621391............  Offices of                        50  ..............
                     Podiatrists.
621399............  Offices of All Other              50  ..............
                     Miscellaneous
                     Health
                     Practitioners.
621410............  Family Planning                  100  ..............
                     Centers.
621420............  Outpatient Mental                100  ..............
                     Health and
                     Substance Abuse
                     Centers.
621491............  HMO Medical Centers.             100  ..............
621492............  Kidney Dialysis                  200  ..............
                     Centers.
621493............  Freestanding                     100  ..............
                     Ambulatory Surgical
                     and Emergency
                     Centers.
621498............  All Other Outpatient             100  ..............
                     Care Centers.
621511............  Medical Laboratories             100  ..............
621512............  Diagnostic Imaging               100  ..............
                     Centers.
621610............  Home Health Care                 300  ..............
                     Services.
621910............  Ambulance Services..             100  ..............
621991............  Blood and Organ                  100  ..............
                     Banks.
621999............  All Other                        100  ..............
                     Miscellaneous
                     Ambulatory Health
                     Care Services.
-------------------
Subsector 622--Hospitals
------------------------------------------------------------------------
622110............  General Medical and              400  ..............
                     Surgical Hospitals.
622210............  Psychiatric and                  400  ..............
                     Substance Abuse
                     Hospitals.
622310............  Specialty (except                400  ..............
                     Psychiatric and
                     Substance Abuse)
                     Hospitals.
-------------------
Subsector 623--Nursing and Residential Care Facilities
------------------------------------------------------------------------
623110............  Nursing Care                     300  ..............
                     Facilities.
623210............  Residential Mental               300  ..............
                     Retardation
                     Facilities.
623220............  Residential Mental                50  ..............
                     Health and
                     Substance Abuse
                     Facilities.
623311............  Continuing Care                  300  ..............
                     Retirement
                     Communities.
623312............  Homes for the                     50  ..............
                     Elderly.
623990............  Other Residential                 50  ..............
                     Care Facilities.
-------------------
Subsector 624--Social Assistance
------------------------------------------------------------------------
624110............  Child and Youth                   50  ..............
                     Services.
624120............  Services for the                  50  ..............
                     Elderly and Persons
                     with Disabilities.
624190............  Other Individual and              50  ..............
                     Family Services.
624210............  Community Food                    50  ..............
                     Services.
624221............  Temporary Shelters..              50  ..............
624229............  Other Community                   50  ..............
                     Housing Services.
624230............  Emergency and Other               50  ..............
                     Relief Services.
624310............  Vocational                        50  ..............
                     Rehabilitation
                     Services.

[[Page 13161]]

 
624410............  Child Day Care                    50  ..............
                     Services.
-------------------
              Sector 71--Arts, Entertainment and Recreation
------------------------------------------------------------------------
Subsector 711--Performing Arts, Spectator Sports and Related Industries
------------------------------------------------------------------------
711110............  Theater Companies                 50  ..............
                     and Dinner Theaters.
711120............  Dance Companies.....              50  ..............
711130............  Musical Groups and                50  ..............
                     Artists.
711190............  Other Performing                  50  ..............
                     Arts Companies.
711211............  Sports Teams and                  50  ..............
                     Clubs.
711212............  Race Tracks.........              50  ..............
711219............  Other Spectator                   50  ..............
                     Sports.
711310............  Promoters of                     100  ..............
                     Performing Arts,
                     Sports and Similar
                     Events with
                     Facilities.
711320............  Promoters of                      50  ..............
                     Performing Arts,
                     Sports and Similar
                     Events without
                     Facilities.
711410............  Agents and Managers               50  ..............
                     for Artists,
                     Athletes,
                     Entertainers and
                     Other Public
                     Figures.
711510............  Independent Artists,              50  ..............
                     Writers, and
                     Performers.
-------------------
Subsector 712--Museums, Historical Sites and Similar Institutions
------------------------------------------------------------------------
712110............  Museums.............              50  ..............
712120............  Historical Sites....              50  ..............
712130............  Zoos and Botanical                50  ..............
                     Gardens.
712190............  Nature Parks and                  50  ..............
                     Other Similar
                     Institutions.
-------------------
Subsector 713--Amusement, Gambling and Recreation Industries
------------------------------------------------------------------------
713110............  Amusement and Theme              100  ..............
                     Parks.
713120............  Amusement Arcades...              50  ..............
713210............  Casinos (except                   50  ..............
                     Casino Hotels).
713290............  Other Gambling                    50  ..............
                     Industries.
713910............  Golf Courses and                  50  ..............
                     Country Clubs.
713920............  Skiing Facilities...             200  ..............
713930............  Marinas.............              50  ..............
713940............  Fitness and                       50  ..............
                     Recreational Sports
                     Centers.
713950............  Bowling Centers.....              50  ..............
713990............  All Other Amusement               50  ..............
                     and Recreation
                     Industries.
-------------------
               Sector 72--Accommodation and Food Services
------------------------------------------------------------------------
Subsector 721--Accommodation
------------------------------------------------------------------------
721110............  Hotels (except                   100  ..............
                     Casino Hotels) and
                     Motels.
721120............  Casino Hotels.......             100  ..............
721191............  Bed and Breakfast                 50  ..............
                     Inns.
721199............  All Other Traveler                50  ..............
                     Accommodation.
721211............  RV (Recreational                  50  ..............
                     Vehicle) Parks and
                     Campgrounds.
721214............  Recreational and                  50  ..............
                     Vacation Camps
                     (except
                     Campgrounds).
721310............  Rooming and Boarding              50  ..............
                     Houses.
-------------------
Subsector 722--Food Services and Drinking Places
------------------------------------------------------------------------
722110............  Full-Service                      50  ..............
                     Restaurants.
722211............  Limited-Service                   50  ..............
                     Restaurants.
722212............  Cafeterias..........              50  ..............
722213............  Snack and                         50  ..............
                     Nonalcoholic
                     Beverage Bars.
722310............  Food Service                     400  ..............
                     Contractors.
722320............  Caterers............              50  ..............
722330............  Mobile Food Services              50  ..............
722410............  Drinking Places                   50  ..............
                     (Alcoholic
                     Beverages).
-------------------
                        Sector 81--Other Services
------------------------------------------------------------------------
Subsector 811--Repair and Maintenance
------------------------------------------------------------------------
811111............  General Automotive                50  ..............
                     Repair.
811112............  Automotive Exhaust                50  ..............
                     System Repair.
811113............  Automotive                        50  ..............
                     Transmission Repair.
811118............  Other Automotive                  50  ..............
                     Mechanical and
                     Electrical Repair
                     and Maintenance.
811121............  Automotive Body,                  50  ..............
                     Paint and Interior
                     Repair and
                     Maintenance.
811122............  Automotive Glass                  50  ..............
                     Replacement Shops.

[[Page 13162]]

 
811191............  Automotive Oil                    50  ..............
                     Change and
                     Lubrication Shops.
811192............  Car Washes..........              50  ..............
811198............  All Other Automotive              50  ..............
                     Repair and
                     Maintenance.
811211............  Consumer Electronics              50  ..............
                     Repair and
                     Maintenance.
811212............  Computer and Office              150  ..............
                     Machine Repair and
                     Maintenance.
811213............  Communication                     50  ..............
                     Equipment Repair
                     and Maintenance.
811219............  Other Electronic and              50  ..............
                     Precision Equipment
                     Repair and
                     Maintenance.
811310............  Commercial and                    50  ..............
                     Industrial
                     Machinery and
                     Equipment (except
                     Automotive and
                     Electronic) Repair
                     and Maintenance....
811411............  Home and Garden                   50  ..............
                     Equipment Repair
                     and Maintenance.
811412............  Appliance Repair and              50  ..............
                     Maintenance.
811420............  Reupholstery and                  50  ..............
                     Furniture Repair.
811430............  Footwear and Leather              50  ..............
                     Goods Repair.
811490............  Other Personal and                50  ..............
                     Household Goods
                     Repair and
                     Maintenance.
-------------------
Subsector 812--Personal and Laundry Services
------------------------------------------------------------------------
812111............  Barber Shops........              50  ..............
812112............  Beauty Salons.......              50  ..............
812113............  Nail Salons.........              50  ..............
812191............  Diet and Weight                   50  ..............
                     Reducing Centers.
812199............  Other Personal Care               50  ..............
                     Services.
812210............  Funeral Homes and                 50  ..............
                     Funeral Services.
812220............  Cemeteries and                    50  ..............
                     Crematories.
812310............  Coin-Operated                     50  ..............
                     Laundries and
                     Drycleaners.
812320............  Drycleaning and                   50  ..............
                     Laundry Services
                     (except Coin-
                     Operated).
812331............  Linen Supply........             200  ..............
812332............  Industrial                       200  ..............
                     Launderers.
812910............  Pet Care (except                  50  ..............
                     Veterinary)
                     Services.
812921............  Photo Finishing                   50  ..............
                     Laboratories
                     (except One-Hour).
812922............  One-Hour Photo                    50  ..............
                     Finishing.
812930............  Parking Lots and                 100  ..............
                     Garages.
812990............  All Other Personal                50  ..............
                     Services.
-------------------
Subsector 813--Religious, Grantmaking, Civic, Professional and Similar
 Organizations
------------------------------------------------------------------------
813110............  Religious                         50  ..............
                     Organizations.
813211............  Grantmaking                       50  ..............
                     Foundations.
813212............  Voluntary Health                  50  ..............
                     Organizations.
813219............  Other Grantmaking                 50  ..............
                     and Giving Services.
813311............  Human Rights                      50  ..............
                     Organizations.
813312............  Environment,                      50  ..............
                     Conservation and
                     Wildlife
                     Organizations.
813319............  Other Social                      50  ..............
                     Advocacy
                     Organizations.
813410............  Civic and Social                  50  ..............
                     Organizations.
813910............  Business                          50  ..............
                     Associations.
813920............  Professional                      50  ..............
                     Organizations.
813930............  Labor Unions and                  50  ..............
                     Similar Labor
                     Organizations.
813940............  Political                         50  ..............
                     Organizations.
813990............  Other Similar                     50  ..............
                     Organizations
                     (except Business,
                     Professional,
                     Labor, and
                     Political
                     Organizations).....
-------------------
                  Sector 92--Public Administration \14\
------------------------------------------------------------------------
(Small business size standards are not established for this sector.
 Establishments in the Public Administration sector are Federal, state,
 and local government agencies which administer and oversee government
 programs and activities that are not performed by private
 establishments.)
------------------------------------------------------------------------
\1\ NAICS code 115310--Support Activities for Forestry: Forest Fire
  Suppression and Fuels Management Services are two components of
  Support Activities for Forestry. Forest Fire Suppression includes
  establishments which provide services to fight forest fires. These
  firms usually have fire-fighting crews and equipment. Fuels Management
  Services firms provide services to clear land of hazardous materials
  that would fuel forest fires. The treatments used by these firms may
  include prescribed fire, mechanical removal, establishing fuel breaks,
  thinning, pruning, and piling.
\2\ NAICS code 237990--Dredging: To be considered small for purposes of
  Government procurement, a firm must perform at least 40% of the volume
  dredged with its own equipment or equipment owned by another small
  dredging concern.
\3\ NAICS code 238990--Building and Property Specialty Trade Services:
  If a procurement requires the use of multiple specialty trade
  contractors (i.e., plumbing, painting, plastering, carpentry, etc.),
  and no specialty trade accounts for 50% or more of the value of the
  procurement, all such specialty trade contractors activities are
  considered a single activity and classified as Building and Property
  Specialty Trade Services.
\4\ NAICS code 311421--Fruit and Vegetable Canning: For purposes of
  Government procurement for food canning and preserving, the standard
  of 500 employees excludes agricultural labor as defined in section
  3306(k) of the Internal Revenue Code, 26 U.S.C. 3306(k).
\5\ NAICS code 324110--Petroleum Refineries: To be an eligible small
  business, a firm may not have more than 1,500 employees or more than
  125,000 barrels per day capacity of petroleum-based inputs, including
  crude oil or bona fide feedstocks. Capacity includes owned or leased
  facilities as well as facilities under a processing agreement or an
  arrangement such as an exchange agreement or a throughput. In
  addition, for the Federal Government's procurement of refined
  petroleum products, the total product to be delivered under the
  contract must be at least 90% refined by the successful bidder from
  either crude oil or bona fide feedstocks.

[[Page 13163]]

 
\6\ NAICS Subsectors 333--Machinery Manufacturing; 334--Computer and
  Electronic Product Manufacturing; 335--Electrical Equipment, Appliance
  and Component Manufacturing; and 336--Transportation Equipment
  Manufacturing: For rebuilding machinery or equipment on a factory
  basis, or equivalent, use the NAICS code for a newly manufactured
  product. Concerns performing major rebuilding or overhaul activities
  do not necessarily have to meet the criteria for being a
  ``manufacturer'' although the activities may be classified under a
  manufacturing NAICS code. Ordinary repair services or preservation are
  not considered rebuilding.
\7\ NAICS code 336413--Other Aircraft Parts and Auxiliary Equipment
  Manufacturing: Contracts for the rebuilding or overhaul of aircraft
  ground support equipment on a contract basis are classified under
  NAICS code 336413.
\8\ Subsector 483--Water Transportation--Offshore Marine Services: The
  applicable size standard shall be 150 employees 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.
\9\ NAICS code 531190--Lessors of Other Real Property, Leasing of
  Building Space to the Federal Government by Owners: For Government
  procurement, a size standard of 150 employees applies to the owners of
  building space leased to the Federal Government. The standard does not
  apply to an agent.
\10\ NAICS code 541710--Research and Development in the Physical,
  Engineering, and Life Sciences: For research and development contracts
  requiring the delivery of a manufactured product, the appropriate size
  standard is that of the manufacturing industry.
(a) ``Research and Development'' means laboratory or other physical
  research and development. It does not include economic, educational,
  engineering, operations, systems, or other nonphysical research; or
  computer programming, data processing, commercial and/or medical
  laboratory testing.
(b) For purposes of the Small Business Innovation Research (SBIR)
  program only, a different definition has been established. See Sec.
  121.701 of these regulations.
(c) ``Research and Development'' for guided missiles and space vehicles
  includes evaluations and simulation, and other services requiring
  thorough knowledge of complete missiles and spacecraft.
\11\ NAICS 561210--Facilities Support Services:
(a) If one or more activities of Facilities Support Services as defined
  in paragraph (b) (below in this footnote) can be identified with a
  specific industry and that industry accounts for 50% or more of the
  value of an entire procurement, then the proper classification of the
  procurement is that of the specific industry, not Facilities Support
  Services.
(b) ``Facilities Support Services'' requires the performance of three or
  more separate activities in the areas of services or specialty trade
  construction industries. If services are performed, these service
  activities must each be in a separate NAICS industry. If the
  procurement requires the use of specialty trade contractors (plumbing,
  painting, plastering, carpentry, etc.), all such specialty trade
  construction activities are considered a single activity and
  classified as Base Housing Maintenance. Since Base Housing Maintenance
  is only one activity, two additional activities of separate NAICS
  industries are required for a procurement to be classified as
  ``Facilities Support Services.''
\12\ NAICS 562910--Environmental Remediation Services:
(a) For SBA assistance as a small business concern in the industry of
  Environmental Remediation Services, other than for Government
  procurement, a concern must be engaged primarily in furnishing a range
  of services for the remediation of a contaminated environment to an
  acceptable condition including, but not limited to, preliminary
  assessment, site inspection, testing, remedial investigation,
  feasibility studies, remedial design, containment, remedial action,
  removal of contaminated materials, storage of contaminated materials
  and security and site closeouts. If one of such activities accounts
  for 50% or more of a concern's total revenues, employees, or other
  related factors, the concern's primary industry is that of the
  particular industry and not the Environmental Remediation Services
  Industry.
(b) For purposes of classifying a Government procurement as
  Environmental Remediation Services, the general purpose of the
  procurement must be to restore or directly support the restoration of
  a contaminated environment (such as, preliminary assessment, site
  inspection, testing, remedial investigation, feasibility studies,
  remedial design, remediation services, containment, removal of
  contaminated materials, storage of contaminated materials or security
  and site closeouts) and also the procurement must be composed of
  activities in three or more separate industries with separate NAICS
  codes or, in some instances (e.g., engineering), smaller sub-
  components of NAICS codes with separate, distinct size standards.
  These activities may include, but are not limited to, separate
  activities in industries such as: Heavy Construction; Special Trade
  Construction; Engineering Services; Architectural Services; Management
  Consulting Services; Hazardous and Other Waste Collection; Remediation
  Services; Testing Laboratories; and Research and Development in the
  Physical, Engineering and Life Sciences. If any activity in the
  procurement can be identified with a separate NAICS code, or component
  of a code with a separate distinct size standard, and that industry
  accounts for 50 percent or more of the value of the entire
  procurement, then the proper size standard is the one for that
  particular industry, and not the Environmental Remediation Service
  size standard.
\13\ NAICS code 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.
\14\ NAICS Sector 92--Public Administration: Small Business Size
  Standards are not established for this sector. Establishments in the
  Public Administration sector are Federal, state, and local government
  agencies which administer and oversee government programs and
  activities that are not performed by private establishments. Concerns
  performing operational services for the administration of a government
  program are classified under the NAICS private sector industry based
  on the activities performed. Similarly, procurements for these types
  of services are classified under the NAICS private sector industry
  that best describes the activities to be performed. For example, if a
  government agency issues a procurement for law enforcement services,
  the requirement would be classified using one of the NAICS industry
  codes under 56161, Investigation, Guard, and Armored Car Services.
\15\ NAICS code 541519: An Information Technology Value Added Reseller
  provides a total solution to information technology acquisitions by
  providing multi-vendor hardware and software along with significant
  services. Significant value added services consist of, but are not
  limited to, configuration consulting and design, systems integration,
  installation of multi-vendor computer equipment, customization of
  hardware or software, training, product technical support,
  maintenance, and end user support. For purposes of Government
  procurement, an information technology procurement classified under
  this industry category must consist of at least 15% and not more than
  50% of value added services as measured by the total price less the
  cost of information technology hardware, computer software, and
  profit. If the contract consists of less than 15% of value added
  services, then it must be classified under a NAICS manufacturing
  industry. If the contract consists of more than 50% of value added
  services, then it must be classified under the NAICS industry that
  best describes the predominate service of the procurement. To qualify
  as an Information Technology Value Added Reseller for purposes of SBA
  assistance, other than for Government procurement, a concern must be
  primarily engaged in providing information technology equipment and
  computer software and provide value added services which account for
  at least 15% of its receipts but not more than 50% of its receipts.

* * * * *
    3. Revise Sec.  121.301(d) to read as follows:


Sec.  121.301  What size standards are applicable to financial 
assistance programs?

* * * * *
    (d) For Surety Bond Guarantee assistance an applicant, including 
its affiliates, must not exceed the size standard for the industry in 
which the applicant is primarily engaged.
* * * * *
    4. Revise Sec.  121.406(b)(1)(i) to read as follows:


Sec.  121.406  How does a small business concern qualify to provide 
manufactured products under small business set-aside or MED 
procurements?

* * * * *

[[Page 13164]]

    (b) Nonmanufacturers. (1) * * *
    (i) Does not exceed 100 employees;
* * * * *
    5. Revise Sec.  121.502(a)(2) to read as follows:


Sec.  121.502  What size standards are applicable to programs for sales 
or leases of Government property?

    (a) * * *
    (2) A concern not primarily engaged in manufacturing is small for 
sales or leases of Government property if it does not exceed 50 
employees.
* * * * *
    6. Revise Sec.  121.508(a)(2) to read as follows:


Sec.  121.508  What are the size standards and other requirements for 
the purchase of Government owned Special Salvage Timber?

    (a) * * *
    (2) Have, together with its affiliates, no more than 50 employees 
during any pay period for the last 12 months; and,
* * * * *
    7. Revise Sec.  121.509(a) to read as follows:


Sec.  121.509  What is the size standard for leasing of Government land 
for coal mining?

* * * * *
    (a) Together with its affiliates, does not have more than 300 
employees;
* * * * *
    9. Revise Sec.  121.512(b) to read as follows:


Sec.  121.512  What is the size standard for stockpile purchases?

* * * * *
    (b) Together with its affiliates, it does not have more than 400 
employees.

    Dated: February 3, 2004.
Hector V. Barreto,
Administrator.
[FR Doc. 04-5049 Filed 3-18-04; 8:45 am]
BILLING CODE 8025-01-P