[Federal Register Volume 79, Number 175 (Wednesday, September 10, 2014)]
[Proposed Rules]
[Pages 54146-54177]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-20837]



[[Page 54145]]

Vol. 79

Wednesday,

No. 175

September 10, 2014

Part IV





Small Business Administration





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





13 CFR Part 121





Small Business Size Standards for Manufacturing; Proposed Rule

  Federal Register / Vol. 79 , No. 175 / Wednesday, September 10, 2014 
/ Proposed Rules  

[[Page 54146]]


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

SMALL BUSINESS ADMINISTRATION

13 CFR Part 121

RIN 3245-AG50


Small Business Size Standards for Manufacturing

AGENCY: U.S. Small Business Administration.

ACTION: Proposed rule.

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

SUMMARY: The U.S. Small Business Administration (SBA) proposes to 
increase small business size standards for 209 industries in North 
American Industry Classification System (NAICS) Sector 31-33, 
Manufacturing. SBA also proposes to increase the refining capacity 
component of the Petroleum Refiners (NAICS 324110) size standard to 
200,000 barrels per calendar day total capacity for businesses that are 
primarily engaged in petroleum refining. In addition, SBA proposes to 
eliminate the requirement that 90 percent of output being delivered is 
refined by the bidder. As part of its ongoing comprehensive size 
standards review, SBA evaluated employee based size standards for all 
364 industries in NAICS Sector 31-33 to determine whether they should 
be retained or revised. This proposed rule is one of a series of 
proposed rules that will review size standards of industries grouped by 
NAICS Sector.

DATES: SBA must receive comments to this proposed rule on or before 
November 10, 2014.

ADDRESSES: Identify your comments by RIN 3245-AG50 and submit them by 
one of the following methods:
    (1) Federal eRulemaking Portal: www.regulations.gov, following the 
instructions for submitting comments; or
    (2) Mail/Hand Delivery/Courier: Khem R. Sharma, Ph.D., Chief, Size 
Standards Division, 409 Third Street SW., Mail Code 6530, Washington, 
DC 20416. SBA will not accept comments to this proposed rule submitted 
by email.
    SBA will post all comments to this proposed rule on 
www.regulations.gov. If you wish to submit confidential business 
information (CBI) as defined in the User Notice at www.regulations.gov, 
you must submit such information to U.S. Small Business Administration, 
Khem R. Sharma, Ph.D., Chief, Size Standards Division, 409 Third Street 
SW., Mail Code 6530, Washington, DC 20416, or send an email to 
[email protected]. Highlight the information that you consider to 
be CBI and explain why you believe SBA should hold this information as 
confidential. SBA will review your information and determine whether it 
will make the information public.

FOR FURTHER INFORMATION CONTACT: Jorge Laboy-Bruno, Ph.D., Economist, 
Size Standards Division, (202) 205-6618 or [email protected].

SUPPLEMENTARY INFORMATION: To determine eligibility for Federal small 
business assistance, SBA establishes small business size definitions 
(referred to as size standards) for private sector industries in the 
United States. SBA uses two primary measures of business size--average 
annual receipts and average number of employees. SBA uses financial 
assets, electric output, and refining capacity to measure the size of a 
few specialized industries. In addition, SBA's Small Business 
Investment Company (SBIC), Certified Development Company (504), and 
7(a) Loan Programs use either the industry based size standards, or net 
worth and net income based alternative size standards to determine 
eligibility for those programs. At the start of the SBA's current 
comprehensive size standards review when the size standards were based 
on NAICS 2007, there were 41 different size standards covering 1,141 
NAICS industries and 18 sub-industry activities (``exceptions'' in 
SBA's table of size standards). Thirty-one of these size levels were 
based on average annual receipts, seven were based on average number of 
employees, and three were based on other measures. Presently, under 
NAICS 2012, there are 28 different size standards covering 1,031 
industries and 16 ``exceptions''. Of these, 533 are based on average 
annual receipts, 509 on number of employees (one of which also contains 
barrels per day total capacity), and five on average assets.
    Over the years, SBA has received comments that its size standards 
have not kept up with changes in the economy, in particular the changes 
in the Federal contracting marketplace and industry structure. The last 
time SBA conducted a comprehensive size standards review was during the 
late 1970s and early 1980s. Since then, most reviews of size standards 
were limited to a few specific industries, mostly with receipts based 
size standards, in response to requests from the public and Federal 
agencies. SBA reviews all monetary based size standards (except for 
statutorily set size standards in NAICS Sector 11) for inflation at 
least once every five years. SBA's latest inflation adjustment to size 
standards was published in the Federal Register on June 12, 2014 (79 FR 
33647). However, the vast majority of manufacturing size standards have 
not been reviewed since they were first established.
    Because of changes in the Federal marketplace and industry 
structure since the last comprehensive size standards review, SBA 
recognizes that current data may no longer support some of its existing 
size standards. Accordingly, in 2007, SBA began a comprehensive size 
standards review to determine if they are consistent with current data, 
and to adjust them when necessary. In addition, on September 27, 2010, 
the President of the United States signed the Small Business Jobs Act 
of 2010 (Jobs Act). The Jobs Act directs SBA to conduct a detailed 
review of all size standards and to make appropriate adjustments to 
reflect market conditions. Specifically, the Jobs Act requires SBA to 
conduct a detailed review of at least one-third of all size standards 
during every 18-month period from the date of its enactment. In 
addition, the Jobs Act requires that SBA review all size standards not 
less frequently than once every five years thereafter. Reviewing 
existing small business size standards and making appropriate 
adjustments based on the latest available data are also consistent with 
Executive Order 13563 on improving regulation and regulatory review.
    Rather than review all size standards at one time, SBA is reviewing 
size standards on a Sector by Sector basis. A NAICS Sector generally 
includes 25 to 75 industries, except for NAICS Sector 31-33, 
Manufacturing, which has more than 350 industries. As stated above, 
this proposed rule covers all industries in NAICS Sector 31-33. Once 
SBA completes its review of size standards for industries in a NAICS 
Sector, it issues a proposed rule to revise size standards for those 
industries based on latest industry and program data available and 
other relevant factors, such as current economic climate and SBA's and 
other government's programs and policies to help small businesses.
    Below is a discussion of SBA's size standards methodology for 
establishing employee based size standards that the Agency applied to 
this proposed rule, including analyses of industry structure, Federal 
contracting factor, the impact of the proposed revisions to size 
standards on SBA's financial assistance to small businesses, and the 
evaluation of whether a revised size standard would exclude dominant 
firms from being considered small.

Size Standards Methodology

    In conjunction with the current comprehensive size standards 
review,

[[Page 54147]]

SBA developed a ``Size Standards Methodology'' for developing, 
reviewing, and modifying size standards when necessary. SBA published 
the document on its Web site at www.sba.gov/size for public review and 
comments, and has included it as a supporting document in the 
electronic docket of this proposed rule at www.regulations.gov. It 
should be noted that SBA does not apply all features of its ``Size 
Standards Methodology'' to all industries because not all features are 
appropriate for every industry. For example, since all industries in 
Sector 31-33 have employee based size standards, the methodology 
described in this proposed rule relates only to establishing employee 
based size standards. However, the methodology is available in its 
entirety for parties who have an interest in SBA's overall approach to 
establishing, evaluating, and modifying small business size standards. 
SBA always explains its methodology and analysis in individual proposed 
and final rules relating to size standards for specific industries.
    SBA welcomes comments from the public on a number of issues 
concerning its ``Size Standards Methodology,'' that the Agency has 
applied in this proposed rule, such as whether there are other 
approaches to establishing and modifying size standards; whether there 
are alternative or additional factors that SBA should consider; whether 
SBA's approach to small business size standards makes sense in the 
current economic environment; whether SBA's use of anchor size 
standards is appropriate; whether there are gaps in SBA's methodology 
because the data it uses are not current or sufficiently comprehensive; 
and whether there are other data, facts, and/or issues that SBA should 
consider. Comments on SBA's size standards methodology should be 
submitted via: (1) The Federal eRulemaking Portal: www.regulations.gov, 
following the instructions for submitting comments; the docket number 
is SBA-2009-0008, or (2) Mail/Hand Delivery/Courier: Khem R. Sharma, 
Ph.D., Chief, Size Standards Division, 409 Third Street SW., Mail Code 
6530, Washington, DC 20416. As it will do with comments to this and 
other proposed rules, SBA will post all comments on its methodology on 
www.regulations.gov. As of June 12, 2014, SBA has received 18 comments 
to its ``Size Standards Methodology.'' The comments are available to 
the public at www.regulations.gov. SBA continues to welcome comments on 
its methodology from interested parties. SBA will not accept comments 
to its ``Size Standards Methodology'' submitted by email.
    Congress granted the SBA's Administrator discretion to establish 
detailed small business size standards. 15 U.S.C. 632(a)(2). 
Specifically, Section 3(a)(3) of the Small Business Act (15 U.S.C. 
632(a)(3)) requires that ``. . . the [SBA] Administrator shall ensure 
that the size standard varies from industry to industry to the extent 
necessary to reflect the differing characteristics of the various 
industries and consider other factors deemed to be relevant by the 
Administrator.'' Accordingly, the economic structure of an industry is 
the basis for developing and modifying small business size standards. 
SBA identifies the small business segment of an industry by examining 
data on the economic characteristics defining the industry structure 
(as described below). In addition, SBA considers current economic 
conditions, its mission and program objectives, the Administration's 
current policies, suggestions from industry groups and Federal 
agencies, and public comments on the proposed rule. SBA also examines 
whether a size standard based on industry and other relevant data 
successfully excludes businesses that are dominant in the industry.
    This proposed rule includes information regarding the factors SBA 
evaluated and the criteria it used to propose adjustments, where 
necessary, to size standards for industries covered by this rule. This 
proposed rule affords the public an opportunity to review and to 
comment on SBA's proposal to revise size standards for certain 
industries, as well as on the data and methodology it used to evaluate 
and revise the size standards.

Industry Analysis

    For the current comprehensive size standards review, SBA has 
established three ``base'' or ``anchor'' size standards--$7.0 million 
in average annual receipts for industries that have receipts based size 
standards, 500 employees for Manufacturing and industries that have 
employee based size standards in non-manufacturing Sectors (except for 
Wholesale Trade and Retail Trade), and 100 employees for industries in 
the Wholesale and Retail Trade Sectors that have employee based size 
standards. SBA established 500 employees as the anchor size standard 
for manufacturing industries at its inception in 1953. Shortly 
thereafter, SBA established $1 million in average annual receipts as 
the anchor size standard for nonmanufacturing industries. SBA has 
periodically increased the receipts based anchor size standard for 
inflation, and today it is $7 million. Since 1986, the size standard 
for all industries in the Wholesale Trade Sector for SBA's financial 
assistance and for most Federal programs has been 100 employees. 
Presently, SBA also has employee based size standards for two 
industries in Retail Trade, namely NAICS 441110, New Car Dealers (200 
employees) and NAICS 454310, Fuel Dealers (50 employees). However, 
NAICS codes for the Wholesale and Retail Trade Sectors and their size 
standards do not apply to Federal procurement programs. Rather, for 
Federal procurement the size standard for all industries in Wholesale 
Trade (NAICS Sector 42) and for all industries in Retail Trade (NAICS 
Sector 44-45) is 500 employees under the SBA's nonmanufacturer rule (13 
CFR 121.406(b)).
    These long-standing anchor size standards have stood the test of 
time and gained legitimacy through practice and general public 
acceptance. An anchor is neither a minimum nor a maximum size standard. 
It is a common size standard for a large number of industries that have 
similar economic characteristics and serves as a reference point in 
evaluating size standards for individual industries. SBA uses the 
anchor in lieu of trying to establish precise small business size 
standards for each industry. Otherwise, theoretically, the number of 
size standards might be as high as the number of industries for which 
SBA establishes size standards (i.e., more than 1,000). Furthermore, 
the data SBA analyzes are static, while the U.S. economy is not. Hence, 
absolute precision is impossible. Similarly, because of the disclosure 
problem in getting the distribution of firms by more granular size 
classes, the 2007 Economic Census tabulation (the latest available when 
this proposed rule was prepared) that SBA received from the U.S. Census 
Bureau for current size standards review would not allow an accurate 
regulatory impact analysis of size standards changes if precise, 
separate size standards were established for each industry. SBA 
presumes an anchor size standard is appropriate for a particular 
industry unless that industry displays economic characteristics that 
are considerably different from other industries with the same anchor 
size standard.
    When evaluating a size standard, SBA compares the economic 
characteristics of the industry under review to the average 
characteristics of industries with one of the three anchor size 
standards (referred to as the ``anchor comparison group''). This allows 
SBA to assess the industry structure and to

[[Page 54148]]

determine whether the industry is appreciably different from the other 
industries in the anchor comparison group. If the characteristics of a 
specific industry under review are similar to the average 
characteristics of the anchor comparison group, the anchor size 
standard is generally appropriate for that industry. SBA may consider 
adopting a size standard below the anchor when: (1) All or most of the 
industry characteristics are significantly smaller than the average 
characteristics of the anchor comparison group; or (2) other industry 
considerations strongly suggest that the anchor size standard would be 
an unreasonably high size standard for the industry.
    If the specific industry's characteristics are significantly higher 
than those of the anchor comparison group, then a size standard higher 
than the anchor size standard may be appropriate. The larger the 
differences are between the characteristics of the industry under 
review and those in the anchor comparison group, the larger will be the 
difference between the appropriate industry size standard and the 
anchor size standard. To determine a size standard above the anchor 
size standard, SBA analyzes the characteristics of a second comparison 
group.
    For industries with employee based size standards in manufacturing 
and industries not in Sector 42 (Wholesale Trade) or Sector 44-45 
(Retail Trade), SBA has developed a second comparison group consisting 
of industries that have the highest of employee based size standards. 
To determine a size standard above the 500-employee anchor size 
standard, SBA analyzes the characteristics of this second comparison 
group. The industries in this group have size standards of either 1,000 
employees or 1,500 employees; the weighted average size standard for 
the group is 1,323 employees. SBA refers to this comparison group as 
the ``higher level employee based size standard group.''
    To examine industry structure, SBA evaluates average firm size, 
startup costs and entry barriers, industry competition, and 
distribution of firms by size. SBA also evaluates the level and small 
business share of total Federal contracting dollars. These are, 
generally, the five primary factors SBA examines when establishing or 
revising a size standard for an industry. However, SBA will also 
consider and evaluate other information that it believes is relevant to 
a particular industry (such as technological changes, growth trends, 
SBA financial assistance, other program factors, etc.). SBA also 
considers possible impacts of size standard revisions on eligibility 
for Federal small business assistance, current economic conditions, the 
Administration's policies, and suggestions from industry groups and 
Federal agencies. Public comments on a proposed rule also provide 
important additional information. SBA thoroughly reviews all public 
comments before making a final decision on its proposed size standards. 
Below are brief descriptions of each of the five primary factors that 
SBA has evaluated for each industry and sub-industry covered by this 
proposed rule. A more detailed description of these factors is provided 
in SBA's ``Size Standards Methodology,'' available at http://www.sba.gov/size.
    1. Average firm size. SBA computes two measures of average firm 
size: Simple average and weighted average. For industries with employee 
based size standards, the simple average firm size is the total number 
of employees in an industry divided by the total number of firms in 
that industry. The weighted average firm size is the sum of weighted 
simple average firm sizes in different employee size classes, where 
weights are the shares of total industry employees for respective 
employee size classes. The simple average firm size weighs all firms 
within an industry equally regardless of their size. The weighted 
average firm size overcomes that limitation by giving more weight to 
larger firms.
    If the average firm size of an industry is significantly higher 
than the average firm size of industries in the anchor comparison 
industry group, this will generally support a size standard higher than 
the anchor size standard. Conversely, if the industry's average firm 
size is similar to or significantly lower than that of the anchor 
comparison industry group, it will be a basis to adopt the anchor size 
standard, or, in rare cases, a standard lower than the anchor.
    2. Startup costs and entry barriers. Startup costs reflect a firm's 
initial size in an industry. New entrants to an industry must have 
sufficient capital and other assets to start and maintain a viable 
business. If new firms entering a particular industry have greater 
capital requirements than firms in industries in the anchor comparison 
group, this can be a basis for establishing a size standard higher than 
the anchor size standard. In lieu of actual startup cost data, SBA uses 
average assets as a proxy to measure the capital requirements for new 
entrants to an industry.
    To calculate average assets, SBA begins with the sales to total 
assets ratio for an industry from the Risk Management Association's 
Annual eStatement Studies. SBA then applies these ratios to the average 
receipts of firms in that industry. An industry with average assets 
that are significantly higher than those of the anchor comparison group 
is likely to have higher startup costs; this in turn will support a 
size standard higher than the anchor. Conversely, an industry with 
average assets that are similar to or lower than those of the anchor 
comparison group is likely to have lower startup costs; this will 
support the anchor standard or one lower than the anchor.
    3. Industry competition. Industry competition is generally measured 
by the share of total industry receipts generated by the largest firms 
in an industry. SBA generally evaluates the share of industry receipts 
generated by the four largest firms in each industry. This is referred 
to as the ``four-firm concentration ratio,'' a commonly used economic 
measure of market competition. If a significant share of economic 
activity within the industry is concentrated among a few relatively 
large companies, all else being equal, SBA will establish a size 
standard higher than the anchor size standard. SBA does not consider 
the four-firm concentration ratio as an important factor in assessing a 
size standard if its share of economic activity of the largest four 
firms within the industry is less than 40 percent. For an industry with 
a four-firm concentration ratio of 40 percent or more, SBA compares the 
average employee size of the four largest firms in the industry with 
the average employee size of the four largest firms in the anchor and 
higher level size comparison groups to determine an employee size 
standard for that industry.
    4. Distribution of firms by size. For employee based size 
standards, SBA examines the shares of industry total receipts accounted 
for by firms of various employment size classes in an industry. This is 
an additional factor SBA examines in assessing industry competition. If 
most of an industry's economic activity is attributable to smaller 
firms, this generally indicates that small businesses are competitive 
in that industry. This can, generally, support adopting the anchor size 
standard. If most of an industry's economic activity is attributable to 
larger firms, this indicates that small businesses are not competitive 
in that industry. This can support adopting a size standard above the 
anchor.
    Concentration is a measure of inequality of distribution. To 
determine the degree of inequality of distribution

[[Page 54149]]

in an industry, SBA computes the Gini coefficient by constructing the 
Lorenz curve. The Lorenz curve presents the cumulative percentages of 
units (firms) in various employee size classes along the horizontal 
axis and the cumulative percentages of receipts (or other measures of 
size) in the same employee size classes along the vertical axis. (For 
further detail, please refer to SBA's ``Size Standards Methodology'' on 
its Web site at www.sba.gov/size.) Gini coefficient values vary from 
zero to one. If receipts are distributed equally among all the firms in 
an industry, the value of the Gini coefficient will equal zero. If an 
industry's total receipts are attributed to a single firm, the Gini 
coefficient will equal one.
    SBA compares the Gini coefficient value for an industry with that 
for industries in the anchor comparison group. If the Gini coefficient 
value for an industry is higher than it is for industries in the anchor 
comparison industry group this may, all else being equal, warrant a 
size standard higher than the anchor. Conversely, if an industry's Gini 
coefficient is similar to or lower than that for the anchor group, the 
anchor standard, or in some cases a standard lower than the anchor, may 
be adopted.
    5. Impact on Federal contracting and SBA loan programs. SBA 
examines the possible impact a size standard change may have on Federal 
small business assistance. This most often focuses on the level and 
small business share of total Federal contracting dollars in the 
industry in question. In general, if the small business share of total 
Federal contracting dollars in an industry with significant Federal 
contracting is appreciably less than the small business share of the 
industry's total receipts, this could justify considering a size 
standard higher than the existing size standard. If the small business 
share of an industry's total Federal contracting dollars is similar to 
or higher than the small business share of its total receipts, this 
would support the existing size standard for that industry. By 
comparing the small business share in the Federal market with the small 
business share in the industry-wide market, SBA accounts for conditions 
in the Federal market in its size standards analysis. The disparity 
between the small business Federal market share and small business 
industry-wide share may be due to various factors, such as extensive 
administrative and compliance requirements associated with Federal 
contracts, the different skill set required for Federal contracts as 
compared to typical commercial contracting work, and the size of 
Federal contracts. Data permitting, SBA will also examine these, as 
well as other factors that are likely to influence the type of firms 
within an industry that compete for Federal contracts.
    SBA considers the Federal contracting factor in an industry's size 
standards analysis only if the industry's total Federal contracting 
dollars average $100 million or more annually during the latest three 
fiscal years. SBA believes that this threshold reflects a significant 
level of contracting where a revision to a size standard may have an 
impact on contracting opportunities to small businesses. For industries 
where total contracting dollars average $100 million or more annually, 
SBA establishes a size standard higher than the existing size standard 
if the small business share of total industry receipts is 10 percent or 
higher than the small business share of total industry receipts. If 
this difference is less than 10 percent, this would support the 
existing size standard.
    Besides the impact on small business Federal contracting, SBA also 
evaluates the impact of a proposed size standard revision on SBA's loan 
programs. For this, SBA examines the data on volume and number of its 
guaranteed loans within an industry and the size of firms obtaining 
those loans. This allows SBA to assess whether the existing, proposed, 
or revised size standard for a particular industry may restrict the 
level of financial assistance to small firms. If existing size 
standards are found to have impeded financial assistance to small 
businesses, higher size standards may be justified. However, if small 
businesses under existing size standards have been receiving 
significant amounts of financial assistance through SBA's loan 
programs, or if the financial assistance has been provided mainly to 
businesses that are much smaller than the existing size standards, SBA 
does not consider this factor when determining the size standard.

Sources of Industry and Program Data

    SBA's primary source of industry data used in this proposed rule is 
a special tabulation of the 2007 Economic Census (see www.census.gov/econ/census07/) prepared by the U.S. Bureau of the Census (Census 
Bureau) for SBA. The 2007 Economic Census data are the latest Economic 
Census data available at the time of drafting this proposed rule. SBA 
expects to receive the special tabulation from the 2012 Economic Census 
in 2016 for the next round of comprehensive size standards review. The 
special tabulation provides SBA with data on the number of firms, 
number of establishments, number of employees, annual payroll, and 
annual receipts of companies by Industry (6-digit level), Industry 
Group (4-digit level), Subsector (3-digit level), and Sector (2-digit 
level). These data are arrayed by various classes of firms' size based 
on the overall number of employees and receipts of the entire 
enterprise (all establishments and affiliated firms) from all 
industries. The special tabulation enables SBA to evaluate average firm 
size, the four-firm concentration ratio, and distribution of firms by 
various receipts and employment size classes. It should be noted that 
the Economic Census tabulation data on the number of firms, number of 
establishments, number of employees, annual payroll, and annual 
receipts for a particular NAICS Industry category relate to 
establishments and firms that are primarily engaged in that Industry. 
To mitigate this limitation of the Economic Census tabulation data, SBA 
also examines the data from the System of Award Management (SAM) 
(formerly Central Contractor Registration (CCR)) and FPDS-NG which 
provides more recent data on Federal contract awards by NAICS code and 
the actual size of the concerns receiving the contract awards.
    In some cases, where data were not available at the 6-digit 
industry level due to disclosure prohibitions in the Census Bureau's 
tabulation, SBA either estimates missing values using available 
relevant data or examines data at a higher level of industry 
aggregation, such as at the NAICS 2-digit (Sector), 3-digit 
(Subsector), or 4-digit (Industry Group) level. In some instances, 
SBA's analysis is based only on those factors for which data are 
available or estimates of missing values are possible.
    To evaluate the refining capacity component of the size standard 
for NAICS 324110, Petroleum Refiners, SBA evaluated a special 
tabulation of refinery production data obtained from Energy Information 
Administration (EIA). SBA obtained the data on number of employees for 
petroleum refining companies in the EIA tabulation from Duns and 
Bradstreet (www.dnb.com) and those companies' SAM (CCR) profiles.
    To calculate average assets, SBA used sales to total assets ratios 
from the Risk Management Association's Annual eStatement Studies, 2009-
2011, available at www.statementstudies.org.
    To evaluate the Federal contracting factor, SBA examined the data 
from FPDS-NG for fiscal years 2009-2011, available at https://www.fpds.gov and 2007 Economic Census tabulation, which is the latest 
available as stated elsewhere in the rule.

[[Page 54150]]

    To assess the impact on financial assistance to small businesses, 
SBA examined its internal data on 7(a) and 504 loan programs for fiscal 
years 2010-2012.
    Data sources and estimation procedures SBA uses in its size 
standards analysis are documented in detail in SBA's ``Size Standards 
Methodology'' White Paper, which is available at www.sba.gov/size.

Dominance in Field of Operation

    Section 3(a) of the Small Business Act (15 U.S.C. 632(a)) defines a 
small business concern as one that: (1) Is independently owned and 
operated; (2) is not dominant in its field of operation; and (3) meets 
a specific small business definition or size standard established by 
SBA's Administrator. SBA considers as part of its evaluation whether a 
business concern at a proposed or revised size standard would be 
dominant in its field of operation. For this, SBA generally examines 
the industry's market share of firms at the proposed or revised 
standard. SBA also examines distribution of firms by size to ensure 
that a contemplated size standard derived from its size standards 
analysis excludes the largest firms within an industry. Market share, 
the size distribution and other factors may indicate whether a firm can 
exercise a major controlling influence on a national basis in an 
industry where a significant number of business concerns are engaged. 
If a contemplated size standard includes dominant or the largest firms 
in an industry, SBA will consider a lower size standard than the one 
suggested by the analytical results to exclude the dominant and largest 
firms from being defined as small.

Selection of Size Standards

    In NAICS Sector 31-33 (Manufacturing), currently there are four 
levels of employee based size standards: 500 employees (minimum), 750 
employees, 1,000 employees, and 1,500 employees (maximum). In this 
proposed rule, SBA has applied its ``Size Standards Methodology'' for 
employee based size standards with two modifications. First, to be 
consistent with its policy of not lowering any size standards in all 
recent proposed and final rules on receipts based size standards, SBA 
is retaining the current 500-employee minimum and 1,500-employee 
maximum size standards for all industries in the Manufacturing Sector. 
In its ``Size Standards Methodology,'' SBA had proposed setting the 
minimum size standard for manufacturing industries at 250 employees and 
the maximum size standard at 1,000 employees. However, doing so would 
mean lowering existing size standards, thereby making currently small 
businesses ineligible to continue their participation in Federal small 
business programs. This would run counter to what SBA and the 
Administration are doing to help small businesses to create jobs and 
boost economic growth. Further, lowering a manufacturing size standard 
below 500 employees would conflict with the existing 500-employee size 
standard for non-manufacturers under the SBA's non-manufacturer's rule. 
Second, SBA is proposing a new 1,250-employee size standard between 
1,000 employees and 1,500 employees. This new size standard level 
maintains the same 250-employee increment between the two successive 
levels that SBA has below 1,000 employees (500, 750, 1,000). SBA 
proposes, therefore, to apply one of these five employee based size 
standards to the analysis of size standards for industries in the 
Manufacturing Sector: 500 employees, 750 employees, 1,000 employees, 
1,250 employees, and 1,500 employees.
    To simplify size standards and for other reasons, SBA may propose a 
common size standard for closely related industries. Although the size 
standard analysis may support a separate size standard for each 
industry, SBA believes that establishing different size standards for 
closely related industries may not always be appropriate. For example, 
in cases where many of the same businesses operate in the same multiple 
industries, a common size standard for those industries might better 
reflect the Federal marketplace. This might also make size standards 
among related industries more consistent than separate size standards 
for each of those industries. Whenever SBA proposes a common size 
standard for closely related industries it will provide its 
justification.

Evaluation of Industry Structure

    In this proposed rule, SBA evaluated 364 industries in NAICS 
Sectors 31-33 to assess the appropriateness of their current size 
standards. As described above, SBA compared data on the economic 
characteristics of each of those industries to the average 
characteristics of industries in two comparison groups. The first 
comparison group consists of all industries in Manufacturing and 
industries not in Wholesale Trade or Retail Trade with 500-employee 
size standards. SBA refers this group of industries to as the 
``employee based anchor comparison group.'' Because the goal of SBA's 
review is to assess whether a specific industry's size standard should 
be the same as or different from the anchor size standard, this is the 
most logical group of industries to analyze. In addition, this group 
includes a sufficient number of firms to provide a meaningful 
assessment and comparison of industry characteristics.
    As stated previously, if the characteristics of an industry are 
similar to the average characteristics of industries in the anchor 
comparison group, the anchor size standard is generally appropriate for 
that industry. If an industry's structure is significantly different 
from industries in the anchor group, a size standard lower or higher 
than the anchor size standard might be appropriate. The proposed new 
size standard is based on the difference between the characteristics of 
the anchor comparison group and a second industry comparison group. As 
described above, the second comparison group for employee based 
standards consists of industries with either 1,000-employee or 1,500-
employee size standards. The weighted average size standard for this 
group is 1,323 employees. SBA refers this group of industries to as the 
``higher level employee based size standard comparison group.'' SBA 
determines differences in industry structure between an industry under 
review and the industries in the two comparison groups by comparing 
data on each of the industry factors, including average firm size, 
average assets size, the four-firm concentration ratio, and the Gini 
coefficient of distribution of firms by size. Table 1, Average 
Characteristics of Employee Based Comparison Groups, shows the average 
firm size (both simple and weighted), average assets size, four-firm 
concentration ratio, average employees of the four largest firms, and 
the Gini coefficient for both anchor level and higher level comparison 
groups for employee based size standards.

[[Page 54151]]



                                          Table 1--Average Characteristics of Employee Based Comparison Groups
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                 Average firm size (number of                                              Average
                                                          employees)               Average assets       Four-firm       employees of
       Employee based comparison group       ------------------------------------ size ($ million)    concentration     four largest    Gini coefficient
                                               Simple average   Weighted average                        ratio (%)         firms \*\
--------------------------------------------------------------------------------------------------------------------------------------------------------
Anchor Level................................                51               322              $6.4              35.9             1,267             0.765
Higher Level................................               136               602              37.0              64.3             2,033             0.808
--------------------------------------------------------------------------------------------------------------------------------------------------------
* To be used for industries with a four-firm concentration ratio of 40% or greater.

Derivation of Size Standards Based on Industry Factors

    For each industry factor in Table 1, Average Characteristics of 
Employee Based Comparison Groups, SBA derives a separate size standard 
based on the differences between the values for an industry under 
review and the values for the two comparison groups. If the industry 
value for a particular factor is near the corresponding factor for the 
anchor comparison group, the 500-employee anchor size standard is 
appropriate for that factor.
    An industry factor significantly above or below the anchor 
comparison group will generally imply a size standard for that industry 
above or below the 500-employee anchor. The new size standard in these 
cases is based on the proportional difference between the industry 
value and the values for the two comparison groups.
    For example, an industry's simple average firm size of 75 employees 
will support a 750-employee size standard. The 75-employee level is 
28.2 percent between 51 employees for the anchor comparison group and 
136 employees for the higher level comparison group ((75 employees - 51 
employees) / (136 employees - 51 employees) = 0.282 or 28.2%). This 
proportional difference is applied to the difference between the size 
standard of 500 employees for the anchor level size standard group and 
average size standard of 1,323 employees for the higher level size 
standard group and then added to 500 employees to estimate a size 
standard of 733 employees ([{1,323 employees - 500 employees{time}  * 
0.282] + 500 employees = 733 employees). The final step is to round the 
estimated 733-employee size standard to the nearest size standard 
level, which in this example is 750 employees.
    SBA applies the above calculation to derive a size standard for 
each industry factor. Detailed formulas involved in these calculations 
are presented in SBA's ``Size Standards Methodology'' which is 
available on its Web site at www.sba.gov/size. As stated above, SBA has 
also included its ``Size Standards Methodology'' as a supporting 
document in the electronic docket of this proposed rule at 
www.regulations.gov. (However, it should be noted that figures in the 
``Size Standards Methodology'' White Paper are based on 2002 Economic 
Census data and are different from those presented in this proposed 
rule. That is because when SBA prepared its ``Size Standards 
Methodology,'' the 2007 Economic Census data were not yet available). 
Table 2, Values of Industry Factors and Supported Size Standards, 
below, shows ranges of values for each industry factor and the levels 
of size standards supported by those values.

                        Table 2--Values of Industry Factors and Supported Size Standards
----------------------------------------------------------------------------------------------------------------
                                                                 Or if average
                               Or if weighted   Or if average        number                        Then implied
 If simple average firm size    average firm    assets size ($    employees of      Or if Gini     size standard
    (number of employees)     size (number of      million)       largest four     coefficient     is (number of
                                 employees)                          firms                          employees)
----------------------------------------------------------------------------------------------------------------
< 63.9......................  < 364.5........  < 11.1.........  < 1,383.3......  < 0.772........             500
63.9 to < 89.7..............  364.5 to <       11.1 to < 20.3.  1,383.3 to <     0.772 to <                  750
                               449.6.                            1,616.0.         0.785.
89.7 to < 115.6.............  449.6 to <       20.3 to < 29.6.  1,616.0 to <     0.785 to <                1,000
                               534.6.                            1,848.7.         0.798.
115.6 to < 141.4............  534.6 to <       29.6 to < 38.9.  1,848.7 to <     0.798 to <                1,250
                               619.7.                            2,081.4.         0.811.
>= 141.4....................  >= 619.7.......  >= 38.9........  >= 2,081.4.....  >= 0.811.......           1,500
----------------------------------------------------------------------------------------------------------------

Derivation of Size Standard Based on Federal Contracting Factor

    Besides industry structure, SBA also evaluates Federal contracting 
data to assess the success of small businesses in getting Federal 
contracts under the existing size standards. For industries where 
Federal contract dollars average $100 million or more annually and the 
small business share of total Federal contracting dollars is 10 to 30 
percent lower than the small business share of total industry receipts, 
SBA has designated a size standard one level higher than their current 
size standard. For industries where the small business share of total 
Federal contracting dollars is more than 30 percent lower than the 
small business share of total industry receipts, SBA has designated a 
size standard two levels higher than the current size standard. For 
industries, where this difference is less than 10 percent, SBA applies 
the existing size standard for the Federal contracting factor.
    Because of the complex relationships among several variables 
affecting small business participation in the Federal marketplace, SBA 
has chosen not to designate a size standard for the Federal contracting 
factor alone that is more than two levels above the current size 
standard. SBA believes that a larger adjustment to size standards based 
on Federal contracting activity should be based on a more detailed 
analysis of the impact of any subsequent revision to the current size 
standard. In limited situations, however, SBA may conduct a more 
extensive examination of Federal contracting experience. This may 
support a different size standard than indicated by this general rule 
and take into consideration significant and unique aspects of small 
business competitiveness in the Federal contract market. SBA welcomes 
comments on its methodology for incorporating the Federal contracting 
factor in its size standard analysis and suggestions for

[[Page 54152]]

alternative methods and other relevant information on small business 
experience in the Federal contract market that SBA should consider.
    When SBA adopted NAICS 2012 for its size standards, a number of 
industries under NAICS 2007 were merged to form new industries or 
combined with other existing industries. SBA adopted the highest size 
standard among the merged or combined industries under NAICS 2007 as 
the size standard for the new industry or modified industry under NAICS 
2012. As a result, the size standard increased, effective October 1, 
2012, for a number of industries in NAICS Sector 31-33. However, FPDS-
NG data for fiscal years 2009-2011 that SBA analyzed to derive the 
Federal contracting factor were based on older size standards under 
NAICS 2007. Thus, for industries for which the size standard increased 
due to the adoption of NAICS 2012, the Federal contracting factor was 
based on the size standard that was on effect prior to October 1, 2012. 
Similarly, where multiple industries were merged to a new, single 
industry, the size standard for Federal contract factor for the new 
industry was the weighted average size standard of the merged 
industries prior to October 1, 2012, rounded to the nearest size level. 
The shares of contract dollars of individual merged industries served 
as the weights in computing the weighted average size standard.
    Of the 364 industries reviewed in this proposed rule, 119 averaged 
$100 million or more annually in Federal contracting during fiscal 
years 2009-2011 and thus, the Federal contracting factor was 
significant for those industries. Of the 119 industries, the difference 
between the small business share of total industry receipts and small 
business share of Federal contracting dollars was less than 10 percent 
for 78 industries and in this proposed rule, SBA applied the existing 
size standard to each. This difference was between 10 and 30 percent 
for 29 industries for which a size standard one level higher than the 
existing size standard was applied. Finally, in 12 industries, this 
difference was more than 30 percent and a size standard that was two 
levels higher than the existing size standard was applied.

New Size Standards Based on Industry and Federal Contracting Factors

    Table 3, Size Standards Supported by Each Factor for Each Industry 
(No. of Employees), below, shows the results of analyses of industry 
and Federal contracting factors for each industry covered by this 
proposed rule. Many NAICS industries in columns 2, 3, 4, 6, and 7 show 
two numbers. The upper number is the value for the industry factor 
shown on the top of the column and the lower number is the size 
standard supported by that factor. For the four-firm concentration 
ratio, SBA estimates a size standard only if its value is 40 percent or 
more. If the four-firm concentration ratio for an industry is less than 
40 percent, SBA does not estimate a size standard for that factor. If 
the four-firm concentration ratio is 40 percent or more, SBA indicates 
in column 6 the average size of the industry's four largest firms 
together with a size standard based on that average. Column 9 shows a 
calculated new size standard for each industry. This is the average of 
the size standards supported by each factor, rounded to the nearest 
fixed size level. However, the size standards for the simple average 
and weighted average firm size are averaged together, and therefore 
receive a single weight. Analytical details involved in the averaging 
procedure are described in SBA's ``Size Standard Methodology.'' For 
comparison with the new standards, the current size standards are in 
column 10 of Table 3.

                                Table 3--Size Standards Supported by Each Factor for Each Industry (Number of Employees)
                                        [Upper Value = Calculated Factor, Lower Value = Size Standard Supported]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                               Simple     Weighted                            Four-firm                           Calculated    Current
                                               average     average     Average                 average                  Federal      size        size
      NAICS code NAICS industry title         firm size   firm size    assets     Four-firm     size         Gini      contract    standard    standard
                                             (number of  (number of   size  ($     ratio %   (number of  coefficient  factor (%)  (number of  (number of
                                             employees)  employees)   million)               employees)                           employees)  employees)
(1)                                                 (2)         (3)         (4)         (5)         (6)          (7)         (8)         (9)        (10)
--------------------------------------------------------------------------------------------------------------------------------------------------------
311111 Dog and Cat Food Manufacturing......          85         551  ..........        71.0       1,591        0.884  ..........  ..........  ..........
                                                    750       1,250  ..........  ..........         750        1,500  ..........       1,000         500
311119 Other Animal Food Manufacturing.....          29         146        $8.3        30.1  ..........        0.784  ..........  ..........  ..........
                                                    500         500         500  ..........  ..........          750  ..........         500         500
311211 Flour Milling.......................          60         427        25.9        54.5         957        0.821       -14.9  ..........  ..........
                                                    500         750       1,000  ..........         500        1,500         750       1,000         500
311212 Rice Milling........................          66         256  ..........        45.6         419        0.693  ..........  ..........  ..........
                                                    750         500  ..........  ..........         500          500  ..........         500         500
311213 Malt Manufacturing..................          68         123  ..........        73.2         145        0.559  ..........  ..........  ..........
                                                    750         500  ..........  ..........         500          500  ..........         500         500
311221 Wet Corn Milling....................         248       1,101  ..........        83.8       1,384        0.823  ..........  ..........  ..........
                                                  1,500       1,500  ..........  ..........         750        1,500  ..........       1,250         750
311224 Soybean and Other Oilseed Processing          76         347  ..........  ..........  ..........        0.824         8.8  ..........  ..........
                                                    750         500  ..........  ..........  ..........        1,500         500       1,000       1,000
311225 Fats and Oils Refining and Blending.         116         337  ..........        54.4         855        0.725        62.3  ..........  ..........
                                                  1,000         500  ..........  ..........         500          500       1,000         750       1,000
311230 Breakfast Cereal Manufacturing......         392       1,214  ..........        80.4       1,817        0.754  ..........  ..........  ..........
                                                  1,500       1,500  ..........  ..........       1,000          500  ..........       1,000       1,000
311313 Beet Sugar Manufacturing............         550         796  ..........        81.5       1,233        0.325  ..........  ..........  ..........
                                                  1,500       1,500  ..........  ..........         500          500  ..........         750         750
311314 Cane Sugar Manufacturing............         227         430  ..........  ..........  ..........        0.567  ..........  ..........  ..........
                                                  1,500         750  ..........  ..........  ..........          500  ..........       1,000         750
311340 Nonchocolate Confectionery                    44         329  ..........        38.2  ..........        0.840  ..........  ..........  ..........
 Manufacturing.............................         500         500  ..........  ..........  ..........        1,500  ..........       1,000         500
311351 Chocolate and Confectionery                   50         464  ..........  ..........  ..........        0.895  ..........  ..........  ..........
 Manufacturing from Cacao Beans............         500       1,000  ..........  ..........  ..........        1,500  ..........       1,250         500
311352 Confectionery Manufacturing from              29         485         4.0  ..........  ..........        0.913  ..........  ..........  ..........
 Purchased Chocolate.......................         500       1,000         500  ..........  ..........        1,500  ..........       1,000         500
311411 Frozen Fruit, Juice, and Vegetable           231         911        45.3        41.1       3,213        0.737        22.3  ..........  ..........
 Manufacturing.............................       1,500       1,500       1,500  ..........       1,500          500         500       1,000         500

[[Page 54153]]

 
311412 Frozen Specialty Food Manufacturing.         150         879        16.6        29.4  ..........        0.819  ..........  ..........  ..........
                                                  1,500       1,500         750  ..........  ..........        1,500  ..........       1,250         500
311421 Fruit and Vegetable Canning.........         102         656        20.6        24.4  ..........        0.831         6.8  ..........  ..........
                                                  1,000       1,500       1,000  ..........  ..........        1,500         500       1,000         500
311422 Specialty Canning...................         139         970  ..........        75.9       1,664        0.876  ..........  ..........  ..........
                                                  1,250       1,500  ..........  ..........       1,000        1,500  ..........       1,250       1,000
311423 Dried and Dehydrated Food                    101         388        20.6        35.9  ..........        0.720  ..........  ..........  ..........
 Manufacturing.............................       1,000         750       1,000  ..........  ..........          500  ..........         750         500
311511 Fluid Milk Manufacturing............         196         896        35.2        46.0       6,316        0.774        29.6  ..........  ..........
                                                  1,500       1,500       1,250  ..........       1,500          750         500       1,000         500
311512 Creamery Butter Manufacturing.......          67         145        30.1        78.9         225        0.589  ..........  ..........  ..........
                                                    750         500       1,250  ..........         500          500  ..........         750         500
311513 Cheese Manufacturing................         121         729        34.7        31.5  ..........        0.818        -0.7  ..........  ..........
                                                  1,250       1,500       1,250  ..........  ..........        1,500         500       1,250         500
311514 Dry, Condensed, and Evaporated Dairy         108         403  ..........        41.9       1,195        0.726  ..........  ..........  ..........
 Product Manufacturing.....................       1,000         750  ..........  ..........         500          500  ..........         750         500
311520 Ice Cream and Frozen Dessert                  53         445        12.1        52.7       1,818        0.863  ..........  ..........  ..........
 Manufacturing.............................         500         750         750  ..........       1,000        1,500  ..........       1,000         500
311611 Animal (except Poultry) Slaughtering          96       7,661        12.2        59.4      20,844        0.953        18.3  ..........  ..........
                                                  1,000       1,500         750  ..........       1,500        1,500         500       1,000         500
311612 Meat Processed from Carcasses.......          85         936         9.1        27.9  ..........        0.848  ..........  ..........  ..........
                                                    750       1,500         500  ..........  ..........        1,500  ..........       1,000         500
311613 Rendering and Meat Byproduct                  78         517        10.3        42.8         974        0.691  ..........  ..........  ..........
 Processing................................         750       1,000         500  ..........         500          500  ..........         750         500
311615 Poultry Processing..................         749       7,247        57.4        45.7      26,713        0.875        -3.6  ..........  ..........
                                                  1,500       1,500       1,500  ..........       1,500        1,500         500       1,250         500
311710 Seafood Product Preparation and               69         547         7.9  ..........  ..........        0.786  ..........  ..........  ..........
 Packaging.................................         750       1,250         500  ..........  ..........        1,000  ..........         750         500
311811 Retail Bakeries.....................           9          27         0.2         3.7  ..........        0.396  ..........  ..........  ..........
                                                    500         500         500  ..........  ..........          500  ..........         500         500
311812 Commercial Bakeries.................          61       1,180         4.5        37.3  ..........        0.886       -12.6  ..........  ..........
                                                    500       1,500         500  ..........  ..........        1,500         750       1,000         500
311813 Frozen Cakes, Pies, and Other                 96         322  ..........        32.4  ..........        0.753  ..........  ..........  ..........
 Pastries Manufacturing....................       1,000         500  ..........  ..........  ..........          500  ..........         750         500
311821 Cookie and Cracker Manufacturing....         100       1,267        14.8        69.3       3,372        0.918  ..........  ..........  ..........
                                                  1,000       1,500         750  ..........       1,500        1,500  ..........       1,250         750
311824 Dry Pasta, Dough, and Flour Mixes             50         242  ..........  ..........  ..........        0.781  ..........  ..........  ..........
 Manufacturing from Purchased Flour........         500         500  ..........  ..........  ..........          750  ..........         750         500
311830 Tortilla Manufacturing..............          48         932  ..........        57.4       1,726        0.850  ..........  ..........  ..........
                                                    500       1,500  ..........  ..........       1,000        1,500  ..........       1,250         500
311911 Roasted Nuts and Peanut Butter                74         346        13.9        33.5  ..........        0.727  ..........  ..........  ..........
 Manufacturing.............................         750         500         750  ..........  ..........          500  ..........         750         500
311919 Other Snack Food Manufacturing......         113         986        24.5        71.1       3,695        0.905  ..........  ..........  ..........
                                                  1,000       1,500       1,000  ..........       1,500        1,500  ..........       1,250         500
311920 Coffee and Tea Manufacturing........          38         270         9.3        43.3         677        0.867  ..........  ..........  ..........
                                                    500         500         500  ..........         500        1,500  ..........         750         500
311930 Flavoring Syrup and Concentrate               45         222        29.1        80.3         583        0.896  ..........  ..........  ..........
 Manufacturing.............................         500         500       1,000  ..........         500        1,500  ..........       1,000         500
311941 Mayonnaise, Dressing, and Other               53         304         9.7        36.2  ..........        0.801  ..........  ..........  ..........
 Prepared Sauce Manufacturing..............         500         500         500  ..........  ..........        1,250  ..........         750         500
311942 Spice and Extract Manufacturing.....          58         222        12.7        29.6  ..........        0.743  ..........  ..........  ..........
                                                    500         500         750  ..........  ..........          500  ..........         500         500
311991 Perishable Prepared Food                      56         280         5.4        27.8  ..........        0.775  ..........  ..........  ..........
 Manufacturing.............................         500         500         500  ..........  ..........          750  ..........         500         500
311999 All Other Miscellaneous Food                  43         262         5.7        18.7  ..........        0.761       -29.0  ..........  ..........
 Manufacturing.............................         500         500         500  ..........  ..........          500         750         500         500
312111 Soft Drink Manufacturing............         207       1,599        76.6        58.1       5,557        0.861         6.0  ..........  ..........
                                                  1,500       1,500       1,500  ..........       1,500        1,500         500       1,250         500
312112 Bottled Water Manufacturing.........          43         552        12.4        71.9       1,528        0.891        57.1  ..........  ..........
                                                    500       1,250         750  ..........         750        1,500         500       1,000         500
312113 Ice Manufacturing...................          16         555  ..........        63.6         703        0.720  ..........  ..........  ..........
                                                    500       1,250  ..........  ..........         500          500  ..........         750         500
312120 Breweries...........................          60       4,594        33.4        89.5       3,929        0.942  ..........  ..........  ..........
                                                    500       1,500       1,250  ..........       1,500        1,500  ..........       1,250         500
312130 Wineries............................          18         357         9.6        42.3       1,753        0.845  ..........  ..........  ..........
                                                    500         500         500  ..........       1,000        1,500  ..........       1,000         500
312140 Distilleries........................         110         690  ..........        69.5       1,225        0.867  ..........  ..........  ..........
                                                  1,000       1,500  ..........  ..........         500        1,500  ..........       1,000         750
312230 Tobacco Manufacturing...............         245         978       195.8  ..........  ..........        0.840        -5.0  ..........  ..........
                                                  1,500       1,500       1,500  ..........  ..........        1,500       1,000       1,500       1,000
313110 Fiber, Yarn, and Thread Mills.......         133       1,041        15.1  ..........  ..........        0.832  ..........  ..........  ..........
                                                  1,250       1,500         750  ..........  ..........        1,500  ..........       1,250         500

[[Page 54154]]

 
313210 Broadwoven Fabric Mills.............          79         482         8.5        22.2  ..........        0.806  ..........  ..........  ..........
                                                    750       1,000         500              ..........        1,250  ..........       1,000       1,000
313220 Narrow Fabric Mills and Schiffli              36         146         2.1  ..........  ..........        0.720  ..........  ..........  ..........
 Machine Embroidery........................         500         500         500  ..........  ..........          500  ..........         500         500
313230 Nonwoven Fabric Mills...............          94         352  ..........        45.3       1,443        0.774  ..........  ..........  ..........
                                                  1,000         500  ..........  ..........         750          750  ..........         750         500
313240 Knit Fabric Mills...................          45         227  ..........  ..........  ..........        0.724  ..........  ..........  ..........
                                                    500         500  ..........  ..........  ..........          500  ..........         500         500
313310 Textile and Fabric Finishing Mills..          33         211         3.0  ..........  ..........        0.758  ..........  ..........  ..........
                                                    500         500         500  ..........  ..........          500  ..........         500       1,000
313320 Fabric Coating Mills................          49         120         7.1        21.6  ..........        0.599  ..........  ..........  ..........
                                                    500         500         500  ..........  ..........          500  ..........         500       1,000
314110 Carpet and Rug Mills................         137       1,779        24.9        63.6       4,751        0.905  ..........  ..........  ..........
                                                  1,250       1,500       1,000  ..........       1,500        1,500  ..........       1,500         500
314120 Curtain and Linen Mills.............          18         194         1.2  ..........  ..........        0.802  ..........  ..........  ..........
                                                    500         500         500  ..........  ..........        1,250  ..........         750         500
314910 Textile Bag and Canvas Mills........          15          96         0.9  ..........  ..........        0.658       -13.7  ..........  ..........
                                                    500         500         500  ..........  ..........          500         750         500         500
314994 Rope, Cordage, Twine, Tire Cord, and          49         286  ..........  ..........  ..........        0.821  ..........  ..........  ..........
 Tire Fabric Mills.........................         500         500  ..........  ..........  ..........        1,500  ..........       1,000       1,000
314999 All Other Miscellaneous Textile               17         152         1.0        20.7  ..........        0.765       -23.6  ..........  ..........
 Product Mills.............................         500         500         500  ..........  ..........          500         750         500         500
315110 Hosiery and Sock Mills..............          75         415         5.3  ..........  ..........        0.795  ..........  ..........  ..........
                                                    750         750         500  ..........  ..........        1,000  ..........         750         500
315190 Other Apparel Knitting Mills........          28         138         2.8  ..........  ..........        0.791  ..........  ..........  ..........
                                                    500         500         500  ..........  ..........        1,000  ..........         750         500
315210 Cut and Sew Apparel Contractors.....          13          73         0.4  ..........  ..........        0.488       -64.0  ..........  ..........
                                                    500         500         500  ..........  ..........          500       1,000         750         500
315220 Men's and Boys' Cut and Sew Apparel           50         416         2.7  ..........  ..........        0.817        -5.1  ..........  ..........
 Manufacturing.............................         500         750         500  ..........  ..........        1,500         500         750         500
315240 Women's, Girls', and Infants' Cut             26         225         2.9  ..........  ..........        0.794  ..........  ..........  ..........
 and Sew Apparel Manufacturing.............         500         500         500  ..........  ..........        1,000  ..........         750         500
315280 Other Cut and Sew Apparel                     25         129         1.3  ..........  ..........        0.747       -41.2  ..........  ..........
 Manufacturing.............................         500         500         500  ..........  ..........          500       1,000         750         500
315990 Apparel Accessories and Other                 19         205         0.9  ..........  ..........        0.773        -8.3  ..........  ..........
 Apparel Manufacturing.....................         500         500         500  ..........  ..........          750         500         500         500
316110 Leather and Hide Tanning and                  19         110         2.6        38.5  ..........        0.751  ..........  ..........  ..........
 Finishing.................................         500         500         500  ..........  ..........          500  ..........         500         500
316210 Footwear Manufacturing..............          55         550  ..........  ..........  ..........        0.827         7.8  ..........  ..........
                                                    500       1,250  ..........  ..........  ..........        1,500         500       1,000       1,000
316992 Women's Handbag and Purse                     18         173  ..........        85.9         251        0.886  ..........  ..........  ..........
 Manufacturing.............................         500         500  ..........  ..........         500        1,500  ..........         750         500
316998 All Other Leather Good and Allied             21         184  ..........  ..........  ..........        0.739  ..........  ..........  ..........
 Product Manufacturing.....................         500         500  ..........  ..........  ..........          500  ..........         500         500
321113 Sawmills............................          27         272         4.2        14.6  ..........        0.765  ..........  ..........  ..........
                                                    500         500         500  ..........  ..........          500  ..........         500         500
321114 Wood Preservation...................          32         211         6.4        31.1  ..........        0.722  ..........  ..........  ..........
                                                    500         500         500  ..........  ..........          500  ..........         500         500
321211 Hardwood Veneer and Plywood                   66         408         6.3        30.4  ..........        0.683  ..........  ..........  ..........
 Manufacturing.............................         750         750         500  ..........  ..........          500  ..........         500         500
321212 Softwood Veneer and Plywood                  244       1,313  ..........        55.7       2,684        0.747  ..........  ..........  ..........
 Manufacturing.............................       1,500       1,500  ..........  ..........       1,500          500  ..........       1,250         500
321213 Engineered Wood Member (except                58         383  ..........        64.0         892        0.802  ..........  ..........  ..........
 Truss) Manufacturing......................         500         750  ..........  ..........         500        1,250  ..........         750         500
321214 Truss Manufacturing.................          45         214         2.6        14.3  ..........        0.643  ..........  ..........  ..........
                                                    500         500         500  ..........  ..........          500  ..........         500         500
321219 Reconstituted Wood Product                   115         384  ..........        27.7  ..........        0.682  ..........  ..........  ..........
 Manufacturing.............................       1,000         750  ..........  ..........  ..........          500  ..........         750         500
321911 Wood Window and Door Manufacturing..          59         776         4.4        32.6  ..........        0.837  ..........  ..........  ..........
                                                    500       1,500         500  ..........  ..........        1,500  ..........       1,000         500
321912 Cut Stock, Resawing Lumber, and               30         139         3.5        16.3  ..........        0.681  ..........  ..........  ..........
 Planning..................................         500         500         500  ..........  ..........          500  ..........         500         500
321918 Other Millwork (including Flooring).          21         156         1.6        18.6  ..........        0.725  ..........  ..........  ..........
                                                    500         500         500  ..........  ..........          500  ..........         500         500
321920 Wood Container and Pallet                     22         196         1.0        11.3  ..........        0.590  ..........  ..........  ..........
 Manufacturing.............................         500         500         500  ..........  ..........          500  ..........         500         500
321991 Manufactured Home (Mobile Home)              179       1,995        14.8        47.7       4,539        0.824        64.6  ..........  ..........
 Manufacturing.............................       1,500       1,500         750  ..........       1,500        1,500         500       1,250         500
321992 Prefabricated Wood Building                   35         228         3.0        21.9  ..........        0.736  ..........  ..........  ..........
 Manufacturing.............................         500         500         500  ..........  ..........          500  ..........         500         500
321999 All Other Miscellaneous Wood Product          19         107         1.5  ..........  ..........        0.706  ..........  ..........  ..........
 Manufacturing.............................         500         500         500  ..........  ..........          500  ..........         500         500
322110 Pulp Mills..........................         242         652  ..........        53.9         874        0.534  ..........  ..........  ..........
                                                  1,500       1,500  ..........  ..........         500          500  ..........         750         750

[[Page 54155]]

 
322121 Paper (except Newsprint) Mills......         559       2,866       155.0        49.8       7,418        0.824        -1.6  ..........  ..........
                                                  1,500       1,500       1,500  ..........       1,500        1,500         750       1,250         750
322122 Newsprint Mills.....................         307         517  ..........        58.1         651        0.393  ..........  ..........  ..........
                                                  1,500       1,000  ..........  ..........         500          500  ..........         750         750
322130 Paperboard Mills....................         476       1,367       193.7        45.8       3,598        0.685  ..........  ..........  ..........
                                                  1,500       1,500       1,500  ..........       1,500          500  ..........       1,250         750
322211 Corrugated and Solid Fiber Box               118       2,033        15.5        40.7       8,642        0.852  ..........  ..........  ..........
 Manufacturing.............................       1,250       1,500         750  ..........       1,500        1,500  ..........       1,250         500
322212 Folding Paperboard Box Manufacturing         115         587        16.0        33.5  ..........        0.732  ..........  ..........  ..........
                                                  1,000       1,250         750  ..........  ..........          500  ..........         750         750
322219 Other Paperboard Container                    87         485        11.1  ..........  ..........        0.813  ..........  ..........  ..........
 Manufacturing.............................         750       1,000         750  ..........  ..........        1,500  ..........       1,000         750
322220 Paper Bag and Coated and Treated              83         269        13.6  ..........  ..........        0.723        11.4  ..........  ..........
 Paper Manufacturing.......................         750         500         750  ..........  ..........          500         500         750         500
322230 Stationery Product Manufacturing....          68         438         6.8  ..........  ..........        0.801  ..........  ..........  ..........
                                                    750         750         500  ..........  ..........        1,250  ..........         750         500
322291 Sanitary Paper Product Manufacturing         151         716        43.7        62.2       1,838        0.812  ..........  ..........  ..........
                                                  1,500       1,500       1,500  ..........       1,000        1,500  ..........       1,500         500
322299 All Other Converted Paper Product             40         138         5.0        20.5  ..........        0.697  ..........  ..........  ..........
 Manufacturing.............................         500         500         500  ..........  ..........          500  ..........         500         500
323111 Commercial Printing (except Screen            20         266         1.6  ..........  ..........        0.780  ..........  ..........  ..........
 and Books)................................         500         500         500  ..........  ..........          750  ..........         500         500
323113 Commercial Screen Printing..........          15         106         0.8        12.2  ..........        0.695  ..........  ..........  ..........
                                                    500         500         500  ..........  ..........          500  ..........         500         500
323117 Books Printing......................          59         851         5.1        42.5       3,177        0.832  ..........  ..........  ..........
                                                    500       1,500         500  ..........       1,500        1,500  ..........       1,250         500
323120 Support Activities for Printing.....          20         146         1.1  ..........  ..........        0.718  ..........  ..........  ..........
                                                    500         500         500  ..........  ..........          500  ..........         500         500
324110 Petroleum Refineries................         662       2,356     1,849.6        47.5       6,459        0.746         0.1  ..........  ..........
                                                  1,500       1,500       1,500  ..........       1,500          500       1,500       1,250       1,500
324121 Asphalt Paving Mixture and Block              34         109        11.9        21.8  ..........        0.662  ..........  ..........  ..........
 Manufacturing.............................         500         500         750  ..........  ..........          500  ..........         500         500
324122 Asphalt Shingle and Coating                   92         480  ..........        67.0       1,755        0.769  ..........  ..........  ..........
 Materials Manufacturing...................       1,000       1,000  ..........  ..........       1,000          500  ..........         750         750
324191 Petroleum Lubricating Oil and Grease          29          96        12.6        42.5         348        0.814  ..........  ..........  ..........
 Manufacturing.............................         500         500         750  ..........         500        1,500  ..........         750         500
324199 All Other Petroleum and Coal                  34         129        15.7        45.5         173        0.596  ..........  ..........  ..........
 Products Manufacturing....................         500         500         750  ..........         500          500  ..........         500         500
325110 Petrochemical Manufacturing.........         243         577  ..........        79.6       1,362        0.696  ..........  ..........  ..........
                                                  1,500       1,250  ..........  ..........         500          500  ..........         750       1,000
325120 Industrial Gas Manufacturing........         115         599  ..........        67.6       1,335        0.832         7.9  ..........  ..........
                                                  1,000       1,250  ..........  ..........         500        1,500       1,000       1,000       1,000
325130 Synthetic Dye and Pigment                     81         324  ..........  ..........  ..........        0.742  ..........  ..........  ..........
 Manufacturing.............................         750         500  ..........  ..........  ..........          500  ..........         750       1,000
325180 Other Basic Inorganic Chemical                91         298        37.0  ..........  ..........        0.734        11.5  ..........  ..........
 Manufacturing.............................       1,000         500       1,250  ..........  ..........          500       1,000       1,000       1,000
325193 Ethyl Alcohol Manufacturing.........          45         156        72.7        25.3  ..........        0.485  ..........  ..........  ..........
                                                    500         500       1,500  ..........  ..........          500  ..........         750       1,000
325194 Cyclic Crude, Intermediate, and Gum           77         323        86.9  ..........  ..........        0.803  ..........  ..........  ..........
 and Wood Chemical Manufacturing...........         750         500       1,500  ..........  ..........        1,250  ..........       1,250         750
325199 All Other Basic Organic Chemical             125         474        98.1        32.0  ..........        0.773  ..........  ..........  ..........
 Manufacturing.............................       1,250       1,000       1,500  ..........  ..........          750  ..........       1,250       1,000
325211 Plastics Material and Resin                   88         356        52.8        31.8  ..........        0.834  ..........  ..........  ..........
 Manufacturing.............................         750         500       1,500  ..........  ..........        1,500  ..........       1,250         750
325212 Synthetic Rubber Manufacturing......          73         239  ..........        43.0         763        0.703  ..........  ..........  ..........
                                                    750         500  ..........  ..........         500          500  ..........         500       1,000
325220 Artificial and Synthetic Fibers and          161         612  ..........  ..........  ..........        0.739  ..........  ..........  ..........
 Filaments Manufacturing...................       1,500       1,250  ..........  ..........  ..........          500  ..........       1,000       1,000
325311 Nitrogenous Fertilizer Manufacturing          29         151        21.4        61.4         364        0.785  ..........  ..........  ..........
                                                    500         500       1,000  ..........         500        1,000  ..........         750       1,000
325312 Phosphatic Fertilizer Manufacturing.         123         643  ..........        82.9       1,093        0.725  ..........  ..........  ..........
                                                  1,250       1,500  ..........  ..........         500          500  ..........         750         500
325314 Fertilizer (Mixing Only)                      24          85         6.6        29.6  ..........        0.687  ..........  ..........  ..........
 Manufacturing.............................         500         500         500  ..........  ..........          500  ..........         500         500
325320 Pesticide and Other Agricultural              53         254        33.6        58.2         805        0.835  ..........  ..........  ..........
 Chemical Manufacturing....................         500         500       1,250  ..........         500        1,500  ..........       1,000         500
325411 Medicinal and Botanical                       64         382        16.3        53.5       1,730        0.828       -26.8  ..........  ..........
 Manufacturing.............................         750         750         750  ..........       1,000        1,500       1,000       1,000         750
325412 Pharmaceutical Preparation                   208       1,611       124.8        34.5  ..........        0.897        -7.4  ..........  ..........
 Manufacturing.............................       1,500       1,500       1,500  ..........  ..........        1,500         750       1,250         750
325413 In-Vitro Diagnostic Substance                144         876  ..........        48.6       1,784        0.857         9.3  ..........  ..........
 Manufacturing.............................       1,500       1,500  ..........  ..........       1,000        1,500         500       1,250         500
--------------------------------------------------------------------------------------------------------------------------------------------------------


[[Page 54156]]


                                Table 3--Size Standards Supported by Each Factor for Each Industry (Number of Employees)
                                        [Upper Value = Calculated Factor, Lower Value = Size Standard Supported]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                               Simple     Weighted                            Four-firm                           Calculated    Current
                                               average     average     Average                 average                  Federal      size        size
      NAICS code NAICS industry title         firm size   firm size    assets     Four-firm     size         Gini      contract    standard    standard
                                             (number of  (number of   size  ($     ratio %   (number of  coefficient  factor (%)  (number of  (number of
                                             employees)  employees)   million)               employees)                           employees)  employees)
(1)                                                 (2)         (3)         (4)         (5)         (6)          (7)         (8)         (9)        (10)
--------------------------------------------------------------------------------------------------------------------------------------------------------
325414 Biological Product (except                   147         746  ..........        51.9       2,461        0.830         0.8  ..........  ..........
 Diagnostic) Manufacturing.................       1,500       1,500  ..........  ..........       1,500        1,500         500       1,250         500
325510 Paint and Coating Manufacturing.....          37         395         9.9        38.9  ..........        0.868  ..........  ..........  ..........
                                                    500         750         500  ..........  ..........        1,500  ..........       1,000         500
325520 Adhesive Manufacturing..............          50         161        11.0        23.2  ..........        0.742  ..........  ..........  ..........
                                                    500         500         500  ..........  ..........          500  ..........         500         500
325611 Soap and Other Detergent                      35         465        18.9        67.1       1,619        0.859       -13.1  ..........  ..........
 Manufacturing.............................         500       1,000         750  ..........       1,000        1,500       1,000       1,000         750
325612 Polish and Other Sanitation Good              36         231         8.7        60.2       1,235        0.850  ..........  ..........  ..........
 Manufacturing.............................         500         500         500  ..........         500        1,500  ..........         750         500
325613 Surface Active Agent Manufacturing..          48         192  ..........        60.5         510        0.812  ..........  ..........  ..........
                                                    500         500  ..........  ..........         500        1,500  ..........         750         500
325620 Toilet Preparation Manufacturing....          74         576        26.9        49.9       2,568        0.879  ..........  ..........  ..........
                                                    750       1,250       1,000  ..........       1,500        1,500  ..........       1,250         500
325910 Printing Ink Manufacturing..........          51         296         8.9        49.9       1,045        0.765  ..........  ..........  ..........
                                                    500         500         500  ..........         500          500  ..........         500         500
325920 Explosives Manufacturing............         117         402  ..........        52.2         757        0.650       -20.2  ..........  ..........
                                                  1,250         750  ..........  ..........         500          500       1,000         750         750
325991 Custom Compounding of Purchased               43         178         9.5        27.6  ..........        0.749  ..........  ..........  ..........
 Resins....................................         500         500         500  ..........  ..........          500  ..........         500         500
325992 Photographic Film, Paper, Plate, and          67       1,623  ..........        67.6       4,055        0.942  ..........  ..........  ..........
 Chemical Manufacturing....................         750       1,500  ..........  ..........       1,500        1,500  ..........       1,500         500
325998 All Other Miscellaneous Chemical              34         147         7.2        18.9  ..........        0.761       -17.9  ..........  ..........
 Product and Preparation Manufacturing.....         500         500         500  ..........  ..........          500         750         500         500
326111 Plastics Bag and Pouch Manufacturing          93         404        12.6        26.5  ..........        0.762  ..........  ..........  ..........
                                                  1,000         750         750  ..........  ..........          500  ..........         750         500
326112 Plastics Packaging Film and Sheet             92         347        17.0        48.5       2,364        0.733  ..........  ..........  ..........
 (including Laminated) Manufacturing.......       1,000         500         750  ..........       1,500          500  ..........       1,000         500
326113 Unlaminated Plastics Film and Sheet           73         267        12.2        19.3  ..........        0.746  ..........  ..........  ..........
 (except Packaging) Manufacturing..........         750         500         750  ..........  ..........          500  ..........         750         500
326121 Unlaminated Plastics Profile Shape            49         167         6.5        29.2  ..........        0.739  ..........  ..........  ..........
 Manufacturing.............................         500         500         500  ..........  ..........          500  ..........         500         500
326122 Plastics Pipe and Pipe Fitting                83         243        16.1        30.8  ..........        0.679  ..........  ..........  ..........
 Manufacturing.............................         750         500         750  ..........  ..........          500  ..........         750         500
326130 Laminated Plastics Plate, Sheet               53         241         7.6        34.5  ..........        0.760  ..........  ..........  ..........
 (except Packaging), and Shape                      500         500         500  ..........  ..........          500  ..........         500         500
 Manufacturing.............................
326140 Polystyrene Foam Product                      81         571        10.5        45.9       2,624        0.803  ..........  ..........  ..........
 Manufacturing.............................         750       1,250         500  ..........       1,500        1,250  ..........       1,000         500
326150 Urethane and Other Foam Product               74         395  ..........        28.0  ..........        0.774  ..........  ..........  ..........
 (except Polystyrene) Manufacturing........         750         750  ..........  ..........  ..........          750  ..........         750         500
326160 Plastics Bottle Manufacturing.......         186         883        33.4        46.3       3,257        0.796  ..........  ..........  ..........
                                                  1,500       1,500       1,250  ..........       1,500        1,000  ..........       1,250         500
326191 Plastics Plumbing Fixture                     53         399         4.2        32.2  ..........        0.796  ..........  ..........  ..........
 Manufacturing.............................         500         750         500  ..........  ..........        1,000  ..........         750         500
326199 All Other Plastics Product                    67         366         6.7  ..........  ..........        0.780  ..........  ..........  ..........
 Manufacturing.............................         750         750         500  ..........  ..........          750  ..........         750         750
326211 Tire Manufacturing (except                   552       6,344  ..........        77.6       9,879        0.895         7.4  ..........  ..........
 Retreading)...............................       1,500       1,500  ..........  ..........       1,500        1,500       1,000       1,500       1,000
326212 Tire Retreading.....................          21         137         1.6        28.2  ..........        0.641  ..........  ..........  ..........
                                                    500         500         500  ..........  ..........          500  ..........         500         500
326220 Rubber and Plastics Hoses and                100         471        12.4        38.6  ..........        0.738  ..........  ..........  ..........
 Belting Manufacturing.....................       1,000       1,000         750  ..........  ..........          500  ..........         750         500
326291 Rubber Product Manufacturing for              86         412         8.9        25.5  ..........        0.777  ..........  ..........  ..........
 Mechanical Use............................         750         750         500  ..........  ..........          750  ..........         750         500
326299 All Other Rubber Product                      52         160         6.4        26.9  ..........        0.744  ..........  ..........  ..........
 Manufacturing.............................         500         500         500  ..........  ..........          500  ..........         500         500
327110 Pottery, Ceramics, and Plumbing               22         263  ..........  ..........  ..........        0.846  ..........  ..........  ..........
 Fixture Manufacturing.....................         500         500  ..........  ..........  ..........        1,500  ..........       1,000         750
327120 Clay Building Material and                    59         314        10.0  ..........  ..........        0.769  ..........  ..........  ..........
 Refractories Manufacturing................         500         500         500  ..........  ..........          500  ..........         500         750
327211 Flat Glass Manufacturing............         519       1,086        78.3        68.9       1,586        0.571  ..........  ..........  ..........
                                                  1,500       1,500       1,500  ..........         750          500  ..........       1,000       1,000
327212 Other Pressed and Blown Glass and             48         656  ..........        34.4  ..........        0.895  ..........  ..........  ..........
 Glassware Manufacturing...................         500       1,500  ..........  ..........  ..........        1,500  ..........       1,250         750
327213 Glass Container Manufacturing.......         641       2,038  ..........        87.1       3,040        0.709  ..........  ..........  ..........
                                                  1,500       1,500  ..........  ..........       1,500          500  ..........       1,250         750
327215 Glass Product Manufacturing Made of           41         584         4.1        29.8  ..........        0.870  ..........  ..........  ..........
 Purchased Glass...........................         500       1,250         500  ..........  ..........        1,500  ..........       1,000         500
327310 Cement Manufacturing................         120         626  ..........        40.8       1,721        0.770  ..........  ..........  ..........
                                                  1,250       1,500  ..........  ..........       1,000          500  ..........       1,000         750
327320 Ready-Mix Concrete Manufacturing....          44         368         8.9        22.6  ..........        0.764  ..........  ..........  ..........
                                                    500         750         500  ..........  ..........          500  ..........         500         500

[[Page 54157]]

 
327331 Concrete Block and Brick                      42         236         9.2        32.3  ..........        0.694  ..........  ..........  ..........
 Manufacturing.............................         500         500         500  ..........  ..........          500  ..........         500         500
327332 Concrete Pipe Manufacturing.........          69         460        13.2        54.0       1,328        0.745  ..........  ..........  ..........
                                                    750       1,000         750  ..........         500          500  ..........         750         500
327390 Other Concrete Product Manufacturing          35         213         3.6        19.2  ..........        0.760  ..........  ..........  ..........
                                                    500         500         500  ..........  ..........          500  ..........         500         500
327410 Lime Manufacturing..................         108         507  ..........        69.0         673        0.624  ..........  ..........  ..........
                                                  1,000       1,000  ..........  ..........         500          500  ..........         750         500
327420 Gypsum Product Manufacturing........          68       1,272  ..........        73.6       2,108        0.901  ..........  ..........  ..........
                                                    750       1,500  ..........  ..........       1,500        1,500  ..........       1,500       1,000
327910 Abrasive Product Manufacturing......          49         424         8.7        58.4       1,348        0.824  ..........  ..........  ..........
                                                    500         750         500  ..........         500        1,500  ..........         750         500
327991 Cut Stone and Stone Product                   16          57         1.1         6.9  ..........        0.525  ..........  ..........  ..........
 Manufacturing.............................         500         500         500  ..........  ..........          500  ..........         500         500
327992 Ground or Treated Mineral and Earth           41         101  ..........        43.7         374        0.698  ..........  ..........  ..........
 Manufacturing.............................         500         500  ..........  ..........         500          500  ..........         500         500
327993 Mineral Wool Manufacturing..........          96         889  ..........        55.3       2,210        0.841  ..........  ..........  ..........
                                                  1,000       1,500  ..........  ..........       1,500        1,500  ..........       1,500         750
327999 All Other Miscellaneous Nonmetallic           29         271         6.2        40.8         898        0.743  ..........  ..........  ..........
 Mineral Product Manufacturing.............         500         500         500  ..........         500          500  ..........         500         500
331110 Iron and Steel Mills and Ferroalloy          425       2,108       199.2  ..........  ..........        0.798  ..........  ..........  ..........
 Manufacturing.............................       1,500       1,500       1,500  ..........  ..........        1,250  ..........       1,500       1,000
331210 Iron and Steel Pipe and Tube                 162         299        36.5        34.2  ..........        0.536  ..........  ..........  ..........
 Manufacturing from Purchased Steel........       1,500         500       1,250  ..........  ..........          500  ..........       1,000       1,000
331221 Rolled Steel Shape Manufacturing....          87         165        26.5        30.8  ..........        0.545  ..........  ..........  ..........
                                                    750         500       1,000  ..........  ..........          500  ..........         750       1,000
331222 Steel Wire Drawing..................          70         246        11.4        25.2  ..........        0.710  ..........  ..........  ..........
                                                    750         500         750  ..........  ..........          500  ..........         750       1,000
331313 Alumina Refining and Primary                 234         656  ..........  ..........  ..........        0.686  ..........  ..........  ..........
 Aluminum Production.......................       1,500       1,500  ..........  ..........  ..........          500  ..........       1,000       1,000
331314 Secondary Smelting and Alloying of            69         306        24.1        54.8         776        0.716  ..........  ..........  ..........
 Aluminum..................................         750         500       1,000  ..........         500          500  ..........         750         750
331315 Aluminum Sheet, Plate, and Foil              197       1,462  ..........        70.5       2,445        0.866         3.6  ..........  ..........
 Manufacturing.............................       1,500       1,500  ..........  ..........       1,500        1,500         750       1,250         750
331318 Other Aluminum Rolling, Drawing, and         120         378        18.7  ..........  ..........        0.700  ..........  ..........  ..........
 Extruding.................................       1,250         750         750  ..........  ..........          500  ..........         750         750
331410 Nonferrous Metal (except Aluminum)            61         259  ..........  ..........  ..........        0.823  ..........  ..........  ..........
 Smelting and Refining.....................         500         500  ..........  ..........  ..........        1,500  ..........       1,000       1,000
331420 Copper Rolling, Drawing, Extruding,          132         408        55.1  ..........  ..........        0.751       -16.6  ..........  ..........
 and Alloying..............................       1,250         750       1,500  ..........  ..........          500       1,000       1,000       1,000
331491 Nonferrous Metal (except Copper and           65         281        17.8        48.5       1,545        0.784       -11.0         750         750
 Aluminum) Rolling, Drawing, and Extruding.         750         500         750  ..........         750          750       1,000  ..........  ..........
331492 Secondary Smelting, Refining, and             54         153        14.0        28.2  ..........        0.617  ..........  ..........  ..........
 Alloying of Nonferrous Metal (except               500         500         750  ..........  ..........          500  ..........         500         750
 Copper and Aluminum)......................
331511 Iron Foundries......................         128         675        16.3        29.4  ..........        0.768  ..........  ..........  ..........
                                                  1,250       1,500         750  ..........  ..........          500  ..........       1,000         500
331512 Steel Investment Foundries..........         145         631  ..........        61.9       2,055        0.752  ..........  ..........  ..........
                                                  1,500       1,500  ..........  ..........       1,250          500  ..........       1,000         500
331513 Steel Foundries (except Investment).          86         343         9.0        30.5  ..........        0.742  ..........  ..........  ..........
                                                    750         500         500  ..........  ..........          500  ..........         500         500
331523 Nonferrous Metal Die-Casting                  84         335         9.9  ..........  ..........        0.744  ..........  ..........  ..........
 Foundries.................................         750         500         500  ..........  ..........          500  ..........         500         500
331524 Aluminum Foundries (except Die-               47         242         4.2        27.5  ..........        0.778  ..........  ..........  ..........
 Casting)..................................         500         500         500  ..........  ..........          750  ..........         500         500
331529 Other Nonferrous Metal Foundries              35         137         3.5  ..........  ..........        0.688  ..........  ..........  ..........
 (except Die-Casting)......................         500         500         500  ..........  ..........          500  ..........         500         500
332111 Iron and Steel Forging..............          64         230        11.3        20.8  ..........        0.719  ..........  ..........  ..........
                                                    750         500         750  ..........  ..........          500  ..........         750         500
332112 Nonferrous Forging..................         128         421  ..........        51.5         687        0.672  ..........  ..........  ..........
                                                  1,250         750  ..........  ..........         500          500  ..........         750         500
332114 Custom Roll Forming.................          51         152  ..........        36.9  ..........        0.732  ..........  ..........  ..........
                                                    500         500  ..........  ..........  ..........          500  ..........         500         500
332117 Powder Metallurgy Part Manufacturing          76         204         8.4        37.5  ..........        0.656  ..........  ..........  ..........
                                                    750         500         500  ..........  ..........          500  ..........         500         500
332119 Metal Crown, Closure, and Other               41         131         4.3  ..........  ..........        0.676  ..........  ..........  ..........
 Metal Stamping (except Automotive)........         500         500         500  ..........  ..........          500  ..........         500         500
332215 Metal Kitchen Cookware, Utensil,              44         221         9.0  ..........  ..........        0.806  ..........  ..........  ..........
 Cutlery, and Flatware (except Precious)            500         500         500  ..........  ..........        1,250  ..........         750         500
 Manufacturing.............................
332216 Saw Blade and Handtool Manufacturing          35         240         4.2  ..........  ..........        0.791        14.3  ..........  ..........
                                                    500         500         500  ..........  ..........        1,000         500         750         500

[[Page 54158]]

 
332311 Prefabricated Metal Building and              42         386         4.5        27.6  ..........        0.787         3.5  ..........  ..........
 Component Manufacturing...................         500         750         500  ..........  ..........        1,000         500         750         500
332312 Fabricated Structural Metal                   34         196         4.5        10.4  ..........        0.726       -21.9  ..........  ..........
 Manufacturing.............................         500         500         500  ..........  ..........          500         750         500         500
332313 Plate Work Manufacturing............          28          92         2.8         8.6  ..........        0.640       -68.5  ..........  ..........
                                                    500         500         500  ..........  ..........          500       1,000         750         500
332321 Metal Window and Door Manufacturing.          65         385         5.3        12.7  ..........        0.788  ..........  ..........  ..........
                                                    750         750         500  ..........  ..........        1,000  ..........         750         500
332322 Sheet Metal Work Manufacturing......          29         135         2.4         7.4  ..........        0.693  ..........  ..........  ..........
                                                    500         500         500  ..........  ..........          500  ..........         500         500
332323 Ornamental and Architectural Metal            17         127         1.5        15.9  ..........        0.707  ..........  ..........  ..........
 Work Manufacturing........................         500         500         500  ..........  ..........          500  ..........         500         500
332410 Power Boiler and Heat Exchanger               84         296  ..........        27.2  ..........        0.665       -43.5  ..........  ..........
 Manufacturing.............................         750         500  ..........  ..........  ..........          500       1,000         750         500
332420 Metal Tank (Heavy Gauge)                      60         228  ..........        17.4  ..........        0.700       -42.8  ..........  ..........
 Manufacturing.............................         500         500  ..........  ..........  ..........          500       1,000         750         500
332431 Metal Can Manufacturing.............         281       1,425  ..........        76.5       3,349        0.824  ..........  ..........  ..........
                                                  1,500       1,500  ..........  ..........       1,500        1,500  ..........       1,500       1,000
332439 Other Metal Container Manufacturing.          40         177         5.2        28.8  ..........        0.717       -10.4  ..........  ..........
                                                    500         500         500  ..........  ..........          500         750         500         500
332510 Hardware Manufacturing..............          56         400         7.6        24.1  ..........        0.813        14.0  ..........  ..........
                                                    500         750         500  ..........  ..........        1,500         500         750         500
332613 Spring Manufacturing................          49         271         5.6  ..........  ..........        0.749  ..........  ..........  ..........
                                                    500         500         500  ..........  ..........          500  ..........         500         500
332618 Other Fabricated Wire Product                 30         119         2.9         9.6  ..........        0.700  ..........  ..........  ..........
 Manufacturing.............................         500         500         500  ..........  ..........          500  ..........         500         500
332710 Machine Shops.......................          13          50         0.9         1.7  ..........        0.590  ..........  ..........  ..........
                                                    500         500         500  ..........  ..........          500  ..........         500         500
332721 Precision Turned Product                      30          85         2.5         4.3  ..........        0.601  ..........  ..........  ..........
 Manufacturing.............................         500         500         500  ..........  ..........          500  ..........         500         500
332722 Bolt, Nut, Screw, Rivet, and Washer           54         302         7.0        21.1  ..........        0.732       -20.8  ..........  ..........
 Manufacturing.............................         500         500         500  ..........  ..........          500         750         500         500
332811 Metal Heat Treating.................          36         149         4.2        26.2  ..........        0.692  ..........  ..........  ..........
                                                    500         500         500  ..........  ..........          500  ..........         500         750
332812 Metal Coating, Engraving (except              24         102         3.0        22.0  ..........        0.768  ..........  ..........  ..........
 Jewelry and Silverware), and Allied                500         500         500  ..........  ..........          500  ..........         500         500
 Services to Manufacturers.................
332813 Electroplating, Plating, Polishing,           23          70         1.4        10.5  ..........        0.624  ..........  ..........  ..........
 Anodizing, and Coloring...................         500         500         500  ..........  ..........          500  ..........         500         500
332911 Industrial Valve Manufacturing......         100         462        14.2        27.1  ..........        0.781  ..........  ..........  ..........
                                                  1,000       1,000         750  ..........  ..........          750  ..........         750         500
332912 Fluid Power Valve and Hose Fitting           111         654        16.1        38.9  ..........        0.798  ..........  ..........  ..........
 Manufacturing.............................       1,000       1,500         750  ..........  ..........        1,250  ..........       1,000         500
332913 Plumbing Fixture Fitting and Trim             92         627        19.1        58.1       1,171        0.820  ..........  ..........  ..........
 Manufacturing.............................       1,000       1,500         750  ..........         500        1,500  ..........       1,000         500
332919 Other Metal Valve and Pipe Fitting            71         211        11.5        17.9  ..........        0.668  ..........  ..........  ..........
 Manufacturing.............................         750         500         750  ..........  ..........          500  ..........         750         500
332991 Ball and Roller Bearing                      234         994        40.7        58.9       3,423        0.800        30.8  ..........  ..........
 Manufacturing.............................       1,500       1,500       1,500  ..........       1,500        1,250         750       1,250         750
332992 Small Arms Ammunition Manufacturing.          93         935  ..........        79.3       1,886        0.878       -11.6  ..........  ..........
                                                  1,000       1,500  ..........  ..........       1,250        1,500       1,250       1,250       1,000
332993 Ammunition (except Small Arms)               151         585  ..........        80.2         795        0.808       -17.6  ..........  ..........
 Manufacturing.............................       1,500       1,250  ..........  ..........         500        1,250       1,500       1,250       1,500
332994 Small Arms, Ordnance, and Ordnance            54         518  ..........  ..........  ..........        0.855       -17.7  ..........  ..........
 Accessories Manufacturing.................         500       1,000  ..........  ..........  ..........        1,500       1,000       1,000       1,000
332996 Fabricated Pipe and Pipe Fitting              44         164         4.9        24.1  ..........        0.715  ..........  ..........  ..........
 Manufacturing.............................         500         500         500  ..........  ..........          500  ..........         500         500
332999 All Other Miscellaneous Fabricated            22          88         2.3  ..........  ..........        0.674       -34.1  ..........  ..........
 Metal Product Manufacturing...............         500         500         500  ..........  ..........          500       1,000         750         750
333111 Farm Machinery and Equipment                  50         681        11.1        59.0       4,290        0.899  ..........  ..........  ..........
 Manufacturing.............................         500       1,500         750  ..........       1,500        1,500  ..........       1,250         500
333112 Lawn and Garden Tractor and Home             142       1,010        33.5        71.1       3,059        0.860  ..........  ..........  ..........
 Lawn and Garden Equipment Manufacturing...       1,500       1,500       1,250  ..........       1,500        1,500  ..........       1,500         500
333120 Construction Machinery Manufacturing          99       1,086        36.6        53.6       5,741        0.890        -9.5  ..........  ..........
                                                  1,000       1,500       1,250  ..........       1,500        1,500         750       1,250         750
333131 Mining Machinery and Equipment                51         310         9.1        38.0  ..........        0.747  ..........  ..........  ..........
 Manufacturing.............................         500         500         500  ..........  ..........          500  ..........         500         500
333132 Oil and Gas Field Machinery and               86         709        21.2        32.4  ..........        0.837  ..........  ..........  ..........
 Equipment Manufacturing...................         750       1,500       1,000  ..........  ..........        1,500  ..........       1,250         500
333241 Food Product Machinery Manufacturing          36         127         5.1  ..........  ..........        0.681  ..........  ..........  ..........
                                                    500         500         500  ..........  ..........          500  ..........         500         500
333242 Semiconductor Machinery                      122         871  ..........  ..........  ..........        0.861  ..........  ..........  ..........
 Manufacturing.............................       1,250       1,500  ..........  ..........  ..........        1,500  ..........       1,500         500

[[Page 54159]]

 
333243 Sawmill, Woodworking, and Paper               31         204         4.3  ..........  ..........        0.721  ..........  ..........  ..........
 Machinery Manufacturing...................         500         500         500  ..........  ..........          500  ..........         500         500
333244 Printing Machinery and Equipment              32         177         4.0  ..........  ..........        0.708       -55.6  ..........  ..........
 Manufacturing.............................         500         500         500  ..........  ..........          500       1,000         750         500
333249 Other Industrial Machinery                    30         115         3.9  ..........  ..........        0.704       -20.7  ..........  ..........
 Manufacturing.............................         500         500         500  ..........  ..........          500         750         500         500
333314 Optical Instrument and Lens                   42         204         5.5        26.9  ..........        0.761       -11.4  ..........  ..........
 Manufacturing.............................         500         500         500  ..........  ..........          500         750         500         500
333316 Photographic and Photocopying                 43         300         7.9        29.9  ..........        0.820        -5.8  ..........  ..........
 Equipment Manufacturing...................         500         500         500  ..........  ..........        1,500       1,000       1,000       1,000
333318 Other Commercial and Service                  46         274  ..........  ..........  ..........        0.781       -22.2  ..........  ..........
 Industry Machinery Manufacturing..........         500         500  ..........  ..........  ..........          750         750         750       1,000
333413 Industrial and Commercial Fan and             61         244         5.9  ..........  ..........        0.714  ..........  ..........  ..........
 Blower and Air Purification Equipment              500         500         500  ..........  ..........          500  ..........         500         500
 Manufacturing.............................
333414 Heating Equipment (except Warm Air            49         202         6.4        21.1  ..........        0.732  ..........  ..........  ..........
 Furnaces) Manufacturing...................         500         500         500  ..........  ..........          500  ..........         500         500
333415 Air-Conditioning and Warm Air                139       1,352        18.7        39.3  ..........        0.868        28.5  ..........  ..........
 Heating Equipment and Commercial and             1,250       1,500         750  ..........  ..........        1,500         750       1,250         750
 Industrial Refrigeration Equipment
 Manufacturing.............................
333511 Industrial Mold Manufacturing.......          21          63         1.6         4.6  ..........        0.586  ..........  ..........  ..........
                                                    500         500         500  ..........  ..........          500  ..........         500         500
333514 Special Die and Tool, Die Set, Jig,           17          67         1.5        11.9  ..........        0.647  ..........  ..........  ..........
 and Fixture Manufacturing.................         500         500         500  ..........  ..........          500  ..........         500         500
333515 Cutting Tool and Machine Tool                 20         143         1.9        19.2  ..........        0.696  ..........  ..........  ..........
 Accessory Manufacturing...................         500         500         500  ..........  ..........          500  ..........         500         500
333517 Machine Tool Manufacturing..........          52         230         7.2  ..........  ..........        0.695        24.9  ..........  ..........
                                                    500         500         500  ..........  ..........          500         500         500         500
333519 Rolling Mill and Other Metalworking           32         101         4.4  ..........  ..........        0.638  ..........  ..........  ..........
 Machinery Manufacturing...................         500         500         500  ..........  ..........          500  ..........         500         500
333611 Turbine and Turbine Generator Set            159         920  ..........        68.4       3,126        0.823        -6.9  ..........  ..........
 Units Manufacturing.......................       1,500       1,500  ..........  ..........       1,500        1,500       1,000       1,500       1,000
333612 Speed Changer, Industrial High-Speed          68         273         9.6        29.5  ..........        0.725       -30.7  ..........  ..........
 Drive, and Gear Manufacturing.............         750         500         500  ..........  ..........          500       1,000         750         500
333613 Mechanical Power Transmission                 79         330        12.0        26.9  ..........        0.716        22.8  ..........  ..........
 Equipment Manufacturing...................         750         500         750  ..........  ..........          500         500         750         500
333618 Other Engine Equipment Manufacturing         169       1,217  ..........        55.9       4,909        0.869        33.1  ..........  ..........
                                                  1,500       1,500  ..........  ..........       1,500        1,500       1,000       1,500       1,000
333911 Pump and Pumping Equipment                    76         382        14.2        30.5  ..........        0.797        14.7  ..........  ..........
 Manufacturing.............................         750         750         750  ..........  ..........        1,000         500         750         500
333912 Air and Gas Compressor Manufacturing          84         419        19.5        26.8  ..........        0.808  ..........  ..........  ..........
                                                    750         750         750  ..........  ..........        1,250  ..........       1,000         500
333913 Measuring and Dispensing Pump                121         404  ..........        72.7         653        0.745  ..........  ..........  ..........
 Manufacturing.............................       1,250         750  ..........  ..........         500          500  ..........         750         500
333921 Elevator and Moving Stairway                  55         440  ..........        56.1       1,028        0.813  ..........  ..........  ..........
 Manufacturing.............................         500         750  ..........  ..........         500        1,500  ..........       1,000         500
333922 Conveyor and Conveying Equipment              44         167         5.1        17.0  ..........        0.672  ..........  ..........  ..........
 Manufacturing.............................         500         500         500  ..........  ..........          500  ..........         500         500
333923 Overhead Traveling Crane, Hoist, and          81         768        13.0        62.5       2,738        0.852  ..........  ..........  ..........
 Monorail System Manufacturing.............         750       1,500         750  ..........       1,500        1,500  ..........       1,250         500
333924 Industrial Truck, Tractor, Trailer,           70         411        12.1        40.2       1,743        0.789        -9.3  ..........  ..........
 and Stacker Machinery Manufacturing.......         750         750         750  ..........       1,000        1,000         750         750         750
333991 Power-Driven Handtool Manufacturing.          56         431  ..........        45.2         674        0.771  ..........  ..........  ..........
                                                    500         750  ..........  ..........         500          500  ..........         500         500
333992 Welding and Soldering Equipment               55       1,042        11.4        55.7       1,897        0.855  ..........  ..........  ..........
 Manufacturing.............................         500       1,500         750  ..........       1,250        1,500  ..........       1,250         500
333993 Packaging Machinery Manufacturing...          36         135         4.4        24.0  ..........        0.696  ..........  ..........  ..........
                                                    500         500         500  ..........  ..........          500  ..........         500         500
333994 Industrial Process Furnace and Oven           36         179         3.9        21.8  ..........        0.659  ..........  ..........  ..........
 Manufacturing.............................         500         500         500  ..........  ..........          500  ..........         500         500
333995 Fluid Power Cylinder and Actuator             74         341  ..........        43.3       1,582        0.788  ..........  ..........  ..........
 Manufacturing.............................         750         500  ..........  ..........         750        1,000  ..........         750         500
333996 Fluid Power Pump and Motor                   101         715  ..........        69.1       2,002        0.825  ..........  ..........  ..........
 Manufacturing.............................       1,000       1,500  ..........  ..........       1,250        1,500  ..........       1,250         500
333997 Scale and Balance Manufacturing.....          41         264  ..........        51.9         408        0.735  ..........  ..........  ..........
                                                    500         500  ..........  ..........         500          500  ..........         500         500
333999 All Other Miscellaneous General               29         144         3.7        15.9  ..........        0.723       -11.9  ..........  ..........
 Purpose Machinery Manufacturing...........         500         500         500  ..........  ..........          500         750         500         500
334111 Electronic Computer Manufacturing...          88       1,322        46.4        86.9       6,047        0.946        21.7  ..........  ..........
                                                    750       1,500       1,500  ..........       1,500        1,500       1,000       1,250       1,000
334112 Computer Storage Device                      143       1,450  ..........        75.6       2,068        0.883        -3.4  ..........  ..........
 Manufacturing.............................       1,500       1,500  ..........  ..........       1,250        1,500       1,000       1,250       1,000

[[Page 54160]]

 
334118 Computer Terminal and Other Computer          52         376         9.2        31.0  ..........        0.818        -6.4  ..........  ..........
 Peripheral Equipment Manufacturing........         500         750         500  ..........  ..........        1,500       1,000       1,000       1,000
334210 Telephone Apparatus Manufacturing...          95         462        29.9        60.5       2,244        0.853         8.3  ..........  ..........
                                                  1,000       1,000       1,250  ..........       1,500        1,500       1,000       1,250       1,000
334220 Radio and Television Broadcasting            113       1,170        30.2        45.2       7,609        0.889        -5.5  ..........  ..........
 and Wireless Communications Equipment            1,000       1,500       1,250  ..........       1,500        1,500         750       1,250         750
 Manufacturing.............................
334290 Other Communications Equipment                41         273         6.0        43.6       1,339        0.806       -26.2  ..........  ..........
 Manufacturing.............................         500         500         500  ..........         500        1,250       1,000         750         750
334310 Audio and Video Equipment                     34         377         7.5        40.5         953        0.763        30.9  ..........  ..........
 Manufacturing.............................         500         750         500  ..........         500          500         750         500         750
334412 Bare Printed Circuit Board                    57         385         4.5        36.7  ..........        0.777       -34.6  ..........  ..........
 Manufacturing.............................         500         750         500  ..........  ..........          750       1,000         750         500
334413 Semiconductor and Related Device             168       1,372        55.4        55.7      11,153        0.899        45.9  ..........  ..........
 Manufacturing.............................       1,500       1,500       1,500  ..........       1,500        1,500         500       1,250         500
334416 Capacitor, Resistor, Coil,                    55         244         4.0  ..........  ..........        0.710  ..........  ..........  ..........
 Transformer, and Other Inductor                    500         500         500  ..........  ..........          500  ..........         500         500
 Manufacturing.............................
334417 Electronic Connector Manufacturing..         119         485        13.0        48.8       2,190        0.764       -13.3  ..........  ..........
                                                  1,250       1,000         750  ..........       1,500          500         750       1,000         500
334418 Printed Circuit Assembly (Electronic          84         436  ..........        33.3  ..........        0.801        -7.7  ..........  ..........
 Assembly) Manufacturing...................         750         750  ..........  ..........  ..........        1,250         500         750         500
334419 Other Electronic Component                    46         211         4.4  ..........  ..........        0.744       -47.4  ..........  ..........
 Manufacturing.............................         500         500         500  ..........  ..........          500       1,250         750         750
334510 Electromedical and                           119         909        26.6        35.0  ..........        0.863        -3.7  ..........  ..........
 Electrotherapeutic Apparatus Manufacturing       1,250       1,500       1,000  ..........  ..........        1,500         500       1,250         500
334511 Search, Detection, Navigation,               300       5,370        61.6        47.0      18,216        0.919        -1.5  ..........  ..........
 Guidance, Aeronautical, and Nautical             1,500       1,500       1,500  ..........       1,500        1,500         750       1,250         750
 System and Instrument Manufacturing.......
334512 Automatic Environmental Control               46         288         4.4        38.6  ..........        0.779  ..........  ..........  ..........
 Manufacturing for Residential, Commercial,         500         500         500  ..........  ..........          750  ..........         500         500
 and Appliance Use.........................
334513 Instruments and Related Products              46         287         6.8        30.4  ..........        0.807         7.9  ..........  ..........
 Manufacturing for Measuring, Displaying,           500         500         500  ..........  ..........        1,250         500         750         500
 and Controlling Industrial Process
 Variables.................................
334514 Totalizing Fluid Meter and Counting           67         324        14.2        44.1       1,006        0.801  ..........  ..........  ..........
 Device Manufacturing......................         750         500         750  ..........         500        1,250  ..........         750         500
334515 Instrument Manufacturing for                  53         312         9.0        37.9  ..........        0.820        15.1  ..........  ..........
 Measuring and Testing Electricity and              500         500         500  ..........  ..........        1,500         500         750         500
 Electrical Signals........................
334516 Analytical Laboratory Instrument              66         396        13.8        32.3  ..........        0.835         6.0  ..........  ..........
 Manufacturing.............................         750         750         750  ..........  ..........        1,500         500       1,000         500
334517 Irradiation Apparatus Manufacturing.          76         588  ..........        58.2       1,398        0.845         5.9  ..........  ..........
                                                    750       1,250  ..........  ..........         750        1,500         500       1,000         500
334519 Other Measuring and Controlling               37         183         6.4  ..........  ..........        0.766        -1.5  ..........  ..........
 Device Manufacturing......................         500         500         500  ..........  ..........          500         500         500         500
334613 Blank Magnetic and Optical Recording          54       1,092  ..........        84.7       1,121        0.889  ..........  ..........  ..........
 Media Manufacturing.......................         500       1,500  ..........  ..........         500        1,500  ..........       1,000       1,000
334614 Software and Other Prerecorded                34         519  ..........  ..........  ..........        0.819  ..........       1,250  ..........
 Compact Disc, Tape, and Record Reproducing         500       1,000  ..........  ..........  ..........        1,500  ..........  ..........         750
335110 Electric Lamp Bulb and Part                  136       1,057  ..........        75.4       1,497        0.848  ..........  ..........  ..........
 Manufacturing.............................       1,250       1,500  ..........  ..........         750        1,500  ..........       1,250       1,000
335121 Residential Electric Lighting                 30         320         3.5        46.1         847        0.814  ..........  ..........  ..........
 Fixture Manufacturing.....................         500         500         500  ..........         500        1,500  ..........         750         500
335122 Commercial, Industrial, and                   56         373         5.9        32.0  ..........        0.763  ..........  ..........  ..........
 Institutional Electric Lighting Fixture            500         750         500  ..........  ..........          500  ..........         500         500
 Manufacturing.............................
335129 Other Lighting Equipment                      54         243         7.1        21.6  ..........        0.749  ..........  ..........  ..........
 Manufacturing.............................         500         500         500  ..........  ..........          500  ..........         500         500
335210 Small Electrical Appliance                   104         579  ..........  ..........  ..........        0.816  ..........  ..........  ..........
 Manufacturing.............................       1,000       1,250  ..........  ..........  ..........        1,500  ..........       1,500         750
335221 Household Cooking Appliance                  145       1,611  ..........        72.3       2,734        0.870  ..........  ..........  ..........
 Manufacturing.............................       1,500       1,500  ..........  ..........       1,500        1,500  ..........       1,500         750
335222 Household Refrigerator and Home              735       2,956  ..........        91.6       3,010        0.764  ..........  ..........  ..........
 Freezer Manufacturing.....................       1,500       1,500  ..........  ..........       1,500          500  ..........       1,250       1,000
335224 Household Laundry Equipment                  746       3,165  ..........        98.3       2,549        0.768  ..........  ..........  ..........
 Manufacturing.............................       1,500       1,500  ..........  ..........       1,500          500  ..........       1,250       1,000
335228 Other Major Household Appliance              310       1,116  ..........        63.6       1,614        0.744  ..........  ..........  ..........
 Manufacturing.............................       1,500       1,500  ..........  ..........         750          500  ..........       1,000         500

[[Page 54161]]

 
335311 Power, Distribution, and Specialty            88         493        13.7        39.9  ..........        0.771        22.0  ..........  ..........
 Transformer Manufacturing.................         750       1,000         750  ..........  ..........          500         750         750         750
335312 Motor and Generator Manufacturing...          98         587        15.0        34.3  ..........        0.837        -7.3  ..........  ..........
                                                  1,000       1,250         750  ..........  ..........        1,500       1,000       1,250       1,000
335313 Switchgear and Switchboard Apparatus          87         840        11.6        47.0       3,373        0.862        12.4  ..........  ..........
 Manufacturing.............................         750       1,500         750  ..........       1,500        1,500         750       1,250         750
335314 Relay and Industrial Control                  41         267         5.5        31.1  ..........        0.805  ..........  ..........  ..........
 Manufacturing.............................         500         500         500  ..........  ..........        1,250  ..........         750         750
335911 Storage Battery Manufacturing.......         240       1,819  ..........        65.7       3,305        0.850        25.7  ..........  ..........
                                                  1,500       1,500  ..........  ..........       1,500        1,500         500       1,250         500
335912 Primary Battery Manufacturing.......         134         572  ..........        88.0         837        0.773  ..........  ..........  ..........
                                                  1,250       1,250  ..........  ..........         500          750  ..........         750       1,000
335921 Fiber Optic Cable Manufacturing.....          65         294  ..........        64.3         569        0.710  ..........  ..........  ..........
                                                    750         500  ..........  ..........         500          500  ..........         500       1,000
335929 Other Communication and Energy Wire          109         398  ..........        36.6  ..........        0.749       -19.8  ..........  ..........
 Manufacturing.............................       1,000         750  ..........  ..........  ..........          500       1,250       1,000       1,000
335931 Current-Carrying Wiring Device                79         303         7.5        20.4  ..........        0.742  ..........  ..........  ..........
 Manufacturing.............................         750         500         500  ..........  ..........          500  ..........         500         500
335932 Noncurrent-Carrying Wiring Device            119         537  ..........        37.6  ..........        0.783  ..........  ..........  ..........
 Manufacturing.............................       1,250       1,250  ..........  ..........  ..........          750  ..........       1,000         500
335991 Carbon and Graphite Product                   71         335  ..........        41.2         660        0.782  ..........  ..........  ..........
 Manufacturing.............................         750         500  ..........  ..........         500          750  ..........         750         750
335999 All Other Miscellaneous Electrical            45         188         5.5        19.6  ..........        0.763       -18.6  ..........  ..........
 Equipment and Component Manufacturing.....         500         500         500  ..........  ..........          500         750         500         500
336111 Automobile Manufacturing............         376       6,539       286.4        67.6       9,705        0.945         2.2  ..........  ..........
                                                  1,500       1,500       1,500  ..........       1,500        1,500       1,000       1,500       1,000
336112 Light Truck and Utility Vehicle            1,285       8,271  ..........        84.3      16,270        0.857         4.7  ..........  ..........
 Manufacturing.............................       1,500       1,500  ..........  ..........       1,500        1,500       1,000       1,500       1,000
336120 Heavy Duty Truck Manufacturing......         360       2,029  ..........        65.5       4,526        0.822        14.0  ..........  ..........
                                                  1,500       1,500  ..........  ..........       1,500        1,500       1,000       1,500       1,000
336211 Motor Vehicle Body Manufacturing....          66         411         7.5        23.6  ..........        0.787       -14.9  ..........  ..........
                                                    750         750         500  ..........  ..........        1,000       1,250       1,000       1,000
336212 Truck Trailer Manufacturing.........          78         688         7.8        42.4       2,364        0.806       -32.9  ..........  ..........
                                                    750       1,500         500  ..........       1,500        1,250       1,000       1,000         500
336213 Motor Home Manufacturing............         247       1,226  ..........        52.7       1,958        0.804  ..........  ..........  ..........
                                                  1,500       1,500  ..........  ..........       1,250        1,250  ..........       1,250       1,000
336214 Travel Trailer and Camper                     65         650         4.5        40.4       3,444        0.810       -37.4  ..........  ..........
 Manufacturing.............................         750       1,500         500  ..........       1,500        1,250       1,000       1,000         500
336310 Motor Vehicle Gasoline Engine and             67         809  ..........  ..........  ..........        0.914        45.5  ..........  ..........
 Engine Parts Manufacturing................         750       1,500  ..........  ..........  ..........        1,500         500       1,000         750
336320 Motor Vehicle Electrical and                  97         707        13.0  ..........  ..........        0.852        11.3  ..........  ..........
 Electronic Equipment Manufacturing........       1,000       1,500         750  ..........  ..........        1,500         750       1,000         750
336330 Motor Vehicle Steering and                   162         641  ..........        32.7  ..........        0.771  ..........  ..........  ..........
 Suspension Components (except Spring)            1,500       1,500  ..........  ..........  ..........          500  ..........       1,000         750
 Manufacturing.............................
336340 Motor Vehicle Brake System                   167         671  ..........        42.2       1,994        0.786  ..........  ..........  ..........
 Manufacturing.............................       1,500       1,500  ..........  ..........       1,250        1,000  ..........       1,250         750
336350 Motor Vehicle Transmission and Power         172       1,572  ..........        36.7  ..........        0.892  ..........  ..........  ..........
 Train Parts Manufacturing.................       1,500       1,500  ..........  ..........  ..........        1,500  ..........       1,500         750
336360 Motor Vehicle Seating and Interior           170       1,367        26.7        56.9       5,459        0.860  ..........  ..........  ..........
 Trim Manufacturing........................       1,500       1,500       1,000  ..........       1,500        1,500  ..........       1,500         500
336370 Motor Vehicle Metal Stamping........         148         718        24.3        33.2  ..........        0.756  ..........  ..........  ..........
                                                  1,500       1,500       1,000  ..........  ..........          500  ..........       1,000         500
336390 Other Motor Vehicle Parts                    111         542        18.8  ..........  ..........        0.798         3.2  ..........  ..........
 Manufacturing.............................       1,000       1,250         750  ..........  ..........        1,250         750       1,000         750
336411 Aircraft Manufacturing..............         815       7,782  ..........        81.3      33,731        0.901         0.1  ..........  ..........
                                                  1,500       1,500  ..........  ..........       1,500        1,500       1,500       1,500       1,500
336412 Aircraft Engine and Engine Parts             230       1,861        73.5        74.3      10,158        0.888        -7.3  ..........  ..........
 Manufacturing.............................       1,500       1,500       1,500  ..........       1,500        1,500       1,000       1,500       1,000
336413 Other Aircraft Parts and Auxiliary           146       1,768        26.1        47.3       9,325        0.884        -6.3  ..........  ..........
 Equipment Manufacturing...................       1,500       1,500       1,000  ..........       1,500        1,500       1,000       1,250       1,000
336414 Guided Missile and Space Vehicle           3,525       7,103  ..........        94.8      11,710        0.522        -0.8  ..........  ..........
 Manufacturing.............................       1,500       1,500  ..........  ..........       1,500          500       1,000       1,250       1,000
336415 Guided Missile and Space Vehicle             938       2,829  ..........        97.1       3,871        0.682         0.5  ..........  ..........
 Propulsion Unit and Propulsion Unit Parts        1,500       1,500  ..........  ..........       1,500          500       1,000       1,250       1,000
 Manufacturing.............................
336419 Other Guided Missile and Space               158         602  ..........        66.5       1,250        0.718       -19.7  ..........  ..........
 Vehicle Parts and Auxiliary Equipment            1,500       1,250  ..........  ..........         500          500       1,250       1,000       1,000
 Manufacturing.............................
336510 Railroad Rolling Stock Manufacturing         164         935        53.0        49.4       2,757        0.814  ..........  ..........  ..........
                                                  1,500       1,500       1,500  ..........       1,500        1,500  ..........       1,500       1,000
336611 Ship Building and Repairing.........         162       4,868        16.5        60.5      14,610        0.899       -17.1  ..........  ..........
                                                  1,500       1,500         750  ..........       1,500        1,500       1,250       1,250       1,000

[[Page 54162]]

 
336612 Boat Building.......................          51       1,271         6.2        35.0  ..........        0.857        22.3  ..........  ..........
                                                    500       1,500         500  ..........  ..........        1,500         500       1,000         500
336991 Motorcycle, Bicycle, and Parts                30       1,380         6.9        72.0       1,705        0.879  ..........  ..........  ..........
 Manufacturing.............................         500       1,500         500  ..........       1,000        1,500  ..........       1,000         500
336992 Military Armored Vehicle, Tank, and          264       1,538  ..........        81.8       2,674        0.857        -5.5  ..........  ..........
 Tank Component Manufacturing..............       1,500       1,500  ..........  ..........       1,500        1,500       1,000       1,500       1,000
336999 All Other Transportation Equipment            39         730         7.7        57.2       1,657        0.904        51.2  ..........  ..........
 Manufacturing.............................         500       1,500         500  ..........       1,000        1,500         500       1,000         500
337110 Wood Kitchen Cabinet and Countertop           15         899         0.8        30.4  ..........        0.752  ..........  ..........  ..........
 Manufacturing.............................         500       1,500         500  ..........  ..........          500  ..........         750         500
337121 Upholstered Household Furniture               52       1,121         2.7        34.0  ..........        0.856  ..........  ..........  ..........
 Manufacturing.............................         500       1,500         500  ..........  ..........        1,500  ..........       1,000         500
337122 Nonupholstered Wood Household                 18         420         1.1        30.1  ..........        0.783        14.2  ..........  ..........
 Furniture Manufacturing...................         500         750         500  ..........  ..........          750         500         750         500
337124 Metal Household Furniture                     37         349  ..........        44.4       1,047        0.812  ..........  ..........  ..........
 Manufacturing.............................         500         500  ..........  ..........         500        1,500  ..........         750         500
337125 Household Furniture (except Wood and          21         439         2.6        67.0         455        0.867  ..........  ..........  ..........
 Metal) Manufacturing......................         500         750         500  ..........         500        1,500  ..........         750         500
337127 Institutional Furniture                       46         168         3.5        13.1  ..........        0.697  ..........  ..........  ..........
 Manufacturing.............................         500         500         500  ..........  ..........          500  ..........         500         500
337211 Wood Office Furniture Manufacturing.          44         445         2.8        39.8  ..........        0.813  ..........  ..........  ..........
                                                    500         750         500  ..........  ..........        1,500  ..........       1,000         500
337212 Custom Architectural Woodwork and             22          61         1.1         5.1  ..........        0.575  ..........  ..........  ..........
 Millwork Manufacturing....................         500         500         500  ..........  ..........          500  ..........         500         500
337214 Office Furniture (except Wood)               111       1,302        14.1        64.7       3,581        0.898         8.5  ..........  ..........
 Manufacturing.............................       1,000       1,500         750  ..........       1,500        1,500         500       1,000         500
337215 Showcase, Partition, Shelving, and            34         183         2.6        15.7  ..........        0.756        20.8  ..........  ..........
 Locker Manufacturing......................         500         500         500  ..........  ..........          500         500         500         500
337910 Mattress Manufacturing..............          50         636         5.7        51.3       2,026        0.847  ..........  ..........  ..........
                                                    500       1,500         500  ..........       1,250        1,500  ..........       1,000         500
337920 Blind and Shade Manufacturing.......          43         666         2.2        38.5  ..........        0.815  ..........  ..........  ..........
                                                    500       1,500         500  ..........  ..........        1,500  ..........       1,000         500
339112 Surgical and Medical Instrument               92         787        15.7        24.7  ..........        0.867        14.8  ..........  ..........
 Manufacturing.............................       1,000       1,500         750  ..........  ..........        1,500         500       1,000         500
339113 Surgical Appliance and Supplies               58         529         8.7        30.3  ..........        0.877        14.6  ..........  ..........
 Manufacturing.............................         500       1,000         500  ..........  ..........        1,500         500         750         500
339114 Dental Equipment and Supplies                 22         341         3.3        34.6  ..........        0.853  ..........  ..........  ..........
 Manufacturing.............................         500         500         500  ..........  ..........        1,500  ..........         750         500
339115 Ophthalmic Goods Manufacturing......          46         594         6.0        42.5       1,595        0.882  ..........  ..........  ..........
                                                    500       1,250         500  ..........         750        1,500  ..........       1,000         500
339116 Dental Laboratories.................           8         160         0.2        18.0  ..........        0.553  ..........  ..........  ..........
                                                    500         500         500  ..........  ..........          500  ..........         500         500
339910 Jewelry and Silverware Manufacturing          15         185         1.9  ..........  ..........        0.784  ..........  ..........  ..........
                                                    500         500         500  ..........  ..........          750  ..........         500         500
339920 Sporting and Athletic Goods                   27         305         3.8        27.0  ..........        0.838        27.0  ..........  ..........
 Manufacturing.............................         500         500         500  ..........  ..........        1,500         500         750         500
339930 Doll, Toy, and Game Manufacturing...          17         266         2.1  ..........  ..........        0.778  ..........  ..........  ..........
                                                    500         500         500  ..........  ..........          750  ..........         500         500
339940 Office Supplies (except Paper)                25         176  ..........  ..........  ..........        0.828        37.7  ..........  ..........
 Manufacturing.............................         500         500  ..........  ..........  ..........        1,500         500         750         500
339950 Sign Manufacturing..................          14         105         0.9         6.7  ..........        0.693  ..........  ..........  ..........
                                                    500         500         500  ..........  ..........          500  ..........         500         500
339991 Gasket, Packing, and Sealing Device           61         335         6.3        26.9  ..........        0.774  ..........  ..........  ..........
 Manufacturing.............................         500         500         500  ..........  ..........          750  ..........         500         500
339992 Musical Instrument Manufacturing....          23         424         1.9        32.2  ..........        0.819  ..........  ..........  ..........
                                                    500         750         500  ..........  ..........        1,500  ..........       1,000         500
339993 Fastener, Button, Needle, and Pin             31         526  ..........        49.1         533        0.783  ..........  ..........  ..........
 Manufacturing.............................         500       1,000  ..........  ..........         500          750  ..........         750         500
339994 Broom, Brush, and Mop Manufacturing.          53         223         5.4        29.3  ..........        0.765  ..........  ..........  ..........
                                                    500         500         500  ..........  ..........          500  ..........         500         500
339995 Burial Casket Manufacturing.........          36         873  ..........        73.5         673        0.896  ..........  ..........  ..........
                                                    500       1,500  ..........  ..........         500        1,500  ..........       1,000         500
339999 All Other Miscellaneous                       13         135         1.4        26.2  ..........        0.764       -20.8  ..........  ..........
 Manufacturing.............................         500         500         500  ..........  ..........          500         750         500         500
--------------------------------------------------------------------------------------------------------------------------------------------------------

Special Considerations: NAICS Code 324110 (Petroleum Refiners)

    Footnote 4 of SBA's table of size standards (13 CFR 121.201) states 
that to qualify as a small business concern for purposes of Government 
procurement, the petroleum refiner must be a concern that has no more 
than 1,500 employees and no more than 125,000 barrels per calendar day 
total Operable Atmospheric Crude Oil Distillation capacity. In 
addition, the total product to be delivered under the small business 
contract must be at least 90 percent

[[Page 54163]]

refined by the successful bidder from either crude oil or bona fide 
feedstocks.
    To determine if the current Petroleum Refiners size standard is 
appropriate, SBA analyzed current data on both total and aviation fuel 
capacity, as well as the number of employees of all refiners operating 
in the U.S. SBA also examined industry trends, and the Federal 
government's petroleum procurement needs. Based on this analysis, SBA 
proposes to increase the refining capacity component of the Petroleum 
Refiners (NAICS 324110) size standard from 125,000 barrels per calendar 
day (BPCD) total Operable Atmospheric Crude Oil Distillation capacity 
to 200,000 BPCD, and maintain the employee component at the current 
1,500-employee level. Under the proposed size standard, for proposes of 
Federal procurement, a petroleum refiner can qualify as small under the 
1,500-employee size standard or under the 200,000 BPCD capacity size 
standard. To qualify under the capacity size standard, the firm, 
together with its affiliates, must be primarily engaged in refining 
crude petroleum into refined petroleum products. The proposed increase 
to the capacity size standard would expand the pool of small refiners 
that produce aviation fuel.
    Since the current regulation (limitations on subcontracting) 
already requires that a concern must perform at least 50 percent of the 
cost of contracts for the supplies or products (not including the costs 
of materials) (see 13 CFR 125.6), SBA is also proposing to remove the 
requirement that total product to be delivered under the small business 
contract must be at least 90 percent refined by the successful bidder 
from either crude oil or bona fide feedstocks. SBA has found this 90 
percent requirement to be overly restrictive for small refiners to 
compete for government contracts. The removal of this requirement will 
make the limitations on subcontracting consistent across all contracts 
for manufactured products or supplies.
    Given these changes, SBA also proposes to revise Footnote 4 of the 
SBA's table of size standards to read as follows:
    ``To qualify as small for purposes of Government procurement, the 
petroleum refiner, including its affiliates, must be a concern that has 
no more than 1,500 employees OR no more than 200,000 barrels per 
calendar day total Operable Atmospheric Crude Oil Distillation 
capacity. Capacity includes all domestic and foreign affiliates, owned 
or leased facilities, and facilities under a processing agreement or an 
arrangement such as an exchange agreement or a throughput. To qualify 
under the capacity size standard, the firm, together with its 
affiliates, must be primarily engaged in refining crude petroleum into 
refined petroleum products. A firm's ``primary industry'' is determined 
in accordance with 13 CFR 121.107.''

NAICS 326211, Tire Manufacturing (Except Retreading)

    Footnote 5 to SBA size standards table currently includes Census 
Bureau's Product Classifications codes based on Standard Industry 
Classification (SIC) system: Namely 30111 (Passenger car pneumatic 
tires) and 30112 (Truck/bus tires, including off highway, pneumatic 
tires). To make them consistent with industry size standards that are 
based on NAICS, in this proposed rule, SBA amends Footnote 5 by 
replacing them with the Census Bureau's corresponding NAICS Product 
Classification codes 3262111 and 3262113, respectively. The amended 
Footnote 5 will read as follows:
    5. NAICS code 326211--For Government procurement, a firm is small 
for bidding on a contract for pneumatic tires within Census NAICS 
Product Classification codes 3262111 and 3262113, provided that:
    (a) The value of tires within Census NAICS Product Classification 
codes 3262113 which it manufactured in the United States during the 
previous calendar year is more than 50 percent of the value of its 
total worldwide manufacture,
    (b) The value of pneumatic tires within Census NAICS Product 
Classification codes 3262113 comprising its total worldwide manufacture 
during the preceding calendar year was less than 5 percent of the value 
of all such tires manufactured in the United States during that period, 
and
    (c) The value of the principal product which it manufactured or 
otherwise produced, or sold worldwide during the preceding calendar 
year is less than 10 percent of the total value of such products 
manufactured or otherwise produced or sold in the United States during 
that period.

Proposed Changes to Size Standards

    As can be seen from Table 3, Size Standards Supported by Each 
Factor for Each Industry (No. of employees), the results might support 
increases in size standards for 209 industries, decreases for 19 
industries and no changes for 136 industries.
    However, SBA believes that lowering small business size standards 
is not in the best interest of small businesses in the current economic 
environment. The U.S. economy was in recession from December 2007 to 
June 2009, the longest and deepest of any recessions since before World 
War II. The economy lost more than eight million non-farm jobs during 
2008-2009. In response, Congress passed and the President signed into 
law the American Recovery and Reinvestment Act of 2009 (Recovery Act) 
to promote economic recovery and to preserve and create jobs. Although 
the recession officially ended in June 2009, the unemployment rate is 
still high at 6.2 percent in July 2014 (www.bls.gov) and is forecast to 
remain around this level at least through the end of 2014 (http://www.federalreserve.gov/monetarypolicy/mpr_20140211_part3.htm).
    In 2010, Congress passed and the President signed the Jobs Act to 
promote small business job creation. The Jobs Act puts more capital 
into the hands of entrepreneurs and small business owners; strengthens 
small businesses' ability to compete for contracts; includes 
recommendations from the President's Task Force on Federal Contracting 
Opportunities for Small Business; creates a better playing field for 
small businesses; promotes small business exporting, building on the 
President's National Export Initiative; expands training and 
counseling; and provides $12 billion in tax relief to help small 
businesses invest in their firms and create jobs. A proposal to reduce 
size standards will have an immediate impact on jobs, and it would be 
contrary to the expressed will of the President and the Congress.
    Lowering size standards would decrease the number of firms that 
participate in Federal financial and procurement assistance programs 
for small businesses. It would also affect small businesses that are 
now exempt or receive some form of relief from other Federal 
regulations that use SBA's size standards. That impact could take the 
form of increased fees, paperwork, or other compliance requirements for 
small businesses. Furthermore, size standards based solely on 
analytical results without any other considerations can cut off 
currently eligible small firms from those programs and benefits. In the 
19 industries for which analytical results might have supported 
lowering their size standards, about 60 businesses would lose their 
small business eligibility if their size standards were lowered. That 
would run counter to what SBA and the Federal government are doing to 
help small businesses and create jobs. Reducing size eligibility for 
Federal procurement opportunities, especially under current economic

[[Page 54164]]

conditions, would not preserve or create more jobs; rather, it would 
have the opposite effect. Therefore, in this proposed rule, SBA does 
not intend to reduce size standards for any industries. Accordingly, 
for industries where analyses might seem to support lowering size 
standards, SBA proposes to retain the current size standards.
    Furthermore, as stated previously, the Small Business Act requires 
the SBA's Administrator to ``. . . consider other factors deemed to be 
relevant . . .'' to establishing small business size standards. The 
current economic conditions and the impact on job creation are quite 
relevant factors when establishing small business size standards. SBA 
nevertheless invites comments and suggestions on whether it should 
lower size standards as suggested by analyses of industry and program 
data or retain the current standards for those industries in view of 
current economic conditions.
    As discussed above, lowering small business size standards is 
inconsistent with what the Federal government is doing to stimulate the 
economy and would discourage job growth for which Congress established 
the Recovery Act and Jobs Act. In addition, it would be inconsistent 
with the Small Business Act requiring the Administrator to establish 
size standards based on industry analysis and other relevant factors 
such as current economic conditions. Thus, of the 364 manufacturing 
industries reviewed in this rule, SBA proposes to increase size 
standards for 209 industries and retain the current size standards for 
155 industries, including 19 for which the results might support 
lowering their size standards. The proposed size standards are in Table 
4, Summary of Proposed Size Standards Revisions, below.

                              Table 4--Summary of Proposed Size Standards Revisions
----------------------------------------------------------------------------------------------------------------
                                                                                   Current size    Proposed size
                                                                                     standard        standard
         NAICS code                       NAICS U.S. industry title                 (number of      (number of
                                                                                    employees)      employees)
----------------------------------------------------------------------------------------------------------------
311111.....................  Dog and Cat Food Manufacturing.....................             500           1,000
311211.....................  Flour Milling......................................             500           1,000
311221.....................  Wet Corn Milling...................................             750           1,250
311314.....................  Cane Sugar Manufacturing...........................             750           1,000
311340.....................  Nonchocolate Confectionery Manufacturing...........             500           1,000
311351.....................  Chocolate and Confectionery Manufacturing from                  500           1,250
                              Cacao Beans.
311352.....................  Confectionery Manufacturing from Purchased                      500           1,000
                              Chocolate.
311411.....................  Frozen Fruit, Juice, and Vegetable Manufacturing...             500           1,000
311412.....................  Frozen Specialty Food Manufacturing................             500           1,250
311421.....................  Fruit and Vegetable Canning........................             500           1,000
311422.....................  Specialty Canning..................................           1,000           1,250
311423.....................  Dried and Dehydrated Food Manufacturing............             500             750
311511.....................  Fluid Milk Manufacturing...........................             500           1,000
311512.....................  Creamery Butter Manufacturing......................             500             750
311513.....................  Cheese Manufacturing...............................             500           1,250
311514.....................  Dry, Condensed, and Evaporated Dairy Product                    500             750
                              Manufacturing.
311520.....................  Ice Cream and Frozen Dessert Manufacturing.........             500           1,000
311611.....................  Animal (except Poultry) Slaughtering...............             500           1,000
311612.....................  Meat Processed from Carcasses......................             500           1,000
311613.....................  Rendering and Meat Byproduct Processing............             500             750
311615.....................  Poultry Processing.................................             500           1,250
311710.....................  Seafood Product Preparation and Packaging..........             500             750
311812.....................  Commercial Bakeries................................             500           1,000
311813.....................  Frozen Cakes, Pies, and Other Pastries                          500             750
                              Manufacturing.
311821.....................  Cookie and Cracker Manufacturing...................             750           1,250
311824.....................  Dry Pasta, Dough, and Flour Mixes Manufacturing                 500             750
                              from Purchased Flour.
311830.....................  Tortilla Manufacturing.............................             500           1,250
311911.....................  Roasted Nuts and Peanut Butter Manufacturing.......             500             750
311919.....................  Other Snack Food Manufacturing.....................             500           1,250
311920.....................  Coffee and Tea Manufacturing.......................             500             750
311930.....................  Flavoring Syrup and Concentrate Manufacturing......             500           1,000
311941.....................  Mayonnaise, Dressing, and Other Prepared Sauce                  500             750
                              Manufacturing.
312111.....................  Soft Drink Manufacturing...........................             500           1,250
312112.....................  Bottled Water Manufacturing........................             500           1,000
312113.....................  Ice Manufacturing..................................             500             750
312120.....................  Breweries..........................................             500           1,250
312130.....................  Wineries...........................................             500           1,000
312140.....................  Distilleries.......................................             750           1,000
312230.....................  Tobacco Manufacturing..............................           1,000           1,500
313110.....................  Fiber, Yarn, and Thread Mills......................             500           1,250
313230.....................  Nonwoven Fabric Mills..............................             500             750
314110.....................  Carpet and Rug Mills...............................             500           1,500
314120.....................  Curtain and Linen Mills............................             500             750
315110.....................  Hosiery and Sock Mills.............................             500             750
315190.....................  Other Apparel Knitting Mills.......................             500             750
315210.....................  Cut and Sew Apparel Contractors....................             500             750
315220.....................  Men's and Boys' Cut and Sew Apparel Manufacturing..             500             750
315240.....................  Women's, Girls', and Infants' Cut and Sew Apparel               500             750
                              Manufacturing.
315280.....................  Other Cut and Sew Apparel Manufacturing............             500             750
316992.....................  Women's Handbag and Purse Manufacturing............             500             750
321212.....................  Softwood Veneer and Plywood Manufacturing..........             500           1,250

[[Page 54165]]

 
321213.....................  Engineered Wood Member (except Truss) Manufacturing             500             750
321219.....................  Reconstituted Wood Product Manufacturing...........             500             750
321911.....................  Wood Window and Door Manufacturing.................             500           1,000
321991.....................  Manufactured Home (Mobile Home) Manufacturing......             500           1,250
322121.....................  Paper (except Newsprint) Mills.....................             750           1,250
322130.....................  Paperboard Mills...................................             750           1,250
322211.....................  Corrugated and Solid Fiber Box Manufacturing.......             500           1,250
322219.....................  Other Paperboard Container Manufacturing...........             750           1,000
322220.....................  Paper Bag and Coated and Treated Paper                          500             750
                              Manufacturing.
322230.....................  Stationery Product Manufacturing...................             500             750
322291.....................  Sanitary Paper Product Manufacturing...............             500           1,500
323117.....................  Books Printing.....................................             500           1,250
324191.....................  Petroleum Lubricating Oil and Grease Manufacturing.             500             750
325194.....................  Cyclic Crude, Intermediate, and Gum and Wood                    750           1,250
                              Chemical Manufacturing.
325199.....................  All Other Basic Organic Chemical Manufacturing.....           1,000           1,250
325211.....................  Plastics Material and Resin Manufacturing..........             750           1,250
325312.....................  Phosphatic Fertilizer Manufacturing................             500             750
325320.....................  Pesticide and Other Agricultural Chemical                       500           1,000
                              Manufacturing.
325411.....................  Medicinal and Botanical Manufacturing..............             750           1,000
325412.....................  Pharmaceutical Preparation Manufacturing...........             750           1,250
325413.....................  In-Vitro Diagnostic Substance Manufacturing........             500           1,250
325414.....................  Biological Product (except Diagnostic)                          500           1,250
                              Manufacturing.
325510.....................  Paint and Coating Manufacturing....................             500           1,000
325611.....................  Soap and Other Detergent Manufacturing.............             750           1,000
325612.....................  Polish and Other Sanitation Good Manufacturing.....             500             750
325613.....................  Surface Active Agent Manufacturing.................             500             750
325620.....................  Toilet Preparation Manufacturing...................             500           1,250
325992.....................  Photographic Film, Paper, Plate, and Chemical                   500           1,500
                              Manufacturing.
326111.....................  Plastics Bag and Pouch Manufacturing...............             500             750
326112.....................  Plastics Packaging Film and Sheet (including                    500           1,000
                              Laminated) Manufacturing.
326113.....................  Unlaminated Plastics Film and Sheet (except                     500             750
                              Packaging) Manufacturing.
326122.....................  Plastics Pipe and Pipe Fitting Manufacturing.......             500             750
326140.....................  Polystyrene Foam Product Manufacturing.............             500           1,000
326150.....................  Urethane and Other Foam Product (except                         500             750
                              Polystyrene) Manufacturing.
326160.....................  Plastics Bottle Manufacturing......................             500           1,250
326191.....................  Plastics Plumbing Fixture Manufacturing............             500             750
326211.....................  Tire Manufacturing (except Retreading).............           1,000           1,500
326220.....................  Rubber and Plastics Hoses and Belting Manufacturing             500             750
326291.....................  Rubber Product Manufacturing for Mechanical Use....             500             750
327110.....................  Pottery, Ceramics, and Plumbing Fixture                         750           1,000
                              Manufacturing.
327212.....................  Other Pressed and Blown Glass and Glassware                     750           1,250
                              Manufacturing.
327213.....................  Glass Container Manufacturing......................             750           1,250
327215.....................  Glass Product Manufacturing Made of Purchased Glass             500           1,000
327310.....................  Cement Manufacturing...............................             750           1,000
327332.....................  Concrete Pipe Manufacturing........................             500             750
327410.....................  Lime Manufacturing.................................             500             750
327420.....................  Gypsum Product Manufacturing.......................           1,000           1,500
327910.....................  Abrasive Product Manufacturing.....................             500             750
327993.....................  Mineral Wool Manufacturing.........................             750           1,500
331110.....................  Iron and Steel Mills and Ferroalloy Manufacturing..           1,000           1,500
331315.....................  Aluminum Sheet, Plate, and Foil Manufacturing......             750           1,250
331511.....................  Iron Foundries.....................................             500           1,000
331512.....................  Steel Investment Foundries.........................             500           1,000
332111.....................  Iron and Steel Forging.............................             500             750
332112.....................  Nonferrous Forging.................................             500             750
332215.....................  Metal Kitchen Cookware, Utensil, Cutlery, and                   500             750
                              Flatware (except Precious) Manufacturing.
332216.....................  Saw Blade and Handtool Manufacturing...............             500             750
332311.....................  Prefabricated Metal Building and Component                      500             750
                              Manufacturing.
332313.....................  Plate Work Manufacturing...........................             500             750
332321.....................  Metal Window and Door Manufacturing................             500             750
332410.....................  Power Boiler and Heat Exchanger Manufacturing......             500             750
332420.....................  Metal Tank (Heavy Gauge) Manufacturing.............             500             750
332431.....................  Metal Can Manufacturing............................           1,000           1,500
332510.....................  Hardware Manufacturing.............................             500             750
332911.....................  Industrial Valve Manufacturing.....................             500             750
332912.....................  Fluid Power Valve and Hose Fitting Manufacturing...             500           1,000
332913.....................  Plumbing Fixture Fitting and Trim Manufacturing....             500           1,000
332919.....................  Other Metal Valve and Pipe Fitting Manufacturing...             500             750
332991.....................  Ball and Roller Bearing Manufacturing..............             750           1,250

[[Page 54166]]

 
332992.....................  Small Arms Ammunition Manufacturing................           1,000           1,250
333111.....................  Farm Machinery and Equipment Manufacturing.........             500           1,250
333112.....................  Lawn and Garden Tractor and Home Lawn and Garden                500           1,500
                              Equipment Manufacturing.
333120.....................  Construction Machinery Manufacturing...............             750           1,250
333132.....................  Oil and Gas Field Machinery and Equipment                       500           1,250
                              Manufacturing.
333242.....................  Semiconductor Machinery Manufacturing..............             500           1,500
333244.....................  Printing Machinery and Equipment Manufacturing.....             500             750
333415.....................  Air-Conditioning and Warm Air Heating Equipment and             750           1,250
                              Commercial and Industrial Refrigeration Equipment
                              Manufacturing.
333611.....................  Turbine and Turbine Generator Set Units                       1,000           1,500
                              Manufacturing.
333612.....................  Speed Changer, Industrial High-Speed Drive, and                 500             750
                              Gear Manufacturing.
333613.....................  Mechanical Power Transmission Equipment                         500             750
                              Manufacturing.
333618.....................  Other Engine Equipment Manufacturing...............           1,000           1,500
333911.....................  Pump and Pumping Equipment Manufacturing...........             500             750
333912.....................  Air and Gas Compressor Manufacturing...............             500           1,000
333913.....................  Measuring and Dispensing Pump Manufacturing........             500             750
333921.....................  Elevator and Moving Stairway Manufacturing.........             500           1,000
333923.....................  Overhead Traveling Crane, Hoist, and Monorail                   500           1,250
                              System Manufacturing.
333992.....................  Welding and Soldering Equipment Manufacturing......             500           1,250
333995.....................  Fluid Power Cylinder and Actuator Manufacturing....             500             750
333996.....................  Fluid Power Pump and Motor Manufacturing...........             500           1,250
334111.....................  Electronic Computer Manufacturing..................           1,000           1,250
334112.....................  Computer Storage Device Manufacturing..............           1,000           1,250
334210.....................  Telephone Apparatus Manufacturing..................           1,000           1,250
334220.....................  Radio and Television Broadcasting and Wireless                  750           1,250
                              Communications Equipment Manufacturing.
334412.....................  Bare Printed Circuit Board Manufacturing...........             500             750
334413.....................  Semiconductor and Related Device Manufacturing.....             500           1,250
334417.....................  Electronic Connector Manufacturing.................             500           1,000
334418.....................  Printed Circuit Assembly (Electronic Assembly)                  500             750
                              Manufacturing.
334510.....................  Electromedical and Electrotherapeutic Apparatus                 500           1,250
                              Manufacturing.
334511.....................  Search, Detection, Navigation, Guidance,                        750           1,250
                              Aeronautical, and Nautical System and Instrument
                              Manufacturing.
334513.....................  Instruments and Related Products Manufacturing for              500             750
                              Measuring, Displaying, and Controlling Industrial
                              Process Variables.
334514.....................  Totalizing Fluid Meter and Counting Device                      500             750
                              Manufacturing.
334515.....................  Instrument Manufacturing for Measuring and Testing              500             750
                              Electricity and Electrical Signals.
334516.....................  Analytical Laboratory Instrument Manufacturing.....             500           1,000
334517.....................  Irradiation Apparatus Manufacturing................             500           1,000
334614.....................  Software and Other Prerecorded Compact Disc, Tape,              750           1,250
                              and Record Reproducing.
335110.....................  Electric Lamp Bulb and Part Manufacturing..........           1,000           1,250
335121.....................  Residential Electric Lighting Fixture Manufacturing             500             750
335210.....................  Small Electrical Appliance Manufacturing...........             750           1,500
335221.....................  Household Cooking Appliance Manufacturing..........             750           1,500
335222.....................  Household Refrigerator and Home Freezer                       1,000           1,250
                              Manufacturing.
335224.....................  Household Laundry Equipment Manufacturing..........           1,000           1,250
335228.....................  Other Major Household Appliance Manufacturing......             500           1,000
335312.....................  Motor and Generator Manufacturing..................           1,000           1,250
335313.....................  Switchgear and Switchboard Apparatus Manufacturing.             750           1,250
335911.....................  Storage Battery Manufacturing......................             500           1,250
335932.....................  Noncurrent-Carrying Wiring Device Manufacturing....             500           1,000
336111.....................  Automobile Manufacturing...........................           1,000           1,500
336112.....................  Light Truck and Utility Vehicle Manufacturing......           1,000           1,500
336120.....................  Heavy Duty Truck Manufacturing.....................           1,000           1,500
336212.....................  Truck Trailer Manufacturing........................             500           1,000
336213.....................  Motor Home Manufacturing...........................           1,000           1,250
336214.....................  Travel Trailer and Camper Manufacturing............             500           1,000
336310.....................  Motor Vehicle Gasoline Engine and Engine Parts                  750           1,000
                              Manufacturing.
336320.....................  Motor Vehicle Electrical and Electronic Equipment               750           1,000
                              Manufacturing.
336330.....................  Motor Vehicle Steering and Suspension Components                750           1,000
                              (except Spring) Manufacturing.
336340.....................  Motor Vehicle Brake System Manufacturing...........             750           1,250
336350.....................  Motor Vehicle Transmission and Power Train Parts                750           1,500
                              Manufacturing.
336360.....................  Motor Vehicle Seating and Interior Trim                         500           1,500
                              Manufacturing.
336370.....................  Motor Vehicle Metal Stamping.......................             500           1,000
336390.....................  Other Motor Vehicle Parts Manufacturing............             750           1,000
336412.....................  Aircraft Engine and Engine Parts Manufacturing.....           1,000           1,500
336413.....................  Other Aircraft Parts and Auxiliary Equipment                  1,000           1,250
                              Manufacturing.
336414.....................  Guided Missile and Space Vehicle Manufacturing.....           1,000           1,250
336415.....................  Guided Missile and Space Vehicle Propulsion Unit              1,000           1,250
                              and Propulsion Unit Parts Manufacturing.
336510.....................  Railroad Rolling Stock Manufacturing...............           1,000           1,500

[[Page 54167]]

 
336611.....................  Ship Building and Repairing........................           1,000           1,250
336612.....................  Boat Building......................................             500           1,000
336991.....................  Motorcycle, Bicycle, and Parts Manufacturing.......             500           1,000
336992.....................  Military Armored Vehicle, Tank, and Tank Component            1,000           1,500
                              Manufacturing.
336999.....................  All Other Transportation Equipment Manufacturing...             500           1,000
337110.....................  Wood Kitchen Cabinet and Countertop Manufacturing..             500             750
337121.....................  Upholstered Household Furniture Manufacturing......             500           1,000
337122.....................  Nonupholstered Wood Household Furniture                         500             750
                              Manufacturing.
337124.....................  Metal Household Furniture Manufacturing............             500             750
337125.....................  Household Furniture (except Wood and Metal)                     500             750
                              Manufacturing.
337211.....................  Wood Office Furniture Manufacturing................             500           1,000
337214.....................  Office Furniture (except Wood) Manufacturing.......             500           1,000
337910.....................  Mattress Manufacturing.............................             500           1,000
337920.....................  Blind and Shade Manufacturing......................             500           1,000
339112.....................  Surgical and Medical Instrument Manufacturing......             500           1,000
339113.....................  Surgical Appliance and Supplies Manufacturing......             500             750
339114.....................  Dental Equipment and Supplies Manufacturing........             500             750
339115.....................  Ophthalmic Goods Manufacturing.....................             500           1,000
339920.....................  Sporting and Athletic Goods Manufacturing..........             500             750
339940.....................  Office Supplies (except Paper) Manufacturing.......             500             750
339992.....................  Musical Instrument Manufacturing...................             500           1,000
339993.....................  Fastener, Button, Needle, and Pin Manufacturing....             500             750
339995.....................  Burial Casket Manufacturing........................             500           1,000
----------------------------------------------------------------------------------------------------------------

    Maintaining current size standards when the analytical results 
suggested lowering them is consistent with SBA's recent final rules on 
NAICS Sector 44-45, Retail Trade (75 FR 61597 (October 6, 2010)); NAICS 
Sector 72, Accommodation and Food Services (75 FR 61604 (October 6, 
2010)); NAICS Sector 81, Other Services (75 FR 61591 (October 6, 
2010)); NAICS Sector 54, Professional, Scientific and Technical 
Services (77 FR 7490 (February 10, 2012)); NAICS Sector 48 49, 
Transportation and Warehousing (77 FR 10943 (February 24, 2012)); NAICS 
Sector 51, Information (77 FR 72702 (December 6, 2012)); NAICS Sector 
53, Real Estate and Rental and Leasing (77 FR 88747 (September 24, 
2012)); NAICS Sector 56, Administrative and Support, Waste Management 
and Remediation Services (77 FR 72691 (December 6, 2012)); NAICS Sector 
61, Educational Services (77 FR 58739 (September 24, 2012)); and NAICS 
Sector 62, Health Care and Social Assistance (77 FR 58755 (September 
24, 2012)); NAICS Sector 11, Agriculture, Forestry, Fishing and Hunting 
(78 FR 37398 (June 20, 2013)); NAICS Subsector 213, Support Activities 
for Mining (78 FR 37404 (June 20, 2013)); NAICS Sector 52, Finance and 
Insurance and Sector 55, Management of Companies and Enterprises (78 FR 
37409 (June 20, 2013)); NAICS Sector 71, Arts, Entertainment and 
Recreation (78 FR 37417 (June 20, 2013)); and NAICS Sector 23, 
Construction (78 FR 77334 (December 23, 2013)). In each of those final 
rules, SBA retained the existing size standards for those that it could 
have reduced.

Evaluation of Dominance in Field of Operation

    SBA has determined that for the industries for which it has 
proposed to increase size standards in this proposed rule, no 
individual firm at or below the proposed size standard will be large 
enough to dominate its field of operation. At the proposed size 
standards, if adopted, the small business share of total industry 
receipts among those industries for which SBA has proposed to increase 
their size standards is, on average, 1.7 percent, varying from a 
minimum of 0.02 percent to a maximum of 18.9 percent. These market 
shares effectively preclude a firm at or below the proposed size 
standards from exerting control on any of the industries.

Request for Comments

    SBA invites public comments on this proposed rule, especially on 
the following issues:
    1. SBA proposes five levels of employee based size standards for 
industries in Manufacturing and industries in other Sectors except for 
Wholesale Trade and Retail Trade that have employee based size 
standards: 500 employees, 750 employees, 1,000 employees, 1,250 
employees, and 1,500 employees. SBA invites comments on whether these 
proposed size levels are appropriate and suggestions on alternative 
levels, if they would be more appropriate.
    2. To be consistent with its policy of not lowering any size 
standards in all recent proposed and final rules on receipts based size 
standards in view of current economic conditions, SBA is retaining the 
current 500-employee minimum and 1,500-employee maximum size standards 
for all industries in the Manufacturing Sector and other industries not 
in the Wholesale and Retail Trade Sectors that have employee based size 
standards. In its ``Size Standards Methodology,'' available at 
www.sba.gov/size, SBA had proposed setting the minimum size standard 
for these industries at 250 employees and the maximum size standard at 
1,000 employees. This would have resulted in lowering the existing 
employee based size standards for some industries. SBA invites comments 
on whether it should maintain the 500-employee minimum and the 1,500-
employee maximum size standards or it lower them to 250 employees and 
1,000 employees, respectively, as the Agency proposed in its ``Size 
Standards Methodology.'' SBA requests suggestions on alternative 
minimum and maximum levels, if they would be more appropriate.
    3. SBA seeks feedback on whether it should adjust employee based 
size standards for labor productivity growth. SBA periodically 
increases receipts

[[Page 54168]]

based size standards for inflation. Should SBA take labor productivity 
growth and technological change into consideration when it reviews 
employee based standards? If so, what data are available to assist SBA 
in evaluating such factors? What if such an evaluation leads to lower 
size standards for some industries? How should SBA apply the results to 
its size standards decision?
    4. SBA seeks feedback on whether its proposal to increase size 
standards for 209 industries and retain current size standards for 155 
industries is appropriate, given the economic characteristics of each 
industry reviewed in this proposed rule. SBA also seeks feedback and 
suggestions on alternative size standards, if they would be more 
appropriate.
    5. SBA has proposed to retain the current size standards for 19 
industries for which the analytical results would support lowering 
them. SBA seeks comments on whether SBA should lower them solely based 
on its analysis or retain them at their current levels in view of 
current economic conditions.
    6. SBA invites comments on its proposal to increase the capacity 
component of the Petroleum Refiners (NAICS 324110) size standard from 
125,000 barrels per calendar day (BPCD) total Operable Atmospheric 
Crude Oil Distillation capacity to 200,000 BPCD and retain the employee 
component at the current 1,500-employee level. SBA also welcomes 
comments on its proposal to allow business concerns to qualify either 
under the 1,500-employee size standard or under the 200,000 BPCD 
capacity size standard, if they, together with affiliates, are 
primarily engaged in petroleum refining. Finally, SBA also seeks 
feedback on its proposal to eliminate the requirement that ``[t]he 
total product to be delivered under the contract must be at least 90 
percent refined by the successful bidder from either crude oil or bona 
fide feedstocks.''
    7. SBA's proposed size standards are based on five primary 
factors--average firm size, average assets size (as a proxy of startup 
costs and entry barriers), four-firm concentration ratio, distribution 
of firms by size and, the level and small business share of Federal 
contracting dollars of the evaluated industries and sub-industries. SBA 
welcomes comments on these factors and/or suggestions on other factors 
that it should consider when evaluating or revising employee based size 
standards. SBA also seeks information on relevant data sources, other 
than what it uses, if available.
    8. SBA gives equal weight to each of the five primary factors in 
all industries. SBA seeks feedback on whether it should continue giving 
equal weight to each factor or whether it should give more weight to 
one or more factors for certain industries. Recommendations to weigh 
some factors more than others should include suggested weights for each 
factor along with supporting information.
    9. For analytical simplicity and efficiency, in this proposed rule, 
SBA has refined its size standard methodology to obtain a single value 
as a proposed size standard instead of a range of values, as in its 
past size regulations. SBA welcomes any comments on this procedure and 
suggestions on alternative methods.
    Public comments on the above issues are very valuable to SBA for 
validating its size standard methodology and its proposed size 
standards revisions in this proposed rule. This will help SBA to ensure 
that size standards reflect industry structure and Federal market 
conditions. Commenters addressing SBA's proposed size standard 
revisions for a specific industry or a group of industries should 
include relevant data and/or other information supporting their 
comments. If comments relate to using size standards for Federal 
procurement programs, SBA suggests that commenters provide information 
on the size of contracts in their industries, the size of businesses 
that can undertake the contracts, startup costs, equipment and other 
asset requirements, the amount of subcontracting, other direct and 
indirect costs associated with the contracts, the use of mandatory 
sources of supply for products and services, and the degree to which 
contractors can mark up those costs.

Compliance With Executive Orders 12866, 13563, 12988 and 13132, the 
Paperwork Reduction Act (44 U.S.C. Ch. 35) and the Regulatory 
Flexibility Act (5 U.S.C. 601-612)

Executive Order 12866

    The Office of Management and Budget (OMB) has determined that this 
proposed rule is a significant regulatory action for purposes of 
Executive Order 12866. Accordingly, in the next section SBA provides a 
Regulatory Impact Analysis of this proposed rule. However, this rule is 
not a ``major rule'' under the Congressional Review Act, 5 U.S.C. 800.

Regulatory Impact Analysis

1. Is there a need for the regulatory action?
    SBA believes that the proposed size standards revisions in this 
proposed rule will better reflect the economic characteristics of small 
businesses and the Federal government marketplace in the affected 
industries and. SBA's mission is to aid and assist small businesses 
through a variety of financial, procurement, business development, and 
advocacy programs. To determine the intended beneficiaries of these 
programs, SBA establishes distinct definitions of which businesses are 
deemed small businesses. The Small Business Act (15 U.S.C. 632(a)) 
delegates to SBA's Administrator the responsibility for establishing 
small business definitions. The Act also requires that small business 
definitions vary to reflect industry differences. The Jobs Act also 
requires SBA to review all size standards and make necessary 
adjustments to reflect market conditions. The supplementary information 
section of this proposed rule explains SBA's methodology for analyzing 
a size standard for a particular industry.
2. What are the potential benefits and costs of this regulatory action?
    The most significant benefit to businesses obtaining small business 
status because of this proposed rule is gaining or retaining 
eligibility for Federal small business assistance programs. These 
include SBA's financial assistance programs, economic injury disaster 
loans, and Federal procurement programs intended for small businesses. 
Federal procurement programs provide targeted opportunities for small 
businesses under SBA's business development programs, such as 8(a), 
Small Disadvantaged Businesses (SDB), small businesses located in 
Historically Underutilized Business Zones (HUBZone), women-owned small 
businesses (WOSB), economically disadvantaged women-owned small 
businesses (EDWOSB), and service-disabled veteran-owned small 
businesses (SDVOSB). Federal agencies may also use SBA's size standards 
for a variety of other regulatory and program purposes. These programs 
assist small businesses to become more knowledgeable, stable, and 
competitive. SBA estimates that in 209 industries for which it has 
proposed to increase size standards about 1,250 firms, not small under 
the existing size standards, will become small under the proposed size 
standards and therefore become eligible for these programs. That is 
about 0.4 percent of all firms classified as small under the current 
size standards in all industries reviewed in this proposed rule. If 
adopted as proposed, this will increase the small business share of 
total receipts in those industries from 26 percent to 29 percent.

[[Page 54169]]

    Three groups will benefit from the proposed size standards 
revisions in this rule, if they are adopted as proposed: (1) Some 
businesses that are above the current size standards may gain small 
business status under the higher size standards, thereby enabling them 
to participate in Federal small business assistance programs; (2) 
growing small businesses that are close to exceeding the current size 
standards will be able to retain their small business status under the 
higher size standards, thereby enabling them to continue their 
participation in the programs; and (3) Federal agencies will have a 
larger pool of small businesses from which to draw for their small 
business procurement programs.
    SBA estimates that firms gaining small business status under the 
proposed size standards could receive Federal contracts totaling $170 
million to $175 million annually under SBA's small business, 8(a), SDB, 
HUBZone, WOSB, EDWOSB, and SDVOSB Programs, and other unrestricted 
procurements. The added competition for many of these procurements can 
also result in lower prices to the Government for procurements reserved 
for small businesses, but SBA cannot quantify this benefit.
    Under SBA's 7(a) and 504 Loan Programs, based on the fiscal years 
2010-2012 data, SBA estimates up to about 25 SBA loans totaling about 
$12.0 million could be made to these newly defined small businesses 
under the proposed size standards. Increasing the size standards will 
likely result in more small business guaranteed loans to businesses in 
these industries, but it is be impractical to try to estimate exactly 
the number and total amount of loans. There are two reasons for this: 
(1) Under the Jobs Act, SBA can now guarantee substantially larger 
loans than in the past; and (2) as described above, the Jobs Act 
established a higher alternative size standard ($15 million in tangible 
net worth and $5 million in net income after income taxes) for business 
concerns that do not meet the size standards for their industry. 
Therefore, SBA finds it difficult to quantify the actual impact of 
these proposed size standards on its 7(a) and 504 Loan Programs.
    Newly defined small businesses will also benefit from SBA's 
Economic Injury Disaster Loan (EIDL) Program. Since this program is 
contingent on the occurrence and severity of a disaster in the future, 
SBA cannot make a meaningful estimate of this impact.
    In addition, newly defined small businesses will also benefit 
through reduced fees, less paperwork, and fewer compliance requirements 
that are available to small businesses through Federal government.
    To the extent that those 1,250 newly defined additional small firms 
could become active in Federal procurement programs, the proposed 
changes to size standards, if adopted, may entail some additional 
administrative costs to the government as a result of more businesses 
being eligible for Federal small business programs. For example, there 
will be more firms seeking SBA's guaranteed loans, more firms eligible 
for enrollment in the System of Award Management (SAM) database, and 
more firms seeking certification as 8(a) or HUBZone firms or qualifying 
for small business, WOSB, EDWOSB, SDVOSB, and SDB status. Among those 
newly defined small businesses seeking SBA's assistance, there could be 
some additional costs associated with compliance and verification of 
small business status and protests of small business status. However, 
SBA believes that these added administrative costs will be minimal 
because mechanisms are already in place to handle these requirements.
    Additionally, Federal government contracts may have higher costs. 
With a greater number of businesses defined as small, Federal agencies 
may choose to set aside more contracts for competition among small 
businesses only rather than using full and open competition. The 
movement from unrestricted to small business set-aside contracting 
might result in competition among fewer total bidders, although there 
will be more small businesses eligible to submit offers. However, the 
additional costs associated with fewer bidders are expected to be minor 
since, by law, procurements may be set aside for small businesses or 
reserved for the 8(a), HUBZone, WOSB, EDWOSB, or SDVOSB Programs only 
if awards are expected to be made at fair and reasonable prices. In 
addition, there may be higher costs when more full and open contracts 
are awarded to HUBZone businesses that receive price evaluation 
preferences.
    The proposed size standards revisions, if adopted, may have some 
distributional effects among large and small businesses. Although SBA 
cannot estimate with certainty the actual outcome of the gains and 
losses among small and large businesses, it can identify several 
probable impacts. There may be a transfer of some Federal contracts to 
small businesses from large businesses. Large businesses may have fewer 
Federal contract opportunities as Federal agencies decide to set aside 
more contracts for small businesses. In addition, some Federal 
contracts may be awarded to HUBZone concerns instead of large 
businesses since these firms may be eligible for a price evaluation 
preference for contracts when they compete on a full and open basis.
    Similarly, some businesses defined small under the current size 
standards may obtain fewer Federal contracts due to the increased 
competition from more businesses defined as small under the proposed 
size standards. This transfer may be offset by a greater number of 
Federal procurements set aside for all small businesses. The number of 
newly defined and expanding small businesses that are willing and able 
to sell to the Federal Government will limit the potential transfer of 
contracts from large and currently defined small businesses. SBA cannot 
estimate the potential distributional impacts of these transfers with 
any degree of precision.
    The proposed revisions to the existing size standards for 210 
industries in Sector 31-33 are 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, 
Government contracts, and management and technical assistance. 
Reviewing and modifying size standards, when appropriate, ensures that 
intended beneficiaries have access to small business programs designed 
to assist them.

Executive Order 13563

    Descriptions of the need for this regulatory action and benefits 
and costs associated with this action including possible distributional 
impacts that relate to Executive Order 13563 are included above in the 
Regulatory Impact Analysis under Executive Order 12866, above.
    In an effort to engage interested parties in this action, SBA has 
presented its size standards methodology (discussed above under 
Supplementary Information) to various industry associations and trade 
groups. SBA also met with a number of industry groups and individual 
businesses to get their feedback on its methodology and other size 
standards issues. In addition, SBA presented its size standards 
methodology to businesses in 13 cities in the U.S. and sought their 
input as part of Jobs Act tours. The presentation also included 
information on the latest status of the comprehensive size standards 
review and on how interested

[[Page 54170]]

parties can provide SBA with input and feedback on size standards 
review.
    Additionally, SBA sent letters to the Directors of the Offices of 
Small and Disadvantaged Business Utilization (OSDBU) at several Federal 
agencies with considerable procurement responsibilities requesting 
their feedback on how the agencies use SBA's size standards and whether 
current size standards meet their programmatic needs (both procurement 
and non-procurement). SBA gave appropriate consideration to all input, 
suggestions, recommendations, and relevant information obtained from 
industry groups, individual businesses, and Federal agencies in 
preparing this proposed rule.
    The review of size standards in industries covered in this proposed 
rule is consistent with Executive Order 13563, Section 6, calling for 
retrospective analyses of existing rules. The last comprehensive review 
of size standards occurred during the late 1970s and early 1980s. Since 
then, except for periodic adjustments for monetary based size 
standards, most reviews of size standards were limited to a few 
specific industries in response to requests from the public and Federal 
agencies. The majority of employee based size standards, including 
those in NAICS Sector 31-33, have not been reviewed since they were 
first established. SBA recognizes that changes in industry structure 
and the Federal marketplace over time have rendered existing size 
standards for some industries no longer supportable by current data. 
Accordingly, in 2007, SBA began a comprehensive review of its size 
standards to ensure that existing size standards have supportable bases 
and to revise them when necessary. In addition, the Jobs Act requires 
SBA to conduct a detailed review of all size standards and to make 
appropriate adjustments to reflect market conditions. Specifically, the 
Jobs Act requires SBA to conduct a detailed review of at least one-
third of all size standards during every 18-month period from the date 
of its enactment and do a complete review of all size standards not 
less frequently than once every 5 years thereafter.

Executive Order 12988

    This action meets applicable standards set forth in Sections 3(a) 
and 3(b)(2) of Executive Order 12988, Civil Justice Reform, to minimize 
litigation, eliminate ambiguity, and reduce burden. The action does not 
have retroactive or preemptive effect.

Executive Order 13132

    For purposes of Executive Order 13132, SBA has determined that this 
proposed rule will not have substantial, direct effects on the States, 
on the relationship between the national government and the States, or 
on the distribution of power and responsibilities among the various 
levels of government. Therefore, SBA has determined that this proposed 
rule has no federalism implications warranting preparation of a 
federalism assessment.

Paperwork Reduction Act

    For the purpose of the Paperwork Reduction Act, 44 U.S.C. Ch. 35, 
SBA has determined that this proposed rule will not impose any new 
reporting or record keeping requirements.

Initial Regulatory Flexibility Analysis

    Under the Regulatory Flexibility Act (RFA), this proposed rule, if 
adopted, may have a significant impact on a substantial number of small 
businesses in the industries and sub-industries covered by this rule. 
As described above, this rule may affect small businesses seeking 
Federal contracts, loans under SBA's 7(a), 504 and Economic Injury 
Disaster Loan Programs, and assistance under other Federal small 
business programs.
    Immediately below, SBA sets forth an initial regulatory flexibility 
analysis (IRFA) of this proposed rule addressing the following 
questions: (1) What are the need for and objective of the rule? (2) 
What are SBA's description and estimate of the number of small 
businesses to which the rule will apply? (3) What are the projected 
reporting, record keeping, and other compliance requirements of the 
rule? (4) What are the relevant Federal rules that may duplicate, 
overlap, or conflict with the rule? and (5) What alternatives will 
allow the Agency to accomplish its regulatory objectives while 
minimizing the impact on small businesses?
1. What are the need for and objective of the rule?
    Changes in industry structure, technological changes, productivity 
growth, mergers and acquisitions, and updated industry definitions have 
changed the structure of many industries reviewed in this proposed 
rule. Such changes can be sufficient to support revisions to current 
size standards for some industries. Based on the analysis of the latest 
data available, SBA believes that the revised standards in this 
proposed rule more appropriately reflect the size of businesses that 
need Federal assistance. The Jobs Act also requires SBA to review all 
size standards and make necessary adjustments to reflect market 
conditions.
2. What are SBA's description and estimate of the number of small 
businesses to which the rule will apply?
    If the proposed rule is adopted in its present form, SBA estimates 
that about 1,250 additional firms will become small because of 
increased size standards 209 industries in NAICS Sector 31-33. That 
represents 0.4 percent of total firms that are small under current size 
standards in all industries in that Sector. This will result in an 
increase in the small business share of total industry receipts in 
Sector 31-33 from 26 percent under the current size standards to 29 
percent under the proposed size standards. The proposed size standards, 
if adopted, will enable more small businesses to retain their small 
business status for a longer period. Many firms may have lost their 
eligibility and find it difficult to compete at current size standards 
with companies that are significantly larger than they are. SBA 
believes the competitive impact will be positive for existing small 
businesses and for those that exceed the size standards but are on the 
very low end of those that are not small. They might otherwise be 
called or referred to as mid-sized businesses, although SBA only 
defines what is small; other entities are other than small.
3. What are the projected reporting, recordkeeping and other compliance 
requirements of the rule?
    The proposed size standard changes impose no additional reporting 
or recordkeeping requirements on small businesses. However, qualifying 
for Federal procurement and a number of other programs requires that 
businesses register in the SAM database and certify in SAM that they 
are small at least once annually. Therefore, businesses opting to 
participate in those programs must comply with SAM requirements. 
However, there are no costs associated with SAM registration or 
certification. Changing size standards alters the access to SBA's 
programs that assist small businesses, but does not impose a regulatory 
burden because they neither regulate nor control business behavior.
4. What are the relevant Federal rules, which may duplicate, overlap or 
conflict with the rule?
    Under Sec.  3(a)(2)(C) of the Small Business Act, 15 U.S.C. 
632(a)(2)(c), Federal agencies must use SBA's size standards to define 
a small business,

[[Page 54171]]

unless specifically authorized by statute to do otherwise. In 1995, SBA 
published in the Federal Register a list of statutory and regulatory 
size standards that identified the application of SBA's size standards 
as well as other size standards used by Federal agencies (60 FR 57988 
(November 24, 1995)). SBA is not aware of any Federal rule that would 
duplicate or conflict with establishing size standards.
    However, the Small Business Act and SBA's regulations allow Federal 
agencies to develop different size standards if they believe that SBA's 
size standards are not appropriate for their programs, with the 
approval of SBA's Administrator (13 CFR 121.903). The Regulatory 
Flexibility Act authorizes an Agency to establish an alternative small 
business definition, after consultation with the Office of Advocacy of 
the U.S. Small Business Administration (5 U.S.C. 601(3)).
5. What alternatives will allow the Agency to accomplish its regulatory 
objectives while minimizing the impact on small entities?
    By law, SBA is required to develop numerical size standards for 
establishing eligibility for Federal small business assistance 
programs. Other than varying size standards by industry and changing 
the size measures, no practical alternative exists to the systems of 
numerical size standards.

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 as follows:

PART 121--SMALL BUSINESS SIZE REGULATIONS

0
1. The authority citation for part 121 continues to read as follows:

    Authority:  15 U.S.C. 632, 634(b)(6), 662, and 694a(9).

0
2. In Sec.  121.201, amend the table ``Small Business Size Standards by 
NAICS Industry'' as follows:
0
a. Revise the entries for ``311111'', ``311211'', ``311221'', 
``311314'', ``311340'', ``311351'', ``311352'', ``311411'', ``311412'', 
311421'', ``311422'', ``311423'', ``311511'', ``311512'', ``311513'', 
``311514'', ``311520'', ``311611'', ``311612'', ``311613'', ``311615'', 
``311710'', ``311812'', ``311813'', ``311821'', ``311824'', ``311830'', 
``311911'', ``311919'', ``311920'', ``311930'', ``311941'', ``312111'', 
``312112'', ``312113'', ``312120'', ``312130'', ``312140'', ``312230'', 
``313110'', ``313230'', ``314110'', ``314120'', ``315110'', ``315190'', 
``315210'', ``315220'', ``315240'', ``315280'', ``316992'', ``321212'', 
``321213'', ``321219'', ``321911'', ``321991'', ``322121'', ``322130'', 
``322211'', ``322219'', ``322220'', ``322230'', ``322291'', ``323117'', 
``324110'', ``324191'', ``325194'', ``325199'', ``325211'', ``325312'', 
``325320'', ``325411'', ``325412'', ``325413'', ``325414'', ``325510'', 
``325611'', ``325612'', ``325613'', ``325620'', ``325992'', ``326111'', 
``326112'', ``326113'', ``326122'', ``326140'', ``326150'', ``326160'', 
``326191'', ``326211'', ``326220'', ``326291'', ``327110'', ``327212'', 
``327213'', ``327215'', ``327310'', ``327332'', ``327410'', ``327420'', 
``327910'', ``327993'', ``331110'', ``331315'', ``331511'', ``331512'', 
``332111'', ``332112'', ``332215'', ``332216'', ``332311'', ``332313'', 
``332321'', ``332410'', ``332420'', ``332431'', ``332510'', ``332911'', 
``332912'', ``332913'', ``332919'', ``332991'', ``332992'', ``333111'', 
``333112'', ``333120'', ``333132'', ``333242'', ``333244'', ``333415'', 
``333611'', ``333612'', ``333613'', ``333618'', ``333911'', ``333912'', 
``333913'', ``333921'', ``333923'', ``333992'', ``333995'', ``333996'', 
``334111'', ``334112'', ``334210'', ``334220'', ``334412'', ``334413'', 
``334417'', ``334418'', ``334510'', ``334511'', ``334513'', ``334514'', 
``334515'', ``334516'', ``334517'', ``334614'', ``335110'', ``335121'', 
``335210'', ``335221'', ``335222'', ``335224'', ``335228'', ``335312'', 
``335313'', ``335911'', ``335932'', ``336111'', ``336112'', ``336120'', 
``336212'', ``336213'', ``336214'', ``336310'', ``336320'', ``336330'', 
``336340'', ``336350'', ``336360'', ``336370'', ``336390'', ``336412'', 
``336413'', ``336414'', ``336415'', ``336510'', ``336611'', ``336612'', 
``336991'', ``336992'', ``336999'', ``337110'', ``337121'', ``337122'', 
``337124'', ``337125'', ``337211'', ``337214'', ``337910'', ``337920'', 
``339112'', ``339113'', ``339114'', ``339115'', ``339920'', ``339940'', 
“339992'', ``339993'', and ``339995''.
0
b. Revise footnotes 3, 4, 5, and 7.
    The revisions read as follows:


Sec.  121.201  What size standards has SBA identified by North American 
Industry Classification System codes?

* * * * *

                                 Small Business Size Standards by NAICS Industry
----------------------------------------------------------------------------------------------------------------
                                                                                  Size standards  Size standards
        NAICS codes                       NAICS U.S. industry title               in millions of   in number of
                                                                                      dollars        employees
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
311111.....................  Dog and Cat Food Manufacturing.....................  ..............           1,000
 
                                                  * * * * * * *
311211.....................  Flour Milling......................................  ..............           1,000
 
                                                  * * * * * * *
311221.....................  Wet Corn Milling...................................  ..............           1,250
 
                                                  * * * * * * *
311314.....................  Cane Sugar Manufacturing...........................  ..............           1,000
311340.....................  Nonchocolate Confectionery Manufacturing...........  ..............           1,000
311351.....................  Chocolate and Confectionery Manufacturing from       ..............           1,250
                              Cacao Beans.
311352.....................  Confectionery Manufacturing from Purchased           ..............           1,000
                              Chocolate.
311411.....................  Frozen Fruit, Juice, and Vegetable Manufacturing...  ..............           1,000
311412.....................  Frozen Specialty Food Manufacturing................  ..............           1,250
311421.....................  Fruit and Vegetable Canning \3\....................  ..............        \3\1,000

[[Page 54172]]

 
311422.....................  Specialty Canning..................................  ..............           1,250
311423.....................  Dried and Dehydrated Food Manufacturing............  ..............             750
311511.....................  Fluid Milk Manufacturing...........................  ..............           1,000
311512.....................  Creamery Butter Manufacturing......................  ..............             750
311513.....................  Cheese Manufacturing...............................  ..............           1,250
311514.....................  Dry, Condensed, and Evaporated Dairy Product         ..............             750
                              Manufacturing.
311520.....................  Ice Cream and Frozen Dessert Manufacturing.........  ..............           1,000
311611.....................  Animal (except Poultry) Slaughtering...............  ..............           1,000
311612.....................  Meat Processed from Carcasses......................  ..............           1,000
311613.....................  Rendering and Meat Byproduct Processing............  ..............             750
311615.....................  Poultry Processing.................................  ..............           1,250
311710.....................  Seafood Product Preparation and Packaging..........  ..............             750
 
                                                  * * * * * * *
311812.....................  Commercial Bakeries................................  ..............           1,000
311813.....................  Frozen Cakes, Pies, and Other Pastries               ..............             750
                              Manufacturing.
311821.....................  Cookie and Cracker Manufacturing...................  ..............           1,250
311824.....................  Dry Pasta, Dough, and Flour Mixes Manufacturing      ..............             750
                              from Purchased Flour.
311830.....................  Tortilla Manufacturing.............................  ..............           1,250
311911.....................  Roasted Nuts and Peanut Butter Manufacturing.......  ..............             750
311919.....................  Other Snack Food Manufacturing.....................  ..............           1,250
311920.....................  Coffee and Tea Manufacturing.......................  ..............             750
311930.....................  Flavoring Syrup and Concentrate Manufacturing......  ..............           1,000
311941.....................  Mayonnaise, Dressing, and Other Prepared Sauce       ..............             750
                              Manufacturing.
 
                                                  * * * * * * *
312111.....................  Soft Drink Manufacturing...........................  ..............           1,250
312112.....................  Bottled Water Manufacturing........................  ..............           1,000
312113.....................  Ice Manufacturing..................................  ..............             750
312120.....................  Breweries..........................................  ..............           1,250
312130.....................  Wineries...........................................  ..............           1,000
312140.....................  Distilleries.......................................  ..............           1,000
312230.....................  Tobacco Manufacturing..............................  ..............           1,500
313110.....................  Fiber, Yarn, and Thread Mills......................  ..............           1,250
 
                                                  * * * * * * *
313230.....................  Nonwoven Fabric Mills..............................  ..............             750
 
                                                  * * * * * * *
314110.....................  Carpet and Rug Mills...............................  ..............           1,500
314120.....................  Curtain and Linen Mills............................  ..............             750
 
                                                  * * * * * * *
315110.....................  Hosiery and Sock Mills.............................  ..............             750
315190.....................  Other Apparel Knitting Mills.......................  ..............             750
315210.....................  Cut and Sew Apparel Contractors....................  ..............             750
315220.....................  Men's and Boys' Cut and Sew Apparel Manufacturing..  ..............             750
315240.....................  Women's, Girls', and Infants' Cut and Sew Apparel    ..............             750
                              Manufacturing.
315280.....................  Other Cut and Sew Apparel Manufacturing............  ..............             750
 
                                                  * * * * * * *
316992.....................  Women's Handbag and Purse Manufacturing............  ..............             750
 
                                                  * * * * * * *
321212.....................  Softwood Veneer and Plywood Manufacturing..........  ..............           1,250
321213.....................  Engineered Wood Member (except Truss) Manufacturing  ..............             750
 
                                                  * * * * * * *
321219.....................  Reconstituted Wood Product Manufacturing...........  ..............             750
321911.....................  Wood Window and Door Manufacturing.................  ..............           1,000
 
                                                  * * * * * * *
321991.....................  Manufactured Home (Mobile Home) Manufacturing......  ..............           1,250
 
                                                  * * * * * * *
322121.....................  Paper (except Newsprint) Mills.....................  ..............           1,250
 
                                                  * * * * * * *
322130.....................  Paperboard Mills...................................  ..............           1,250
322211.....................  Corrugated and Solid Fiber Box Manufacturing.......  ..............           1,250

[[Page 54173]]

 
 
                                                  * * * * * * *
322219.....................  Other Paperboard Container Manufacturing...........  ..............           1,000
322220.....................  Paper Bag and Coated and Treated Paper               ..............             750
                              Manufacturing.
322230.....................  Stationery Product Manufacturing...................  ..............             750
322291.....................  Sanitary Paper Product Manufacturing...............  ..............           1,500
 
                                                  * * * * * * *
323117.....................  Books Printing.....................................  ..............           1,250
 
                                                  * * * * * * *
324110.....................  Petroleum Refineries \4\...........................  ..............        \4\1,500
 
                                                  * * * * * * *
324191.....................  Petroleum Lubricating Oil and Grease Manufacturing.  ..............             750
 
                                                  * * * * * * *
325194.....................  Cyclic Crude, Intermediate, and Gum and Wood         ..............           1,250
                              Chemical Manufacturing.
325199.....................  All Other Basic Organic Chemical Manufacturing.....  ..............           1,250
325211.....................  Plastics Material and Resin Manufacturing..........  ..............           1,250
 
                                                  * * * * * * *
325312.....................  Phosphatic Fertilizer Manufacturing................  ..............             750
 
                                                  * * * * * * *
325320.....................  Pesticide and Other Agricultural Chemical            ..............           1,000
                              Manufacturing.
325411.....................  Medicinal and Botanical Manufacturing..............  ..............           1,000
325412.....................  Pharmaceutical Preparation Manufacturing...........  ..............           1,250
325413.....................  In-Vitro Diagnostic Substance Manufacturing........  ..............           1,250
325414.....................  Biological Product (except Diagnostic)               ..............           1,250
                              Manufacturing.
325510.....................  Paint and Coating Manufacturing....................  ..............           1,000
 
                                                  * * * * * * *
325611.....................  Soap and Other Detergent Manufacturing.............  ..............           1,000
325612.....................  Polish and Other Sanitation Good Manufacturing.....  ..............             750
325613.....................  Surface Active Agent Manufacturing.................  ..............             750
325620.....................  Toilet Preparation Manufacturing...................  ..............           1,250
 
                                                  * * * * * * *
325992.....................  Photographic Film, Paper, Plate, and Chemical        ..............           1,500
                              Manufacturing.
 
                                                  * * * * * * *
326111.....................  Plastics Bag and Pouch Manufacturing...............  ..............             750
326112.....................  Plastics Packaging Film and Sheet (including         ..............           1,000
                              Laminated) Manufacturing.
326113.....................  Unlaminated Plastics Film and Sheet (except          ..............             750
                              Packaging) Manufacturing.
 
                                                  * * * * * * *
326122.....................  Plastics Pipe and Pipe Fitting Manufacturing.......  ..............             750
 
                                                  * * * * * * *
326140.....................  Polystyrene Foam Product Manufacturing.............  ..............           1,000
326150.....................  Urethane and Other Foam Product (except              ..............             750
                              Polystyrene) Manufacturing.
326160.....................  Plastics Bottle Manufacturing......................  ..............           1,250
326191.....................  Plastics Plumbing Fixture Manufacturing............  ..............             750
 
                                                  * * * * * * *
326211.....................  Tire Manufacturing (except Retreading) \5\.........  ..............        \5\1,500
 
                                                  * * * * * * *
326220.....................  Rubber and Plastics Hoses and Belting Manufacturing  ..............             750
326291.....................  Rubber Product Manufacturing for Mechanical Use....  ..............             750
 
                                                  * * * * * * *
327110.....................  Pottery, Ceramics, and Plumbing Fixture              ..............           1,000
                              Manufacturing.
 
                                                  * * * * * * *
327212.....................  Other Pressed and Blown Glass and Glassware          ..............           1,250
                              Manufacturing.
327213.....................  Glass Container Manufacturing......................  ..............           1,250
327215.....................  Glass Product Manufacturing Made of Purchased Glass  ..............           1,000
327310.....................  Cement Manufacturing...............................  ..............           1,000

[[Page 54174]]

 
 
                                                  * * * * * * *
327332.....................  Concrete Pipe Manufacturing........................  ..............             750
 
                                                  * * * * * * *
327410.....................  Lime Manufacturing.................................  ..............             750
327420.....................  Gypsum Product Manufacturing.......................  ..............           1,500
327910.....................  Abrasive Product Manufacturing.....................  ..............             750
 
                                                  * * * * * * *
327993.....................  Mineral Wool Manufacturing.........................  ..............           1,500
 
                                                  * * * * * * *
331110.....................  Iron and Steel Mills and Ferroalloy Manufacturing..  ..............           1,500
 
                                                  * * * * * * *
331315.....................  Aluminum Sheet, Plate, and Foil Manufacturing......  ..............           1,250
 
                                                  * * * * * * *
331511.....................  Iron Foundries.....................................  ..............           1,000
331512.....................  Steel Investment Foundries.........................  ..............           1,000
 
                                                  * * * * * * *
332111.....................  Iron and Steel Forging.............................  ..............             750
332112.....................  Nonferrous Forging.................................  ..............             750
 
                                                  * * * * * * *
332215.....................  Metal Kitchen Cookware, Utensil, Cutlery, and        ..............             750
                              Flatware (except Precious) Manufacturing.
332216.....................  Saw Blade and Handtool Manufacturing...............  ..............             750
332311.....................  Prefabricated Metal Building and Component           ..............             750
                              Manufacturing.
 
                                                  * * * * * * *
332313.....................  Plate Work Manufacturing...........................  ..............             750
332321.....................  Metal Window and Door Manufacturing................  ..............             750
 
                                                  * * * * * * *
332410.....................  Power Boiler and Heat Exchanger Manufacturing......  ..............             750
332420.....................  Metal Tank (Heavy Gauge) Manufacturing.............  ..............             750
332431.....................  Metal Can Manufacturing............................  ..............           1,500
 
                                                  * * * * * * *
332510.....................  Hardware Manufacturing.............................  ..............             750
 
                                                  * * * * * * *
332911.....................  Industrial Valve Manufacturing.....................  ..............             750
332912.....................  Fluid Power Valve and Hose Fitting Manufacturing...  ..............           1,000
332913.....................  Plumbing Fixture Fitting and Trim Manufacturing....  ..............           1,000
332919.....................  Other Metal Valve and Pipe Fitting Manufacturing...  ..............             750
332991.....................  Ball and Roller Bearing Manufacturing..............  ..............           1,250
332992.....................  Small Arms Ammunition Manufacturing................  ..............           1,250
 
                                                  * * * * * * *
333111.....................  Farm Machinery and Equipment Manufacturing.........  ..............           1,250
333112.....................  Lawn and Garden Tractor and Home Lawn and Garden     ..............           1,500
                              Equipment Manufacturing.
333120.....................  Construction Machinery Manufacturing...............  ..............           1,250
 
                                                  * * * * * * *
333132.....................  Oil and Gas Field Machinery and Equipment            ..............           1,250
                              Manufacturing.
 
                                                  * * * * * * *
333242.....................  Semiconductor Machinery Manufacturing..............  ..............           1,500
 
                                                  * * * * * * *
333244.....................  Printing Machinery and Equipment Manufacturing.....  ..............             750
 
                                                  * * * * * * *
333415.....................  Air-Conditioning and Warm Air Heating Equipment and  ..............           1,250
                              Commercial and Industrial Refrigeration Equipment
                              Manufacturing.
 
                                                  * * * * * * *
333611.....................  Turbine and Turbine Generator Set Units              ..............           1,500
                              Manufacturing.

[[Page 54175]]

 
333612.....................  Speed Changer, Industrial High-Speed Drive, and      ..............             750
                              Gear Manufacturing.
333613.....................  Mechanical Power Transmission Equipment              ..............             750
                              Manufacturing.
333618.....................  Other Engine Equipment Manufacturing...............  ..............           1,500
333911.....................  Pump and Pumping Equipment Manufacturing...........  ..............             750
333912.....................  Air and Gas Compressor Manufacturing...............  ..............           1,000
333913.....................  Measuring and Dispensing Pump Manufacturing........  ..............             750
333921.....................  Elevator and Moving Stairway Manufacturing.........  ..............           1,000
 
                                                  * * * * * * *
333923.....................  Overhead Traveling Crane, Hoist, and Monorail        ..............           1,250
                              System Manufacturing.
 
                                                  * * * * * * *
333992.....................  Welding and Soldering Equipment Manufacturing......  ..............           1,250
 
                                                  * * * * * * *
333995.....................  Fluid Power Cylinder and Actuator Manufacturing....  ..............             750
333996.....................  Fluid Power Pump and Motor Manufacturing...........  ..............           1,250
 
                                                  * * * * * * *
334111.....................  Electronic Computer Manufacturing..................  ..............           1,250
334112.....................  Computer Storage Device Manufacturing..............  ..............           1,250
 
                                                  * * * * * * *
334210.....................  Telephone Apparatus Manufacturing..................  ..............           1,250
334220.....................  Radio and Television Broadcasting and Wireless       ..............           1,250
                              Communications Equipment Manufacturing.
 
                                                  * * * * * * *
334412.....................  Bare Printed Circuit Board Manufacturing...........  ..............             750
334413.....................  Semiconductor and Related Device Manufacturing.....  ..............           1,250
 
                                                  * * * * * * *
334417.....................  Electronic Connector Manufacturing.................  ..............           1,000
334418.....................  Printed Circuit Assembly (Electronic Assembly)       ..............             750
                              Manufacturing.
 
                                                  * * * * * * *
334510.....................  Electromedical and Electrotherapeutic Apparatus      ..............           1,250
                              Manufacturing.
334511.....................  Search, Detection, Navigation, Guidance,             ..............           1,250
                              Aeronautical, and Nautical System and Instrument
                              Manufacturing.
 
                                                  * * * * * * *
334513.....................  Instruments and Related Products Manufacturing for   ..............             750
                              Measuring, Displaying, and Controlling Industrial
                              Process Variables.
334514.....................  Totalizing Fluid Meter and Counting Device           ..............             750
                              Manufacturing.
334515.....................  Instrument Manufacturing for Measuring and Testing   ..............             750
                              Electricity and Electrical Signals.
334516.....................  Analytical Laboratory Instrument Manufacturing.....  ..............           1,000
334517.....................  Irradiation Apparatus Manufacturing................  ..............           1,000
 
                                                  * * * * * * *
334614.....................  Software and Other Prerecorded Compact Disc, Tape,   ..............           1,250
                              and Record Reproducing.
335110.....................  Electric Lamp Bulb and Part Manufacturing..........  ..............           1,250
335121.....................  Residential Electric Lighting Fixture Manufacturing  ..............             750
 
                                                  * * * * * * *
335210.....................  Small Electrical Appliance Manufacturing...........  ..............           1,500
335221.....................  Household Cooking Appliance Manufacturing..........  ..............           1,500
335222.....................  Household Refrigerator and Home Freezer              ..............           1,250
                              Manufacturing.
335224.....................  Household Laundry Equipment Manufacturing..........  ..............           1,250
335228.....................  Other Major Household Appliance Manufacturing......  ..............           1,000
 
                                                  * * * * * * *
335312.....................  Motor and Generator Manufacturing..................  ..............           1,250
335313.....................  Switchgear and Switchboard Apparatus Manufacturing.  ..............           1,250
 
                                                  * * * * * * *
335911.....................  Storage Battery Manufacturing......................  ..............           1,250
 
                                                  * * * * * * *
335932.....................  Noncurrent-Carrying Wiring Device Manufacturing....  ..............           1,000
 
                                                  * * * * * * *
336111.....................  Automobile Manufacturing...........................  ..............           1,500

[[Page 54176]]

 
336112.....................  Light Truck and Utility Vehicle Manufacturing......  ..............           1,500
336120.....................  Heavy Duty Truck Manufacturing.....................  ..............           1,500
 
                                                  * * * * * * *
336212.....................  Truck Trailer Manufacturing........................  ..............           1,000
336213.....................  Motor Home Manufacturing...........................  ..............           1,250
336214.....................  Travel Trailer and Camper Manufacturing............  ..............           1,000
336310.....................  Motor Vehicle Gasoline Engine and Engine Parts       ..............           1,000
                              Manufacturing.
336320.....................  Motor Vehicle Electrical and Electronic Equipment    ..............           1,000
                              Manufacturing.
336330.....................  Motor Vehicle Steering and Suspension Components     ..............           1,000
                              (except Spring) Manufacturing.
336340.....................  Motor Vehicle Brake System Manufacturing...........  ..............           1,250
336350.....................  Motor Vehicle Transmission and Power Train Parts     ..............           1,500
                              Manufacturing.
336360.....................  Motor Vehicle Seating and Interior Trim              ..............           1,500
                              Manufacturing.
336370.....................  Motor Vehicle Metal Stamping.......................  ..............           1,000
336390.....................  Other Motor Vehicle Parts Manufacturing............  ..............           1,000
 
                                                  * * * * * * *
336412.....................  Aircraft Engine and Engine Parts Manufacturing.....  ..............           1,500
336413.....................  Other Aircraft Parts and Auxiliary Equipment         ..............        \7\1,250
                              Manufacturing \7\.
336414.....................  Guided Missile and Space Vehicle Manufacturing.....  ..............           1,250
336415.....................  Guided Missile and Space Vehicle Propulsion Unit     ..............           1,250
                              and Propulsion Unit Parts Manufacturing.
 
                                                  * * * * * * *
336510.....................  Railroad Rolling Stock Manufacturing...............  ..............           1,500
336611.....................  Ship Building and Repairing........................  ..............           1,250
336612.....................  Boat Building......................................  ..............           1,000
336991.....................  Motorcycle, Bicycle, and Parts Manufacturing.......  ..............           1,000
336992.....................  Military Armored Vehicle, Tank, and Tank Component   ..............           1,500
                              Manufacturing.
336999.....................  All Other Transportation Equipment Manufacturing...  ..............           1,000
337110.....................  Wood Kitchen Cabinet and Countertop Manufacturing..  ..............             750
337121.....................  Upholstered Household Furniture Manufacturing......  ..............           1,000
337122.....................  Nonupholstered Wood Household Furniture              ..............             750
                              Manufacturing.
337124.....................  Metal Household Furniture Manufacturing............  ..............             750
337125.....................  Household Furniture (except Wood and Metal)          ..............             750
                              Manufacturing.
 
                                                  * * * * * * *
337211.....................  Wood Office Furniture Manufacturing................  ..............           1,000
 
                                                  * * * * * * *
337214.....................  Office Furniture (except Wood) Manufacturing.......  ..............           1,000
 
                                                  * * * * * * *
337910.....................  Mattress Manufacturing.............................  ..............           1,000
337920.....................  Blind and Shade Manufacturing......................  ..............           1,000
 
                                                  * * * * * * *
339112.....................  Surgical and Medical Instrument Manufacturing......  ..............           1,000
339113.....................  Surgical Appliance and Supplies Manufacturing......  ..............             750
339114.....................  Dental Equipment and Supplies Manufacturing........  ..............             750
339115.....................  Ophthalmic Goods Manufacturing.....................  ..............           1,000
 
                                                  * * * * * * *
339920.....................  Sporting and Athletic Goods Manufacturing..........  ..............             750
 
                                                  * * * * * * *
339940.....................  Office Supplies (except Paper) Manufacturing.......  ..............             750
 
                                                  * * * * * * *
339992.....................  Musical Instrument Manufacturing...................  ..............           1,000
339993.....................  Fastener, Button, Needle, and Pin Manufacturing....  ..............             750
 
                                                  * * * * * * *
339995.....................  Burial Casket Manufacturing........................  ..............           1,000
 
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------


[[Page 54177]]

* * * * *
Footnotes
* * * * *
    3. NAICS code 311421--For purposes of Government procurement for 
food canning and preserving, the standard of 500 employees excludes 
agricultural labor as defined in 3306(k) of the Internal Revenue 
Code, 26 U.S.C. 3306(k).
    4. NAICS code 324110--To qualify as small for purposes of 
Government procurement, the petroleum refiner, including its 
affiliates, must be a concern that has no more than 1,500 employees 
OR no more than 200,000 barrels per calendar day total Operable 
Atmospheric Crude Oil Distillation capacity. Capacity includes all 
domestic and foreign affiliates, owned or leased facilities, and 
facilities under a processing agreement or an arrangement such as an 
exchange agreement or a throughput. To qualify under the capacity 
size standard, the firm, together with its affiliates, must be 
primarily engaged in refining crude petroleum into refined petroleum 
products. A firm's ``primary industry'' is determined in accordance 
with 13 CFR 121.107.
    5. NAICS code 326211--For Government procurement, a firm is 
small for bidding on a contract for pneumatic tires within Census 
NAICS Product Classification codes 3262111 and 3262113, provided 
that:
    (a) The value of tires within Census NAICS Product 
Classification codes 3262113 which it manufactured in the United 
States during the previous calendar year is more than 50 percent of 
the value of its total worldwide manufacture,
    (b) The value of pneumatic tires within Census NAICS Product 
Classification codes 3262113 comprising its total worldwide 
manufacture during the preceding calendar year was less than 5 
percent of the value of all such tires manufactured in the United 
States during that period, and
    (c) The value of the principal product which it manufactured or 
otherwise produced, or sold worldwide during the preceding calendar 
year is less than 10 percent of the total value of such products 
manufactured or otherwise produced or sold in the United States 
during that period.
* * * * *
    7. NAICS code 336413--Contracts for the rebuilding or overhaul 
of aircraft ground support equipment on a contract basis are 
classified under NAICS code 336413.
* * * * *

    Dated: August 25, 2014.
Maria Contreras-Sweet,
Administrator.
[FR Doc. 2014-20837 Filed 9-9-14; 8:45 am]
BILLING CODE 8025-01-P