[Federal Register Volume 84, Number 138 (Thursday, July 18, 2019)]
[Rules and Regulations]
[Pages 34261-34281]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-14980]
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Rules and Regulations
Federal Register
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This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
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Federal Register / Vol. 84, No. 138 / Thursday, July 18, 2019 / Rules
and Regulations
[[Page 34261]]
SMALL BUSINESS ADMINISTRATION
13 CFR Part 121
RIN 3245-AH17
Small Business Size Standards: Adjustment of Monetary-Based Size
Standards for Inflation
AGENCY: U.S. Small Business Administration.
ACTION: Interim final rule with request for comments.
-----------------------------------------------------------------------
SUMMARY: The U.S. Small Business Administration (SBA or Agency) is
adjusting the monetary-based industry size standards (i.e., receipts-
and assets-based) for inflation that has occurred since the last
adjustment in 2014. These size standards will be reviewed again as part
of the ongoing second 5-year review of size standards, as mandated by
the Small Business Jobs Act of 2010 (Jobs Act). Also adjusted for
inflation are receipts-based size standards that apply to sales or
leases of Government property and stockpile purchases.
DATES: Effective Date: This rule is effective August 19, 2019.
Comment Date: Comments must be received on or before September 16,
2019.
ADDRESSES: You may submit comments, identified by RIN 3245-AH17, by any
of the following methods: (1) Federal eRulemaking Portal: https://www.regulations.gov, following the specific instructions for submitting
comments; or (2) Mail/Hand Delivery/Courier: U.S. Small Business
Administration, Khem R. Sharma, Ph.D., Chief, Office of Size Standards,
409 Third Street SW, Mail Code 6530, Washington, DC 20416.
SBA will post all comments to this interim final rule on https://www.regulations.gov. If you wish to submit confidential business
information (CBI) as defined in the User Notice at https://www.regulations.gov, you must submit such information to the U.S. Small
Business Administration, Khem R. Sharma, Ph.D., Chief, Office of Size
Standards, 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., Office of
Size Standards, (202) 205-6618 or [email protected].
SUPPLEMENTARY INFORMATION: As explained in the SBA's ``Size Standards
Methodology'' white paper available at https://www.sba.gov/size and at
https://www.regulations.gov (Docket ID: SBA-2018-0004), SBA reviews
small business size standards and makes necessary adjustments to them
for two reasons: (i) Changes in industry structure and Federal market
conditions and (ii) inflation. Prior to the 2014 inflation adjustment,
SBA reviewed all monetary-based industry size standards with respect to
industry structure and Federal market conditions as part of the first
5-year review of size standards required by section 1344 of the Small
Business Jobs Act of 2010 (Jobs Act) (Pub. L. 111-240, 124 Stat. 2504
(September 27, 2010)). In this rule, SBA is adjusting its monetary-
based industry size standards for inflation that has occurred since the
last inflation adjustment, which was published in June 2014 (79 FR
33647 (June 12, 2014)). These include receipts-based size standards for
518 industries and 9 subindustries (i.e., ``exceptions'' in the SBA
Table of Size Standards), as well as assets-based size standards for 5
industries. As part of the ongoing second 5-year review of size
standards required by the Jobs Act, SBA will review these size
standards again in the near future to determine whether further
adjustments are needed based on industry and Federal market conditions.
Additionally, SBA is adjusting 2 program-specific receipts-based size
standards, namely, (1) sales or leases of Government property and (2)
stockpile purchases. However, as explained elsewhere in this rule, SBA
is not adjusting either (1) the tangible net worth and net income-based
alternative size standard established under the Jobs Act for its 7(a)
and 504 Loan Programs; or (2) the tangible net worth and net income-
based alternative size standard established for the Small Business
Investment Company (SBIC) Program.
SBA is required to assess the impact of inflation on its monetary-
based size standards at least once every 5 years (see SBA Interim Final
Rule: Small Business Size Standards: Inflation Adjustment to Monetary
Based Size Standards (67 FR 3041 (January 23, 2002)) and 13 CFR
121.102(c)). Although the provision does not mandate that SBA actually
adjust size standards for inflation every 5 years, it does provide
assurances to the public that the Agency is monitoring inflation to
determine whether or not to adjust size standards within a reasonable
period of time since its last inflation adjustment.
Previous inflation adjustments to size standards were in SBA's
Interim Final Rule: Small Business Size Standards: Inflation Adjustment
to Monetary Based Size Standards ((79 FR 33647 (June 12, 2014)) (SBA
Final Rule at 81 FR 3949 (January 25, 2016) finalized the 2014 IFR
without change); in SBA Final Rule: Small Business Size Standards:
Inflation Adjustment to Size Standards, Business Loan Program, and
Disaster Assistance Loan Program (73 FR 41237 (July 18, 2008)); SBA
Interim Final Rule: Small Business Size Standards, Inflation Adjustment
to Size Standards; Business Loan Program; Disaster Assistance Loan
Program (70 FR 72577 (December 6, 2005)); SBA Final Rule: Small
Business Size Standards: Inflation Adjustment to Size Standards (67 FR
65285 (October 24, 2002)); SBA Interim Final Rule: Small Business Size
Standards; Inflation Adjustment to Size Standards (67 FR 3041 (January
23, 2002)); SBA Final Rule: Small Business Size Standards; Inflation
Adjustment to Size Standards (59 FR 16513 (April 7, 1994)); SBA Final
Rule: Small Business Size Standards; Revision (49 FR 5024 (February 9,
1984)); and SBA Final Rule: Small Business Size Standards Regulation
(40 FR 32824 (August 5, 1975)).
A number of businesses may have lost small business eligibility for
Federal assistance under SBA's monetary-based industry size standards
simply because of inflation-led revenue growth that has occurred since
the 2014 adjustment. This rule aims to reinstate those firms'
[[Page 34262]]
small business eligibility for Federal assistance.
As mentioned above, the adjustment for inflation in this rule
applies to all monetary-based industry size standards, including the
$750,000 receipts-based size standard for agricultural industries,
which was previously set by statute. However, section 1831 of the
National Defense Authorization Act for Fiscal Year 2017 (NDAA 2017)
(Pub. L. 114-328, 130 Stat. 2000, December 23, 2016) directed SBA to
establish size standards for all agricultural enterprises in the same
manner as for other industries and to include them in the 5-year
rolling review procedures established under section 1344(a) of the Jobs
Act.
The inflation adjustments in this rule are separate from revisions
to size standards made during the 5-year rolling reviews of size
standards, as mandated by the Jobs Act. SBA's 5-year size standards
rolling reviews primarily focus on industry structure (i.e., average
firm size, startup costs and entry barriers, industry concentration,
and distribution of firms by business size) and Federal contracting
trends (i.e., small business share of Federal contract dollars relative
to small business share of total industry's receipts) for industries
with significant contracting activities.
Rather than reviewing all size standards at one time, for the 5-
year rolling reviews, SBA reviews size standards on a Sector-by-Sector
basis over a period. The objective of the rolling review is to review
all size standards and make necessary adjustments to reflect current
industry structure and Federal market conditions. By including
inflation as an additional factor in the analysis, it would mean
applying different inflation rates to different sectors at different
times. For example, the applicable inflation would be lower for sectors
reviewed earlier in the cycle and higher for those reviewed later in
the cycle, resulting in inconsistent size standards across sectors and
industries. To avoid this, SBA has decided to evaluate all monetary
industry-based size standards for inflation separate from the 5-year
rolling review.
Updating size standards based on inflation--in addition to updating
size standards based on the latest industry and Federal contracting
data under the 5-year rolling review--not only satisfies the Jobs Act's
mandate that SBA review all size standards, but also is consistent with
Executive Order 13563 on improving regulation and regulatory review.
This also fulfills the SBA's regulatory requirement to review size
standards for inflation every 5 years.
SBA's Inflation Adjustment Methodology
For this interim final rule, SBA has used the inflation adjustment
methodology it described in its ``Size Standards Methodology'' white
paper, which is available at https://www.sba.gov/size. SBA applied the
same methodology in its previous inflation adjustments, including the
latest adjustment in 2014. This methodology can be described in terms
of the following steps:
1. Selecting an inflation measure.
2. Selecting the base and end periods.
3. Calculating the inflation rate.
4. Adjusting the monetary based size standards.
1. Selecting an Inflation Measure
SBA establishes small business size standards to determine the
eligibility of businesses for a wide variety of SBA's and other Federal
programs. Many businesses participating in those programs are engaged
in multiple industries and are producing a wide range of goods and
services. Therefore, it is important that the Agency use a broad
measure of inflation to adjust its size standards. SBA's preferred
measure of inflation has consistently been the chain-type price index
for the U.S. Gross Domestic Product (GDP price index), published by the
U.S. Department of Commerce, Bureau of Economic Analysis (BEA) on a
quarterly basis as part of its National Income and Product Accounts
(NIPA) and available at https://www.bea.gov/iTable.
In its 2014 interim final rule (79 FR 33647 (June 12, 2014)),
besides the GDP price index, SBA reviewed several alternative inflation
measures published by the Federal Government (including the consumer
price index, the personal consumption expenditures price index, the
producer price index, and the employment cost index) for their
appropriateness to use for adjusting SBA's size standards. Among all
these indexes, SBA determined that the GDP price index is the most
comprehensive measure of movements in the general price level in the
economy and thus the most appropriate measure of inflation for
adjusting SBA's size standards. Thus, as in the previous inflation
adjustments, SBA has decided to use the GDP price index to adjust
monetary-based size standards for the current inflation adjustment.
2. Selecting the Base and End Periods
For this inflation adjustment (excluding the $750,000 agricultural
size standard adjustment), SBA selected the first quarter of 2014 as
the base period because it was the end period for the 2014 adjustment.
SBA selected the fourth quarter of 2018 as the end period because it
was the latest quarter for which GDP price indexes were available when
that rule was developed.
The current $750,000 size standard for agricultural industries was
established by Congress in December of 2000 (Pub. L. 106-554, 114 Stat.
2763, Dec. 21, 2000) and was not included in previous inflation
adjustments. However, section 1831 of the NDAA 2017 directed SBA to
review and adjust size standards for all agricultural enterprises in
the same manner as for other industries. Thus, in this rule, SBA is
also adjusting the $750,000 size standard for agricultural industries
by using the first quarter of 2001 as the base period and the fourth
quarter of 2018 as the end period.
3. Calculating the Rate of Inflation
The GDP price index for the base period (excluding the $750,000
agricultural size standard) was 102.551 and the GDP price index for the
end period was 111.134. Accordingly, inflation increased 8.37 percent
from the first quarter of 2014 to the fourth quarter of 2018 (((111.134
/ 102.551) - 1) x 100 percent = 8.37 percent).
The GDP price index for the agricultural base period was 79.232 and
the GDP price index for the agricultural end period was 111.134.
Accordingly, inflation increased 40.26 percent from the first quarter
of 2001 to the fourth quarter of 2018 (((111.134 / 79.232) - 1) x 100
percent = 40.26 percent).
4. Making Adjustments to Size Standards
Adjustment to receipts-based industry size standards: All receipts-
based size standards (excluding the $750,000 agricultural size
standard) were adjusted by multiplying their current levels by 1.0837
and rounding the results to the nearest $500,000.
Adjustment to the agricultural size standard: SBA multiplied the
current size standard of $750,000 for 46 agricultural industries by
1.4026 to obtain a non-rounded size standard of $1.05 million. Rounding
to the nearest $500,000 results in an adjusted size standard of $1.0
million for all 46 agricultural industries.
Adjustment to the assets-based size standard: Currently, 5
industries in North American Industry Classification System (NAICS)
Sector 52, Finance and Insurance, have the size standard of $550
million in average assets. Following the inflation adjustment
methodology described above, the assets-based size standard was
adjusted
[[Page 34263]]
by multiplying the current value of $550 million by 1.0837. The result
was $596 million, which SBA rounded to $600 million.
Table 1, ``Inflation Adjustment to Monetary-based Size Standards,''
summarizes the results of the inflation adjustment for 16 different
receipts-based size standards levels, ranging from $0.75 million to
$38.5 million, as well as one assets-based size standard of $550
million. The first column of Table 1 shows the current monetary-based
industry size standards; the second column shows their inflation-
adjusted values before rounding; the third column shows their
inflation-adjusted values after rounding; and the fourth column shows
the count of industries and subindustries (or ``exceptions'') that are
associated with each of the receipts- and assets-based size standards
levels. The results lead to adjustment to 532 size standards, including
523 industries and 9 subindustries or ``exceptions.''
Table 1--Inflation Adjustment to Monetary-Based Size Standards
----------------------------------------------------------------------------------------------------------------
Size standards Size standards
adjusted for adjusted for Number of
Current monetary-based size standards ($ million) inflation, before inflation, after industries (incl.
rounding ($ rounding ($ exceptions)
million) million)
(1) (2) (3) (4)
----------------------------------------------------------------------------------------------------------------
$ 0.75................................................. $1.05 $1.0 46
5.5.................................................... 6.0 6.0 4
7.5.................................................... 8.1 8.0 126
11.0................................................... 11.9 12.0 39
15.0................................................... 16.3 16.5 95
18.0................................................... 19.5 19.5 1
19.0................................................... 20.6 20.5 2
20.5................................................... 22.2 22.0 39
25.0................................................... 27.1 27.0 1
27.5................................................... 29.8 30.0 55
29.5................................................... 32.0 32.0 3
32.0................................................... 34.7 34.5 2
32.5................................................... 35.2 35.0 39
36.5................................................... 39.6 39.5 11
37.5................................................... 40.6 40.5 1
38.5................................................... 41.7 41.5 63
550.................................................... 596 600 5
Total Industries (including subindustries or ................. ................. 532
``exceptions'')...................................
----------------------------------------------------------------------------------------------------------------
Adjustment to program-based size standards: Most SBA and other
Federal programs apply SBA's industry-based size standards. SBA has
also established a few size standards on a program basis rather than on
an industry basis. Some of these size standards are also adjusted for
inflation in the same manner as the receipts-based and assets-based
industry size standards. Table 2, ``Inflation Adjustment to Program-
based Receipts Size Standards,'' shows the program-based size standards
and their corresponding inflation-adjusted values. The size standard
for ``smaller enterprises'' under the Small Business Investment Company
(SBIC) program is set by regulation (see 13 CFR 107.710(a)) and,
therefore, not adjusted. SBA is also electing not to adjust the SBIC
program's tangible net worth and net income-based alternate size
standard in 13 CFR 121.301(c). SBA adjusted the tangible net worth and
net income alternate size standard for the SBIC program for inflation
in 2014 (79 FR 33647 (June 12, 2014)). SBA has determined that the
current SBIC alternative size standard levels are enough to accomplish
its program objectives and that no further increase is necessary at
this time.
Table 2--Inflation Adjustment to Program-Based Receipts Size Standards
----------------------------------------------------------------------------------------------------------------
Size standard in millions of dollars
-------------------------------------
Program CFR citation Inflation-
Current size adjusted size
standard standard
----------------------------------------------------------------------------------------------------------------
Sales or leases of Government property..... 13 CFR 121.502(a)(2)......... $7.5 $8.0
Stockpile purchases........................ 13 CFR 121.512............... 62.5 67.5
----------------------------------------------------------------------------------------------------------------
Special Considerations
Size Standard for Leasing of Building Space to the Federal
Government by Owners--Footnote 9: The size standard found in Footnote 9
to 13 CFR 121.201 (Leasing of Building Space to the Federal Government
by Owners) was also adjusted for inflation. The current size standard
of $38.5 million was multiplied by 1.0837 to obtain an adjusted size
standard of $41.5 million after rounding. As explained more fully in
the prior Inflation Adjustment (79 FR 33647), this size standard
exception applies to all 4 industries in NAICS Group 5311, Lessors of
Real Estate.
Alternative Size Standard for 7(a) and 504 Loan Programs: Effective
September 27, 2010, Congress established through the Jobs Act a new
temporary alternative size standard of tangible net worth of not more
than $15 million and net income of not more than $5 million for SBA's
7(a) and 504 Loan Programs. On September 29, 2010, SBA issued
Information Notice 5000-1175 (available at https://www.sba.gov/sites/
[[Page 34264]]
default/files/files/bank_5000-1175_0.pdf) advising lenders and the
public that, effective September 27, 2010, the new statutory
alternative size standard will apply for its 7(a) and 504 Loan
Programs, thereby replacing the existing alternative size standard of
$8.5 million in tangible net worth and $3 million in net income, then
set forth in 13 CFR 121.301(b)(2). The Jobs Act also provided that the
new temporary alternative size standard would remain in effect for the
7(a) and 504 Loan Programs until the SBA's Administrator establishes a
different size standard through rulemaking. For this reason, in this
rule, SBA is not adjusting the new alternative size standard for its
7(a) and 504 Loan programs for inflation. SBA will issue a different
rule to establish a permanent alternative size standard for those
programs.
Justification for Updating Size Standards for Inflation as an Interim
Final Rule
In general, to revise or update size standards, SBA publishes a
proposed rule for public comment before issuing a final rule, in
accordance with the Administrative Procedure Act (APA), 5 U.S.C. 553,
and SBA regulations, 13 CFR 101.108. The APA provides an exception to
this standard rulemaking process, however, in situations where an
agency finds good cause to adopt a rule without prior public
participation. (See 5 U.S.C. 553(b)(3)(B)). The good cause requirement
is satisfied when prior public participation is impracticable,
unnecessary, or contrary to the public interest. Under those
conditions, an agency may publish an interim final rule without first
soliciting public comment. In applying the good cause exception to the
standard rulemaking process, Congress recognized that special
circumstances might arise justifying issuance of a rule without prior
public participation.
As stated above, the last time SBA made inflation adjustments to
size standards was 2014. A number of businesses may have lost small
business eligibility for Federal assistance under SBA's monetary-based
size standards simply as a result of the inflation that has occurred
since that time. This rule is necessary to make those businesses
eligible for Federal assistance. Any delay in the adoption of
inflation-adjusted size standards could cause significant harm to those
businesses and others that are about to exceed current size standards
simply due to inflation-driven revenue growth. Immediate implementation
of this rule would enable more businesses to qualify under SBA's
monetary-based size standards, which would enable them to apply for
Federal small business assistance and thereby create jobs.
The standard notice and comment rulemaking could delay the
implementation of this rule by at least 8 to 12 months. Such a delay
would be contrary to the public interest as it would delay the
eligibility of those businesses for Federal small business assistance,
perhaps forcing some of them to cease operations before a final rule
could be promulgated under the standard rulemaking process.
Furthermore, the inflation adjustment will become outdated by the time
the final rule is published under notice and comment rulemaking.
For the above reasons, SBA finds that good cause exists to publish
this rule as an interim final rule. SBA's rationale for preparing this
action as an interim final rule and giving it immediate effect is
consistent with the Agency's statutory obligation to protect the
interests of small businesses, thereby enabling them to maintain
competitiveness and strengthen the overall economy. Small Business Act,
15 U.S.C. 631(a). SBA had also implemented inflation adjustments to
size standards through an interim final rule in 2002, 2005, and 2014
without any controversies.
By publishing this rule as an interim final rule, SBA is not
excluding public participation in the rulemaking process. SBA is
soliciting comments from interested parties on this interim final rule
on a number of issues, including SBA's methodology for inflation
adjustment and alternative measures of inflation. SBA will evaluate all
comments and revise, if necessary, this rule, and publish a final rule
at a later date.
Request for Comments
SBA seeks comments on this rule, specifically on the following
issues:
1. SBA welcomes comments from interested parties on SBA's size
standards methodology for inflation adjustment to its size standards.
Specifically, SBA seeks comment on whether the GDP price index is an
appropriate measure of inflation for adjusting size standards. The
Agency invites suggestions, along with supporting data and analysis, if
a different measure of inflation would be more appropriate.
2. SBA also invites comments on whether it should adjust employee-
based industry size standards for labor productivity growth and
technological advancements, similar to adjusting monetary-based
industry size standards for inflation.
3. SBA also invites comments on any other aspects of this
rulemaking, including the changes to program-based and assets-based
size standards.
Compliance With Executive Orders 12866, 13563, 12988, 13132, and 13771,
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
interim final rule is not a ``significant regulatory action'' for
purposes of Executive Order (E.O.) 12866. However, in order to help
explain the need for this rule and its potential benefits and costs,
SBA is providing below a Cost/Benefit Analysis of the rule. This is
also not a ``major rule'' under the Congressional Review Act (5 U.S.C.
800).
Cost/Benefit Analysis
1. Is there a need for the regulatory action?
SBA's statutory mission is to aid and assist small businesses
through a variety of financial, procurement, business development, and
advocacy programs. To assist the intended beneficiaries of these
programs effectively, SBA must establish distinct definitions of which
businesses are deemed small businesses. The Small Business Act (15
U.S.C. 632(a)) (Act) delegates to the SBA Administrator the
responsibility for establishing small business definitions. The Act
also requires that small business definitions vary from industry to
industry to reflect industry differences. The supplementary information
to this interim final rule explains how SBA adjusts size standards for
inflation. SBA is required to assess the impact of inflation on its
monetary-based size standards at least once every 5 years (67 FR 3041
(January 23, 2002) and 13 CFR 121.102(c)). Many businesses may have
lost small business eligibility for Federal assistance under SBA's
monetary-based size standards simply because of inflation that has
occurred since the last inflation adjustment to size standards in 2014.
This interim final rule aims to make those businesses eligible again
for Federal assistance.
2. What are the potential benefits and costs of this regulatory action?
The most significant benefit of this interim final rule is to
enable businesses that have exceeded size standards simply due to
inflation-driven revenue growth to regain eligibility for Federal small
business assistance programs. This will also help businesses about to
[[Page 34265]]
exceed their size standards to retain small business eligibility for
Federal programs for a longer period. These programs 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.
Besides small business contracting opportunities and financial
assistance, small businesses also benefit from reduced fees, less
paperwork, and fewer compliance requirements that are available to
small businesses through Federal agencies that use SBA's monetary-based
size standards.
The Baseline
OMB directs agencies to establish an appropriate baseline to
evaluate the benefits, costs, and/or transfer impacts of regulatory
actions, as well as discuss the alternative approaches considered, if
any. The baseline should represent the agency's best assessment of what
the world would look like absent the regulatory action. For a new
regulatory action modifying an existing regulation (such as adjusting
the existing size standards for inflation), a baseline assuming no
change to the regulation (i.e., maintaining the status quo) generally
provides an appropriate benchmark for evaluating benefits, costs, or
transfer impacts of proposed regulatory changes and their alternatives.
Based on the 2012 Economic Census (https://www2.census.gov/econ2012/EC/) special tabulations (the latest available and compiled
from a special tabulation provided by the U.S. Census Bureau), 2012
County Business Patterns Reports (https://www.census.gov/programs-surveys/cbp.html) (for industries not covered by the Economic Census),
and 2012 Agricultural Census (https://www.nass.usda.gov/) tabulations
(for agricultural industries), of a total of about 7.2 million firms in
all industries with receipts-based size standards, 96.2 percent are
considered small and 3.8 percent are considered other than small under
the current size standards. Similarly, based on the fourth quarter of
2018 data from the Federal Deposit Insurance Corporation (FDIC),
available at https://www5.fdic.gov/sdi/download_large_list_outside.asp,
and the National Credit Union Administration (NCUA), available at
https://www.ncua.gov/analysis/credit-union-corporate-call-report-data/quarterly-data, of about 13,600 total firms subject to the assets-based
size standards, 83 percent were considered small.
Based on the data from the Federal Procurement Data System--Next
Generation (FPDS-NG) for fiscal years 2015-2017, available at https://www.fpds.gov, on average, about 88,700 unique firms in industries
subject to monetary-based size standards received at least one Federal
contract during that period. Of those 88,700 firms, 83 percent were
small. Businesses subject to monetary-based standards received $182
billion in annual average Federal contract dollars during that period,
of which $63.7 billion or about 35 percent went to small businesses. Of
total dollars awarded to small businesses subject to monetary-based
size standards, $45 billion, or 71 percent, was awarded through various
small business set-aside programs and the other 29 percent was awarded
through non-set aside contracts.
Based on the SBA's internal data on its loan programs, small
businesses subject to monetary-based size standards received, on an
annual basis, a total of nearly 58,600 7(a) and 504 loans for fiscal
years 2016-2018, totaling $24.5 billion, of which 85 percent was issued
through the 7(a) program and 15 percent was issued through the 504/CDC
program. During fiscal year 2018, small businesses in those industries
also received about 11,350 loans through the SBA's Economic Injury
Disaster Loan (EIDL) program, totaling about $1.0 billion on an annual
basis. Table 3, ``Impact Analysis Inflation Adjustment to Monetary-
based Size Standards,'' provides these baseline results.
Table 3--Impact Analysis Inflation Adjustment to Monetary-Based Size Standards
----------------------------------------------------------------------------------------------------------------
Current After inflation
Factor (baseline) adjustment Percent change
----------------------------------------------------------------------------------------------------------------
Total firms subject to monetary-based size standard 7.18 7.18 0.0
(million)--2012 Economic Census..........................
Total small firms subject to monetary-based standard 6.91 7.00 1.3
(million)--2012 Economic Census..........................
Total small firms as % of total firms--2012 Economic 96.2 97.4 1.2
Census...................................................
Total small firms share (%) of industry receipts for 29.0 29.7 0.7
receipt-based size standards.............................
Total small firms share (%) of industry assets for assets- 5.6 6.0 0.4
based size standards.....................................
Average total number of unique firms with monetary-based 88,700 88,700 0.0
size standards getting Federal contracts--FPDS-NG (2015-
2017)....................................................
Average total number of unique small firms with monetary- 73,825 74,706 1.2
based size standards getting Federal contracts--FPDS-NG
(2015-2017)..............................................
Unique small firms as % with monetary-based size standards 83.2 84.2 1.2
getting Federal contracts................................
Average total contract dollars awarded to business $182.1 $182.1 0.0
concerns, subject to monetary-based standards ($
billion)--FPDS-NG (2015-2017)............................
Average total small business contract dollars awarded to $63.7 $64.4 1.1
businesses subject to monetary-based size standard ($
billion)--FPDS-NG (2015-2017)............................
Small business dollars as % of total dollars awarded to 34.9 35.3 1.1
firms subject to monetary-based standards................
Annual average number of 7(a) and 504 loans to businesses 58,569 58,685 0.2
subject to monetary-based standards (2015-2018)..........
Annual average amount of 7(a) and 504 loans awarded issued $24.5 $24.6 0.2
to firms subject to monetary-based standard ($ billion)
(2015-2018)..............................................
[[Page 34266]]
Number of EIDL loans to businesses subject to monetary- 11,345 11,376 0.3
based size standards (2018)..............................
Amount of EIDL loans ($ million).......................... $1,011 $1,014 0.3
----------------------------------------------------------------------------------------------------------------
Benefits
The most significant benefits to businesses from the adjustment of
size standards for include: (1) Some businesses that are above the
current size standards may gain small business status under the higher,
inflation-adjusted 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 this inflation adjustment will enable
approximately 89,730 firms in industries and subindustries with
receipts-based size standards and about 161 firms in industries with
assets-based size standards that are currently above SBA's size
standards to gain small business status and become eligible for these
programs. This represents a total of 89,891 additional firms that would
qualify as small business under the inflation-adjusted size standards.
This will increase the small business share of total receipts in
industries and subindustries with receipts-based size standards from
29.0 percent to 29.7 percent, and the small business share of total
assets in industries with assets-based size standards from 5.7 percent
to 6.0 percent.
Based on FPDS-NG data from fiscal years 2015-2017, SBA estimates
that firms gaining small business status under the inflation-adjusted
size standards could receive between $700 million and $750 million in
additional small business Federal contract dollars. This represents an
increase of about 1.2 percent over the baseline. The added competition
for many of these procurements could also result in lower prices to the
Government for procurements reserved for small businesses, but SBA
cannot quantify this benefit. Additionally, by allowing businesses
above the size threshold to regain small business status and advanced
small businesses close to size standards to prolong their small status
for a longer period, this interim final rule could also expand the pool
of qualified small firms for agencies to draw upon to meet their small
business procurement requirements.
Based on the fiscal years 2016-2018 SBA loan data, SBA estimates
about 115-120 additional loans totaling between $60 million and $65
million could be made to these newly defined small businesses under
SBA's 7(a) and 504 Loan Programs under the adjusted size standards.
Higher inflation-adjusted size standards will likely result in more
small business guaranteed loans to businesses in these industries, but
it is impractical to try to estimate the exact 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 an 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 inflation-adjusted 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. However, based on
historical trends, SBA estimates that the EIDL Program could issue
about 30 loans per year (a total of about $3 million dollars) to
businesses qualifying as small under the inflation-adjusted size
standards.
Additionally, the newly defined small businesses would also benefit
through reduced fees, less paperwork, and fewer compliance requirements
that are available to small businesses through the Federal Government,
but SBA has no data to quantify this impact.
Costs
To the extent that those 89,891 additional small firms could become
active in Federal procurement programs, the adjusted size standards in
this final interim rule may entail some additional administrative costs
to the government as a result of the increase in the number of
businesses 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 Dynamic Small Business Search (DSBS)
database or at https://certify.sba.gov; more firms seeking
certification as 8(a) or HUBZone firms; more firms qualifying for small
business, WOSB, EDWOSB, SDVOSB, and SDB status; and more firms applying
for SBA's 8(a)/BD and All Small Mentor-Prot[eacute]g[eacute] programs.
With an expanded pool of businesses eligible for small business
assistance under higher size standards due to this inflation
adjustment, it is likely that Federal agencies would set aside more
contracts for small businesses. One may surmise that this might result
in a higher number of small business size protests and additional
processing costs to agencies. However, SBA's historical data on size
protests shows that the number of size protests actually decreased
after an increase in the number businesses qualifying as small as a
result of size standards revisions as part of the first 5-year review
of size standards completed in early 2016. Specifically, on an annual
basis, the number of size protests dropped from about 600 during fiscal
years 2011-2013 (review of most receipts-based size standards was
completed by the end of FY 2013) to about 500 during fiscal years 2014-
2016. Similarly, among those newly defined small businesses seeking
SBA's loans, there could be some additional costs associated with
compliance and verification of their small business status. However,
small business lenders have an option of using the tangible net worth
and net income-based alternative size standard instead of using the
industry-based size standards to establish eligibility for SBA's loans.
For all these reasons, SBA believes that these added administrative
costs will be minor because necessary mechanisms are already in place
to handle these added requirements.
Among those newly defined small businesses seeking SBA's
assistance, there could be some additional costs
[[Page 34267]]
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.
In some cases, 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. However, with agencies likely setting aside
more contracts for small businesses in response to a larger pool of
small businesses under inflation-adjusted higher size standards,
HUBZone firms may receive more set-aside contracts and fewer full and
open contracts, thereby resulting in some cost savings to agencies. SBA
cannot estimate such costs savings because it is impossible to
determine the number and value of unrestricted contracts to be
otherwise awarded to HUBZone firms that will be awarded as set-asides.
However, such cost savings are likely to be relatively small, as only a
small fraction of full and open contracts are awarded to HUBZone
businesses.
Transfer Impacts
The size standards adjustments in this interim final rule 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. With an expanded pool of small businesses available
under the higher inflation-adjusted size standards, 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.
Similarly, some businesses defined as small under the current size
standards may obtain fewer Federal contracts due to the increased
competition from more businesses defined as small under the higher
inflation-adjusted 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 adjustment for inflation to monetary-based industry and
program-specific size standards is consistent with SBA's statutory
mandate to assist small business. This regulatory action promotes the
Administration's objectives. One of SBA's goals in support of the
Administration's objectives is to help individual small businesses
succeed through fair and equitable access to capital and credit,
Government contracts, and management and technical assistance.
Reviewing and modifying size standards when appropriate, including
periodic inflation adjustments, ensures that intended beneficiaries
have access to small business programs designed to assist them.
Executive Order 13563
Executive Order 13563 emphasizes the importance of quantifying both
costs and benefits, reducing costs, harmonizing rules, and promoting
flexibility. A description 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, is
included above in the Cost/Benefit Analysis under Executive Order
12866. Additionally, by reviewing and adjusting size standards for
inflation, SBA is complying with section 6 of Executive Order 13563,
which calls for retrospective analyses of existing rules.
During its March 26, 2019 and April 23, 2019 meetings, SBA updated
the Small Business Procurement Advisory Council (SBPAC) on its upcoming
size standards rules, including this inflation adjustment rule. On
April 18, 2019, SBA also presented a similar update to the small
business audience at the 2019 Annual Government Procurement Conference.
Additionally, SBA issued a revised ``Size Standards Methodology''
white paper and published a notification in the April 27, 2018 issue of
the Federal Register (83 FR 18468) to advise the public that the
document was available for public review and comments. The ``Size
Standards Methodology'' white paper explains how SBA establishes,
reviews, and modifies its receipts-based and employee-based small
business size standards. The white paper also describes how SBA adjusts
size standards for inflation and updates its table of size standards
when OMB revises the NAICS codes every 5 years. On April 11, 2019, SBA
published a Federal Register notification (84 FR 14587) advising the
public that the Agency had issued a revised final ``Size Standards
Methodology'' white paper.
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. This rule does not
have retroactive or preemptive effect.
Executive Order 13132
For purposes of Executive Order 13132, SBA has determined that this
interim final 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
interim final rule has no federalism implications warranting
preparation of a federalism assessment.
Executive Order 13771
This rule is not expected to be an Executive Order 13771 regulatory
action because this rule is not significant under Executive Order
12866.
Paperwork Reduction Act
For the purposes of the Paperwork Reduction Act, 44 U.S.C. Ch. 35,
SBA has determined that this interim final rule will not impose any new
reporting or recordkeeping requirements.
Regulatory Flexibility Act
According to the Regulatory Flexibility Act (RFA), 5 U.S.C. 601-
612, when an agency issues a rulemaking, it must prepare a regulatory
flexibility analysis to address the impact of the rule on small
entities.
Initial Regulatory Flexibility Analysis
Under the Regulatory Flexibility Act (RFA), this interim final rule
may have a significant impact on a substantial number of small
businesses in the industries and subindustries with
[[Page 34268]]
monetary-based size standards. As described above, this rule may affect
small businesses in those industries 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) for this interim final rule to address the following
questions: (1) What is the need for and objective of the rule?; (2)
What are SBA's description and estimate for the number of small
businesses to which the rule will apply?; (3) What are the projected
reporting, recordkeeping, 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 is the need for and objective of the rule?
As discussed above, this revision to monetary-based size standards
to account for inflation will more appropriately define small
businesses. This interim final rule merely restores small business
eligibility in real terms to businesses that have grown above the
existing size standard due to inflation-led revenue growth rather than
due to increased business activity.
Section 3(a) of the Small Business Act (15 U.S.C. 632(a)) gives SBA
the authority to establish and change size standards. Within its
administrative discretion, SBA implemented a policy in its regulations
to review the effect of inflation on size standards at least once every
5 years (13 CFR 121.102(c)) and make any changes as appropriate. A
review of the latest data indicates that inflation has increased a
sufficient amount since the 2014 adjustment, enough to warrant another
inflation adjustment to the current monetary-based size standards. As
discussed above, adjusting size standards for inflation is also
consistent with SBA's statutory requirement to review all size
standards and make necessary adjustments to reflect current market
conditions every 5 years.
2. What are SBA's description and estimate for the number of small
businesses to which the rule will apply?
As discussed above, based on the 2012 Economic Census tabulations,
SBA estimates that about 89,730 additional firms will become small
because of this adjustment to the receipts-based size standards of 518
industries and 8 subindustries. That represents 1.3 percent of the
total number of firms that are small under current monetary-based size
standards. This will result in an increase in the small business share
of total industry receipts in those industries and subindustries from
29.0 percent under the current size standards to 29.7 percent under the
inflation-adjusted size standards. Due to the adjustment of assets-
based size standards in 5 industries, about 160 additional firms will
gain small business status in those industries. This will increase the
small business share of total assets in those industries from 5.7
percent to 6.0 percent. The size standards adopted in this interim
final rule will enable businesses that have exceeded the size standards
for their industries to regain small business status. It will also help
currently small businesses 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; entities that are
not small are ``other than small.''
3. What are the projected reporting, recordkeeping, and other
compliance requirements of the rule?
The inflation adjustment to size standards imposes no additional
reporting or recordkeeping requirements on small businesses. However,
qualifying for Federal procurement and several other programs requires
that businesses register in the System for Award Management (SAM)
database and certify in SAM that they are small annually. Therefore,
newly eligible small businesses opting to participate in those programs
must comply with SAM requirements. Businesses whose status changes in
SAM from other than small to small must update their SAM profiles and
complete the ``representations and certifications'' section of SAM.
However, there are no costs associated with SAM registration or
certification. Changing size standards alters access to SBA's programs
but it does not impose a regulatory burden because it neither regulates
nor controls business behavior.
4. What are the relevant Federal rules which may duplicate, overlap, or
conflict with the rule?
Under section 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, 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 with the approval of SBA's
Administrator if they believe that SBA's size standards are not
appropriate for their programs (13 CFR 121.903). The Regulatory
Flexibility Act authorizes an Agency to establish an alternative small
business definition for Regulatory Flexibility Analysis purposes, 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 measures SBA uses to calculate business size (i.e., number of
employees vs. annual receipts), no practical alternative exists to the
system of numerical size standards.
SBA's only other consideration was whether not to adjust current
size standards for the inflation. However, SBA believes that the 8.37
percent inflation increase that has occurred since the previous
inflation adjustment in June 2014 (and the 40.26 percent inflation
increase that has occurred since 2000, when the current $750,000
agricultural size standard was established by statute) sufficiently
affects the real value of size standards to warrant applying an
increase at this time.
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
[[Page 34269]]
and recordkeeping requirements, Small businesses.
For the reasons set forth in the preamble, SBA amends 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 Subsectors 111 and 112, entries ``113110'' and ``113210'',
Subsectors 114 and 115, entries ``213112'' through ``213115'',
``221310'', ``221320'', and ``221330'', Subsectors 236 through 238,
entries ``441120'', ``441210'', ``441222'', ``441228'', ``441310'', and
``441320'', Subsectors 442 through 448 and 451 through 453, entries
``454110'', ``454210'', ``454390'', and ``481219'', Subsectors 484 and
485, entries ``486210'' and ``486990'', Subsectors 487, 488, and 491,
entry ``492210'', Subsector 493, entries ``511210'', ``512110'',
``512120'', ``512131'', ``512132'', ``512191'', ``512199'', ``512240'',
and ``512290'', Subsector 515, entries ``517410'' and ``517919'',
Subsector 518, entries ``519110'', ``519120'', and ``519190'',
Subsectors 522 and 523, entries ``524113'', ``524114'', ``524127'',
``524128'', ``524130'', ``524210'', ``524291'', ``524292'', and
``524298'', Subsectors 525 and 531 through 533, entries ``541110'',
``541191'', ``541199'', ``541211'', ``541213'', ``541214'', ``541219'',
``541310'', ``541320'', ``541330'', ``541330 first, second and third
sub-entry'', ``541340'', ``541350'', ``541360'', ``541370'',
``541380'', ``541410'', ``541420'', ``541430'', ``541490'', ``541511''
through ``541513'', ``541519'', ``541519 sub-entry'', ``541611'',
``541612'' through ``541614'', ``541618'', ``541620'', ``541690'',
``541720'', ``541810'', ``541820'', ``541830'', ``541840'', ``541850'',
``541860'', ``541870'', ``541890'', ``541910'', ``541921'', ``541922'',
``541930'', ``541940'', and ``541990'', Subsectors 551, 561, 562, 611,
621 through 624, 711 through 713, 721, 722, and 811 through 813.
0
b. Revise footnote 9.
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
NAICS codes NAICS U.S. industry title Size standards in millions in number of
of dollars employees
----------------------------------------------------------------------------------------------------------------
Sector 11--Agriculture, Forestry, Fishing and Hunting
Subsector 111--Crop Production
----------------------------------------------------------------------------------------------------------------
111110............................ Soybean Farming............. $1.0........................ ................
111120............................ Oilseed (except Soybean) $1.0........................ ................
Farming.
111130............................ Dry Pea and Bean Farming.... $1.0........................ ................
111140............................ Wheat Farming............... $1.0........................ ................
111150............................ Corn Farming................ $1.0........................ ................
111160............................ Rice Farming................ $1.0........................ ................
111191............................ Oilseed and Grain $1.0........................ ................
Combination Farming.
111199............................ All Other Grain Farming..... $1.0........................ ................
111211............................ Potato Farming.............. $1.0........................ ................
111219............................ Other Vegetable (except $1.0........................ ................
Potato) and Melon Farming.
111310............................ Orange Groves............... $1.0........................ ................
111320............................ Citrus (except Orange) $1.0........................ ................
Groves.
111331............................ Apple Orchards.............. $1.0........................ ................
111332............................ Grape Vineyards............. $1.0........................ ................
111333............................ Strawberry Farming.......... $1.0........................ ................
111334............................ Berry (except Strawberry) $1.0........................ ................
Farming.
111335............................ Tree Nut Farming............ $1.0........................ ................
111336............................ Fruit and Tree Nut $1.0........................ ................
Combination Farming.
111339............................ Other Noncitrus Fruit $1.0........................ ................
Farming.
111411............................ Mushroom Production......... $1.0........................ ................
111419............................ Other Food Crops Grown Under $1.0........................ ................
Cover.
111421............................ Nursery and Tree Production. $1.0........................ ................
111422............................ Floriculture Production..... $1.0........................ ................
111910............................ Tobacco Farming............. $1.0........................ ................
111920............................ Cotton Farming.............. $1.0........................ ................
111930............................ Sugarcane Farming........... $1.0........................ ................
111940............................ Hay Farming................. $1.0........................ ................
111991............................ Sugar Beet Farming.......... $1.0........................ ................
111992............................ Peanut Farming.............. $1.0........................ ................
111998............................ All Other Miscellaneous Crop $1.0........................ ................
Farming.
----------------------------------------------------------------------------------------------------------------
Subsector 112--Animal Production and Aquaculture
----------------------------------------------------------------------------------------------------------------
112111............................ Beef Cattle Ranching and $1.0........................ ................
Farming.
112112............................ Cattle Feedlots............. $8.0........................ ................
112120............................ Dairy Cattle and Milk $1.0........................ ................
Production.
112210............................ Hog and Pig Farming......... $1.0........................ ................
112310............................ Chicken Egg Production...... $16.5....................... ................
112320............................ Broilers and Other Meat Type $1.0........................ ................
Chicken Production.
112330............................ Turkey Production........... $1.0........................ ................
112340............................ Poultry Hatcheries.......... $1.0........................ ................
[[Page 34270]]
112390............................ Other Poultry Production.... $1.0........................ ................
112410............................ Sheep Farming............... $1.0........................ ................
112420............................ Goat Farming................ $1.0........................ ................
112511............................ Finfish Farming and Fish $1.0........................ ................
Hatcheries.
112512............................ Shellfish Farming........... $1.0........................ ................
112519............................ Other Aquaculture........... $1.0........................ ................
112910............................ Apiculture.................. $1.0........................ ................
112920............................ Horse and Other Equine $1.0........................ ................
Production.
112930............................ Fur-Bearing Animal and $1.0........................ ................
Rabbit Production.
112990............................ All Other Animal Production. $1.0........................ ................
----------------------------------------------------------------------------------------------------------------
Subsector 113--Forestry and Logging
----------------------------------------------------------------------------------------------------------------
113110............................ Timber Tract Operations..... $12.0....................... ................
113210............................ Forest Nurseries and $12.0....................... ................
Gathering of Forest
Products.
* * * * * * *
----------------------------------------------------------------------------------------------------------------
Subsector 114--Fishing, Hunting and Trapping
----------------------------------------------------------------------------------------------------------------
114111............................ Finfish Fishing............. $22.0....................... ................
114112............................ Shellfish Fishing........... $6.0........................ ................
114119............................ Other Marine Fishing........ $8.0........................ ................
114210............................ Hunting and Trapping........ $6.0........................ ................
----------------------------------------------------------------------------------------------------------------
Subsector 115--Support Activities for Agriculture and Forestry
----------------------------------------------------------------------------------------------------------------
115111............................ Cotton Ginning.............. $12.0....................... ................
115112............................ Soil Preparation, Planting, $8.0........................ ................
and Cultivating.
115113............................ Crop Harvesting, Primarily $8.0........................ ................
by Machine.
115114............................ Postharvest Crop Activities $30.0....................... ................
(except Cotton Ginning).
115115............................ Farm Labor Contractors and $16.5....................... ................
Crew Leaders.
115116............................ Farm Management Services.... $8.0........................ ................
115210............................ Support Activities for $8.0........................ ................
Animal Production.
115310............................ Support Activities for $8.0........................ ................
Forestry.
115310 (Exception 1).............. Forest Fire Suppression \17\ $20.5 \17\.................. ................
115310 (Exception 2).............. Fuels Management Services $20.5 \17\.................. ................
\17\.
----------------------------------------------------------------------------------------------------------------
Sector 21--Mining, Quarrying, and Oil and Gas Extraction
----------------------------------------------------------------------------------------------------------------
* * * * * * *
----------------------------------------------------------------------------------------------------------------
Subsector 213--Support Activities for Mining
----------------------------------------------------------------------------------------------------------------
* * * * * * *
213112............................ Support Activities for Oil $41.5....................... ................
and Gas Operations.
213113............................ Support Activities for Coal $22.0....................... ................
Mining.
213114............................ Support Activities for Metal $22.0....................... ................
Mining.
213115............................ Support Activities for $8.0........................ ................
Nonmetallic Minerals
(except Fuels).
----------------------------------------------------------------------------------------------------------------
Sector 22--Utilities
Subsector 221--Utilities
----------------------------------------------------------------------------------------------------------------
* * * * * * *
221310............................ Water Supply and Irrigation $30.0....................... ................
Systems.
221320............................ Sewage Treatment Facilities. $22.0....................... ................
221330............................ Steam and $16.5....................... ................
Air[dash]Conditioning
Supply.
----------------------------------------------------------------------------------------------------------------
Sector 23--Construction
Subsector 236--Construction of Buildings
----------------------------------------------------------------------------------------------------------------
236115............................ New Single-family Housing $39.5....................... ................
Construction (Except For-
Sale Builders).
236116............................ New Multifamily Housing $39.5....................... ................
Construction (except For-
Sale Builders).
236117............................ New Housing For-Sale $39.5....................... ................
Builders.
236118............................ Residential Remodelers...... $39.5....................... ................
236210............................ Industrial Building $39.5....................... ................
Construction.
236220............................ Commercial and Institutional $39.5....................... ................
Building Construction.
----------------------------------------------------------------------------------------------------------------
[[Page 34271]]
Subsector 237--Heavy and Civil Engineering Construction
----------------------------------------------------------------------------------------------------------------
237110............................ Water and Sewer Line and $39.5....................... ................
Related Structures
Construction.
237120............................ Oil and Gas Pipeline and $39.5....................... ................
Related Structures
Construction.
237130............................ Power and Communication Line $39.5....................... ................
and Related Structures
Construction.
237210............................ Land Subdivision............ $30.0....................... ................
237310............................ Highway, Street, and Bridge $39.5....................... ................
Construction.
237990............................ Other Heavy and Civil $39.5....................... ................
Engineering Construction.
237900 (Exception)................ Dredging and Surface Cleanup $30.0 \2\................... ................
Activities \2\.
----------------------------------------------------------------------------------------------------------------
Subsector 238--Specialty Trade Contractors
----------------------------------------------------------------------------------------------------------------
238110............................ Poured Concrete Foundation $16.5....................... ................
and Structure Contractors.
238120............................ Structural Steel and Precast $16.5....................... ................
Concrete Contractors.
238130............................ Framing Contractors......... $16.5....................... ................
238140............................ Masonry Contractors......... $16.5....................... ................
238150............................ Glass and Glazing $16.5....................... ................
Contractors.
238160............................ Roofing Contractors......... $16.5....................... ................
238170............................ Siding Contractors.......... $16.5....................... ................
238190............................ Other Foundation, Structure, $16.5....................... ................
and Building Exterior
Contractors.
238210............................ Electrical Contractors and $16.5....................... ................
Other Wiring Installation
Contractors.
238220............................ Plumbing, Heating, and $16.5....................... ................
Air[dash]Conditioning
Contractors.
238290............................ Other Building Equipment $16.5....................... ................
Contractors.
238310............................ Drywall and Insulation $16.5....................... ................
Contractors.
238320............................ Painting and Wall Covering $16.5....................... ................
Contractors.
238330............................ Flooring Contractors........ $16.5....................... ................
238340............................ Tile and Terrazzo $16.5....................... ................
Contractors.
238350............................ Finish Carpentry Contractors $16.5....................... ................
238390............................ Other Building Finishing $16.5....................... ................
Contractors.
238910............................ Site Preparation Contractors $16.5....................... ................
238990............................ All Other Specialty Trade $16.5....................... ................
Contractors.
238990 (Exception)................ Building and Property $16.5 \13\.................. ................
Specialty Trade Services
\13\.
* * * * * * *
----------------------------------------------------------------------------------------------------------------
Sector 44-45--Retail Trade
----------------------------------------------------------------------------------------------------------------
* * * * * * *
Subsector 441--Motor Vehicle and Parts Dealers
----------------------------------------------------------------------------------------------------------------
* * * * * * *
441120............................ Used Car Dealers............ $27.0....................... ................
441210............................ Recreational Vehicle Dealers $35.0....................... ................
441222............................ Boat Dealers................ $35.0....................... ................
441228............................ Motorcycle, ATV, and All $35.0....................... ................
Other Motor Vehicle Dealers.
441310............................ Automotive Parts and $16.5....................... ................
Accessories Stores.
441320............................ Tire Dealers................ $16.5....................... ................
----------------------------------------------------------------------------------------------------------------
Subsector 442--Furniture and Home Furnishings Stores
----------------------------------------------------------------------------------------------------------------
442110............................ Furniture Stores............ $22.0....................... ................
442210............................ Floor Covering Stores....... $8.0........................ ................
442291............................ Window Treatment Stores..... $8.0........................ ................
442299............................ All Other Home Furnishings $22.0....................... ................
Stores.
----------------------------------------------------------------------------------------------------------------
Subsector 443--Electronics and Appliance Stores
----------------------------------------------------------------------------------------------------------------
443141............................ Household Appliance Stores.. $12.0....................... ................
443142............................ Electronics Stores.......... $35.0....................... ................
----------------------------------------------------------------------------------------------------------------
Subsector 444--Building Material and Garden Equipment and Supplies Dealers
----------------------------------------------------------------------------------------------------------------
444110............................ Home Centers................ $41.5....................... ................
444120............................ Paint and Wallpaper Stores.. $30.0....................... ................
444130............................ Hardware Stores............. $8.0........................ ................
444190............................ Other Building Material $22.0....................... ................
Dealers.
444210............................ Outdoor Power Equipment $8.0........................ ................
Stores.
444220............................ Nursery and Garden Centers.. $12.0....................... ................
----------------------------------------------------------------------------------------------------------------
[[Page 34272]]
Subsector 445--Food and Beverage Stores
----------------------------------------------------------------------------------------------------------------
445110............................ Supermarkets and Other $35.0....................... ................
Grocery (except
Convenience) Stores.
445120............................ Convenience Stores.......... $32.0....................... ................
445210............................ Meat Markets................ $8.0........................ ................
445220............................ Fish and Seafood Markets.... $8.0........................ ................
445230............................ Fruit and Vegetable Markets. $8.0........................ ................
445291............................ Baked Goods Stores.......... $8.0........................ ................
445292............................ Confectionery and Nut Stores $8.0........................ ................
445299............................ All Other Specialty Food $8.0........................ ................
Stores.
445310............................ Beer, Wine and Liquor Stores $8.0........................ ................
----------------------------------------------------------------------------------------------------------------
Subsector 446--Health and Personal Care Stores
----------------------------------------------------------------------------------------------------------------
446110............................ Pharmacies and Drug Stores.. $30.0....................... ................
446120............................ Cosmetics, Beauty Supplies $30.0....................... ................
and Perfume Stores.
446130............................ Optical Goods Stores........ $22.0....................... ................
446191............................ Food (Health) Supplement $16.5....................... ................
Stores.
446199............................ All Other Health and $8.0........................ ................
Personal Care Stores.
----------------------------------------------------------------------------------------------------------------
Subsector 447--Gasoline Stations
----------------------------------------------------------------------------------------------------------------
447110............................ Gasoline Stations with $32.0....................... ................
Convenience Stores.
447190............................ Other Gasoline Stations..... $16.5....................... ................
----------------------------------------------------------------------------------------------------------------
Subsector 448--Clothing and Clothing Accessories Stores
----------------------------------------------------------------------------------------------------------------
448110............................ Men's Clothing Stores....... $12.0....................... ................
448120............................ Women's Clothing Stores..... $30.0....................... ................
448130............................ Children's and Infants' $35.0....................... ................
Clothing Stores.
448140............................ Family Clothing Stores...... $41.5....................... ................
448150............................ Clothing Accessories Stores. $16.5....................... ................
448190............................ Other Clothing Stores....... $22.0....................... ................
448210............................ Shoe Stores................. $30.0....................... ................
448310............................ Jewelry Stores.............. $16.5....................... ................
448320............................ Luggage and Leather Goods $30.0....................... ................
Stores.
----------------------------------------------------------------------------------------------------------------
Subsector 451--Sporting Good, Hobby, Book and Music Stores
----------------------------------------------------------------------------------------------------------------
451110............................ Sporting Goods Stores....... $16.5....................... ................
451120............................ Hobby, Toy and Game Stores.. $30.0....................... ................
451130............................ Sewing, Needlework and Piece $30.0....................... ................
Goods Stores.
451140............................ Musical Instrument and $12.0....................... ................
Supplies Stores.
451211............................ Book Stores................. $30.0....................... ................
451212............................ News Dealers and Newsstands. $8.0........................ ................
----------------------------------------------------------------------------------------------------------------
Subsector 452--General Merchandise Stores
----------------------------------------------------------------------------------------------------------------
452210............................ Department Stores........... $35.0....................... ................
452311............................ Warehouse Clubs and $32.0....................... ................
Superstores.
452319............................ All Other General $35.0....................... ................
Merchandise Stores.
----------------------------------------------------------------------------------------------------------------
Subsector 453--Miscellaneous Store Retailers
----------------------------------------------------------------------------------------------------------------
453110............................ Florists.................... $8.0........................ ................
453210............................ Office Supplies and $35.0....................... ................
Stationery Stores.
453220............................ Gift, Novelty and Souvenir $8.0........................ ................
Stores.
453310............................ Used Merchandise Stores..... $8.0........................ ................
453910............................ Pet and Pet Supplies Stores. $22.0....................... ................
453920............................ Art Dealers................. $8.0........................ ................
453930............................ Manufactured (Mobile) Home $16.5....................... ................
Dealers.
453991............................ Tobacco Stores.............. $8.0........................ ................
453998............................ All Other Miscellaneous $8.0........................ ................
Store Retailers (except
Tobacco Stores).
----------------------------------------------------------------------------------------------------------------
Subsector 454--Nonstore Retailers
----------------------------------------------------------------------------------------------------------------
454110............................ Electronic Shopping and Mail- $41.5....................... ................
Order Houses.
454210............................ Vending Machine Operators... $12.0....................... ................
----------------------------------------------------------------------------------------------------------------
[[Page 34273]]
* * * * * * *
454390............................ Other Direct Selling $8.0........................ ................
Establishments.
----------------------------------------------------------------------------------------------------------------
Sector 48-49--Transportation and Warehousing
Subsector 481--Air Transportation
----------------------------------------------------------------------------------------------------------------
* * * * * * *
481219............................ Other Nonscheduled Air $16.5....................... ................
Transportation.
* * * * * * *
----------------------------------------------------------------------------------------------------------------
Subsector 484--Truck Transportation
----------------------------------------------------------------------------------------------------------------
484110............................ General Freight Trucking, $30.0....................... ................
Local.
484121............................ General Freight Trucking, $30.0....................... ................
Long[dash]Distance,
Truckload.
484122............................ General Freight Trucking, $30.0....................... ................
Long[dash]Distance, Less
Than Truckload.
484210............................ Used Household and Office $30.0....................... ................
Goods Moving.
484220............................ Specialized Freight (except $30.0....................... ................
Used Goods) Trucking, Local.
484230............................ Specialized Freight (except $30.0....................... ................
Used Goods) Trucking,
Long[dash]Distance.
----------------------------------------------------------------------------------------------------------------
Subsector 485--Transit and Ground Passenger Transportation
----------------------------------------------------------------------------------------------------------------
485111............................ Mixed Mode Transit Systems.. $16.5....................... ................
485112............................ Commuter Rail Systems....... $16.5....................... ................
485113............................ Bus and Other Motor Vehicle $16.5....................... ................
Transit Systems.
485119............................ Other Urban Transit Systems. $16.5....................... ................
485210............................ Interurban and Rural Bus $16.5....................... ................
Transportation.
485310............................ Taxi Service................ $16.5....................... ................
485320............................ Limousine Service........... $16.5....................... ................
485410............................ School and Employee Bus $16.5....................... ................
Transportation.
485510............................ Charter Bus Industry........ $16.5....................... ................
485991............................ Special Needs Transportation $16.5....................... ................
485999............................ All Other Transit and Ground $16.5....................... ................
Passenger Transportation.
----------------------------------------------------------------------------------------------------------------
Subsector 486--Pipeline Transportation
----------------------------------------------------------------------------------------------------------------
* * * * * * *
486210............................ Pipeline Transportation of $30.0....................... ................
Natural Gas.
* * * * * * *
486990............................ All Other Pipeline $40.5....................... ................
Transportation.
----------------------------------------------------------------------------------------------------------------
Subsector 487--Scenic and Sightseeing Transportation
----------------------------------------------------------------------------------------------------------------
487110............................ Scenic and Sightseeing $8.0........................ ................
Transportation, Land.
487210............................ Scenic and Sightseeing $8.0........................ ................
Transportation, Water.
487990............................ Scenic and Sightseeing $8.0........................ ................
Transportation, Other.
----------------------------------------------------------------------------------------------------------------
Subsector 488--Support Activities for Transportation
----------------------------------------------------------------------------------------------------------------
488111............................ Air Traffic Control......... $35.0....................... ................
488119............................ Other Airport Operations.... $35.0....................... ................
488190............................ Other Support Activities for $35.0....................... ................
Air Transportation.
488210............................ Support Activities for Rail $16.5....................... ................
Transportation.
488310............................ Port and Harbor Operations.. $41.5....................... ................
488320............................ Marine Cargo Handling....... $41.5....................... ................
488330............................ Navigational Services to $41.5....................... ................
Shipping.
488390............................ Other Support Activities for $41.5....................... ................
Water Transportation.
488410............................ Motor Vehicle Towing........ $8.0........................ ................
488490............................ Other Support Activities for $8.0........................ ................
Road Transportation.
488510............................ Freight Transportation $16.5 \10\.................. ................
Arrangement \10\.
488510 (Exception)................ Non[dash]Vessel Owning $30.0....................... ................
Common Carriers and
Household Goods Forwarders.
488991............................ Packing and Crating......... $30.0....................... ................
488999............................ All Other Support Activities $8.0........................ ................
for Transportation.
----------------------------------------------------------------------------------------------------------------
Subsector 491--Postal Service
----------------------------------------------------------------------------------------------------------------
491110............................ Postal Service.............. $8.0........................ ................
----------------------------------------------------------------------------------------------------------------
[[Page 34274]]
Subsector 492--Couriers and Messengers
----------------------------------------------------------------------------------------------------------------
* * * * * * *
492210............................ Local Messengers and Local $30.0....................... ................
Delivery.
----------------------------------------------------------------------------------------------------------------
Subsector 493--Warehousing and Storage
----------------------------------------------------------------------------------------------------------------
493110............................ General Warehousing and $30.0....................... ................
Storage.
493120............................ Refrigerated Warehousing and $30.0....................... ................
Storage.
493130............................ Farm Product Warehousing and $30.0....................... ................
Storage.
493190............................ Other Warehousing and $30.0....................... ................
Storage.
----------------------------------------------------------------------------------------------------------------
Sector 51--Information
Subsector 511--Publishing Industries (except Internet)
----------------------------------------------------------------------------------------------------------------
* * * * * * *
511210............................ Software Publishers \20\.... $41.5 \20\.................. ................
----------------------------------------------------------------------------------------------------------------
Subsector 512--Motion Picture and Sound Recording Industries
----------------------------------------------------------------------------------------------------------------
512110............................ Motion Picture and Video $35.0....................... ................
Production.
512120............................ Motion Picture and Video $34.5....................... ................
Distribution.
512131............................ Motion Picture Theaters $41.5....................... ................
(except Drive[dash]Ins).
512132............................ Drive[dash]In Motion Picture $8.0........................ ................
Theaters.
512191............................ Teleproduction and Other $34.5....................... ................
Postproduction Services.
512199............................ Other Motion Picture and $22.0....................... ................
Video Industries.
* * * * * * *
512240............................ Sound Recording Studios..... $8.0........................ ................
* * * * * * *
512290............................ Other Sound Recording $12.0....................... ................
Industries.
----------------------------------------------------------------------------------------------------------------
Subsector 515--Broadcasting (except Internet)
----------------------------------------------------------------------------------------------------------------
515111............................ Radio Networks.............. $35.0....................... ................
515112............................ Radio Stations.............. $41.5....................... ................
515120............................ Television Broadcasting..... $41.5....................... ................
515210............................ Cable and Other Subscription $41.5....................... ................
Programming.
----------------------------------------------------------------------------------------------------------------
Subsector 517--Telecommunications
----------------------------------------------------------------------------------------------------------------
* * * * * * *
517410............................ Satellite Telecommunications $35.0....................... ................
* * * * * * *
517919............................ All Other Telecommunications $35.0....................... ................
----------------------------------------------------------------------------------------------------------------
Subsector 518--Data Processing, Hosting, and Related Services
----------------------------------------------------------------------------------------------------------------
518210............................ Data Processing, Hosting, $35.0....................... ................
and Related Services.
----------------------------------------------------------------------------------------------------------------
Subsector 519--Other Information Services
----------------------------------------------------------------------------------------------------------------
519110............................ News Syndicates............. $30.0....................... ................
519120............................ Libraries and Archives...... $16.5....................... ................
* * * * * * *
519190............................ All Other Information $30.0....................... ................
Services.
----------------------------------------------------------------------------------------------------------------
Sector 52--Finance and Insurance
Subsector 522--Credit Intermediation and Related Activities
----------------------------------------------------------------------------------------------------------------
522110............................ Commercial Banking \8\...... $600 million in assets \8\.. ................
522120............................ Savings Institutions \8\.... $600 million in assets \8\.. ................
[[Page 34275]]
522130............................ Credit Unions \8\........... $600 million in assets \8\.. ................
522190............................ Other Depository Credit $600 million in assets \8\.. ................
Intermediation \8\.
522210............................ Credit Card Issuing \8\..... $600 million in assets \8\.. ................
522220............................ Sales Financing............. $41.5....................... ................
522291............................ Consumer Lending............ $41.5....................... ................
522292............................ Real Estate Credit.......... $41.5....................... ................
522293............................ International Trade $41.5....................... ................
Financing.
522294............................ Secondary Market Financing.. $41.5....................... ................
522298............................ All Other Nondepository $41.5....................... ................
Credit Intermediation.
522310............................ Mortgage and Nonmortgage $8.0........................ ................
Loan Brokers.
522320............................ Financial Transactions $41.5....................... ................
Processing, Reserve, and
Clearinghouse Activities.
522390............................ Other Activities Related to $22.0....................... ................
Credit Intermediation.
----------------------------------------------------------------------------------------------------------------
Subsector 523--Securities, Commodity Contracts, and Other Financial Investments and Related Activities
----------------------------------------------------------------------------------------------------------------
523110............................ Investment Banking and $41.5....................... ................
Securities Dealing.
523120............................ Securities Brokerage........ $41.5....................... ................
523130............................ Commodity Contracts Dealing. $41.5....................... ................
523140............................ Commodity Contracts $41.5....................... ................
Brokerage.
523210............................ Securities and Commodity $41.5....................... ................
Exchanges.
523910............................ Miscellaneous Intermediation $41.5....................... ................
523920............................ Portfolio Management........ $41.5....................... ................
523930............................ Investment Advice........... $41.5....................... ................
523991............................ Trust, Fiduciary and Custody $41.5....................... ................
Activities.
523999............................ Miscellaneous Financial $41.5....................... ................
Investment Activities.
----------------------------------------------------------------------------------------------------------------
Subsector 524--Insurance Carriers and Related Activities
----------------------------------------------------------------------------------------------------------------
524113............................ Direct Life Insurance $41.5....................... ................
Carriers.
524114............................ Direct Health and Medical $41.5....................... ................
Insurance Carriers.
* * * * * * *
524127............................ Direct Title Insurance $41.5....................... ................
Carriers.
524128............................ Other Direct Insurance $41.5....................... ................
(except Life, Health and
Medical) Carriers.
524130............................ Reinsurance Carriers........ $41.5....................... ................
524210............................ Insurance Agencies and $ 8.0....................... ................
Brokerages.
524291............................ Claims Adjusting............ $22.0....................... ................
524292............................ Third Party Administration $35.0....................... ................
of Insurance and Pension
Funds.
524298............................ All Other Insurance Related $16.5....................... ................
Activities.
----------------------------------------------------------------------------------------------------------------
Subsector 525--Funds, Trusts and Other Financial Vehicles
----------------------------------------------------------------------------------------------------------------
525110............................ Pension Funds............... $35.0....................... ................
525120............................ Health and Welfare Funds.... $35.0....................... ................
525190............................ Other Insurance Funds....... $35.0....................... ................
525910............................ Open[dash]End Investment $35.0....................... ................
Funds.
525920............................ Trusts, Estates, and Agency $35.0....................... ................
Accounts.
525990............................ Other Financial Vehicles.... $35.0....................... ................
----------------------------------------------------------------------------------------------------------------
Sector 53--Real Estate and Rental and Leasing
Subsector 531--Real Estate
----------------------------------------------------------------------------------------------------------------
531110............................ Lessors of Residential $30.0 \9\................... ................
Buildings and Dwellings \9\.
531120............................ Lessors of Nonresidential $30.0 \9\................... ................
Buildings (except
Miniwarehouses) \ 9\.
531130............................ Lessors of Miniwarehouses $30.0 \9\................... ................
and Self-Storage Units \9\.
531190............................ Lessors of Other Real Estate $30.0 \9\................... ................
Property \9\.
531210............................ Offices of Real Estate $8.0 \10\................... ................
Agents and Brokers \10\.
531311............................ Residential Property $8.0........................ ................
Managers.
531312............................ Nonresidential Property $8.0........................ ................
Managers.
531320............................ Offices of Real Estate $8.0........................ ................
Appraisers.
531390............................ Other Activities Related to $8.0........................ ................
Real Estate.
----------------------------------------------------------------------------------------------------------------
Subsector 532--Rental and Leasing Services
----------------------------------------------------------------------------------------------------------------
532111............................ Passenger Car Rental........ $41.5....................... ................
532112............................ Passenger Car Leasing....... $41.5....................... ................
532120............................ Truck, Utility Trailer, and $41.5....................... ................
RV (Recreational Vehicle)
Rental and Leasing.
532210............................ Consumer Electronics and $41.5....................... ................
Appliances Rental.
[[Page 34276]]
532281............................ Formal Wear and Costume $22.0....................... ................
Rental.
532282............................ Video Tape and Disc Rental.. $30.0....................... ................
532283............................ Home Health Equipment Rental $35.0....................... ................
532284............................ Recreational Goods Rental... $8.0........................ ................
532289............................ All Other Consumer Goods $8.0........................ ................
Rental.
532310............................ General Rental Centers...... $8.0........................ ................
532411............................ Commercial Air, Rail, and $35.0....................... ................
Water Transportation
Equipment Rental and
Leasing.
532412............................ Construction, Mining and $35.0....................... ................
Forestry Machinery and
Equipment Rental and
Leasing.
532420............................ Office Machinery and $35.0....................... ................
Equipment Rental and
Leasing.
532490............................ Other Commercial and $35.0....................... ................
Industrial Machinery and
Equipment Rental and
Leasing.
----------------------------------------------------------------------------------------------------------------
Subsector 533--Lessors of Nonfinancial Intangible Assets (except Copyrighted Works)
----------------------------------------------------------------------------------------------------------------
533110............................ Lessors of Nonfinancial $41.5....................... ................
Intangible Assets (except
Copyrighted Works).
----------------------------------------------------------------------------------------------------------------
Sector 54--Professional, Scientific and Technical Services
Subsector 541--Professional, Scientific and Technical Services
----------------------------------------------------------------------------------------------------------------
541110............................ Offices of Lawyers.......... $12.0....................... ................
541191............................ Title Abstract and $12.0....................... ................
Settlement Offices.
541199............................ All Other Legal Services.... $12.0....................... ................
541211............................ Offices of Certified Public $22.0....................... ................
Accountants.
541213............................ Tax Preparation Services.... $22.0....................... ................
541214............................ Payroll Services............ $22.0....................... ................
541219............................ Other Accounting Services... $22.0....................... ................
541310............................ Architectural Services...... $8.0........................ ................
541320............................ Landscape Architectural $8.0........................ ................
Services.
541330............................ Engineering Services........ $16.5....................... ................
541330 (Exception 1).............. Military and Aerospace $41.5....................... ................
Equipment and Military
Weapons.
541330 (Exception 2).............. Contracts and Subcontracts $41.5....................... ................
for Engineering Services
Awarded Under the National
Energy Policy Act of 1992.
541330 (Exception 3).............. Marine Engineering and Naval $41.5....................... ................
Architecture.
541340............................ Drafting Services........... $8.0........................ ................
541350............................ Building Inspection Services $8.0........................ ................
541360............................ Geophysical Surveying and $16.5....................... ................
Mapping Services.
541370............................ Surveying and Mapping $16.5....................... ................
(except Geophysical)
Services.
541380............................ Testing Laboratories........ $16.5....................... ................
541410............................ Interior Design Services.... $8.0........................ ................
541420............................ Industrial Design Services.. $8.0........................ ................
541430............................ Graphic Design Services..... $8.0........................ ................
541490............................ Other Specialized Design $8.0........................ ................
Services.
541511............................ Custom Computer Programming $30.0....................... ................
Services.
541512............................ Computer Systems Design $30.0....................... ................
Services.
541513............................ Computer Facilities $30.0....................... ................
Management Services.
541519............................ Other Computer Related $30.0....................... ................
Services.
541519 (Exception)................ Information Technology Value ............................ 150 \18\
Added Resellers \18\.
541611............................ Administrative Management $16.5....................... ................
and General Management
Consulting Services.
541612............................ Human Resources Consulting $16.5....................... ................
Services.
541613............................ Marketing Consulting $16.5....................... ................
Services.
541614............................ Process, Physical $16.5....................... ................
Distribution and Logistics
Consulting Services.
541618............................ Other Management Consulting $16.5....................... ................
Services.
541620............................ Environmental Consulting $16.5....................... ................
Services.
541690............................ Other Scientific and $16.5....................... ................
Technical Consulting
Services.
* * * * * * *
541720............................ Research and Development in $22.0....................... ................
the Social Sciences and
Humanities.
541810............................ Advertising Agencies \10\... $16.5 \10\.................. ................
541820............................ Public Relations Agencies... $16.5....................... ................
541830............................ Media Buying Agencies....... $16.5....................... ................
541840............................ Media Representatives....... $16.5....................... ................
541850............................ Outdoor Advertising......... $16.5....................... ................
541860............................ Direct Mail Advertising..... $16.5....................... ................
541870............................ Advertising Material $16.5....................... ................
Distribution Services.
541890............................ Other Services Related to $16.5....................... ................
Advertising.
541910............................ Marketing Research and $16.5....................... ................
Public Opinion Polling.
541921............................ Photography Studios, $8.0........................ ................
Portrait.
541922............................ Commercial Photography...... $8.0........................ ................
541930............................ Translation and $8.0........................ ................
Interpretation Services.
541940............................ Veterinary Services......... $8.0........................ ................
541990............................ All Other Professional, $16.5....................... ................
Scientific and Technical
Services.
----------------------------------------------------------------------------------------------------------------
[[Page 34277]]
Sector 55--Management of Companies and Enterprises
Subsector 551--Management of Companies and Enterprises
----------------------------------------------------------------------------------------------------------------
551111............................ Offices of Bank Holding $22.0....................... ................
Companies.
551112............................ Offices of Other Holding $22.0....................... ................
Companies.
----------------------------------------------------------------------------------------------------------------
Sector 56--Administrative and Support, Waste Management and Remediation Services
Subsector 561--Administrative and Support Services
----------------------------------------------------------------------------------------------------------------
561110............................ Office Administrative $8.0........................ ................
Services.
561210............................ Facilities Support Services $41.5 \12\.................. ................
\12\.
561311............................ Employment Placement $30.0....................... ................
Agencies.
561312............................ Executive Search Services... $30.0....................... ................
561320............................ Temporary Help Services..... $30.0....................... ................
561330............................ Professional Employer $30.0....................... ................
Organizations.
561410............................ Document Preparation $16.5....................... ................
Services.
561421............................ Telephone Answering Services $16.5....................... ................
561422............................ Telemarketing Bureaus and $16.5....................... ................
Other Contact Centers.
561431............................ Private Mail Centers........ $16.5....................... ................
561439............................ Other Business Service $16.5....................... ................
Centers (including Copy
Shops).
561440............................ Collection Agencies......... $16.5....................... ................
561450............................ Credit Bureaus.............. $16.5....................... ................
561491............................ Repossession Services....... $16.5....................... ................
561492............................ Court Reporting and $16.5....................... ................
Stenotype Services.
561499............................ All Other Business Support $16.5....................... ................
Services.
561510............................ Travel Agencies \10\........ $22.0 \10\.................. ................
561520............................ Tour Operators \10\......... $22.0 \10\.................. ................
561591............................ Convention and Visitors $22.0....................... ................
Bureaus.
561599............................ All Other Travel Arrangement $22.0....................... ................
and Reservation Services.
561611............................ Investigation Services...... $22.0....................... ................
561612............................ Security Guards and Patrol $22.0....................... ................
Services.
561613............................ Armored Car Services........ $22.0....................... ................
561621............................ Security Systems Services $22.0....................... ................
(except Locksmiths).
561622............................ Locksmiths.................. $22.0....................... ................
561710............................ Exterminating and Pest $12.0....................... ................
Control Services.
561720............................ Janitorial Services......... $19.5....................... ................
561730............................ Landscaping Services........ $8.0........................ ................
561740............................ Carpet and Upholstery $6.0........................ ................
Cleaning Services.
561790............................ Other Services to Buildings $8.0........................ ................
and Dwellings.
561910............................ Packaging and Labeling $12.0....................... ................
Services.
561920............................ Convention and Trade Show $12.0 \10\.................. ................
Organizers \10\.
561990............................ All Other Support Services.. $12.0....................... ................
----------------------------------------------------------------------------------------------------------------
Subsector 562--Waste Management and Remediation Services
----------------------------------------------------------------------------------------------------------------
562111............................ Solid Waste Collection...... $41.5....................... ................
562112............................ Hazardous Waste Collection.. $41.5....................... ................
562119............................ Other Waste Collection...... $41.5....................... ................
562211............................ Hazardous Waste Treatment $41.5....................... ................
and Disposal.
562212............................ Solid Waste Landfill........ $41.5....................... ................
562213............................ Solid Waste Combustors and $41.5....................... ................
Incinerators.
562219............................ Other Nonhazardous Waste $41.5....................... ................
Treatment and Disposal.
562910............................ Remediation Services........ $22.0....................... ................
562910 (Exception)................ Environmental Remediation ............................ 750 \14\
Services \14\.
562920............................ Materials Recovery $22.0....................... ................
Facilities.
562991............................ Septic Tank and Related $8.0........................ ................
Services.
562998............................ All Other Miscellaneous $8.0........................ ................
Waste Management Services.
----------------------------------------------------------------------------------------------------------------
Sector 61--Educational Services
Subsector 611--Educational Services
----------------------------------------------------------------------------------------------------------------
611110............................ Elementary and Secondary $12.0....................... ................
Schools.
611210............................ Junior Colleges............. $22.0....................... ................
611310............................ Colleges, Universities and $30.0....................... ................
Professional Schools.
611410............................ Business and Secretarial $8.0........................ ................
Schools.
611420............................ Computer Training........... $12.0....................... ................
611430............................ Professional and Management $12.0....................... ................
Development Training.
611511............................ Cosmetology and Barber $8.0........................ ................
Schools.
611512............................ Flight Training............. $30.0....................... ................
611513............................ Apprenticeship Training..... $8.0........................ ................
611519............................ Other Technical and Trade $16.5....................... ................
Schools.
[[Page 34278]]
611519 (Exception)................ Job Corps Centers \16\...... $41.5 \16\.................. ................
611610............................ Fine Arts Schools........... $8.0........................ ................
611620............................ Sports and Recreation $8.0........................ ................
Instruction.
611630............................ Language Schools............ $12.0....................... ................
611691............................ Exam Preparation and $8.0........................ ................
Tutoring.
611692............................ Automobile Driving Schools.. $8.0........................ ................
611699............................ All Other Miscellaneous $12.0....................... ................
Schools and Instruction.
611710............................ Educational Support Services $16.5....................... ................
----------------------------------------------------------------------------------------------------------------
Sector 62--Health Care and Social Assistance
Subsector 621--Ambulatory Health Care Services
----------------------------------------------------------------------------------------------------------------
621111............................ Offices of Physicians $12.0....................... ................
(except Mental Health
Specialists).
621112............................ Offices of Physicians, $12.0....................... ................
Mental Health Specialists.
621210............................ Offices of Dentists......... $8.0........................ ................
621310............................ Offices of Chiropractors.... $8.0........................ ................
621320............................ Offices of Optometrists..... $8.0........................ ................
621330............................ Offices of Mental Health $8.0........................ ................
Practitioners (except
Physicians).
621340............................ Offices of Physical, $8.0........................ ................
Occupational and Speech
Therapists and Audiologists.
621391............................ Offices of Podiatrists...... $8.0........................ ................
621399............................ Offices of All Other $8.0........................ ................
Miscellaneous Health
Practitioners.
621410............................ Family Planning Centers..... $12.0....................... ................
621420............................ Outpatient Mental Health and $16.5....................... ................
Substance Abuse Centers.
621491............................ HMO Medical Centers......... $35.0....................... ................
621492............................ Kidney Dialysis Centers..... $41.5....................... ................
621493............................ Freestanding Ambulatory $16.5....................... ................
Surgical and Emergency
Centers.
621498............................ All Other Outpatient Care $22.0....................... ................
Centers.
621511............................ Medical Laboratories........ $35.0....................... ................
621512............................ Diagnostic Imaging Centers.. $16.5....................... ................
621610............................ Home Health Care Services... $16.5....................... ................
621910............................ Ambulance Services.......... $16.5....................... ................
621991............................ Blood and Organ Banks....... $35.0....................... ................
621999............................ All Other Miscellaneous $16.5....................... ................
Ambulatory Health Care
Services.
----------------------------------------------------------------------------------------------------------------
Subsector 622--Hospitals
----------------------------------------------------------------------------------------------------------------
622110............................ General Medical and Surgical $41.5....................... ................
Hospitals.
622210............................ Psychiatric and Substance $41.5....................... ................
Abuse Hospitals.
622310............................ Specialty (except $41.5....................... ................
Psychiatric and Substance
Abuse) Hospitals.
----------------------------------------------------------------------------------------------------------------
Subsector 623--Nursing and Residential Care Facilities
----------------------------------------------------------------------------------------------------------------
623110............................ Nursing Care Facilities $30.0....................... ................
(Skilled Nursing
Facilities).
623210............................ Residential Intellectual and $16.5....................... ................
Developmental Disability
Facilities.
623220............................ Residential Mental Health $16.5....................... ................
and Substance Abuse
Facilities.
623311............................ Continuing Care Retirement $30.0....................... ................
Communities.
623312............................ Assisted Living Facilities $12.0....................... ................
for the Elderly.
623990............................ Other Residential Care $12.0....................... ................
Facilities.
----------------------------------------------------------------------------------------------------------------
Subsector 624--Social Assistance
----------------------------------------------------------------------------------------------------------------
624110............................ Child and Youth Services.... $12.0....................... ................
624120............................ Services for the Elderly and $12.0....................... ................
Persons with Disabilities.
624190............................ Other Individual and Family $12.0....................... ................
Services.
624210............................ Community Food Services..... $12.0....................... ................
624221............................ Temporary Shelters.......... $12.0....................... ................
624229............................ Other Community Housing $16.5....................... ................
Services.
624230............................ Emergency and Other Relief $35.0....................... ................
Services.
624310............................ Vocational Rehabilitation $12.0....................... ................
Services.
624410............................ Child Day Care Services..... $8.0........................ ................
----------------------------------------------------------------------------------------------------------------
Sector 71--Arts, Entertainment and Recreation
Subsector 711--Performing Arts, Spectator Sports and Related Industries
----------------------------------------------------------------------------------------------------------------
711110............................ Theater Companies and Dinner $22.0....................... ................
Theaters.
711120............................ Dance Companies............. $12.0....................... ................
711130............................ Musical Groups and Artists.. $12.0....................... ................
711190............................ Other Performing Arts $30.0....................... ................
Companies.
711211............................ Sports Teams and Clubs...... $41.5....................... ................
711212............................ Racetracks.................. $41.5....................... ................
711219............................ Other Spectator Sports...... $12.0....................... ................
[[Page 34279]]
711310............................ Promoters of Performing $35.0....................... ................
Arts, Sports and Similar
Events with Facilities.
711320............................ Promoters of Performing $16.5....................... ................
Arts, Sports and Similar
Events without Facilities.
711410............................ Agents and Managers for $12.0....................... ................
Artists, Athletes,
Entertainers and Other
Public Figures.
711510............................ Independent Artists, $8.0........................ ................
Writers, and Performers.
----------------------------------------------------------------------------------------------------------------
Subsector 712--Museums, Historical Sites and Similar Institutions
----------------------------------------------------------------------------------------------------------------
712110............................ Museums..................... $30.0....................... ................
712120............................ Historical Sites............ $8.0........................ ................
712130............................ Zoos and Botanical Gardens.. $30.0....................... ................
712190............................ Nature Parks and Other $8.0........................ ................
Similar Institutions.
----------------------------------------------------------------------------------------------------------------
Subsector 713--Amusement, Gambling and Recreation Industries
----------------------------------------------------------------------------------------------------------------
713110............................ Amusement and Theme Parks... $41.5....................... ................
713120............................ Amusement Arcades........... $8.0........................ ................
713210............................ Casinos (except Casino $30.0....................... ................
Hotels).
713290............................ Other Gambling Industries... $35.0....................... ................
713910............................ Golf Courses and Country $16.5....................... ................
Clubs.
713920............................ Skiing Facilities........... $30.0....................... ................
713930............................ Marinas..................... $8.0........................ ................
713940............................ Fitness and Recreational $8.0........................ ................
Sports Centers.
713950............................ Bowling Centers............. $8.0........................ ................
713990............................ All Other Amusement and $8.0........................ ................
Recreation Industries.
----------------------------------------------------------------------------------------------------------------
Sector 72--Accommodation and Food Services
Subsector 721--Accommodation
----------------------------------------------------------------------------------------------------------------
721110............................ Hotels (except Casino $35.0....................... ................
Hotels) and Motels.
721120............................ Casino Hotels............... $35.0....................... ................
721191............................ Bed[dash]and[dash]Breakfast $8.0........................ ................
Inns.
721199............................ All Other Traveler $8.0........................ ................
Accommodation.
721211............................ RV (Recreational Vehicle) $8.0........................ ................
Parks and Campgrounds.
721214............................ Recreational and Vacation $8.0........................ ................
Camps (except Campgrounds).
721310............................ Rooming and Boarding Houses, $8.0........................ ................
Dormitories, and Workers'
Camps.
----------------------------------------------------------------------------------------------------------------
Subsector 722--Food Services and Drinking Places
----------------------------------------------------------------------------------------------------------------
722310............................ Food Service Contractors.... $41.5....................... ................
722320............................ Caterers.................... $8.0........................ ................
722330............................ Mobile Food Services........ $8.0........................ ................
722410............................ Drinking Places (Alcoholic $8.0........................ ................
Beverages).
722511............................ Full-Service Restaurants.... $8.0........................ ................
722513............................ Limited-Service Restaurants. $12.0....................... ................
722514............................ Cafeterias, Grill Buffets, $30.0....................... ................
and Buffets.
722515............................ Snack and Nonalcoholic $8.0........................ ................
Beverage Bars.
----------------------------------------------------------------------------------------------------------------
Sector 81--Other Services (Except Public Administration)
Subsector 811--Repair and Maintenance
----------------------------------------------------------------------------------------------------------------
811111............................ General Automotive Repair... $8.0........................ ................
811112............................ Automotive Exhaust System $8.0........................ ................
Repair.
811113............................ Automotive Transmission $8.0........................ ................
Repair.
811118............................ Other Automotive Mechanical $8.0........................ ................
and Electrical Repair and
Maintenance.
811121............................ Automotive Body, Paint and $8.0........................ ................
Interior Repair and
Maintenance.
811122............................ Automotive Glass Replacement $12.0....................... ................
Shops.
811191............................ Automotive Oil Change and $8.0........................ ................
Lubrication Shops.
811192............................ Car Washes.................. $8.0........................ ................
811198............................ All Other Automotive Repair $8.0........................ ................
and Maintenance.
811211............................ Consumer Electronics Repair $8.0........................ ................
and Maintenance.
811212............................ Computer and Office Machine $30.0....................... ................
Repair and Maintenance.
811213............................ Communication Equipment $12.0....................... ................
Repair and Maintenance.
811219............................ Other Electronic and $22.0....................... ................
Precision Equipment Repair
and Maintenance.
811310............................ Commercial and Industrial $8.0........................ ................
Machinery and Equipment
(except Automotive and
Electronic) Repair and
Maintenance.
811411............................ Home and Garden Equipment $8.0........................ ................
Repair and Maintenance.
811412............................ Appliance Repair and $16.5....................... ................
Maintenance.
811420............................ Reupholstery and Furniture $8.0........................ ................
Repair.
811430............................ Footwear and Leather Goods $8.0........................ ................
Repair.
811490............................ Other Personal and Household $8.0........................ ................
Goods Repair and
Maintenance.
----------------------------------------------------------------------------------------------------------------
[[Page 34280]]
Subsector 812--Personal and Laundry Services
----------------------------------------------------------------------------------------------------------------
812111............................ Barber Shops................ $8.0........................ ................
812112............................ Beauty Salons............... $8.0........................ ................
812113............................ Nail Salons................. $8.0........................ ................
812191............................ Diet and Weight Reducing $22.0....................... ................
Centers.
812199............................ Other Personal Care Services $8.0........................ ................
812210............................ Funeral Homes and Funeral $8.0........................ ................
Services.
812220............................ Cemeteries and Crematories.. $22.0....................... ................
812310............................ Coin[dash]Operated Laundries $8.0........................ ................
and Drycleaners.
812320............................ Drycleaning and Laundry $6.0........................ ................
Services (except
Coin[dash]Operated).
812331............................ Linen Supply................ $35.0....................... ................
812332............................ Industrial Launderers....... $41.5....................... ................
812910............................ Pet Care (except Veterinary) $8.0........................ ................
Services.
812921............................ Photofinishing Laboratories $22.0....................... ................
(except One[dash]Hour).
812922............................ One[dash]Hour Photofinishing $16.5....................... ................
812930............................ Parking Lots and Garages.... $41.5....................... ................
812990............................ All Other Personal Services. $8.0........................ ................
----------------------------------------------------------------------------------------------------------------
Subsector 813--Religious, Grantmaking, Civic, Professional and Similar Organizations
----------------------------------------------------------------------------------------------------------------
813110............................ Religious Organizations..... $8.0........................ ................
813211............................ Grantmaking Foundations..... $35.0....................... ................
813212............................ Voluntary Health $30.0....................... ................
Organizations.
813219............................ Other Grantmaking and Giving $41.5....................... ................
Services.
813311............................ Human Rights Organizations.. $30.0....................... ................
813312............................ Environment, Conservation $16.5....................... ................
and Wildlife Organizations.
813319............................ Other Social Advocacy $8.0........................ ................
Organizations.
813410............................ Civic and Social $8.0........................ ................
Organizations.
813910............................ Business Associations....... $8.0........................ ................
813920............................ Professional Organizations.. $16.5....................... ................
813930............................ Labor Unions and Similar $8.0........................ ................
Labor Organizations.
813940............................ Political Organizations..... $8.0........................ ................
813990............................ Other Similar Organizations $8.0........................ ................
(except Business,
Professional, Labor, and
Political Organizations).
* * * * * * *
----------------------------------------------------------------------------------------------------------------
Footnotes
* * * * *
2. NAICS code 237990--Dredging: To be considered small for
purposes of Government procurement, a firm must perform at least 40
percent of the volume dredged with its own equipment or equipment
owned by another small dredging concern.
* * * * *
8. NAICS Codes 522110, 522120, 522130, 522190, and 522210--A
financial institution's assets are determined by averaging the
assets reported on its four quarterly financial statements for the
preceding year. ``Assets'' for the purposes of this size standard
means the assets defined according to the Federal Financial
Institutions Examination Council 041 call report form for NAICS
codes 522110, 522120, 522190, and 522210 and the National Credit
Union Administration 5300 call report form for NAICS code 522130.
9. NAICS codes 531110, 531120, 531130, and 531190--Leasing of
Building Space to the Federal Government by Owners: For Government
procurement, a size standard of $41.5 million in gross receipts
applies to the owners of building space leased to the Federal
Government. The standard does not apply to an agent.
10. NAICS codes 488510 (part) 531210, 541810, 561510, 561520,
and 561920--As measured by total revenues, but excluding funds
received in trust for an unaffiliated third party, such as bookings
or sales subject to commissions. The commissions received are
included as revenues.
* * * * *
12. NAICS code 561210--Facilities Support Services:
(a) If one or more activities of Facilities Support Services as
defined in paragraph (b) (below in this footnote) can be identified
with a specific industry and that industry accounts for 50 percent
or more of the value of an entire procurement, then the proper
classification of the procurement is that of the specific industry,
not Facilities Support Services.
(b) ``Facilities Support Services'' requires the performance of
three or more separate activities in the areas of services or
specialty trade contractors industries. If services are performed,
these service activities must each be in a separate NAICS industry.
If the procurement requires the use of specialty trade contractors
(plumbing, painting, plastering, carpentry, etc.), all such
specialty trade contractors activities are considered a single
activity and classified as ``Building and Property Specialty Trade
Services.'' Since ``Building and Property Specialty Trade Services''
is only one activity, two additional activities of separate NAICS
industries are required for a procurement to be classified as
``Facilities Support Services.''
13. NAICS code 238990--Building and Property Specialty Trade
Services: If a procurement requires the use of multiple specialty
trade contractors (i.e., plumbing, painting, plastering, carpentry,
etc.), and no specialty trade accounts for 50 percent or more of the
value of the procurement, all such specialty trade contractors
activities are considered a single activity and classified as
Building and Property Specialty Trade Services.
14. NAICS 562910--Environmental Remediation Services:
(a) For SBA assistance as a small business concern in the
industry of Environmental Remediation Services, other than for
Government procurement, a concern must be engaged primarily in
furnishing a range of services for the remediation of a contaminated
environment to an acceptable condition including, but not limited
to, preliminary assessment, site inspection, testing, remedial
investigation, feasibility studies, remedial design, containment,
remedial action, removal of contaminated
[[Page 34281]]
materials, storage of contaminated materials and security and site
closeouts. If one of such activities accounts for 50 percent or more
of a concern's total revenues, employees, or other related factors,
the concern's primary industry is that of the particular industry
and not the Environmental Remediation Services Industry.
(b) For purposes of classifying a Government procurement as
Environmental Remediation Services, the general purpose of the
procurement must be to restore or directly support the restoration
of a contaminated environment (such as, preliminary assessment, site
inspection, testing, remedial investigation, feasibility studies,
remedial design, remediation services, containment, removal of
contaminated materials, storage of contaminated materials or
security and site closeouts), although the general purpose of the
procurement need not necessarily include remedial actions. Also, the
procurement must be composed of activities in three or more separate
industries with separate NAICS codes or, in some instances (e.g.,
engineering), smaller sub-components of NAICS codes with separate,
distinct size standards. These activities may include, but are not
limited to, separate activities in industries such as: Heavy
Construction; Specialty Trade Contractors; Engineering Services;
Architectural Services; Management Consulting Services; Hazardous
and Other Waste Collection; Remediation Services, Testing
Laboratories; and Research and Development in the Physical,
Engineering and Life Sciences. If any activity in the procurement
can be identified with a separate NAICS code, or component of a code
with a separate distinct size standard, and that industry accounts
for 50 percent or more of the value of the entire procurement, then
the proper size standard is the one for that particular industry,
and not the Environmental Remediation Service size standard.
* * * * *
16. NAICS code 611519--Job Corps Centers. For classifying a
Federal procurement, the purpose of the solicitation must be for the
management and operation of a U.S. Department of Labor Job Corps
Center. The activities involved include admissions activities, life
skills training, educational activities, comprehensive career
preparation activities, career development activities, career
transition activities, as well as the management and support
functions and services needed to operate and maintain the facility.
For SBA assistance as a small business concern, other than for
Federal Government procurements, a concern must be primarily engaged
in providing the services to operate and maintain Federal Job Corps
Centers.
17. NAICS code 115310 (Support Activities for Forestry)--Forest
Fire Suppression and Fuels Management Services are two components of
Support Activities for Forestry. Forest Fire Suppression includes
establishments which provide services to fight forest fires. These
firms usually have fire-fighting crews and equipment. Fuels
Management Services firms provide services to clear land of
hazardous materials that would fuel forest fires. The treatments
used by these firms may include prescribed fire, mechanical removal,
establishing fuel breaks, thinning, pruning, and piling.
18. NAICS code 541519--An Information Technology Value Added
Reseller (ITVAR) provides a total solution to information technology
acquisitions by providing multi-vendor hardware and software along
with significant value added services. Significant value added
services consist of, but are not limited to, configuration
consulting and design, systems integration, installation of multi-
vendor computer equipment, customization of hardware or software,
training, product technical support, maintenance, and end user
support. For purposes of Government procurement, an information
technology procurement classified under this exception and 150-
employee size standard must consist of at least 15% and not more
than 50% of value added services, as measured by the total contract
price. In addition, the offeror must comply with the manufacturing
performance requirements, or comply with the non-manufacturer rule
by supplying the products of small business concerns, unless SBA has
issued a class or contract specific waiver of the non-manufacturer
rule. If the contract consists of less than 15% of value added
services, then it must be classified under a NAICS manufacturing
industry. If the contract consists of more than 50% of value added
services, then it must be classified under the NAICS industry that
best describes the predominate service of the procurement.
* * * * *
20. NAICS code 511210--For purposes of Government procurement,
the purchase of software subject to potential waiver of the
nonmanufacturer rule pursuant to Sec. 121.1203(d) should be
classified under this NAICS code.
0
3. Amend Sec. 121.502 by revising paragraph (a)(2) to read as follows:
Sec. 121.502 What size standards are applicable to programs for
sales and leases of Government property?
(a) * * *
(2) A concern not primarily engaged in manufacturing is small for
sales or leases of Government property if it has annual receipts not
exceeding $8 million.
* * * * *
0
4. Amend Sec. 121.512 by revising paragraph (b) to read as follows:
Sec. 121.512 What is the size standard for stockpile purchases?
* * * * *
(b) Its annual receipts, together with its affiliates, do not
exceed $67.5 million.
Christopher M. Pilkerton,
Acting Administrator.
[FR Doc. 2019-14980 Filed 7-17-19; 8:45 am]
BILLING CODE 8025-01-P