Jack Faucett Associates, No. 3848 (October 22, 1993) Docket No. SIC-93-8-20-97 UNITED STATES OF AMERICA SMALL BUSINESS ADMINISTRATION OFFICE OF HEARINGS AND APPEALS WASHINGTON, D.C. SIC APPEAL OF: ) ) Jack Faucett Associates ) ) Appellant ) Docket No. SIC-93-8-20-97 ) Solicitation No. ) DACW21-93-R-0070 ) Department of Defense ) U.S. Army Engineering District ) Savannah, Georgia ) DIGEST When an interim size standard for "Environmental Services," under Standard Industrial Classification (SIC) code 8744 has been judicially vacated and a procurement seeks feasibility, environmental and economic planning studies, in support of projected engineering projects, SIC code 8748, "Business Consulting Services, NEC," best describes the principal purpose of the services sought. DECISION October 22, 1993 WRIGHT, Administrative Judge, Presiding: Jurisdiction This appeal is decided under the Small Business Act of 1958, 15 U.S.C. 632 et seq., and the regulations codified at 13 CFR Part 121. Issue Whether the services sought should be classified under SIC code 8748. Facts On August 2, 1993, the Department of Defense, United States Army Engineering District, Savannah, Georgia, issued 1/, and set entirely aside for small business concerns, the instant solicita tion for feasibility, environmental, and economic studies under SIC code 8744, "Environmental Services," which bears an interim size standard of 518.0 million in average annual receipts. The solicitation required the bids to be submitted by September 14, 1993. The present appeal was timely filed, pursuant to 13 CFR 121.1705, on August 20, 1993, by Jack Faucett Associates (Jack Faucett or Appellant). In its appeal, Jack Faucett observes that an injunction against the use of the interim size standard of $18.0 million in average annual receipts established by the Small Business Administration (SBA) for Environmental Services under Standard Industrial Classification (SIC) code 8744 was issued on June 23, 1993 by the U.S. District Court of Washington, D.C. and that the Small Business Administration indicated, in the Federal Register published August 9, 1993, that: [n]otice is hereby given that the interim size standard of $18.0 million in average annual receipts established by the Small Business Administration (SBA) for Environmental Services under Standard Industrial Classification (SIC) code 8744 has been judicially vacated. The Statement of Work for the subject procurement indicates the following at C.1.1: Character and extent of services. Perform Reconnaissance and Feasibility Level Planning Studies, Environmental and Cultural Resources Planning Studies, and Economics Planning Studies. Work will be performed in the Contiguous [sic] United States and its territories with emphasis on the Southeastern United States.... Over 50% of the work is expected to be environmentally related. In performing services that are ordered, the Contractor shall provide all the necessary personnel, facilities, material, equipment and supervision to assure a complete end product. The "Reconnaissance and Feasibility Level Planning Studies" required in the statement of work of the present procurement include "planning studies for the development of navigation, beach erosion and wildlife conservation, hydropower, and other project purposes." These studies include fieldwork, data collection, and "public involvement programs." The studies result in "reports documenting entire reconnaissance and feasibility study methods, results, and recommendations." The "Environmental and Cultural Resources Planning Studies" cover a range of studies including, but not limited to, wetland mitigation or restoration plans, historic architectural or archaeological surveys, and mitigation plans for cultural, historical and architectural resources. The "Economic Planning Studies" contemplated by the procurement include socioeconomic impact studies and benefit- cost, financial and market analysis, relating to the contemplated projects. Appellant asserts that the subject procurement "only involves reconnaissance and feasibility level planning studies" and that as such it should be reclassified in either SIC code 8732, "Commercial Economic, Sociological, and Education Research," SIC code 8742, "Management Consulting Services," SIC code 8748, "Business Consulting Services, N.E.C.," or SIC code 8711, "Engineering Services." Letters were received from two interested parties in this appeal, both apparently unaware of the vacation of environmental services size standard for SIC code 8744. Mote Environmental Services, Inc. asserts that it "support[s] the use of SIC code 8744 in this and selected future solicitations...." Gulf Engineers & Consultants, Inc. submitted an extensive argument in support of the use of SIC code 8744. Discussion In its SIC appeal Jack Faucett correctly observes that "the $18.0 million size standard for Environmental Services under SIC code 8744 is not in effect," 2/. We conclude that the vacation of this SIC code by the United States District Court on June 23, 1993, applies to the assigned SIC code of the present procurement, issued on August 2, 1993. Pursuant to the appeal before us, we must determine the appropriate SIC code which should be assigned to it. In that regard, 13 CFR 121.902(b) provides the following: The proper SIC code designation for the goods or services being procured is that which best describes the principal purpose of the procurement, giving primary consideration to the industry descriptions in the SIC Manual, the product or service descriptions in the solicitation and attachments thereto, the relative value an importance of each of the components in the procurement (if in fact there is more than one component which makes up the end item being procured) and the function of the goods or services being purchased. Consideration may also be given to previous Government procurement classifications of the same or similar products or services, additional information on the industries and on the product or service procured, and to evaluations on which industry classification would best serve the purposes of the Small Business Act. Generally, a procurement will be classified according to the component which accounts for the greatest percentage of the contract value. A contracting officer must have a good reason to classify a procurement in a way that is inconsistent with this general rule. As indicated in the work statement of the present procurement, the services required include a broad range of extensive feasi bility, environmental and impact studies in the southwestern United States in anticipation of certain engineering projects which the U.S. Army Engineering District might deem appropriate. In light of these study requirements more fully set forth in the foregoing factual recitation, we conclude that three of the SIC codes, 8711, 8732, and 8742, advocated by Appellant, are inapplicable. SIC code 8711 is inappropriate, as the contract does not call for an establishment which is "primarily engaged in providing professional engineering services." The services sought in the present contract do not appear to be commercial within the definition of SIC code 8732. Further, the present solicitation does not call for an establishment "primarily engaged in furnishing operating counsel and assistance to management's of private, nonprofit, and public organizations," as called for under the description of SIC code 8742. However, the Standard Industrial Classification Manual describes SIC code 8748, "Business Consulting Services, Not Elsewhere Classified," as "[e]stablishments primarily engaged in furnishing business consulting services, not elsewhere classified, on a contract or fee basis." Examples listed include the following: Agricultural consulting City planners, except professional engineering Economic consulting Educational consulting, except management Industrial development planning service, commercial Radio consultants Systems engineering consulting, except professional engineering or computer related Test development and evaluation service, educational or personnel Testing services, educational or personnel Traffic Consultants We conclude that these requirements are analogous to some of the business consulting services enumerated under SIC code 8748, such as "Economic consulting," or "Industrial development planning service." Accordingly, in the absence of the judicially vacated SIC code 8744, "Environmental Services," the alternative, SIC code 8748, "Business Consulting Services, Not Elsewhere Classified," best describes the principal purpose of the service sought in this procurement. Conclusion This solicitation is properly classified under SIC code 8748 and the $3.5 million average annual receipts size standard. The relief sought in this appeal is GRANTED, and the Contracting Officer's designation is REVERSED. This constitutes the final decision of the Small Business Administration. See 13 CFR 121.1720(b). ____________________________________ G. Stephen Wright (Presiding) Administrative Judge ____________________________________ Michael S. Cole (Concurring) Administrative Judge _____________________________________ Jane E. Phillips (Concurring) Administrative Judge _______________ 1/ The Contracting Officer indicated, inter alia, that I have also attached a copy of the mail room rooster [sic] that shows that this solicitation was mailed out of the Savannah District on August 6, 1993 and that the issuance date of August 16, 1993 is a mistake....I have also attached a memorandum to Office of Counsel showing that it was approved on the [sic] August 2, 1993. Based on these representations, we conclude that for purposes of this appeal, the instant solicitation was issued the day it was approved, August 2, 1993. 2/ Federal Register, Vol. 58, No. 151, August 9, 1993.