19.101 Explanation of terms.

"Affiliates." As used in this subpart, business concerns are affiliates of each other if, directly or indirectly, either one controls or has the power to control the other, or another concern controls or has the power to control both. In determining whether affiliation exists, consideration is given to all appropriate factors including common ownership, common management, and contractual relationships; provided, that restraints imposed by a franchise agreement are not considered in determining whether the franchisor controls or has the power to control the franchisee, if the franchisee has the right to profit from its effort, commensurate with ownership, and bears the risk of loss or failure. Any business entity may be found to be an affiliate, whether or not it is organized for profit or located inside the United States.

(a) Nature of control. Every business concern is considered as having one or more parties who directly or indirectly control or have the power to control it. Control may be affirmative or negative and it is immaterial whether it is exercised so long as the power to control exists.

(b) Meaning of "party or parties." The term "party" or "parties" includes, but is not limited to, two or more persons with an identity of interest such as members of the same family or persons with common investments in more than one concern. In determining who controls or has the power to control a concern, persons with an identity of interest may be treated as though they were one person.

(c) Control through stock ownership. (1) A party is considered to control or have the power to control a concern, if the party controls or has the power to control 50 percent or more of the concern's voting stock.

(2) A party is considered to control or have the power to control a concern, even though the party owns, controls, or has the power to control less than 50 percent of the concern's voting stock, if the block of stock the party owns, controls, or has the power to control is large, as compared with any other outstanding block of stock. If two or more parties each owns, controls, or has the power to control, less than 50 percent of the voting stock of a concern, and such minority block is equal or substantially equal in size, and large as compared with any other block outstanding, there is a presumption that each such party controls or has the power to control such concern; however, such presumption may be rebutted by a showing that such control or power to control, in fact, does not exist.

(3) If a concern's voting stock is distributed other than as described above, its management (officers and directors) is deemed to be in control of such concern.

(d) Stock options and convertible debentures. Stock options and convertible debentures exercisable at the time or within a relatively short time after a size determination and agreements to merge in the future, are considered as having a present effect on the power to control the concern. Therefore, in making a size determination, such options, debentures, and agreements are treated as though the rights held thereunder had been exercised.

(e) Voting trusts. If the purpose of a voting trust, or similar agreement, is to separate voting power from beneficial ownership of voting stock for the purpose of shifting control of or the power to control a concern in order that such concern or another concern may qualify as a small business within the size regulations, such voting trust shall not be considered valid for this purpose regardless of whether it is or is not valid within the appropriate jurisdiction. However, if a voting trust is entered into for a legitimate purpose other than that described above, and it is valid within the appropriate jurisdiction, it may be considered valid for the purpose of a size determination, provided such consideration is determined to be in the best interest of the small business program.

(f) Control through common management. A concern may be found as controlling or having the power to control another concern when one or more of the following circumstances are found to exist, and it is reasonable to conclude that under the circumstances, such concern is directing or influencing, or has the power to direct or influence, the operation of such other concern.

(1) Interlocking management. Officers, directors, employees, or principal stockholders of one concern serve as a working majority of the board of directors or officers of another concern.

(2) Common facilities. One concern shares common office space and/or employees and/or other facilities with another concern, particularly where such concerns are in the same or related industry or field of operation, or where such concerns were formerly affiliated.

(3) Newly organized concern. Former officers, directors, principal stockholders, and/or key employees of one concern organize a new concern in the same or a related industry or field operation, and serve as its officers, directors, principal stockholders, and/or key employees, and one concern is furnishing or will furnish the other concern with subcontracts, financial or technical assistance, and/or facilities, whether for a fee or otherwise.

(g) Control through contractual relationships--(1) Definition of a joint venture for size determination purposes. A joint venture for size determination purposes is an association of persons and/or concerns with interests in any degree or proportion by way of contract, express or implied, consorting to engage in and carry out a single specific business venture for joint profit, for which purpose they combine their efforts, property, money, skill, or knowledge, but not on a continuing or permanent basis for conducting business generally. A joint venture is viewed as a business entity in determining power to control its management.

(2) Joint venture--acquisition and property sale assistance. Concerns bidding on a particular acquisition or property sale as joint ventures are considered as affiliated and controlling or having the power to control each other with regard to performance of the contract. Moreover, an ostensible subcontractor which is to perform primary or vital requirements of a contract may have a controlling role such to be considered a joint venturer affiliated on the contract with the prime contractor. A joint venture affiliation finding is limited to particular contracts unless the SBA size determination finds general affiliation between the parties. The rules governing 8(a) Program joint ventures are described in 13 CFR 124.513.

(3) Where a concern is not considered as being an affiliate of a concern with which it is participating in a joint venture, it is necessary, nevertheless, in computing annual receipts, etc., for the purpose of applying size standards, to include such concern's share of the joint venture receipts (as distinguished from its share of the profits of such venture).

(4) Franchise and license agreements. If a concern operates or is to operate under a franchise (or a license) agreement, the following policy is applicable: In determining whether the franchisor controls or has the power to control and, therefore, is affiliated with the franchisee, the restraints imposed on a franchisee by its franchise agreement shall not be considered, provided that the franchisee has the right to profit from its effort and the risk of loss or failure, commensurate with ownership. Even though a franchisee may not be controlled by the franchisor by virtue of the contractual relationship between them, the franchisee may be controlled by the franchisor or others through common ownership or common management, in which case they would be considered as affiliated.

"Annual receipts." (a) Annual receipts of a concern which has been in business for 3 or more complete fiscal years means the annual average gross revenue of the concern taken for the last 3 fiscal years. For the purpose of this definition, gross revenue of the concern includes revenues from sales of products and services, interest, rents, fees, commissions and/or whatever other sources derived, but less returns and allowances, sales of fixed assets, interaffiliate transactions between a concern and its domestic and foreign affiliates, and taxes collected for remittance (and if due, remitted) to a third party. Such revenues shall be measured as entered on the regular books of account of the concern whether on a cash, accrual, or other basis of accounting acceptable to the U.S. Treasury Department for the purpose of supporting Federal income tax returns, except when a change in accounting method from cash to accrual or accrual to cash has taken place during such 3-year period, or when the completed contract method has been used.

(1) In any case of change in accounting method from cash to accrual or accrual to cash, revenues for such 3-year period shall, prior to the calculation of the annual average, be restated to the accrual method. In any case, where the completed contract method has been used to account for revenues in such 3-year period, revenues must be restated on an accrual basis using the percentage of completion method.

(2) In the case of a concern which does not keep regular books of accounts, but which is subject to U.S. Federal income taxation, "annual receipts" shall be measured as reported, or to be reported to the U.S. Treasury Department, Internal Revenue Service, for Federal income tax purposes, except that any return based on a change in accounting method or on the completed contract method of accounting must be restated as provided for in the preceding paragraphs.

(b) Annual receipts of a concern that has been in business for less than 3 complete fiscal years means its total receipts for the period it has been in business, divided by the number of weeks including fractions of a week that it has been in business, and multiplied by 52. In calculating total receipts, the definitions and adjustments related to a change of accounting method and the completed contract method of paragraph (a) of this section, are applicable.

 

 

3596 Scales and Balances, Except
Laboratory 500

SIC	Description		Size
DIVISION A--AGRICULTURE, FORESTRY AND FISHING
Major Group 01--Agricultural Production--Crops
0111	Wheat		$0.5
0112	Rice		$0.5
0115	Corn		$0.5
0116	Soybeans		$0.5
0119	Cash Grains, N.E.C.		$0.5
0131	Cotton		$0.5
0132	Tobacco		$0.5
0133	Sugarcane and Sugar Beets		$0.5
0134	Irish Potatoes		$0.5
0139	Field Crops, Except Cash Grains,
		N.E.C.	$0.5
0161	Vegetables and Melons		$0.5
0171	Berry Crops		$0.5
0172	Grapes		$0.5
0173	Tree Nuts		$0.5
0174	Citrus Fruits		$0.5
0175	Deciduous Tree Fruits		$0.5
0179	Fruits and Tree Nuts, N.E.C.		$0.5
0181	Ornamental Floriculture Nursery
		Products	$0.5
0182	Food Crops Grown Under Cover		$0.5
0191	General Farms, Primarily Crop		$0.5
Major Group 02--Livestock and Animal Specialties
0211	Beef Cattle Feedlots (Custom)		$1.5
0212	Beef Cattle, Except Feedlots		$0.5
0213	Hogs		$0.5
0214	Sheep and Goats		$0.5
0219	General Livestock, Except Dairy and
		Poultry	$0.5
0241	Dairy Farms		$0.5
0251	Broiler, Fryer, and Roaster Chickens		$0.5
0252	Chicken Eggs		$9.0
0253	Turkeys and Turkey Eggs		$0.5
0254	Poultry Hatcheries		$0.5
0259	Poultry and Eggs, N.E.C.		$0.5
0271	Fur-Bearing Animals and Rabbits		$0.5
0272	Horses and Other Equines		$0.5
0273	Animal Aquaculture		$0.5
0279	Animal Specialties, N.E.C.		$0.5
0291	General Farms, Primarily Livestock
		and Animal Specialties	$0.5
Major Group 07--Agricultural Services
0711	Soil Preparation Services		$5.0
0721	Crop Planting, Cultivating, and
		Protecting	$5.0
0722	Crop Harvesting, Primarily by
		Machine	$5.0
0723	Crop Preparation Service for Market,
		Except Cotton Ginning	$5.0
0724	Cotton Ginning		$5.0
0741	Veterinary Services for Livestock		$5.0
0742	Veterinary Services for Animal
		Specialties	$5.0
0751	Livestock Services, Except Veterinary		$5.0
0752	Animal Specialty Services, Except
		Veterinary	$5.0
0761	Farm Labor Contractors and Crew
		Leaders	$5.0
0762	Farm Management Services		$5.0
0781	Landscape Counseling and Planning		$5.0
0782	Lawn and Garden Services		$5.0
0783	Ornamental Shrub and Tree Services		$5.0
Major Group 08--Forestry
0811	Timber Tracts		$5.0
0831	Forest Nurseries and Gathering of
		Forest Products	$5.0
0851	Forestry Services		$5.0
Major Group 09--Fishing, Hunting, and Trapping
0912	Finfish		$3.0
0913	Shellfish		$3.0
0919	Miscellaneous Marine Products		$3.0
0921	Fish Hatcheries and Preserves		$3.0
0971	Hunting and Trapping, and Game
		Propagation	$3.0
DIVISION B--MINING
Major Group 10--Metal Mining
1011	Iron Ores	500
1021	Copper Ores	500
1031	Lead and Zinc Ores	500
1041	Gold Ores	500
1044	Silver Ores	500
1061	Ferroalloy Ores, Except Vanadium	500
1081	Metal Mining Services	$5.0
1094	Uranium-Radium-Vanadium Ores	500
1099	Miscellaneous Metal Ores, N.E.C.	500
Major Group 12--Coal Mining
1221	Bituminous Coal and Lignite Surface
		Mining	500
1222	Bituminous Coal Underground Mining		500
1231	Anthracite Mining		500
1241	Coal Mining Services		$5.0
Major Group 13--Oil and Gas Extraction
1311	Crude Petroleum and Natural Gas	500
1321	Natural Gas Liquids	500
1381	Drilling Oil and Gas Wells	500
1382	Oil and Gas Field Exploration Services	$5.0
1389	Oil and Gas Field Services, N.E.C.	$5.0
Major Group 14--Mining and Quarrying of Nonmetallic Minerals, Except Fuels
1411	Dimension Stone		500
1422	Crushed and Broken Limestone		500
1423	Crushed and Broken Granite		500
1429	Crushed and Broken Stone, N.E.C.		500
1442	Construction Sand and Gravel		500
1446	Industrial Sand		500
1455	Kaolin and Ball Clay		500
1459	Clay, Ceramic, and Refractory Minerals,
		N.E.C.	500
1474	Potash, Soda, and Borate Minerals		500
1475	Phosphate Rock		500
1479	Chemical and Fertilizer Mineral Mining,
		N.E.C.	500
1481	Nonmetallic Minerals Services, Except
		Fuels	$5.0
1499	Miscellaneous Nonmetallic Minerals,
		Except Fuels	500
DIVISION C--CONSTRUCTION
Major Group 15--Building Construction--General Contractors and Operative Builders
1521	General Contractors--Single-Family
		Houses	$17.0
1522	General Contractors--Residential
		Buildings, Other Than Single-
		Family	$17.0
1531	Operative Builders		$17.0
1541	General Contractors--Industrial
		Buildings and Warehouses	$17.0
1542	General Contractors--Nonresidential
		Buildings, Other Than Industrial
		Buildings and Warehouses	$17.0
Major Group 16--Heavy Construction Other Than Building Construction--Contractors
1611	Highway and Street Construction, Except
		Elevated Highways	$17.0
1622	Bridge, Tunnel, and Elevated Highway Construction
			$17.0
1623	Water, Sewer, Pipeline, and
Communicationsb and Power Line Construction
			$17.0
1629	Heavy Construction, N.E.C.		$17.0
	Except, Dredging and Surface Cleanup
		Activities	$13.51
Major Group 17--Construction--Special Trade Contractors
1711	Plumbing, Heating, and Air-Conditioning				$7.0
1721	Painting and Paper Hanging		$7.0
1731	Electrical Work		$7.0
1741	Masonry, Stone Setting, and Other Stone
		Work	$7.0
1742	Plastering, Drywall, Acoustical and
		Insulation Work	$7.0
1743	Terrazzo, Tile, Marble, and Mosaic
		Work	$7.0
1751	Carpentry Work		$7.0
1752	Floor Laying and Other Floor Work,
		N.E.C.	$7.0
1761	Roofing, Siding, and Sheet Metal Work		$7.0
1771	Concrete Work		$7.0
1781	Water Well Drilling		$7.0
1791	Structural Steel Erection		$7.0
1793	Glass and Glazing Work		$7.0
1794	Excavation Work		$7.0
1795	Wrecking and Demolition Work		$7.0
1796	Installation or Erection of Building
		Equipment, N.E.C.	$7.0
1799	Special Trade Contractors, N.E.C.		$7.0
	Except, Base Housing Maintenance		$7.012
DIVISION D--MANUFACTURING2
Major Group 20--Food and Kindred Products
2011	Meat Packing Plants		500
2013	Sausages and Other Prepared Meat
		Products	500
2015	Poultry Slaughtering and Processing		500
2021	Creamery Butter		500
2022	Natural, Processed, and Imitation
		Cheese	500
2023	Dry, Condensed, and Evaporated Dairy
		Products	500
2024	Ice Cream and Frozen Desserts		500
2026	Fluid Milk		500
2032	Canned Specialties		1,000
2033	Canned Fruits, Vegetables, Preserves,
		Jams, and Jellies		5003
2034	Dried and Dehydrated Fruits, Vegetables,
		and Soup Mixes	500
2035	Pickled Fruits and Vegetables, Vegetable
		Sauces and Seasonings, and Salad
		Dressings	500
2037	Frozen Fruits, Fruit Juices, and
		Vegetables	500
2038	Frozen Specialties, N.E.C.		500
2041	Flour and Other Grain Mill Products		500
2043	Cereal Breakfast Foods		1,000
2044	Rice Milling		500
2045	Prepared Flour Mixes and Doughs		500
2046	Wet Corn Milling		750
2047	Dog and Cat Food		500
2048	Prepared Feeds and Feed Ingredients for
		Animals and Fowls, Except Dogs and
		Cats	500
2051	Bread and Other Bakery Products,
		Except Cookies and Crackers	500
2052	Cookies and Crackers		750
2053	Frozen Bakery Products, Except Bread		500
2061	Cane Sugar, Except Refining		500
2062	Cane Sugar Refining		750
2063	Beet Sugar		750
2064	Candy and Other Confectionery
		Products	500
2066	Chocolate and Cocoa Products		500
2067	Chewing Gum		500
2068	Salted and Roasted Nuts and Seeds		500
2074	Cottonseed Oil Mills		500
2075	Soybean Oil Mills		500
2076	Vegetable Oil Mills, Except Corn,
		Cottonseed, and Soybean	1,000
2077	Animal and Marine Fats and Oils		500
2079	Shortening, Table Oils, Margarine, and
		Other Edible Fats and Oils, N.E.C.	750
2082	Malt Beverages		500
2083	Malt		500
2084	Wines, Brandy, and Brandy Spirits		500
2085	Distilled and Blended Liquors		750
2086	Bottled and Canned Soft Drinks and
		Carbonated Waters	500
2087	Flavoring Extracts and Flavoring Syrups,
		N.E.C.	500
2091	Canned and Cured Fish and Seafoods		500
2092	Prepared Fresh or Frozen Fish and
		Seafoods	500
2095	Roasted Coffee		500
2096	Potato Chips, Corn Chips, and Similar
		Snacks	500
2097	Manufactured Ice		500
2098	Macaroni, Spaghetti, Vermicelli, and
		Noodles	500
2099	Food Preparations, N.E.C.		500
Major Group 21--Tobacco Products
2111	Cigarettes		1,000
2121	Cigars		500
2131	Chewing and Smoking Tobacco and
		Snuff	500
2141	Tobacco Stemming and Redrying		500
Major Group 22--Textile Mill Products
2211	Broadwoven Fabric Mills, Cotton		1,000
2221	Broadwoven Fabric Mills, Manmade
		Fiber and Silk	500
2231	Broadwoven Fabric Mills, Wool
		(Including Dyeing and Finishing)	500
2241	Narrow Fabric and Other Smallwares Mills: Cotton, Wool, Silk and Manmade
		Fiber	500
2251	Women's Full-Length and Knee-Length
		Hosiery, Except Socks	500
2252	Hosiery, N.E.C.		500
2253	Knit Outerwear Mills		500
2254	Knit Underwear and Nightwear Mills		500
2257	Weft Knit Fabric Mills		500
2258	Lace and Warp Knit Fabric Mills		500
2259	Knitting Mills, N.E.C.		500
2261	Finishers of Broadwoven Fabrics of
		Cotton	1,000
2262	Finishers of Broadwoven Fabrics of
		Manmade Fiber and Silk	500
2269	Finishers of Textiles, N.E.C.		500
2273	Carpets and Rugs		500
2281	Yarn Spinning Mills		500
2282	Yarn Texturizing, Throwing, Twisting,
		and Winding Mills	500
2284	Thread Mills		500
2295	Coated Fabrics, Not Rubberized		1,000
2296	Tire Cord and Fabrics		1,000
2297	Nonwoven Fabrics		500
2298	Cordage and Twine		500
2299	Textile Goods, N.E.C.		500
Major Group 23--Apparel and Other Finished Products Made From Fabrics and Similar Materials
2311	Men's and Boys' Suits, Coats and
		Overcoats	500
2321	Men's and Boys' Shirts, Except Work
		Shirts	500
2322	Men's and Boys' Underwear and
		Nightwear	500
2323	Men's and Boys' Neckwear		500
2325	Men's and Boys' Separate Trousers
		and Slacks	500
2326	Men's and Boys' Work Clothing		500
2329	Men's and Boys' Clothing, N.E.C.		500
2331	Women's, Misses', and Juniors' Blouses
		and Shirts	500
2335	Women's, Misses', and Juniors'
		Dresses	500
2337	Women's, Misses', and Juniors' Suits,
		Skirts, and Coats	500
2339	Women's, Misses', and Juniors' Outerwear,
		N.E.C.	500
2341	Women's, Misses', Children's, and Infants' Underwear and Nightwear
			500
2342	Brassieres, Girdles, and Allied
		Garments	500
2353	Hats, Caps, and Millinery		500
2361	Girls', Children's, and Infants' Dresses,
		Blouses, and Shirts	500
2369	Girls', Children's, and Infants' Outerwear,
		N.E.C.	500
2371	Fur Goods		500
2381	Dress and Work Gloves, Except
		Knit and All-Leather	500
2384	Robes and Dressing Gowns		500
2385	Waterproof Outerwear		500
2386	Leather and Sheep-Lined Clothing		500
2387	Apparel Belts		500
2389	Apparel and Accessories, N.E.C.		500
2391	Curtains and Draperies		500
2392	House Furnishings, Except Curtains
		and Draperies	500
2393	Textile Bags		500
2394	Canvas and Related Products		500
2395	Pleating, Decorative and Novelty
		Stitching, and Tucking for the
		Trade	500
2396	Automotive Trimmings, Apparel
		Findings, and Related Products	500
2397	Schiffli Machine Embroideries		500
2399	Fabricated Textile Products, N.E.C.		500
Major Group 24--Lumber and Wood Products, Except Furniture
2411	Logging		500
2421	Sawmills and Planing Mills, General		500
2426	Hardwood Dimension and Flooring
		Mills	500
2429	Special Product Sawmills, N.E.C.		500
2431	Millwork		500
2434	Wood Kitchen Cabinets		500
2435	Hardwood Veneer and Plywood		500
2436	Softwood Veneer and Plywood		500
2439	Structural Wood Members, N.E.C.		500
2441	Nailed and Lock Corner Wood Boxes
		and Shook	500
2448	Wood Pallets and Skids		500
2449	Wood Containers, N.E.C.		500
2451	Mobile Homes		500
2452	Prefabricated Wood Buildings and
		Components	500
2491	Wood Preserving		500
2493	Reconstituted Wood Products		500
2499	Wood Products, N.E.C.		500
Major Group 25--Furniture and Fixtures
2511	Wood Household Furniture, Except
		Upholstered	500
2512	Wood Household Furniture,
		Upholstered	500
2514	Metal Household Furniture		500
2515	Mattresses, Foundations, and
		Convertible Beds	500
2517	Wood Television, Radio, Phonograph,
		and Sewing Machine Cabinets	500
2519	Household Furniture, N.E.C.		500
2521	Wood Office Furniture		500
2522	Office Furniture, Except Wood		500
2531	Public Building and Related
		Furniture	500
2541	Wood Office and Store Fixtures,
		Partitions, Shelving, and Lockers	500
2542	Office and Store Fixtures, Partitions,
		Shelving, and Lockers, Except
		Wood	500
2591	Drapery Hardware and Window Blinds
		and Shades	500
2599	Furniture and Fixtures, N.E.C.		500
Major Group 26--Paper and Allied Products
2611	Pulp Mills		750
2621	Paper Mills		750
2631	Paperboard Mills		750
2652	Setup Paperboard Boxes		500
2653	Corrugated and Solid Fiber Boxes		500
2655	Fiber Cans, Tubes, Drums, and Similar
		Products	500
2656	Sanitary Food Containers, Except
		Folding	750
2657	Folding Paperboard Boxes, Including
		Sanitary	750
2671	Packaging Paper and Plastics Film,
		Coated and Laminated	500
2672	Coated and Laminated Paper, N.E.C.		500
2673	Plastics, Foil, and Coated Paper Bags		500
2674	Uncoated Paper and Multiwall Bags		500
2675	Die-Cut Paper and Paperboard and
		Cardboard	500
2676	Sanitary Paper Products		500
2677	Envelopes		500
2678	Stationery, Tablets, and Related
		Products	500
2679	Converted Paper and Paperboard
		Products, N.E.C.	500
Major Group 27--Printing, Publishing, and Allied Industries
2711	Newspapers: Publishing, or Publishing
		and Printing	500
2721	Periodicals: Publishing, or Publishing
		and Printing	500
2731	Books: Publishing, or Publishing and
		Printing	500
2732	Book Printing		500
2741	Miscellaneous Publishing		500
2752	Commercial Printing, Lithographic		500
2754	Commercial Printing, Gravure		500
2759	Commercial Printing, N.E.C.		500
2761	Manifold Business Forms		500
2771	Greeting Cards		500
2782	Blankbooks, Looseleaf Binders and
		Devices	500
2789	Bookbinding and Related Work		500
2791	Typesetting		500
2796	Platemaking and Related Services		500
Major Group 28--Chemicals and Allied Products
2812	Alkalies and Chlorine		1,000
2813	Industrial Gases		1,000
2816	Inorganic Pigments		1,000
2819	Industrial Inorganic Chemicals,
		N.E.C.	1,000
2821	Plastics Materials, Synthetic Resins,
		and Nonvulcanizable Elastomers	750
2822	Synthetic Rubber (Vulcanizable
		Elastomers)	1,000
2823	Cellulosic Manmade Fibers		1,000
2824	Manmade Organic Fibers, Except
		Cellulosic	1,000
2833	Medicinal Chemicals and Botanical
		Products	750
2834	Pharmaceutical Preparations		750
2835	In Vitro and In Vivo Diagnostic
		Substances	500
2836	Biological Products, Except Diagnostic Substances
			500
2841	Soap and Other Detergents, Except
		Specialty Cleaners	750
2842	Specialty Cleaning, Polishing, and
		Sanitation Preparations	500
2843	Surface Active Agents, Finishing Agents, Sulfonated Oils, and Assistants
			500
2844	Perfumes, Cosmetics, and Other Toilet Preparations
			500
2851	Paints, Varnishes, Lacquers, Enamels,
		and Allied Products	500
2861	Gum and Wood Chemicals		500
2865	Cyclic Organic Crudes and Intermediates,
		and Organic Dyes and Pigments	750
2869	Industrial Organic Chemicals, N.E.C.		1,000
2873	Nitrogenous Fertilizers		1,000
2874	Phosphatic Fertilizers		500
2875	Fertilizers, Mixing Only		500
2879	Pesticides and Agricultural Chemicals,
		N.E.C.	500
2891	Adhesives and Sealants		500
2892	Explosives		750
2893	Printing Ink		500
2895	Carbon Black		500
2899	Chemicals and Chemical Preparations,
		N.E.C.	500
Major Group 29--Petroleum Refining and Related Industries
2911	Petroleum Refining		1,5004
2951	Asphalt Paving Mixtures and Blocks			500
2952	Asphalt Felts and Coatings			750
2992	Lubricating Oils and Greases			500
2999	Products of Petroleum and Coal,
		N.E.C.		500
Major Group 30--Rubber and Miscellaneous Plastics Products
3011	Tires and Inner Tubes		1,0005
3021	Rubber and Plastics Footwear		1,000
3052	Rubber and Plastics Hose and Belting		500
3053	Gaskets, Packing, and Sealing Devices		500
3061	Molded, Extruded, and Lathe-Cut
		Mechanical Rubber Goods	500
3069	Fabricated Rubber Products, N.E.C.		500
3081	Unsupported Plastics Film and Sheet		500
3082	Unsupported Plastics Profile Shapes		500
3083	Laminated Plastics Plate, Sheet, and
		Profile Shapes	500
3084	Plastics Pipe		500
3085	Plastics Bottles		500
3086	Plastics Foam Products		500
3087	Custom Compounding of Purchased
		Plastics Resins	500
3088	Plastics Plumbing Fixtures	500
3089	Plastics Products, N.E.C.	500
Major Group 31--Leather and Leather Products
3111	Leather Tanning and Finishing		500
3131	Boot and Shoe Cut Stock and
		Findings	500
3142	House Slippers		500
3143	Men's Footwear, Except Athletic		500
3144	Women's Footwear, Except Athletic		500
3149	Footwear, Except Rubber, N.E.C.		500
3151	Leather Gloves and Mittens		500
3161	Luggage		500
3171	Women's Handbags and Purses		500
3172	Personal Leather Goods, Except
		Women's Handbags and Purses	500
3199	Leather Goods, N.E.C.		500
Major Group 32--Stone, Clay, Glass, and Concrete Products
3211	Flat Glass		1,000
3221	Glass Containers		750
3229	Pressed and Blown Glass and
		Glassware, N.E.C.	750
3231	Glass Products, Made of Purchased
		Glass	500
3241	Cement, Hydraulic		750
3251	Brick and Structural Clay Tile		500
3253	Ceramic Wall and Floor Tile		500
3255	Clay Refractories		500
3259	Structural Clay Products, N.E.C.		500
3261	Vitreous China Plumbing Fixtures and
		China and Earthenware Fittings and
		Bathroom Accessories	750
3262	Vitreous China Table and Kitchen
		Articles	500
3263	Fine Earthenware (Whiteware) Table
		and Kitchen Articles	500
3264	Porcelain Electrical Supplies		500
3269	Pottery Products, N.E.C.		500
3271	Concrete Block and Brick		500
3272	Concrete Products, Except Block and
		Brick	500
3273	Ready Mixed Concrete		500
3274	Lime		500
3275	Gypsum Products		1,000
3281	Cut Stone and Stone Products		500
3291	Abrasive Products		500
3292	Asbestos Products		750
3295	Minerals and Earths, Ground or
		Otherwise Treated	500
3296	Mineral Wool		750
3297	Nonclay Refractories		750
3299	Nonmetallic Mineral Products, N.E.C.		500
Major Group 33--Primary Metal Industries
3312	Steel Works, Blast Furnaces (Including
		Coke Ovens), and Rolling Mills	1,000
3313	Electrometallurgical Products,
		Except Steel	750
3315	Steel Wiredrawing and Steel Nails and
		Spikes	1,000
3316	Cold-Rolled Steel Sheet, Strip, and
		Bars	1,000
3317	Steel Pipe and Tubes		1,000
3321	Gray and Ductile Iron Foundries		500
3322	Malleable Iron Foundries		500
3324	Steel Investment Foundries		500
3325	Steel Foundries, N.E.C.		500
3331	Primary Smelting and Refining of
		Copper	1,000
3334	Primary Production of Aluminum		1,000
3339	Primary Smelting and Refining of
		Nonferrous Metals, Except Copper
		and Aluminum	750
3341	Secondary Smelting and Refining of
		Nonferrous Metals	500
3351	Rolling, Drawing, and Extruding of
		Copper	750
3353	Aluminum Sheet, Plate, and Foil		750
3354	Aluminum Extruded Products		750
3355	Aluminum Rolling and Drawing,
		N.E.C.	750
3356	Rolling, Drawing, and Extruding of
		Nonferrous Metals, Except Copper
		and Aluminum	750
3357	Drawing and Insulating of Nonferrous
		Wire	1,000
3363	Aluminum Die-Castings		500
3364	Nonferrous Die-Castings, Except
		Aluminum	500
3365	Aluminum Foundries		500
3366	Copper Foundries		500
3369	Nonferrous Foundries, Except
		Aluminum and Copper	500
3398	Metal Heat Treating		750
3399	Primary Metal Products, N.E.C.		750
Major Group 34--Fabricated Metal Products, Except Machinery and Transportation Equipment
3411	Metal Cans		1,000
3412	Metal Shipping Barrels, Drums, Kegs,
		and Pails	500
3421	Cutlery		500
3423	Hand and Edge Tools, Except Machine
		Tools and Handsaws	500
3425	Saw Blades and Handsaws		500
3429	Hardware, N.E.C.		500
3431	Enameled Iron and Metal Sanitary
		Ware	750
3432	Plumbing Fixture Fittings and Trim		500
3433	Heating Equipment, Except Electric
		and Warm Air Furnaces	500
3441	Fabricated Structural Metal		500
3442	Metal Doors, Sash, Frames, Molding,
		and Trim	500
3443	Fabricated Plate Work (Boiler Shops)		500
3444	Sheet Metal Work		500
3446	Architectural and Ornamental Metal
		Work	500
3448	Prefabricated Metal Buildings and
		Components	500
3449	Miscellaneous Structural Metal Work		500
3451	Screw Machine Products		500
3452	Bolts, Nuts, Screws, Rivets, and
		Washers	500
3462	Iron and Steel Forgings		500
3463	Nonferrous Forgings		500
3465	Automotive Stampings		500
3466	Crowns and Closures		500
3469	Metal Stampings, N.E.C.		500
3471	Electroplating, Plating, Polishing,
		Anodizing, and Coloring	500
3479	Coating, Engraving, and Allied
		Services, N.E.C.	500
3482	Small Arms Ammunition		1,000
3483	Ammunition, Except for Small Arms		1,500
3484	Small Arms		1,000
3489	Ordnance and Accessories, N.E.C.		500
3491	Industrial Valves		500
3492	Fluid Power Valves and Hose Fittings		500
3493	Steel Springs, Except Wire		500
3494	Valves and Pipe Fittings, N.E.C.		500
3495	Wire Springs		500
3496	Miscellaneous Fabricated Wire
		Products	500
3497	Metal Foil and Leaf		500
3498	Fabricated Pipe and Pipe Fittings		500
3499	Fabricated Metal Products, N.E.C.		500
Major Group 35--Industrial and Commercial Machinery and Computer Equipment
3511	Steam, Gas, and Hydraulic Turbines,
		and Turbine Generator Set Units	1,000
3519	Internal Combustion Engines, N.E.C.		1,000
3523	Farm Machinery and Equipment		500
3524	Lawn and Garden Tractors and Home
		Lawn and Garden Equipment	500
3531	Construction Machinery and
		Equipment	750
3532	Mining Machinery and Equipment,
		Except Oil and Gas Field Machinery
		and Equipment	500
3533	Oil and Gas Field Machinery and
		Equipment	500
3534	Elevators and Moving Stairways		500
3535	Conveyors and Conveying Equipment		500
3536	Overhead Traveling Cranes, Hoists, and
		Monorail Systems	500
3537	Industrial Trucks, Tractors, Trailers, and
		Stackers	750
3541	Machine Tools, Metal Cutting Types		500
3542	Machine Tools, Metal Forming Types		500
3543	Industrial Patterns		500
3544	Special Dies and Tools, Die Sets, Jigs
		and Fixtures, and Industrial Molds	500
3545	Cutting Tools, Machine Tool
		Accessories, and Machinists'
		Precision Measuring Devices	500
3546	Power-Driven Handtools		500
3547	Rolling Mill Machinery and
		Equipment	500
3548	Electric and Gas Welding and Soldering Equipment
			500
3549	Metalworking Machinery, N.E.C.		500
3552	Textile Machinery		500
3553	Woodworking Machinery		500
3554	Paper Industries Machinery		500
3555	Printing Trades Machinery and
		Equipment	500
3556	Food Products Machinery		500
3559	Special Industry Machinery, N.E.C.		500
3561	Pumps and Pumping Equipment		500
3562	Ball and Roller Bearings		750
3563	Air and Gas Compressors		500
3564	Industrial and Commercial Fans
		and Blowers and Air Purification
		Equipment	500
3565	Packaging Machinery		500
3566	Speed Changers, Industrial High-Speed
		Drives, and Gears	500
3567	Industrial Process Furnaces and Ovens		500
3568	Mechanical Power Transmission
		Equipment, N.E.C.	500
3569	General Industrial Machinery and
		Equipment, N.E.C.	500
3571	Electronic Computers		1,000
3572	Computer Storage Devices		1,000
3575	Computer Terminals		1,000
3577	Computer Peripheral Equipment,
		N.E.C.	1,000
3578	Calculating and Accounting Machines,
		Except Electronic Computers	1,000
3579	Office Machines, N.E.C.		500
3581	Automatic Vending Machines		500
3582	Commercial Laundry, Dry Cleaning,
		and Pressing Machines	500
3585	Air-Conditioning and Warm Air Heating Equipment and Commercial and
		Industrial Refrigeration Equipment	750
3586	Measuring and Dispensing Pumps		500
3589	Service Industry Machinery, N.E.C.		500
3592	Carburetors, Pistons, Piston Rings,
		and Valves	500
3593	Fluid Power Cylinders and
		Actuators	500
3594	Fluid Power Pumps and Motors		500
3599	Industrial and Commercial Machinery
		and Equipment, N.E.C.	500
Major Group 36--Electronic and Other Electrical
Equipment and Components, Except Computer Equipment
3612	Power, Distribution, and Specialty
		Transformers	750
3613	Switchgear and Switchboard
		Apparatus	750
3621	Motors and Generators		1,000
3624	Carbon and Graphite Products		750
3625	Relays and Industrial Controls		750
3629	Electrical Industrial Apparatus, N.E.C.		500
3631	Household Cooking Equipment		750
3632	Household Refrigerators and Home
		and Farm Freezers	1,000
3633	Household Laundry Equipment		1,000
3634	Electric Housewares and Fans		750
3635	Household Vacuum Cleaners		750
3639	Household Appliances, N.E.C.		500
3641	Electric Lamp Bulbs and Tubes		1,000
3643	Current-Carrying Wiring Devices		500
3644	Noncurrent-Carrying Wiring Devices		500
3645	Residential Electric Lighting Fixtures		500
3646	Commercial, Industrial, and Institutional
		Electric Lighting Fixtures	500
3647	Vehicular Lighting Equipment		500
3648	Lighting Equipment, N.E.C.		500
3651	Household Audio and Video
		Equipment	750
3652	Phonograph Records and Prerecorded
		Audio Tapes and Disks	750
3661	Telephone and Telegraph Apparatus		1,000
3663	Radio and Television Broadcasting and Communications Equipment
			750
3669	Communications Equipment, N.E.C.		750
3671	Electron Tubes		750
3672	Printed Circuit Boards		500
3674	Semiconductors and Related Devices		500
3675	Electronic Capacitors		500
3676	Electronic Resistors		500
3677	Electronic Coils, Transformers, and
		Other Inductors	500
3678	Electronic Connectors		500
3679	Electronic Components, N.E.C.		500
3691	Storage Batteries		500
3692	Primary Batteries, Dry and Wet		1,000
3694	Electrical Equipment for Internal
		Combustion Engines	750
3695	Magnetic and Optical Recording Media
		1,000
3699	Electrical Machinery, Equipment, and
		Supplies, N.E.C.	750
Major Group 37--Transportation Equipment
3711	Motor Vehicles and Passenger Car
		Bodies	1,000
3713	Truck and Bus Bodies		500
3714	Motor Vehicle Parts and Accessories		750
3715	Truck Trailers		500
3716	Motor Homes		1,000
3721	Aircraft		1,500
3724	Aircraft Engines and Engine Parts		1,000
3728	Aircraft Parts and Auxiliary Equipment,
		N.E.C.	1,0009
3731	Shipbuilding and Repair of Nuclear
		Propelled Ships	1,000
Except, Shipbuilding of Nonnuclear Propelled
		Ships and Nonpropelled Ships	1,000
Ship Repair (Including Overhauls and Conversions) Performed on Nonnuclear Propelled and Nonpropelled Ships East
		of the 108 Meridian	1,000
	Ship Repair (Including Overhauls and
		Conversions) Performed on
		NonnuclearPropelled and
		Nonpropelled Ships West of the
		108 Meridian	1,000
3732	Boat Building and Repairing		500
3743	Railroad Equipment		1,000
3751	Motorcycles, Bicycles, and Parts		500
3761	Guided Missiles and Space Vehicles		1,000
3764	Guided Missile and Space Vehicle
		Propulsion Units and Propulsion
		Unit Parts	1,000
3769	Guided Missile and Space Vehicle Parts
		and Auxiliary Equipment, N.E.C.	1,000
3792	Travel Trailers and Campers		500
3795	Tanks and Tank Components		1,000
3799	Transportation Equipment, N.E.C.		500
Major Group 38--Measuring, Analyzing, and Controlling Instruments; Photographic, Medical, and Optical Goods; Watches and Clocks
3812	Search, Detection, Navigation, Guidance, Aeronautical, and Nautical Systems
		and Instruments	750
3821	Laboratory Apparatus and Furniture		500
3822	Automatic Controls for Regulating
		Residential and Commercial
		Environments and Appliances	500
3823	Industrial Instruments for Measurement,
		Display, and Control of Process
		Variables; and Related Products	500
3824	Totalizing Fluid Meters and Counting
		Devices	500
3825	Instruments for Measuring and Testing
		of Electricity and Electrical Signals	500
3826	Laboratory Analytical Instruments		500
3827	Optical Instruments and Lenses		500
3829	Measuring and Controlling Devices,
		N.E.C.	500
3841	Surgical and Medical Instruments and
		Apparatus	500
3842	Orthopedic, Prosthetic, and Surgical
		Appliances and Supplies	500
3843	Dental Equipment and Supplies		500
3844	X-Ray Apparatus and Tubes and Related Irradiation Apparatus
			500
3845	Electromedical and Electrotherapeutic
		Apparatus	500
3851	Ophthalmic Goods		500
3861	Photographic Equipment and Supplies		500
3873	Watches, Clocks, Clockwork Operated
		Devices, and Parts	500
Major Group 39--Miscellaneous Manufacturing Industries
3911	Jewelry, Precious Metal		500
3914	Silverware, Plated Ware, and Stainless
		Steel Ware	500
3915	Jewelers' Findings and Materials, and
		Lapidary Work	500
3931	Musical Instruments		500
3942	Dolls and Stuffed Toys		500
3944	Games, Toys, and Children's Vehicles,
		Except Dolls and Bicycles	500
3949	Sporting and Athletic Goods, N.E.C.		500
3951	Pens, Mechanical Pencils, and Parts		500
3952	Lead Pencils, Crayons, and Artists'
		Materials	500
3953	Marking Devices		500
3955	Carbon Paper and Inked Ribbons		500
3961	Costume Jewelry and Costume Novelties,
		Except Precious Metal	500
3965	Fasteners, Buttons, Needles, and Pins		500
3991	Brooms and Brushes		500
3993	Signs and Advertising Specialties		500
3995	Burial Caskets		500
3996	Linoleum, Asphalted-Felt-Base, and
		Other Hard Surface Floor
		Coverings, N.E.C.	750
3999	Manufacturing Industries, N.E.C.		500
DIVISION E--TRANSPORTATION, COMMUNICATIONS, ELECTRIC, GAS AND SANITARY SERVICES
Major Group 40--Railroad Transportation
4011	Railroads, Line-Haul Operating		1,500
4013	Railroad Switching and Terminal
		Establishments	500
Major Group 41--Local and Suburban Transit and Interurban Highway Passenger Transportation
4111	Local and Suburban Transit		$5.0
4119	Local Passenger Transportation,
		N.E.C.	$5.0
4121	Taxicabs		$5.0
4131	Intercity and Rural Bus Transportation		$5.0
4141	Local Bus Charter Service		$5.0
4142	Bus Charter Service, Except Local		$5.0
4151	School Buses		$5.0
4173	Terminal and Service Facilities for
		Motor Vehicle Passenger
		Transportation	$5.0
Major Group 42--Motor Freight Transportation and Warehousing
4212	Local Trucking Without Storage		$18.5
	Except, Garbage and Refuse Collection,
		Without Disposal	$6.0
4213	Trucking, Except Local		$18.5
4214	Local Trucking With Storage		$18.5
4215	Courier Services, Except by Air		$18.5
4221	Farm Product Warehousing and
		Storage	$18.5
4222	Refrigerated Warehousing and Storage		$18.5
4225	General Warehousing and Storage		$18.5
4226	Special Warehousing and Storage,
		N.E.C.	$18.5
4231	Terminal and Joint Terminal Maintenance Facilities for Motor Freight
		Transportation	$5.0
Major Group 44--Water Transportation
4412	Deep Sea Foreign Transportation of
		Freight	500
4424	Deep Sea Domestic Transportation of
		Freight	500
4432	Freight Transportation on the Great
		Lakes -- St. Lawrence Seaway	500
4449	Water Transportation of Freight,
		N.E.C.	500
4481	Deep Sea Transportation of Passengers,
		Except by Ferry	500
4482	Ferries		500
4489	Water Transportation of Passengers,
		N.E.C.	500
4491	Marine Cargo Handling		$18.5
4492	Towing and Tugboat Services		$5.0
4493	Marinas		$5.0
4499	Water Transportation Services, N.E.C.		$5.0
	Except, Offshore Marine Water
		Transportation Services	$20.5
Major Group 45--Transportation by Air
4512	Air Transportation, Scheduled		1,500
4513	Air Courier Services		1,500
4522	Air Transportation, Nonscheduled		1,500
	Except, Offshore Marine Air Transportation
		Services	$20.5
4581	Airports, Flying Fields, and Airport
		Terminal Services	$5.0
Major Group 46--Pipelines, Except Natural Gas
4612	Crude Petroleum Pipelines	1,500
4613	Refined Petroleum Pipelines	1,500
4619	Pipelines, N.E.C.	$25.0
Major Group 47--Transportation Services
4724	Travel Agencies		$1.06
4725	Tour Operators		$5.0
4729	Arrangement of Passenger
		Transportation, N.E.C.	$5.0
4731	Arrangement of Transportation of
		Freight and Cargo	$18.5
4741	Rental of Railroad Cars		$5.0
4783	Packing and Crating		$18.5
4785	Fixed Facilities and Inspection and
		Weighing Services for Motor
		Vehicle Transportation	$5.0
4789	Transportation Services, N.E.C.		$5.0
Major Group 48--Communications
4812	Radiotelephone Communications		1,500
4813	Telephone Communications, Except Radiotelephone
			1,500
4822	Telegraph and Other Message
		Communications	$5.0
4832	Radio Broadcasting Stations		$5.0
4833	Television Broadcasting Stations		$10.5
4841	Cable and Other Pay Television
		Services	$11.0
4899	Communications Services, N.E.C.		$11.0
Major Group 49--Electric, Gas, and Sanitary Services
4911	Electric Services		4 million megawatt hours
4922	Natural Gas Transmission			$5.0
4923	Gas Transmission and Distribution			$5.0
4924	Natural Gas Distribution			500
4925	Mixed, Manufactured, or Liquefied
		Petroleum Gas Production and/or
		Distribution		$5.0
4931	Electric and Other Services Combined			$5.0
4932	Gas and Other Services Combined			$5.0
4939	Combination Utilities, N.E.C.			$5.0
4941	Water Supply			$5.0
4952	Sewerage Systems			$5.0
4953	Refuse Systems			$6.0
4959	Sanitary Services, N.E.C.			$5.0
4961	Steam and Air-Conditioning Supply			$9.0
4971	Irrigation Systems			$5.0
DIVISION F--WHOLESALE TRADE (The following size standards are not applicable to Government procurement of supplies. The nonmanufacturer size standard of 500 employees shall be used for purposes of Government procurement of supplies.)
Major Group 50--Wholesale Trade--Durable Goods
5012	Automobiles and Other Motor
		Vehicles	100
5013	Motor Vehicle Supplies and New
		Parts	100
5014	Tires and Tubes		100
5015	Motor Vehicle Parts, Used		100
5021	Furniture		100
5023	Home Furnishings		100
5031	Lumber, Plywood, Millwork, and
		Wood Panels	100
5032	Brick, Stone, and Related Construction
		Materials	100
5033	Roofing, Siding, and Insulation
		Materials	100
5039	Construction Materials, N.E.C.		100
5043	Photographic Equipment and Supplies		100
5044	Office Equipment		100
5045	Computers and Computer Peripheral
		Equipment and Software	100
5046	Commercial Equipment, N.E.C.		100
5047	Medical, Dental, and Hospital
		Equipment and Supplies	100
5048	Ophthalmic Goods		100
5049	Professional Equipment and Supplies,
		N.E.C.	100
5051	Metals Service Centers and Offices		100
5052	Coal and Other Minerals and Ores		100
5063	Electrical Apparatus and Equipment,
		Wiring Supplies, and
		Construction Materials	100
5064	Electrical Appliances, Television and
		Radio Sets	100
5065	Electronic Parts and Equipment,
		N.E.C.	100
5072	Hardware		100
5074	Plumbing and Heating Equipment and
		Supplies (Hydronics)	100
5075	Warm Air Heating and Air-Conditioning Equipment and Supplies
			100
5078	Refrigeration Equipment and Supplies		100
5082	Construction and Mining (Except
		Petroleum) Machinery and
		Equipment	100
5083	Farm and Garden Machinery and
		Equipment	100
5084	Industrial Machinery and Equipment		100
5085	Industrial Supplies		100
5087	Service Establishment Equipment and
		Supplies	100
5088	Transportation Equipment and Supplies,
		Except Motor Vehicles	100
5091	Sporting and Recreational Goods and
		Supplies	100
5092	Toys and Hobby Goods and Supplies		100
5093	Scrap and Waste Materials		100
5094	Jewelry, Watches, Precious Stones, and
		Precious Metals	100
5099	Durable Goods, N.E.C.		100
Major Group 51--Wholesale Trade--Nondurable Goods
5111	Printing and Writing Paper		100
5112	Stationery and Office Supplies		100
5113	Industrial and Personal Service Paper		100
5122	Drugs, Drug Proprietaries, and Druggists' Sundries
			100
5131	Piece Goods, Notions, and Other Dry
		Goods	100
5136	Men's and Boys' Clothing and
		Furnishings	100
5137	Women's, Children's, and Infants'
		Clothing and Accessories	100
5139	Footwear		100
5141	Groceries, General Line		100
5142	Packaged Frozen Foods		100
5143	Dairy Products, Except Dried or
		Canned	100
5144	Poultry and Poultry Products		100
5145	Confectionery		100
5146	Fish and Seafood		100
5147	Meats and Meat Products		100
5148	Fresh Fruits and Vegetables		100
5149	Groceries and Related Products,
		N.E.C.	100
5153	Grain and Field Beans		100
5154	Livestock		100
5159	Farm-Product Raw Materials, N.E.C.		100
5162	Plastics Materials and Basic Forms and
		Shapes	100
5169	Chemical and Allied Products, N.E.C.		100
5171	Petroleum Bulk Stations and
		Terminals	100
5172	Petroleum and Petroleum Products
		Wholesalers, Except Bulk Stations
		and Terminals	100
5181	Beer and Ale		100
5182	Wine and Distilled Alcoholic
		Beverages	100
5191	Farm Supplies		100
5192	Books, Periodicals, and Newspapers		100
5193	Flowers, Nursery Stock, and Florists'
		Supplies	100
5194	Tobacco and Tobacco Products		100
5198	Paints, Varnishes, and Supplies		100
5199	Nondurable Goods, N.E.C.		100
DIVISION G--RETAIL TRADE (The following size standards are not applicable to Government procurement of supplies. The nonmanufacturer size standard of 500 employees shall be used for purposes of Government procurement of supplies.)
Major Group 52--Building Materials, Hardware, Garden Supply, and Mobile Home Dealers
5211	Lumber and Other Building Materials
		Dealers	$5.0
5231	Paint, Glass, and Wallpaper Stores		$5.0
5251	Hardware Stores		$5.0
5261	Retail Nurseries, Lawn and Garden
		Supply Stores	$5.0
5271	Mobile Home Dealers		$9.5
Major Group 53--General Merchandise Stores
5311	Department Stores			$20.0
5331	Variety Stores			$8.0
5399	Miscellaneous General Merchandise
		Stores		$5.0
Major Group 54--Food Stores
5411	Grocery Stores		$20.0
5421	Meat and Fish (Seafood) Markets,
		Including Freezer Provisioners	$5.0
5431	Fruit and Vegetable Markets		$5.0
5441	Candy, Nut, and Confectionery Stores		$5.0
5451	Dairy Products Stores		$5.0
5461	Retail Bakeries		$5.0
5499	Miscellaneous Food Stores		$5.0
Major Group 55--Automotive Dealers and Gasoline Service Stations
5511	Motor Vehicle Dealers (New and Used)
		$21.0
5521	Motor Vehicle Dealers (Used Only)	$17.0
5531	Auto and Home Supply Stores	$5.0
5541	Gasoline Service Stations	$6.5
5551	Boat Dealers	$5.0
5561	Recreational Vehicle Dealers	$5.0
5571	Motorcycle Dealers	$5.0
5599	Automotive Dealers, N.E.C.	$5.0
	Except, Aircraft Dealers, Retail	$7.5
Major Group 56--Apparel and Accessory Stores
5611	Men's and Boys' Clothing and
		Accessory Stores	$6.5
5621	Women's Clothing Stores		$6.5
5632	Women's Accessory and Specialty
		Stores	$5.0
5641	Children's and Infants' Wear Stores		$5.0
5651	Family Clothing Stores		$6.5
5661	Shoe Stores		$6.5
5699	Miscellaneous Apparel and Accessory
		Stores	$5.0
Major Group 57--Home Furniture, Furnishings, and Equipment Stores
5712	Furniture Stores		$5.0
5713	Floor Covering Stores		$5.0
5714	Drapery, Curtain, and Upholstery
		Stores	$5.0
5719	Miscellaneous Home Furnishings
		Stores	$5.0
5722	Household Appliance Stores		$6.5
5731	Radio, Television, and Consumer
		Electronics Stores	$6.5
5734	Computer and Computer Software
		Stores	$6.5
5735	Record and Prerecorded Tape Stores		$5.0
5736	Musical Instrument Stores		$5.0
Major Group 58--Eating and Drinking Places
5812	Eating Places		$5.0
	Except, Food Service, Institutional		$15.0
5813	Drinking Places (Alcoholic
		Beverages)	$5.0
Major Group 59--Miscellaneous Retail
5912	Drug Stores and Proprietary Stores		$5.0
5921	Liquor Stores		$5.0
5932	Used Merchandise Stores		$5.0
5941	Sporting Goods Stores and Bicycle
		Shops	$5.0
5942	Book Stores		$5.0
5943	Stationery Stores		$5.0
5944	Jewelry Stores		$5.0
5945	Hobby, Toy, and Game Shops		$5.0
5946	Camera and Photographic Supply
		Stores	$5.0
5947	Gift, Novelty, and Souvenir Shops		$5.0
5948	Luggage and Leather Goods Stores		$5.0
5949	Sewing, Needlework, and Piece Goods
		Stores	$5.0
5961	Catalog and Mail-Order Houses		$18.5
5962	Automatic Merchandising Machine
		Operators	$5.0
5963	Direct Selling Establishments		$5.0
5983	Fuel Oil Dealers		$9.0
5984	Liquefied Petroleum Gas (Bottled Gas)
		Dealers	$5.0
5989	Fuel Dealers, N.E.C.		$5.0
5992	Florists		$5.0
5993	Tobacco Stores and Stands		$5.0
5994	News Dealers and Newsstands		$5.0
5995	Optical Goods Stores		$5.0
5999	Miscellaneous Retail Stores, N.E.C.		$5.0
DIVISION H--FINANCE, INSURANCE, AND REAL ESTATE
Major Group 60--Depository Institutions
6021	National Commercial
		Banks			$100 million in assets7
6022	State Commercial
		Banks	$100 million in assets7
6029	Commercial Banks,
		N.E.C.	$100 million in assets7
6035	Savings Institutions, Federally
		Chartered	$100 million in assets7
6036	Savings Institutions, Not Federally
		Chartered	$100 million in assets7
6061	Credit Unions, Federally
		Chartered	$100 million in assets7
6062	Credit Unions, Not Federally
		Chartered	$100 million in assets7
6081	Branches and Agencies of
		Foreign Banks	$100 million in assets7
6082	Foreign Trade and International
		Banks	$100 million in assets7
6091	Nondeposit Trust Facilities			$5.0
6099	Functions Related to
		Depositor Banking, N.E.C.	$5.0
Major Group 61--Nondepository Institution
6141	Personal Credit Institutions		$5.0
6153	Short-Term Business Credit
		Institutions, Except Agriculture	$5.0
6159	Miscellaneous Business Credit
		Institutions	$5.0
6162	Mortgage Bankers and Loan
		Correspondents	$5.0
6163	Loan Brokers		$5.0
Major Group 62--Security and Commodity Brokers, Dealers, Exchanges, and Services
6211	Security Brokers, Dealers and Flotation Companies
			$5.0
6221	Commodity Contracts Brokers and
		Dealers	$5.0
6231	Security and Commodity Exchanges		$5.0
6282	Investment Advice		$5.0
6289	Services Allied with the Exchange
		of Securities or Commodities,
		N.E.C.	$5.0
Major Group 63--Insurance Carriers
6311	Life Insurance	$5.0
6321	Accident and Health Insurance	$5.0
6324	Hospital and Medical Service Plans	$5.0
6331	Fire, Marine, and Casualty Insurance	1,500
6351	Surety Insurance	$5.0
6361	Title Insurance	$5.0
6371	Pension, Health and Welfare Funds	$5.0
6399	Insurance Carriers, N.E.C.	$5.0
Major Group 64--Insurance Agents, Brokers, and Service
6411	Insurance Agents, Brokers, and
		Service	$5.0
Major Group 65--Real Estate
6512	Operators of Nonresidential Buildings		$5.0
6513	Operators of Apartment Buildings		$5.0
6514	Operators of Dwellings Other Than
		Apartment Buildings	$5.0
6515	Operators of Residential Mobile Home
		Sites	$5.0
Except, Leasing of Building Space to Federal Government by Owners
			$15.08
6517	Lessors of Railroad Property			$5.0
6519	Lessors of Real Property, N.E.C.			$5.0
6531	Real Estate Agents and Managers		$1.56
6541	Title Abstract Offices			$5.0
6552	Land Subdividers and Developers,
		Except Cemeteries		$5.0
6553	Cemetery Subdividers and Developers			$5.0
Major Group 67--Holding and Other Investment Offices
6712	Offices of Bank Holding Companies		$5.0
6719	Offices of Holding Companies,
		N.E.C.	$5.0
6722	Management Investment Offices,
		Open-End	$5.0
6726	Unit Investment Trusts, Face-Amount
Certificate Offices, and Closed-End Management Investment Offices
			$5.0
6732	Educational, Religious, and Charitable
		Trusts	$5.0
6733	Trusts, Except Educational, Religious,
		and Charitable	$5.0
6792	Oil Royalty Traders		$5.0
6794	Patent Owners and Lessors		$5.0
6798	Real Estate Investment Trusts		$5.0
6799	Investors, N.E.C.		$5.0
DIVISION I--SERVICES
Major Group 70--Hotels, Rooming Houses, Camps, and Other Lodging Places
7011	Hotels and Motels		$5.0
7021	Rooming and Boarding Houses		$5.0
7032	Sporting and Recreational Camps		$5.0
7033	Recreational Vehicle Parks and
		Campsites	$5.0
7041	Organization Hotels and Lodging
		Houses, on Membership Basis	$5.0
Major Group 72--Personal Services
7211	Power Laundries, Family and
		Commercial	$10.5
7212	Garment Pressing, and Agents for
		Laundries and Drycleaners	$5.0
7213	Linen Supply		$10.5
7215	Coin-Operated Laundries and
		Dry Cleaning	$5.0
7216	Drycleaning Plants, Except Rug
		Cleaning	$3.5
7217	Carpet and Upholstery Cleaning		$3.5
7218	Industrial Launderers		$10.5
7219	Laundry and Garment Services,
		N.E.C.	$5.0
7221	Photographic Studios, Portrait		$5.0
7231	Beauty Shops		$5.0
7241	Barber Shops		$5.0
7251	Shoe Repair Shops and Shoeshine
		Parlors	$5.0
7261	Funeral Service and Crematories		$5.0
7291	Tax Return Preparation Services		$5.0
7299	Miscellaneous Personal Services,
		N.E.C.	$5.0
Major Group 73--Business Services
7311	Advertising Agencies			$5.06
7312	Outdoor Advertising Services			$5.06
7313	Radio, Television, and Publishers'
		Advertising Representatives		$5.06
7319	Advertising, N.E.C.			$5.06
7322	Adjustment and Collection Services		$5.0
7323	Credit Reporting Services		$5.0
7331	Direct Mail Advertising Services		$5.0
7334	Photocopying and Duplicating Services
			$5.0
7335	Commercial Photography		$5.0
7336	Commercial Art and Graphic Design		$5.0
7338	Secretarial and Court Reporting Services
			$5.0
7342	Disinfecting and Pest Control Services		$5.0
7349	Building Cleaning and Maintenance
		Services, N.E.C.	$12.0
7352	Medical Equipment Rental and Leasing
			$5.0
7353	Heavy Construction Equipment Rental
		and Leasing	$5.0
7359	Equipment Rental and Leasing,
		N.E.C.	$5.0
7361	Employment Agencies		$5.0
7363	Help Supply Services		$5.0
7371	Computer Programming Services		$18.0
7372	Prepackaged Software		$18.0
7373	Computer Integrated Systems
		Design	$18.0
7374	Computer Processing and Data
		Preparation and Processing
		Services	$18.0
7375	Information Retrieval Services		$18.0
7376	Computer Facilities Management
		Services	$18.0
7377	Computer Rental and Leasing		$18.0
7378	Computer Maintenance and Repair		$18.0
7379	Computer Related Services, N.E.C.		$18.0
7381	Detective, Guard, and Armored Car
		Services	$9.0
7382	Security Systems Services		$9.0
7383	News Syndicates		$5.0
7384	Photofinishing Laboratories		$5.0
7389	Business Services, N.E.C.		$5.0
	Except, Map Drafting Services,
		Mapmaking
		(Including Aerial) and
		Photogrammatric Mapping
		Services	$3.5
Major Group 75--Automotive Repair, Services, and Parking
7513	Truck Rental and Leasing,
		Without Drivers	$18.5
7514	Passenger Car Rental		$18.5
7515	Passenger Car Leasing		$18.5
7519	Utility Trailer and Recreational
		Vehicle Rental	$5.0
7521	Automobile Parking		$5.0
7532	Top, Body, and Upholstery Repair
		Shops and Paint Shops	$5.0
7533	Automotive Exhaust System
		Repair Shops	$5.0
7534	Tire Retreading and Repair Shops		$10.5
7536	Automotive Glass Replacement
		Shops	$5.0
7537	Automotive Transmission Repair
		Shops	$5.0
7538	General Automotive Repair Shops		$5.0
7539	Automotive Repair Shops, N.E.C.		$5.0
7542	Car Washes		$5.0
7549	Automotive Services, Except
		Repair and Car Washes	$5.0
Major Group 76--Miscellaneous Repair Services
7622	Radio and Television Repair Shops		$5.0
7623	Refrigeration and Air-Conditioning
		Service and Repair Shops	$5.0
7629	Electrical and Electronic Repair
		Shops, N.E.C.	$5.0
7631	Watch, Clock, and Jewelry Repair		$5.0
7641	Reupholstery and Furniture Repair		$5.0
7692	Welding Repair		$5.0
7694	Armature Rewinding Shops		$5.0
7699	Repair Shops and Related Services,
		N.E.C.	$5.09
Major Group 78--Motion Pictures
7812	Motion Picture and Video Tape
		Production	$21.5
7819	Services Allied to Motion Picture
		Production	$21.5
7822	Motion Picture and Video Tape
		Distribution	$21.5
7829	Services Allied to Motion Picture
		Distribution	$5.0
7832	Motion Picture Theaters, Except
		Drive-In	$5.0
7833	Drive-In Motion Picture Theaters		$5.0
7841	Video Tape Rental		$5.0
Major Group 79--Amusement and Recreation Services
7911	Dance Studios, Schools, and Halls		$5.0
7922	Theatrical Producers (Except
		Motion Picture )and
		Miscellaneous Theatrical
		Services	$5.0
7929	Bands, Orchestras, Actors, and
		Other Entertainers and
		Entertainment Groups	$5.0
7933	Bowling Centers		$5.0
7941	Professional Sports Clubs and
		Promoters	$5.0
7991	Physical Fitness Facilities		$5.0
7993	Coin-Operated Amusement Devices		$5.0
7996	Amusement Parks		$5.0
7997	Membership Sports and Recreation
		Clubs	$5.0
7999	Amusement and Recreation
		Services, N.E.C.	$5.0
Major Group 80--Health Services
8011	Offices and Clinics of Doctors of
		Medicine	$5.0
8021	Offices and Clinics of Dentists		$5.0
8031	Offices and Clinics of Doctors of
		Osteopathy	$5.0
8041	Offices and Clinics of Chiropractors		$5.0
8042	Offices and Clinics of Optometrists		$5.0
8043	Offices and Clinics of Podiatrists		$5.0
8049	Offices and Clinics of Health
		Practitioners, N.E.C.	$5.0
8051	Skilled Nursing Care Facilities		$5.0
8052	Intermediate Care Facilities		$5.0
8059	Nursing and Personal Care Facilities,
		N.E.C.	$5.0
8062	General Medical and Surgical
		Hospitals	$5.0
8063	Psychiatric Hospitals		$5.0
8069	Specialty Hospitals, Except
		Psychiatric	$5.0
8071	Medical Laboratories		$5.0
8072	Dental Laboratories		$5.0
8082	Home Health Care Services		$5.0
8092	Kidney Dialysis Centers		$5.0
8093	Specialty Outpatient Facilities, N.E.C.		$5.0
8099	Health and Allied Services, N.E.C.		$5.0
Major Group 81--Legal Services
8111	Legal Services	$5.0
Major Group 82--Educational Services
8211	Elementary and Secondary Schools			$5.0
8221	Colleges, Universities, and
		Professional Schools		$5.0
8222	Junior Colleges and Technical
		Institutes		$5.0
8231	Libraries			$5.0
8243	Data Processing Schools			$5.0
8244	Business and Secretarial Schools			$5.0
8249	Vocational Schools, N.E.C.			$5.0
8299	Schools and Educational Services,
		N.E.C	.	$5.0
8299	Flight Training Services			$18.5
Major Group 83--Social Services
8322	Individual and Family Social Services		$5.0
8331	Job Training and Vocational
		Rehabilitation Services	$5.0
8351	Child Day Care Services		$5.0
8361	Residential Care		$5.0
8399	Social Services, N.E.C.	$5.0
Major Group 84--Museums, Art Galleries, and Botanical and Zoological Gardens
8412	Museums and Art Galleries		$5.0
8422	Arboreta and Botanical or Zoological
		Gardens	$5.0
Major Group 86--Membership Organizations
8611	Business Associations		$5.0
8621	Professional Membership
		Organizations	$5.0
8631	Labor Unions and Similar Labor
		Organizations	$5.0
8641	Civic, Social, and Fraternal
		Associations	$5.0
8651	Political Organizations		$5.0
8661	Religious Organizations		$5.0
8699	Membership Organizations, N.E.C.		$5.0

Major Group 87--Engineering, Accounting, Research, Management, and Related Services

8711	Engineering Services		$2.5
	Except, Military and Aerospace Equipment
		and Military Weapons	$20.0
	Except, Contracts and Subcontracts for
		Engineering Services Awarded
		Under the National Energy Policy
		Act of 1992	$20.0
	Except, Marine Engineering and Naval
		Architecture	$13.5
8712	Architectural Services		$2.5
8713	Surveying Services		$2.5
8721	Accounting, Auditing, and Bookkeeping
		Services	$6.0
8731	Commercial Physical and Biological
		Research		50010
	Except, Aircraft		1,500
	Except, Aiircraft Parts, and Auxiliary
		Equipment, and Aircraft Engines
		and Engine Parts	1,000
	Except, Space Vehicles and Guided Missiles,
		their Propulsion Units, their
		Propulsion Units Parts, and their
		Auxiliary Equipment and Parts	1,000
8732	Commercial Economic, Sociological, and Educational Research
			$5.0
8733	Noncommercial Research Organizations			$5.0
8734	Testing Laboratories		$5.0
8741	Management Services		$5.0

SIC Description Size

	Except, Conference Management
		Service		$5.06
8742	Management Consulting Services			$5.0
8743	Public Relations Services			$5.0
8744	Facilities Support Management
		Services	$5.011
	Except, Base Maintenance		$20.012
	Except, Environmental Remediation
		Services	50013
8748	Business Consulting Services, N.E.C.			$5.0

Major Group 89--Services, Not Elsewhere Classified

8999

Services, N.E.C.

$5.0

DIVISION K--NONCLASSIFIABLE ESTABLISHMENTS

9999

Nonclassifiable Establishments

$5.0

FOOTNOTES

¹ SIC code 1629--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.

² SIC Division D--Manufacturing: For rebuilding machinery or equipment on a factory basis, or equivalent, use the SIC code for a newly manufactured product. Concerns performing major rebuilding or overhaul activities do not necessarily have to meet the criteria for being a "manufacturer" although the activities may be classified under a manufacturing SIC code. Ordinary repair services or preservation are not considered rebuilding.

³ SIC code 2033: For purposes of Government procurement for food canning and preserving, the standard of 500 employees excludes agricultural labor as defined in section 3306(k) of the Internal Revenue Code, 26 U.S.C. 3306(k).

⁴ SIC code 2911: For purposes of Government procurement, the firm may not have more than 1,500 employees nor more than 75,000 barrels per day capacity of petroleum-based inputs, including crude oil or bona fide feedstocks. Capacity includes owned or leased facilities as well as facilities under a processing agreement or an arrangement such as an exchange agreement or a throughput. The total product to be delivered under the contract must be at least 90 percent refined by the successful bidder from either crude oil or bona fide feedstocks.

5 SIC code 3011: For purposes of Government procurement, a firm is small for bidding on a contract for pneumatic tires

within Census Classification Codes 30111 and 30112, provided that--

(1) The value of tires within Census Classification Codes 30111 and 30112 which it manufactured in the United States during the previous calendar year is more than 50 percent of the value of its total worldwide manufacture,

(2) The value of pneumatic tires within Census Classification Codes 30111 and 30112 comprising its total worldwide manufacture during the preceding calendar year was less than 5 percent of the value of all such tires manufactured in the United States during that period, and

(3) The value of the principal product which it manufactured or otherwise produced, or sold worldwide during the preceding calendar year is less than 10 percent of the total value of such products manufactured or otherwise produced or sold in the United States during that period.

⁶ SIC codes 4724, 6531, 7311, 7312, 7313, 7319, and 8741 (part): 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 revenue.

⁷ 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 034 call report form.

⁸ SIC code 6515: Leasing of building space to the Federal Government by Owners: For Government procurement, a size standard of $15.0 million in gross receipts applies to the owners of building space leased to the Federal Government. The standard does not apply to an agent.

⁹ SIC codes 7699 and 3728: Contracts for the rebuilding or overhaul of aircraft ground support equipment on a contract basis are classified under SIC code 3728.

¹⁰ SIC code 8731: For research and development contracts requiring the delivery of a manufactured product, the appropriate size standard is that of the manufacturing industry.

(1) Research and development means laboratory or other physical research and development. It does not include economic, educational, engineering, operations, systems, or other nonphysical research; or computer programming, data processing, commercial and/or medical laboratory testing.

(2) For purposes of the Small Business Innovation Research (SBIR) program only, a different definition has been established by law. See 13 CFR 121.701.

(3) Research and development for guided missiles and space vehicles includes evaluations and simulation, and other services requiring thorough knowledge of complete missiles and spacecraft.

¹¹ Facilities management, a component of SIC code 8744, includes establishments, not elsewhere classified, which provide overall management and the personnel to perform a variety of related support services in operating a complete facility in or around a specific building, or within another business or Government establishment. Facilities management means furnishing three or more personnel supply services which may include, but are not limited to, secretarial services, typists, telephone answering, reproduction or mimeograph service, mailing service, financial or business management, public relations, conference planning, travel arrangements, word processing, maintaining files and/or libraries, switchboard operation, writers, bookkeeping, minor office equipment maintenance and repair, or use of information systems (not programming).

¹² SIC code 8744: (1) If one of the activities of base maintenance, as defined below, can be identified with a separate industry and that activity (or industry) accounts for 50 percent or more of the value of an entire contract, then the proper size standard is that of the particular industry, and not the base maintenance size standard.

(2) "Base Maintenance" requires the performance of three or more separate activities in the areas of service or special trade construction industries. If services are performed, these activities must each be in a separate SIC code including, but not limited to, Janitorial and Custodial Service, Fire Prevention Service, Messenger Service, Commissary Service, Protective Guard Service, and Grounds Maintenance and Landscaping Service. If the contract requires the use of special trade contractors (plumbing, painting, plastering, carpentry, etc.), all such special trade construction activities are considered a single activity and classified as Base Housing Maintenance. Since Base Housing Maintenance is only one activity, two additional activities are required for a contract to be classified as "Base Maintenance."

¹³ SIC code 8744: (1) For SBA assistance as a small business concern in the industry of Environmental Remediation Services, other than for Government procurement, a concern must be engaged primarily in furnishing a range of services for the remediation of a contaminated environment to an acceptable condition including, but not limited to, preliminary assessment, site inspection, testing, remedial investigation, feasibility studies, remedial design, containment, remedial action, removal of contaminated materials, storage of contaminated materials and security and site closeouts. If one of such activities accounts for 50 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.

19.201 General policy.

(a) It is the policy of the Government to provide maximum practicable opportunities in its acquisitions to small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns. Such concerns shall also have the maximum practicable opportunity to participate as subcontractors in the contracts awarded by any executive agency, consistent with efficient contract performance. The Small Business Administration (SBA) counsels and assists small business concerns and assists contracting personnel to ensure that a fair proportion of contracts for supplies and services is placed with small business.

(b) The Department of Commerce will determine on an annual basis, by Major Groups as contained in the Standard Industrial Classification (SIC) manual, and region, if any, the authorized small disadvantaged business (SDB) procurement mechanisms and applicable factors (percentages). The Department of Commerce determination shall only affect solicitations that are issued on or after the effective date of the determination. The effective date of the Department of Commerce determination shall be no less than 60 days after its publication date. The Department of Commerce determination shall not affect ongoing acquisitions. The SDB procurement mechanisms are a price evaluation adjustment for SDB concerns (see Subpart 19.11), an evaluation factor or subfactor for participation of SDB concerns (see 19.1202), and monetary subcontracting incentive clauses for SDB concerns (see 19.1203). The Department of Commerce determination shall also include the applicable factors, by SIC Major Group, to be used in the price evaluation adjustment for SDB concerns (see 19.1104). The General Services Administration shall post the Department of Commerce determination at http://www.arnet.gov/References/sdbadjustments.htm. The authorized procurement mechanisms shall be applied consistently with the policies and procedures in this subpart. The agencies shall apply the procurement mechanisms determined by the Department of Commerce. The Department of Commerce, in making its determination, is not limited to the SDB procurement mechanisms identified in this section where the Department of Commerce has found substantial and persuasive evidence of--

(1) A persistent and significant underutilization of minority firms in a particular industry, attributable to past or present discrimination; and

(2) A demonstrated incapacity to alleviate the problem by using those mechanisms.

(c) Heads of contracting activities are responsible for effectively implementing the small business programs within their activities, including achieving program goals. They are to ensure that contracting and technical personnel maintain knowledge of small business program requirements and take all reasonable action to increase participation in their activities' contracting processes by these businesses.

(d) The Small Business Act requires each agency with contracting authority to establish an Office of Small and Disadvantaged Business Utilization (see section (k) of the Small Business Act). Management of the office shall be the responsibility of an officer or employee of the agency who shall, in carrying out the purposes of the Act--

(1) Be known as the Director of Small and Disadvantaged Business Utilization;

(2) Be appointed by the agency head;

(3) Be responsible to and report directly to the agency head or the deputy to the agency head;

(4) Be responsible for the agency carrying out the functions and duties in sections 8, 15, and 31 of the Small Business Act.

(5) Assist small business concerns in obtaining payments under their contracts, late payment, interest penalties, or information on contractual payment provisions;

(6) Have supervisory authority over agency personnel to the extent that their functions and duties relate to sections 8, 15, and 31 of the Small Business Act.

(7) Assign a small business technical advisor to each contracting activity within the agency to which the SBA has assigned a representative (see 19.402)--

(i) Who shall be a full-time employee of the contracting activity, well qualified, technically trained, and familiar with the supplies or services contracted for by the activity; and

(ii) Whose principal duty is to assist the SBA's assigned representative in performing functions and duties relating to sections 8, 15, and 31 of the Small Business Act;

(8) Cooperate and consult on a regular basis with the SBA in carrying out the agency's functions and duties in sections 8, 15, and 31 of the Small Business Act;

(9) Make recommendations in accordance with agency procedures as to whether a particular acquisition should be awarded under Subpart 19.5 as a small business set-aside, under Subpart 19.8 as a Section 8(a) award, or under Subpart 19.13 as a HUBZone set-aside.

(e) Small Business Specialists shall be appointed and act in accordance with agency regulations.

(f)(1) Each agency shall designate, at levels it determines appropriate, personnel responsible for determining whether, in order to achieve the contracting agency's goal for SDB concerns, the use of the SDB mechanism in Subpart 19.11 has resulted in an undue burden on non-SDB firms in one of the major industry groups and regions identified by Department of Commerce following paragraph (b) of this section, or is otherwise inappropriate. Determinations under this subpart are for the purpose of determining future acquisitions and shall not affect ongoing acquisitions. Requests for a determination, including supporting rationale, may be submitted to the agency designee. If the agency designee makes an affirmative determination that the SDB mechanism has an undue burden or is otherwise inappropriate, the determination shall be forwarded through agency channels to the OFPP, which shall review the determination in consultation with the Department of Commerce and the Small Business Administration. At a minimum, the following information should be included in any submittal:

(i) A determination of undue burden or other inappropriate effect, including proposed corrective action.

(ii) The SIC Major Group affected.

(iii) Supporting information to justify the determination, including, but not limited to, dollars and percentages of contracts awarded by the contracting activity under the affected SIC Major Group for the previous two fiscal years and current fiscal year to date for--

(A) Total awards;

(B) Total awards to SDB concerns;

(C) Awards to SDB concerns awarded contracts under the SDB price evaluation adjustment where the SDB concerns would not otherwise have been the successful offeror;

(D) Number of successful and unsuccessful SDB offerors; and

(E) Number of successful and unsuccessful non-SDB offerors.

(iv) A discussion of the pertinent findings, including any peculiarities related to the industry, regions or demographics.

(v) A discussion of other efforts the agency has undertaken to ensure equal opportunity for SDBs in contracting with the agency.

Small business concerns shall be afforded an equitable opportunity to compete for all contracts that they can perform to the extent consistent with the Government's interest. When applicable, the contracting officer shall take the following actions:

(a) Divide proposed acquisitions of supplies and services (except construction) into reasonably small lots (not less than economic production runs) to permit offers on quantities less than the total requirement.

(b) Plan acquisitions such that, if practicable, more than one small business concern may perform the work, if the work exceeds the amount for which a surety may be guaranteed by SBA against loss under 15 U.S.C. 694b.

(c) Ensure that delivery schedules are established on a realistic basis that will encourage small business participation to the extent consistent with the actual requirements of the Government.

(d) Encourage prime contractors to subcontract with small business concerns (see Subpart 19.7).

(e)(1) Provide a copy of the proposed acquisition package to the SBA procurement center representative at least 30 days prior to the issuance of the solicitation if--

(i) The proposed acquisition is for supplies or services currently being provided by a small business and the proposed acquisition is of a quantity or estimated dollar value, the magnitude of which makes it unlikely that small businesses can compete for the prime contract, or

(ii) The proposed acquisition is for construction and seeks to package or consolidate discrete construction projects and the magnitude of this consolidation makes it unlikely that small businesses can compete for the prime contract.

(2) The contracting officer shall also provide a statement explaining why the--

(i) Proposed acquisition cannot be divided into reasonably small lots (not less than economic production runs) to permit offers on quantities less than the total requirement;

(ii) Delivery schedules cannot be established on a realistic basis that will encourage small business participation to the extent consistent with the actual requirements of the Government;

(iii) Proposed acquisition cannot be structured so as to make it likely that small businesses can compete for the prime contract; or

(iv) Consolidated construction project cannot be acquired as separate discrete projects.

(3) The 30-day notification process shall occur concurrently with other processing steps required prior to the issuance of the solicitation.

The contracting officer shall, to the extent practicable, encourage maximum participation by small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns in acquisitions by taking the following actions:

(a) Include on mailing lists all established and potential small business sources, including those located in labor surplus areas and HUBZones, if the concerns have submitted acceptable applications or appear from other representations to be qualified small business concerns.

(b) Before issuing solicitations, make every reasonable effort to find additional small business concerns, unless lists are already excessively long and only some of the concerns on the list will be solicited. This effort should include contacting the agency SBA procurement center representative, or if there is none, the SBA.

The contracting officer shall encourage maximum response to solicitations by small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns by taking the following actions:

(a) Allow the maximum amount of time practicable for the submission of offers.

(b) Furnish specifications, plans, and drawings with solicitations, or furnish information as to where they may be obtained or examined.

(c) Send solicitations to--

(1) All small business concerns on the solicitation mailing list; or

(2) A pro rata number of small business concerns when less than a complete list is used.

Agencies shall measure the extent of small business participation in their acquisition programs by taking the following actions:

(a) Require each prospective contractor to represent whether it is a small business, HUBZone small business, small disadvantaged business, or women-owned small business concern (see the provision at 52.219-1, Small Business Program Representations).

(a) The fair market price shall be the price achieved in accordance with the reasonable price guidelines in 15.404-1(b) for--

(1) Total and partial small business set-asides (see Subpart 19.5);

(2) HUBZone set-asides (see Subpart 19.13);

(3) Contracts utilizing the price evaluation adjustment for small disadvantaged business concerns (see Subpart 19.11); and

(4) Contracts utilizing the price evaluation preference for HUBZone small business concerns (see Subpart 19.13).

19.301 Representation by the offeror.

(a) To be eligible for award as a small business, an offeror must represent in good faith that it is a small business at the time of its written representation. An offeror may represent that it is a small business concern in connection with a specific solicitation if it meets the definition of a small business concern applicable to the solicitation and has not been determined by the Small Business Administration (SBA) to be other than a small business.

(b) The contracting officer shall accept an offeror's representation in a specific bid or proposal that it is a small business unless (1) another offeror or interested party challenges the concern's small business representation or (2) the contracting officer has a reason to question the representation. Challenges of and questions concerning a specific representation shall be referred to the SBA in accordance with 19.302.

(c) An offeror's representation that it is a small business is not binding on the SBA. If an offeror's small business status is challenged, the SBA will evaluate the status of the concern and make a determination, which will be binding on the contracting officer, as to whether the offeror is a small business. A concern cannot become eligible for a specific award by taking action to meet the definition of a small business concern after the SBA has determined that it is not a small business.

(a) An offeror, the SBA, or another interested party may protest the small business representation of an offeror in a specific offer. However, for competitive 8(a) contracts, the filing of a protest is limited to an offeror, the contracting officer, or the SBA.

(b) Any time after offers are opened, the contracting officer may question the small business representation of any offeror in a specific offer by filing a contracting officer's protest (see paragraph (c) below).

(c)(1) Any contracting officer who receives a protest, whether timely or not, or who, as the contracting officer, wishes to protest the small business representation of an offeror, shall promptly forward the protest to the SBA Government Contracting Area Office for the geographical area where the principal office of the concern in question is located.

(2) The protest, or confirmation if the protest was initiated orally, shall be in writing and shall contain the basis for the protest with specific, detailed evidence to support the allegation that the offeror is not small. The SBA will dismiss any protest that does not contain specific grounds for the protest.

(d) In order to affect a specific solicitation, a protest must be timely. SBA's regulations on timeliness are contained in 13 CFR 121.1004. SBA's regulations on timeliness related to protests of disadvantaged status are contained in 13 CFR 124, Subpart B.

(1) To be timely, a protest by any concern or other interested party must be received by the contracting officer (see (d)(1)(i) and (ii) of this section) by the close of business of the 5th business day after bid opening (in sealed bid acquisitions) or receipt of the special notification from the contracting officer that identifies the apparently successful offeror (in negotiated acquisitions) (see 15.503(a)(2)).

(i) A protest may be made orally if it is confirmed in writing either within the 5-day period or by letter postmarked no later than 1 business day after the oral protest.

(ii) A protest may be made in writing if it is delivered to the contracting officer by hand, telegram, or letter postmarked within the 5-day period.

(2) A contracting officer's protest is always considered timely whether filed before or after award.

(3) A protest under a Multiple Award Schedule will be timely if received by SBA at any time prior to the expiration of the contract period, including renewals.

(e) Upon receipt of a protest from or forwarded by the Contracting Office, the SBA will--

(1) Notify the contracting officer and the protester of the date it was received, and that the size of the concern being challenged is under consideration by the SBA; and

(2) Furnish to the concern whose representation is being protested a copy of the protest and a blank SBA Form 355, Application for Small Business Determination, by certified mail, return receipt requested.

(f) Within 3 business days after receiving a copy of the protest and the form, the challenged offeror must file with the SBA a completed SBA Form 355 and a statement answering the allegations in the protest, and furnish evidence to support its position. If the offeror does not submit the required material within the 3 business days or another period of time granted by the SBA, the SBA may assume that the disclosure would be contrary to the offeror's interests.

(g)(1) Within 10 business days after receiving a protest, the challenged offeror's response, and other pertinent information, the SBA will determine the size status of the challenged concern and notify the contracting officer, the protester, and the challenged offeror of its decision by certified mail, return receipt requested.

(2) The SBA Government Contracting Area Director, or designee, will determine the small business status of the questioned bidder or offeror and notify the contracting officer and the bidder or offeror of the determination. Award may be made on the basis of that determination. This determination is final unless it is appealed in accordance with paragraph (i) of this section, and the contracting officer is notified of the appeal before award. If an award was made before the time the contracting officer received notice of the appeal, the contract shall be presumed to be valid.

(h)(1) After receiving a protest involving an offeror being considered for award, the contracting officer shall not award the contract until (i) the SBA has made a size determination or (ii) 10 business days have expired since SBA's receipt of a protest, whichever occurs first; however, award shall not be withheld when the contracting officer determines in writing that an award must be made to protect the public interest.

(2) After the 10-day period has expired, the contracting officer may, when practical, continue to withhold award until the SBA's determination is received, unless further delay would be disadvantageous to the Government.

(3) Whenever an award is made before the receipt of SBA's size determination, the contracting officer shall notify SBA that the award has been made.

(4) If a protest is received that challenges the small business status of an offeror not being considered for award, the contracting officer is not required to suspend contracting action. The contracting officer shall forward the protest to the SBA (see paragraph (c)(1) of this section) with a notation that the concern is not being considered for award, and shall notify the protester of this action.

(i) An appeal from an SBA size determination may be filed by any concern or other interested party whose protest of the small business representation of another concern has been denied by an SBA Government Contracting Area Director, any concern or other interested party that has been adversely affected by a Government Contracting Area Director's decision, or the SBA Associate Administrator for the SBA program involved. The appeal must be filed with the--

Office of Hearings and Appeals

Small Business Administration

Suite 5900, 409 3rd Street, SW

Washington, DC 20416

within the time limits and in strict accordance with the procedures contained in Subpart C of 13 CFR 134. It is within the discretion of the SBA Judge whether to accept an appeal from a size determination. If the Judge decides not to consider such an appeal, the Judge will issue an order denying review and specifying the reasons for the decision. The SBA will inform the contracting officer of its ruling on the appeal. The SBA decision, if received before award, will apply to the pending acquisition. SBA rulings received after award shall not apply to that acquisition.

(a) The contracting officer shall determine the appropriate standard industrial classification code and related small business size standard and include them in solicitations above the micro-purchase threshold.

(b) If different products or services are required in the same solicitation, the solicitation shall identify the appropriate small business size standard for each product or service.

(c) The contracting officer's determination is final unless appealed as follows:

(1) An appeal from a contracting officer's SIC code designation and the applicable size standard must be served and filed within 10 calendar days after the issuance of the initial solicitation. SBA's Office of Hearings and Appeals (OHA) will dismiss summarily an untimely SIC code appeal.

(2)(i) The appeal petition must be in writing and must be addressed to the--

Office of Hearings and Appeals

Small Business Administration

Suite 5900, 409 3rd Street, SW

Washington, DC 20416

(ii) There is no required format for the appeal; however, the appeal must include--

(A) The solicitation or contract number and the name, address, and telephone number of the contracting officer;

(B) A full and specific statement as to why the size determination or SIC code designation is allegedly erroneous and argument supporting the allegation; and

(C) The name, address, telephone number, and signature of the appellant or its attorney.

(3) The appellant must serve the appeal petition upon--

(i) The SBA official who issued the size determination;

(ii) The contracting officer who assigned the SIC code to the acquisition;

(iii) The business concern whose size status is at issue;

(iv) All persons who filed protests; and

(v) SBA's Office of General Counsel.

(4) Upon receipt of a SIC code appeal, OHA will notify the contracting officer by a notice and order of the date OHA received the appeal, the docket number, and Judge assigned to the case. The contracting officer's response to the appeal, if any, must include argument and evidence (see 13 CFR 134), and must be received by OHA within 10 calendar days from the date of the docketing notice and order, unless otherwise specified by the Administrative Judge. Upon receipt of OHA's docketing notice and order, the contracting officer must immediately send to OHA a copy of the solicitation relating to the SIC code appeal.

(a) To be eligible to receive a benefit as a prime contractor based on its disadvantaged status, a concern, at the time of its offer, must either be certified as a small disadvantaged business (SDB) concern or have a completed SDB application pending at the SBA or a Private Certifier (see 19.001).

(b) The contracting officer may accept an offeror's representation that it is an SDB concern for general statistical purposes. The provision at 52.219-1, Small Business Program Representations, or 52.212-3(c)(2), Offeror Representations and Certifications-Commercial Items, is used to collect SDB data for general statistical purposes.

(c) The provision at 52.219-22, Small Disadvantaged Business Status, or 52.212-3(c)(7), Offeror Representations and Certifications-Commercial Items, is used to obtain SDB status when the prime contractor may receive a benefit based on its disadvantaged status. The mechanisms that may provide benefits on the basis of disadvantaged status as a prime contractor are a price evaluation adjustment for SDB concerns (see Subpart 19.11), and an evaluation factor or subfactor for SDB participation (see 19.1202).

(1) If the apparently successful offeror has represented that it is currently certified as an SDB, the contracting officer may confirm that the concern is listed on the SBA's register by accessing the list at http://www.sba.gov or by contacting the SBA's Office of Small Disadvantaged Business Certification and Eligibility.

(2) If the apparently successful offeror has represented that its SDB application is pending at the SBA or a Private Certifier, and its position as the apparently successful offeror is due to the application of the price evaluation adjustment, the contracting officer shall follow the procedure in paragraph (d) of this section.

(d) Notifications to SBA of potential awards to offerors with pending SDB applications.

(1) The contracting officer shall notify the--

Small Business Administration

Assistant Administrator for SDBCE

409 Third Street, SW

Washington, DC 20416.

The notification shall contain the name of the apparently successful offeror, and the names of any other offerors that have represented that their applications for SDB status are pending at the SBA or a Private Certifier and that could receive the award due to the application of a price evaluation adjustment if the apparently successful offeror is determined not to be an SDB by the SBA.

(2) The SBA will, within 15 calendar days after receipt of the notification, determine the disadvantaged status of the apparently successful offeror and, as appropriate, any other offerors referred by the contracting officer and will notify the contracting officer.

(3) If the contracting officer does not receive an SBA determination within 15 calendar days after the SBA's receipt of the notification, the contracting officer shall presume that the apparently successful offeror, and any other offerors referred by the contracting officer, are not disadvantaged, and shall make award accordingly, unless the contracting officer grants an extension to the 15-day response period. No written determination is required for the contracting officer to make award at any point following the expiration of the 15-day response period.

(4) When the contracting officer makes a written determination that award must be made to protect the public interest, the contracting officer may proceed to contract award without notifying SBA or before receiving a determination of SDB status from SBA during the 15-day response period. In both cases, the contracting officer shall presume that the apparently successful offeror, or any other offeror referred to the SBA whose SDB application is pending, is not an SDB and shall make award accordingly.

19.305 Protesting a representation of disadvantaged business status.

(a) This section applies to protests of a small business concern's disadvantaged status as a prime contractor. Protests of a small business concern's disadvantaged status as a subcontractor are processed under 19.703(a)(2). Protests of a concern's size as a prime contractor are processed under 19.302. Protests of a concern's size as a subcontractor are processed under 19.703(b). An offeror, the contracting officer, or the SBA may protest the apparently successful offeror's representation of disadvantaged status if the concern is eligible to receive a benefit based on its disadvantaged status (see Subpart 19.11 and 19.1202.)

(b) An offeror, excluding an offeror determined by the contracting officer to be non-responsive or outside the competitive range, or an offeror that SBA has previously found to be ineligible for the requirement at issue, may protest the apparently successful offeror's representation of disadvantaged status by filing a protest in writing with the contracting officer. SBA regulations concerning protests are contained in 13 CFR 124, Subpart B. The protest--

(1) Must be filed within the times specified in 19.302(d)(1); and

(2) Must contain specific facts or allegations supporting the basis of protest.

(c) The contracting officer or the SBA may protest in writing a concern's representation of disadvantaged status at any time following bid opening or notification of intended award.

(1) If a contracting officer's protest is based on information provided by a party ineligible to protest directly or ineligible to protest under the timeliness standard, the contracting officer must be persuaded by the evidence presented before adopting the grounds for protest as his or her own.

(2) The SBA may protest a concern's representation of disadvantaged status by filing directly with its Assistant Administrator for Small Disadvantaged Business Certification and Eligibility and notifying the contracting officer.

(d) The contracting officer shall return premature protests to the protestor. A protest is considered to be premature if it is submitted before bid opening or notification of intended award. SBA normally will not consider a postaward protest. SBA may consider a postaward protest in its discretion where it determines that an SDB determination after award is meaningful (e. g., where the contracting officer agrees to terminate the contract if the protest is sustained).

(e) Upon receipt of a protest that is not premature, the contracting officer shall withhold award and forward the protest to--

Small Business Administration

Assistant Administrator for SDBCE

409 Third Street, SW

Washington, DC 20416.

The contracting officer shall send to SBA--

(1) The written protest and any accompanying materials;

(2) The date the protest was received;

(3) A copy of the protested concern's representation as a small disadvantaged business, and the date of such representation; and

(4) The date of bid opening or date on which notification of the apparently successful offeror was sent to unsuccessful offerors.

(f) When the contracting officer makes a written determination that award must be made to protect the public interest, award may be made notwithstanding the protest.

(g) The SBA Assistant Administrator for Small Disadvantaged Business Certification and Eligibility will notify the protestor and the contracting officer of the date the protest was received and whether it will be processed or dismissed for lack of timeliness or specificity. For protests that are not dismissed, the SBA will, within 15 working days after receipt of the protest, determine the disadvantaged status of the challenged offeror and will notify the contracting officer, the challenged offeror, and the protestor. Award may be made on the basis of that determination. The determination is final for purposes of the instant acquisition, unless it is appealed and--

(1) The contracting officer receives the SBA's decision on the appeal before award; or

(2) The contracting officer has agreed to terminate the contract, as appropriate, based on the outcome of the appeal (see 13 CFR 124, Subpart B).

(h) If the contracting officer does not receive an SBA determination within 15 working days after the SBA's receipt of the protest, the contracting officer shall presume that the challenged offeror is disadvantaged and may award the contract, unless the SBA requests and the contracting officer grants an extension to the 15-day response period.

(i) An SBA determination may be appealed by--

(1) The party whose protest has been denied;

(2) The concern whose status was protested; or

(3) The contracting officer.

(a) For sole source acquisitions, the SBA or the contracting officer may protest the apparently successful offeror's HUBZone small business status. For all other acquisitions, an offeror, the contracting officer, or the SBA may protest the apparently successful offeror's qualified HUBZone small business concern status.

(b) Protests relating to whether a qualified HUBZone small business concern is a small business for purposes of any Federal program are subject to the procedures of Subpart 19.3. Protests relating to small business size status for the acquisition and the HUBZone qualifying requirements will be processed concurrently by SBA.

(c) All protests shall be in writing and shall state all specific grounds for the protest. Assertions that a protested concern is not a qualified HUBZone small business concern, without setting forth specific facts or allegations, is insufficient. An offeror shall submit its protest to the contracting officer. The contracting officer and the SBA shall submit their protests to SBA's Associate Administrator for the HUBZone Program (AA/HUB).

(d) An offeror's protest must be received by close of business on the fifth business day after bid opening (in sealed bid acquisitions) or by close of business on the fifth business day after notification by the contracting officer of the apparently successful offeror (in negotiated acquisitions). Any protest received after these time limits is untimely. Any protest received prior to bid opening or notification of intended award, whichever applies, is premature and shall be returned to the protester.

(e) Except for premature protests, the contracting officer shall forward any protest received, notwithstanding whether the contracting officer believes that the protest is insufficiently specific or untimely, to: AA/HUB, U.S. Small Business Administration, 409 3rd Street, SW, Washington, DC 20416.

(f) SBA will determine the HUBZone status of the protested HUBZone small business concern within 15 business days after receipt of a protest. If SBA does not contact the contracting officer within 15 business days, the contracting officer may award the contract to the apparently successful offeror, unless the contracting officer has granted SBA an extension. The contracting officer may award the contract after receipt of a protest if the contracting officer determines in writing that an award must be made to protect the public interest.

(g) SBA will notify the contracting officer, the protester, and the protested concern of its determination. The determination is effective immediately and is final unless overturned on appeal by SBA's Associate Deputy Administrator for Government Contracting and 8(a) Business Development (ADA/GC&8(a)BD).

(h) The protested HUBZone small business concern, the protester, or the contracting officer may file appeals of protest determinations with SBA's ADA/GC&8(a)BD. The ADA/GC&8(a)BD must receive the appeal no later than 5 business days after the date of receipt of the protest determination. SBA will dismiss any appeal received after the 5-day period.

(i) The appeal must be in writing. The appeal must identify the protest determination being appealed and must set forth a full and specific statement as to why the decision is erroneous or what significant fact the AA/HUB failed to consider.

(j) The party appealing the decision must provide notice of the appeal to the contracting officer and either the protested HUBZone small business concern or the original protester, as appropriate. SBA will not consider additional information or changed circumstances that were not disclosed at the time of the AA/HUB's decision or that are based on disagreement with the findings and conclusions contained in the determination.

(a)(1) The contracting officer shall insert the provision at 52.219-1, Small Business Program Representations, in solicitations exceeding the micro-purchase threshold when the contract is to be performed inside the United States, its territories or possessions, Puerto Rico, the Trust Territory of the Pacific Islands, or the District of Columbia.

(2) The provision shall be used with its Alternate I in solicitations issued by DoD, NASA, or the Coast Guard that are expected to exceed the threshold at 4.601(a).

(3)(i) The provision shall be used with its Alternate II in solicitations issued by the following agencies on or before September 30, 2000:

(A) Department of Agriculture.

(B) Department of Defense.

(C) Department of Energy.

(D) Department of Health and Human Services.

(E) Department of Housing and Urban Development.

(F) Department of Transportation.

(G) Department of Veterans Affairs.

(H) Environmental Protection Agency.

(I) General Services Administration.

(J) National Aeronautics and Space Administration.

(ii) The provision shall be used with its Alternate II in solicitations issued by all Federal agencies after September 30, 2000.

(b) The contracting officer shall insert the provision at 52.219-22, Small Disadvantaged Business Status, in solicitations that include the clause at 52.219-23, Notice of Price Evaluation Adjustment for Small Disadvantaged Business Concerns, or 52.219-25, Small Disadvantaged Business Participation Program--Disadvantaged Status and Reporting. Use the provision with its Alternate I in solicitations for acquisitions for which a price evaluation adjustment for small disadvantaged business concerns is authorized on a regional basis.

19.401 General.

(a) The Small Business Act is the authority under which the Small Business Administration (SBA) and agencies consult and cooperate with each other in formulating policies to ensure that small business interests will be recognized and protected.

(a) The SBA may assign one or more procurement center representatives to any contracting activity or contract administration office to carry out SBA policies and programs. Assigned SBA procurement center representatives are required to comply with the contracting agency's directives governing the conduct of contracting personnel and the release of contract information. The SBA must obtain for its procurement center representatives security clearances required by the contracting agency.

(b) Upon their request and subject to applicable acquisition and security regulations, contracting officers shall give SBA procurement center representatives access to all reasonably obtainable contract information that is directly pertinent to their official duties.

(c) The duties assigned by SBA to its procurement center representatives include the following:

(1) Reviewing proposed acquisitions to recommend--

(i) The setting aside of selected acquisitions not unilaterally set aside by the contracting officer,

(ii) New qualified small, HUBZone small, small disadvantaged, and women-owned small business sources, and

(iii) Breakout of components for competitive acquisitions.

(2) Reviewing proposed acquisition packages provided in accordance with 19.202-1(e). If the SBA procurement center representative believes that the acquisition, as proposed, makes it unlikely that small businesses can compete for the prime contract, the representative shall recommend any alternate contracting method that the representative reasonably believes will increase small business prime contracting opportunities. The recommendation shall be made to the contracting officer within 15 days after receipt of the package.

(3) Recommending concerns for inclusion on solicitation mailing lists or on a list of concerns to be solicited in a specific acquisition.

(4) Appealing to the chief of the contracting office any contracting officer's determination not to solicit a concern recommended by the SBA for a particular acquisition, when not doing so results in no small business being solicited.

(5) Conducting periodic reviews of the contracting activity to which assigned to ascertain whether it is complying with the small business policies in this regulation.

(a) The SBA is required by section 403 of Pub. L. 98-577 to assign a breakout procurement center representative to each major procurement center. A major procurement center means a procurement center that, in the opinion of the administrator, purchases substantial dollar amounts of other than commercial items, and which has the potential to incur significant savings as a result of the placement of a breakout procurement representative. The SBA breakout procurement center representative is an advocate for (1) the appropriate use of full and open competition, and (2) the breakout of items, when appropriate and while maintaining the integrity of the system in which such items are used. The SBA breakout procurement center representative is in addition to the SBA procurement center representative (see 19.402). When an SBA breakout procurement center representative is assigned, the SBA is required to assign at least two collocated small business technical advisors. Assigned SBA breakout procurement center representatives and technical advisors are required to comply with the contracting agency's directives governing the conduct of contracting personnel and the release of contract information. The SBA must obtain for its breakout procurement center representatives and technical advisors security clearances required by the contracting agency.

(b) Contracting officers shall comply with 19.402(b) in their relationships with SBA breakout procurement center representatives and SBA small business technical advisors.

(c) The SBA breakout procurement center representative is authorized to--

(1) Attend any provisioning conference or similar evaluation session during which determinations are made as to whether requirements are to be acquired using other than full and open competition and make recommendations with respect to such requirements to the members of such conference or session;

(2) Review, at any time, restrictions on competition previously imposed on items through acquisition method coding or similar procedures and recommend to personnel of the appropriate activity the prompt reevaluation of such limitations;

(3) Review restrictions on competition arising out of restrictions on the rights of the United States in technical data and, when appropriate, recommend that personnel of the appropriate activity initiate a review of the validity of such an asserted restriction;

(4) Obtain from any governmental source, and make available to personnel of the appropriate center, technical data necessary for the preparation of a competitive solicitation package for any item of supply or service previously acquired noncompetitively due to the unavailability of such technical data;

(5) Have access to procurement records and other data of the procurement center commensurate with the level of such representative's approved security clearance classification;

(6) Receive unsolicited engineering proposals and, when appropriate--

(i) Conduct a value analysis of such proposal to determine whether it, if adopted, will result in lower costs to the United States without substantially impeding legitimate acquisition objectives and forward to personnel of the appropriate center recommendations with respect to such proposal; or

(ii) Forward such proposals without analysis to personnel of the center responsible for reviewing them who shall furnish the breakout procurement center representative with information regarding the proposal's disposition;

(7) Review the systems that account for the acquisition and management of technical data within the procurement center to ensure that such systems provide the maximum availability and access to data needed for the preparation of offers to sell to the United States those supplies to which such data pertain which potential offerors are entitled to receive;

(8) Appeal the failure by the procurement center to act favorably on any recommendation made pursuant to subparagraphs (c)(1) through (7) of this section. Such appeal must be in writing and shall be filed and processed in accordance with the appeal procedures set out at 19.505;

(9) Conduct familiarization sessions for contracting officers and other appropriate personnel of the procurement center to which assigned. Such sessions shall acquaint the participants with the duties and objectives of the representative and shall instruct them in the methods designed to further the breakout of items for procurement through full and open competition; and

(10) Prepare and personally deliver an annual briefing and report to the head of the procurement center to which assigned. Such briefing and report shall detail the past and planned activities of the representative and shall contain recommendations for improvement in the operation of the center as may be appropriate. The head of such center shall personally receive the briefing and report and shall, within 60 calendar days after receipt, respond, in writing, to each recommendation made by the representative.

19.501 General.

(a) The purpose of small business set-asides is to award certain acquisitions exclusively to small business concerns. A "set-aside for small business" is the reserving of an acquisition exclusively for participation by small business concerns. A small business set-aside may be open to all small businesses. A small business set-aside of a single acquisition or a class of acquisitions may be total or partial.

(b) The determination to make a small business set-aside may be unilateral or joint. A unilateral determination is one that is made by the contracting officer. A joint determination is one that is recommended by the Small Business Administration (SBA) procurement center representative and concurred in by the contracting officer.

(c) For acquisitions exceeding the simplified acquisition threshold, the requirement to set aside an acquisition for HUBZone small business concerns (see 19.1305) takes priority over the requirement to set aside the acquisition for small business concerns.

(d) The contracting officer shall review acquisitions to determine if they can be set aside for small business, giving consideration to the recommendations of agency personnel having cognizance of the agency's small business programs. The contracting officer shall document why a small business set-aside is inappropriate when an acquisition is not set aside for small business, unless a HUBZone small business set-aside or HUBZone small business sole source award is anticipated. If the acquisition is set aside for small business based on this review, it is a unilateral set-aside by the contracting officer. Agencies may establish threshold levels for this review depending upon their needs.

(e) At the request of an SBA procurement center representative, the contracting officer shall make available for review at the contracting office (to the extent of the SBA representative's security clearance) all proposed acquisitions in excess of the micro-purchase threshold that have not been unilaterally set aside for small business.

(f) To the extent practicable, unilateral determinations initiated by a contracting officer shall be used as the basis for small business set-asides rather than joint determinations by an SBA procurement center representative and a contracting officer.

(g) All solicitations involving set-asides must specify the applicable small business size standard and product classification (see 19.303).

19.502-1 Requirements for setting aside acquisitions.

(a) The contracting officer shall set aside an individual acquisition or class of acquisitions for competition among small businesses when--

(1) It is determined to be in the interest of maintaining or mobilizing the Nation's full productive capacity, war or national defense programs; or

(2) Assuring that a fair proportion of Government contracts in each industry category is placed with small business concerns; and the circumstances described in 19.502-2 or 19.502-3(a) exist.

(a) Except for those acquisitions set aside for very small business concerns (see subpart 19.9), each acquisition of supplies or services that has an anticipated dollar value exceeding $2,500, but not over $100,000, is automatically reserved exclusively for small business concerns and shall be set aside for small business unless the contracting officer determines there is not a reasonable expectation of obtaining offers from two or more responsible small business concerns that are competitive in terms of market prices, quality, and delivery. If the contracting officer does not proceed with the small business set-aside and purchases on an unrestricted basis, the contracting officer shall include in the contract file the reason for this unrestricted purchase. If the contracting officer receives only one acceptable offer from a responsible small business concern in response to a set-aside, the contracting officer should make an award to that firm. If the contracting officer receives no acceptable offers from responsible small business concerns, the set-aside shall be withdrawn and the requirement, if still valid, shall be resolicited on an unrestricted basis. The small business reservation does not preclude the award of a contract with a value not greater than $100,000 under Subpart 19.8, Contracting with the Small Business Administration, under 19.1006(c), Emerging small business set-aside, or under 19.1305, HUBZone set-aside procedures.

(b) The contracting officer shall set aside any acquisition over $100,000 for small business participation when there is a reasonable expectation that (1) offers will be obtained from at least two responsible small business concerns offering the products of different small business concerns (but see paragraph (c) of this subsection); and (2) award will be made at fair market prices. Total small business set-asides shall not be made unless such a reasonable expectation exists (but see 19.502-3 as to partial set-asides). Although past acquisition history of an item or similar items is always important, it is not the only factor to be considered in determining whether a reasonable expectation exists. In making R&D small business set-asides, there must also be a reasonable expectation of obtaining from small businesses the best scientific and technological sources consistent with the demands of the proposed acquisition for the best mix of cost, performances, and schedules.

(c) For small business set-asides other than for construction or services, any concern proposing to furnish a product that it did not itself manufacture must furnish the product of a small business manufacturer unless the SBA has granted either a waiver or exception to the nonmanufacturer rule (see 19.102(f)). In industries where the SBA finds that there are no small business manufacturers, it may issue a waiver to the nonmanufacturer rule (see 19.102(f)(4) and (5)). In addition, SBA has excepted procurements processed under simplified acquisition procedures (see Part 13), where the anticipated cost of the procurement will not exceed $25,000, from the nonmanufacturer rule. Waivers permit small businesses to provide any firm's product. The exception permits small businesses to provide any domestic firm's product. In both of these cases, the contracting officer's determination in paragraph (b)(1) of this subsection or the decision not to set aside a procurement reserved for small business under paragraph (a) of this subsection will be based on the expectation of receiving offers from at least two responsible small businesses, including nonmanufacturers, offering the products of different concerns.

(a) The contracting officer shall set aside a portion of an acquisition, except for construction, for exclusive small business participation when--

(1) A total set-aside is not appropriate (see 19.502-2);

(2) The requirement is severable into two or more economic production runs or reasonable lots;

(3) One or more small business concerns are expected to have the technical competence and productive capacity to satisfy the set-aside portion of the requirement at a fair market price;

(4) The acquisition is not subject to simplified acquisition procedures; and

(5) A partial set-aside shall not be made if there is a reasonable expectation that only two concerns (one large and one small) with capability will respond with offers unless authorized by the head of a contracting activity on a case-by-case basis. Similarly, a class of acquisitions, not including construction, may be partially set aside. Under certain specified conditions, partial set-asides may be used in conjunction with multiyear contracting procedures.

(b) When the contracting officer determines that a portion of an acquisition is to be set aside, the requirement shall be divided into a set-aside portion and a non-set-aside portion, each of which shall (1) be an economic production run or reasonable lot and (2) have terms and a delivery schedule comparable to the other. When practicable, the set-aside portion should make maximum use of small business capacity.

(c)(1) The contracting officer shall award the non-set-aside portion using normal contracting procedures.

(2)(i) After all awards have been made on the non-set-aside portion, the contracting officer shall negotiate with eligible concerns on the set-aside portion, as provided in the solicitation, and make award. Negotiations shall be conducted only with those offerors who have submitted responsive offers on the non-set-aside portion. Negotiations shall be conducted with small business concerns in the order of priority as indicated in the solicitation (but see (c)(2)(ii) of this section). The set-aside portion shall be awarded as provided in the solicitation. An offeror entitled to receive the award for quantities of an item under the non-set-aside portion and who accepts the award of additional quantities under the set-aside portion shall not be requested to accept a lower price because of the increased quantities of the award, nor shall negotiation be conducted with a view to obtaining such a lower price based solely upon receipt of award of both portions of the acquisition. This does not prevent acceptance by the contracting officer of voluntary reductions in the price from the low eligible offeror before award, acceptance of voluntary refunds, or the change of prices after award by negotiation of a contract modification.

(a) Total small business set-asides may be conducted by using simplified acquisition procedures (see Part 13), sealed bids (see Part 14), or competitive proposals (see Part 15). Partial small business set-asides may be conducted using sealed bids (see Part 14), or competitive proposals (see Part 15).

None of the following is, in itself, sufficient cause for not setting aside an acquisition:

(a) A large percentage of previous contracts for the required item(s) has been placed with small business concerns.

(b) The item is on an established planning list under the Industrial Readiness Planning Program. However, a total small business set-aside shall not be made when the list contains a large business Planned Emergency Producer of the item(s) who has conveyed a desire to supply some or all of the required items.

(c) The item is on a Qualified Products List. However, a total small business set-aside shall not be made if the list contains the products of large businesses unless none of the large businesses desire to participate in the acquisition.

(d) A period of less than 30 days is available for receipt of offers.

(e) The acquisition is classified.

(f) Small business concerns are already receiving a fair proportion of the agency's contracts for supplies and services.

(g) A class small business set-aside of the item or service has been made by another contracting activity.

(a) A class of acquisitions of selected products or services, or a portion of the acquisitions, may be set aside for exclusive participation by small business concerns if individual acquisitions in the class will meet the criteria in 19.502-1, 19.502-2, or 19.502-3(a). The determination to make a class small business set-aside shall not depend on the existence of a current acquisition if future acquisitions can be clearly foreseen.

(b) The determination to set aside a class of acquisitions for small business may be either unilateral or joint.

(c) Each class small business set-aside determination shall be in writing and must--

(1) Specifically identify the product(s) and service(s) it covers;

(2) Provide that the set-aside does not apply to any acquisition automatically reserved for small business concerns under 19.502-2(a).

(3) Provide that the set-aside applies only to the (named) contracting office(s) making the determination; and

(4) Provide that the set-aside does not apply to any individual acquisition if the requirement is not severable into two or more economic production runs or reasonable lots, in the case of a partial class set-aside.

(d) The contracting officer shall review each individual acquisition arising under a class small business set-aside to identify any changes in the magnitude of requirements, specifications, delivery requirements, or competitive market conditions that have occurred since the initial approval of the class set-aside. If there are any changes of such a material nature as to result in probable payment of more than a fair market price by the Government or in a change in the capability of small business concerns to satisfy the requirements, the contracting officer may withdraw or modify (see 19.506(a)) the unilateral or joint set-aside by giving written notice to the SBA procurement center representative (if one is assigned), stating the reasons.

19.504 [Reserved]

19.505 Rejecting Small Business Administration recommendations.

(a) If the contracting officer rejects a recommendation of the SBA procurement center representative or breakout procurement center representative, written notice shall be furnished to the appropriate SBA center representative within 5 working days of the contracting officer's receipt of the recommendation.

(b) The SBA procurement center representative may appeal the contracting officer's rejection to the head of the contracting activity (or designee) within 2 working days after receiving the notice. The head of the contracting activity (or designee) shall render a decision in writing, and provide it to the SBA representative within 7 working days. Pending issuance of a decision to the SBA procurement center representative, the contracting officer shall suspend action on the acquisition.

(c) If the head of the contracting activity agrees that the contracting officer's rejection was appropriate, the SBA procurement center representative may--

(1) Within 1 working day, request the contracting officer to suspend action on the acquisition until the SBA Administrator appeals to the agency head (see paragraph (f) of this section); and

(2) The SBA shall be allowed 15 working days after making such a written request, within which the Administrator of SBA (i) may appeal to the Secretary of the Department concerned, and (ii) shall notify the contracting officer whether the further appeal has, in fact, been taken. If notification is not received by the contracting officer within the 15-day period, it shall be deemed that the SBA request to suspend contracting action has been withdrawn and that an appeal to the Secretary was not taken.

(d) When the contracting officer has been notified within the 15-day period that the SBA has appealed to the agency head, the head of the contracting activity (or designee) shall forward justification for its decision to the agency head. The contracting officer shall suspend contract action until notification is received that the SBA appeal has been settled.

(e) The agency head shall reply to the SBA within 30 working days after receiving the appeal. The decision of the agency head shall be final.

(a) If, before award of a contract involving a small business set-aside, the contracting officer considers that award would be detrimental to the public interest (e.g., payment of more than a fair market price), the contracting officer may withdraw the small business set-aside determination whether it was unilateral or joint. The contracting officer shall initiate a withdrawal of an individual small business set-aside by giving written notice to the agency small business specialist and the SBA procurement center representative, if one is assigned, stating the reasons. In a similar manner, the contracting officer may modify a unilateral or joint class small business set-aside to withdraw one or more individual acquisitions.

(b) If the agency small business specialist does not agree to a withdrawal or modification, the case shall be promptly referred to the SBA representative (if one is assigned) for review. If an SBA representative is not assigned, disagreements between the agency small business specialist and the contracting officer shall be resolved using agency procedures. However, the procedures are not applicable to automatic dissolutions of small business set-asides (see 19.507) or dissolution of small business set-asides under $100,000.

(a) If a small business set-aside acquisition or portion of an acquisition is not awarded, the unilateral or joint determination to set the acquisition aside is automatically dissolved for the unawarded portion of the set-aside. The required supplies and/or services for which no award was made may be acquired by sealed bidding or negotiation, as appropriate.

(a)--(b) [Reserved]

(c) The contracting officer shall insert the clause at 52.219-6, Notice of Total Small Business Set-Aside, in solicitations and contracts involving total small business set-asides. The clause at 52.219-6 with its Alternate I will be used when the acquisition is for a product in a class for which the Small Business Administration has waived the nonmanufacturer rule (see 19.102(f)(4) and (5)).

(d) The contracting officer shall insert the clause at 52.219-7, Notice of Partial Small Business Set-Aside, in solicitations and contracts involving partial small business set-asides. The clause at 52.219-7 with its Alternate I will be used when the acquisition is for a product in a class for which the Small Business Administration has waived the nonmanufacturer rule (see 19.102(f)(4) and (5)).

19.601 General.

(a) A Certificate of Competency (COC) is the certificate issued by the Small Business Administration (SBA) stating that the holder is responsible (with respect to all elements of responsibility, including, but not limited to, capability, competency, capacity, credit, integrity, perseverance, tenacity, and limitations on subcontracting) for the purpose of receiving and performing a specific Government contract.

(b) The COC program empowers the Small Business Administration (SBA) to certify to Government contracting officers as to all elements of responsibility of any small business concern to receive and perform a specific Government contract. The COC program does not extend to questions concerning regulatory requirements imposed and enforced by other Federal agencies.

(c) The COC program is applicable to all Government acquisitions. A contracting officer shall, upon determining an apparent successful small business offeror to be nonresponsible, refer that small business to the SBA for a possible COC, even if the next acceptable offer is also from a small business.

(d) When a solicitation requires a small business to adhere to the limitations on subcontracting, a contracting officer's finding that a small business cannot comply with the limitation shall be treated as an element of responsibility and shall be subject to the COC process. When a solicitation requires a small business to adhere to the definition of a nonmanufacturer, a contracting officer's determination that the small business does not comply shall be processed in accordance with Subpart 19.3.

19.602-1 Referral.

(a) Upon determining and documenting that an apparent successful small business offeror lacks certain elements of responsibility (including, but not limited to, capability, competency, capacity, credit, integrity, perseverance, tenacity, and limitations on subcontracting), the contracting officer shall--

(1) Withhold contract award (see 19.602-3); and

(2) Refer the matter to the cognizant SBA Government Contracting Area Office (Area Office) serving the area in which the headquarters of the offeror is located, in accordance with agency procedures, except that referral is not necessary if the small business concern--

(i) Is determined to be unqualified and ineligible because it does not meet the standard in 9.104-1(g); provided, that the determination is approved by the chief of the contracting office; or

(ii) Is suspended or debarred under Executive Order 11246 or Subpart 9.4.

(b) If a partial set-aside is involved, the contracting officer shall refer to the SBA the entire quantity to which the concern may be entitled, if responsible.

(c) The referral shall include--

(1) A notice that a small business concern has been determined to be nonresponsible, specifying the elements of responsibility the contracting officer found lacking; and

(2) If applicable, a copy of the following:

(i) Solicitation.

(ii) Final offer submitted by the concern whose responsibility is at issue for the procurement.

(iii) Abstract of bids or the contracting officer's price negotiation memorandum.

(iv) Preaward survey.

(v) Technical data package (including drawings, specifications and statement of work).

(vi) Any other justification and documentation used to arrive at the nonresponsibility determination.

(d) For any single acquisition, the contracting officer shall make only one referral at a time regarding a determination of nonresponsibility.

Within 15 business days (or a longer period agreed to by the SBA and the contracting agency) after receiving a notice that a small business concern lacks certain elements of responsibility, the SBA Area Office will take the following actions:

(a) Inform the small business concern of the contracting officer's determination and offer it an opportunity to apply to the SBA for a COC. (A concern wishing to apply for a COC should notify the SBA Area Office serving the geographical area in which the headquarters of the offeror is located.)

(b) Upon timely receipt of a complete and acceptable application, elect to visit the applicant's facility to review its responsibility.

(1) The COC review process is not limited to the areas of nonresponsibility cited by the contracting officer.

(2) The SBA may, at its discretion, independently evaluate the COC applicant for all elements of responsibility, but may presume responsibility exists as to elements other than those cited as deficient.

(c) Consider denying a COC for reasons of nonresponsibility not originally cited by the contracting officer.

(d) When the Area Director determines that a COC is warranted (for contracts valued at $25,000,000 or less), notify the contracting officer and provide the following options:

(1) Accept the Area Director's decision to issue a COC and award the contract to the concern. The COC issuance letter will then be sent, including as an attachment a detailed rationale for the decision; or

(2) Ask the Area Director to suspend the case for one or more of the following purposes:

(i) To permit the SBA to forward a detailed rationale for the decision to the contracting officer for review within a specified period of time.

(ii) To afford the contracting officer the opportunity to meet with the Area Office to review all documentation contained in the case file and to attempt to resolve any issues.

(iii) To submit any information to the SBA Area Office that the contracting officer believes the SBA did not consider (at which time, the SBA Area Office will establish a new suspense date mutually agreeable to the contracting officer and the SBA).

(iv) To permit resolution of an appeal by the contracting agency to SBA Headquarters under 19.602-3. However, there is no contracting officer's appeal when the Area Office proposes to issue a COC valued at $100,000 or less.

(e) At the completion of the process, notify the concern and the contracting officer that the COC is denied or is being issued.

(a) COCs valued between $100,000 and $25,000,000. (1) When disagreements arise about a concern's ability to perform, the contracting officer and the SBA shall make every effort to reach a resolution before the SBA takes final action on a COC. This shall be done through the complete exchange of information and in accordance with agency procedures. If agreement cannot be reached between the contracting officer and the SBA Area Office, the contracting officer shall request that the Area Office suspend action and refer the matter to SBA Headquarters for review. The SBA Area Office shall honor the request for a review if the contracting officer agrees to withhold award until the review process is concluded. Without an agreement to withhold award, the SBA Area Office will issue the COC in accordance with applicable SBA regulations.

(2) SBA Headquarters will furnish written notice to the procuring agency's Director, Office of Small and Disadvantaged Business Utilization (OSDBU) or other designated official (with a copy to the contracting officer) that the case file has been received and that an appeal decision may be requested by an authorized official.

(3) If the contracting agency decides to file an appeal, it must notify SBA Headquarters through its procuring agency's Director, OSDBU, or other designated official, within 10 business days (or a time period agreed upon by both agencies) that it intends to appeal the issuance of the COC.

(4) The appeal and any supporting documentation shall be filed by the procuring agency's Director, OSDBU, or other designated official, within 10 business days (or a period agreed upon by both agencies) after SBA Headquarters receives the agency's notification in accordance with paragraph (a)(3) of this subsection.

(5) The SBA Associate Administrator for Government Contracting will make a final determination, in writing, to issue or to deny the COC.

(b) SBA Headquarters' decisions on COCs valued over $25,000,000. (1) Prior to taking final action, SBA Headquarters will contact the contracting agency and offer it the following options:

(i) To request that theSBA suspend case processing to allow the agency to meet with SBA Headquarters personnel and review all documentation contained in the case file; or

(ii) To submit to SBA Headquarters for evaluation any information that the contracting agency believes has not been considered.

(2) After reviewing all available information, the SBA will make a final decision to either issue or deny the COC.

(c) Reconsideration of a COC after issuance. (1) The SBA reserves the right to reconsider its issuance of a COC, prior to contract award, if--

(i) The COC applicant submitted false information or omitted materially adverse information; or

(ii) The COC has been issued for more than 60 days (in which case the SBA may investigate the firm's current circumstances).

(2) When the SBA reconsiders and reaffirms the COC, the procedures in subsection 19.602-2 do not apply.

(a) If new information causes the contracting officer to determine that the concern referred to the SBA is actually responsible to perform the contract, and award has not already been made under paragraph (c) of this subsection, the contracting officer shall reverse the determination of nonresponsibility, notify the SBA of this action, withdraw the referral, and proceed to award the contract.

(b) The contracting officer shall award the contract to the concern in question if the SBA issues a COC after receiving the referral. An SBA-certified concern shall not be required to meet any other requirements of responsibility. SBA COC's are conclusive with respect to all elements of responsibility of prospective small business contractors.

19.701 Definitions.

"Commercial plan" means a subcontracting plan (including goals) that covers the offeror's fiscal year and that applies to the entire production of commercial items sold by either the entire company or a portion thereof (e.g., division, plant, or product line).

"Failure to make a good faith effort to comply with the subcontracting plan" means willful or intentional failure to perform in accordance with the requirements of the subcontracting plan, or willful or intentional action to frustrate the plan.

"Individual contract plan" means a subcontracting plan that covers the entire contract period (including option periods), applies to a specific contract, and has goals that are based on the offeror's planned subcontracting in support of the specific contract, except that indirect costs incurred for common or joint purposes may be allocated on a prorated basis to the contract.

"Master plan" means a subcontracting plan that contains all the required elements of an individual contract plan, except goals, and may be incorporated into individual contract plans, provided the master plan has been approved.

"Small business subcontractor" means any concern that--

(a) In connection with subcontracts of $10,000 or less, has a number of employees, including its affiliates, that does not exceed 500 persons; and

(b) In connection with subcontracts exceeding $10,000, has a number of employees or average annual receipts, including its affiliates, that does not exceed the size standard under 19.102 for the product or service it is providing on the subcontract.

Any contractor receiving a contract for more than the simplified acquisition threshold shall agree in the contract that small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns shall have the maximum practicable opportunity to participate in contract performance consistent with its efficient performance. It is further the policy of the United States that its prime contractors establish procedures to ensure the timely payment of amounts due pursuant to the terms of their subcontracts with small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns.

(a) Except as stated in paragraph (b) of this section, Section 8(d) of the Small Business Act (15 U.S.C. 637(d)) imposes the following requirements regarding subcontracting with small businesses and small business subcontracting plans:

(1) In negotiated acquisitions, each solicitation of offers to perform a contract or contract modification, that individually is expected to exceed $500,000 ($1,000,000 for construction) and that has subcontracting possibilities, shall require the apparently successful offeror to submit an acceptable subcontracting plan. If the apparently successful offeror fails to negotiate a subcontracting plan acceptable to the contracting officer within the time limit prescribed by the contracting officer, the offeror will be ineligible for award.

(2) In sealed bidding acquisitions, each invitation for bids to perform a contract or contract modification, that individually is expected to exceed $500,000 ($1,000,000 for construction) and that has subcontracting possibilities, shall require the bidder selected for award to submit a subcontracting plan. If the selected bidder fails to submit a plan within the time limit prescribed by the contracting officer, the bidder will be ineligible for award.

(b) Subcontracting plans (see subparagraphs (a)(1) and (2) of this section) are not required--

(1) From small business concerns;

(2) For personal services contracts;

(3) For contracts or contract modifications that will be performed entirely outside of any State, territory, or possession of the United States, the District of Columbia, and the Commonwealth of Puerto Rico; or

(4) For modifications to contracts within the general scope of the contract that do not contain the clause at 52.219-8, Utilization of Small Business Concerns (or equivalent prior clauses; e.g., contracts awarded before the enactment of Public Law 95-507).

(c) As stated in 15 U.S.C. 637(d)(8), any contractor or subcontractor failing to comply in good faith with the requirements of the subcontracting plan is in material breach of its contract. Further, 15 U.S.C. 637(d)(4)(F) directs that a contractor's failure to make a good faith effort to comply with the requirements of the subcontracting plan shall result in the imposition of liquidated damages.

(d) As authorized by 15 U.S.C. 637(d)(11), certain costs incurred by a mentor firm in providing developmental assistance to a protégé firm under the Department of Defense Pilot Mentor-Protégé Program, may be credited as subcontract awards to a small disadvantaged business for the purpose of determining whether the mentor firm attains a small disadvantaged business goal under any subcontracting plan entered into with any executive agency. However, the mentor-protégé agreement must have been approved by the--

Office of Small and Disadvantaged Business

Utilization

Office of the Deputy Under Secretary of Defense

(International and Commercial Programs)

DUSD (I&CP) SADBU

Room 2A338

3061 Defense Pentagon

Washington, DC 20301-3061

(703) 695-1536

(a) To be eligible as a subcontractor under the program, a concern must represent itself as a small business, HUBZone small business, small disadvantaged business, or woman-owned small business concern.

(1) To represent itself as a small business, HUBZone small business, or woman-owned small business concern, a concern must meet the appropriate definition in 19.001.

(2) In connection with a subcontract, or a requirement for which the apparently successful offeror received an evaluation credit for proposing one or more SDB subcontractors, the contracting officer or the SBA may protest the disadvantaged status of a proposed subcontractor. Such protests will be processed in accordance with 13 CFR 124.1015 through 124.1022. Other interested parties may submit information to the contracting officer or the SBA in an effort to persuade the contracting officer or the SBA to initiate a protest. Such protests, in order to be considered timely, must be submitted to the SBA prior to completion of performance by the intended subcontractor.

(a) Each subcontracting plan required under 19.702(a)(1) and (2) must include--

(1) Separate percentage goals for using small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns as subcontractors;

(2) A statement of the total dollars planned to be subcontracted and a statement of the total dollars planned to be subcontracted to small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns;

(3) A description of the principal types of supplies and services to be subcontracted and an identification of types planned for subcontracting to small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns;

(4) A description of the method used to develop the subcontracting goals;

(5) A description of the method used to identify potential sources for solicitation purposes;

(6) A statement as to whether or not the offeror included indirect costs in establishing subcontracting goals, and a description of the method used to determine the proportionate share of indirect costs to be incurred with small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns;

(7) The name of an individual employed by the offeror who will administer the offeror's subcontracting program, and a description of the duties of the individual;

(8) A description of the efforts the offeror will make to ensure that small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns have an equitable opportunity to compete for subcontracts;

(9) Assurances that the offeror will include the clause at 52.219-8, Utilization of Small Business Concerns (see 19.708(a)), in all subcontracts that offer further subcontracting opportunities, and that the offeror will require all subcontractors (except small business concerns) that receive subcontracts in excess of $500,000 ($1,000,000 for construction) to adopt a plan that complies with the requirements of the clause at 52.219-9, Small Business Subcontracting Plan (see 19.708(b));

(10) Assurances that the offeror will--

(i) Cooperate in any studies or surveys as may be required;

(ii) Submit periodic reports so that the Government can determine the extent of compliance by the offeror with the subcontracting plan;

(iii) Submit Standard Form (SF) 294, Subcontracting Report for Individual Contracts, and SF 295, Summary Subcontract Report, following the instructions on the forms or as provided in agency regulations; and

(iv) Ensure that its subcontractors agree to submit SF 294 and SF 295; and

(11) A description of the types of records that will be maintained concerning procedures adopted to comply with the requirements and goals in the plan, including establishing source lists; and a description of the offeror's efforts to locate small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns and to award subcontracts to them.

(b) Contractors may establish, on a plant or division-wide basis, a master plan (see 19.701) that contains all the elements required by the clause at 52.219-9, Small Business Subcontracting Plan, except goals. Master plans shall be effective for a 3-year period after approval by the contracting officer; however, it is incumbent upon contractors to maintain and update master plans. Changes required to update master plans are not effective until approved by the contracting officer. A master plan, when incorporated in an individual plan, shall apply to that contract throughout the life of the contract.

(c) For multiyear contracts or contracts containing options, the cumulative value of the basic contract and all options is considered in determining whether a subcontracting plan is necessary (see 19.705-2(a)). If a plan is necessary and the offeror is submitting an individual contract plan, the plan shall contain all the elements required by paragraph (a) of this section and shall contain separate statements and goals for the basic contract and for each option.

(d) A commercial plan (as defined in 19.701) is the preferred type of subcontracting plan for contractors furnishing commercial items. The contractor shall--

(1) Submit the commercial plan to either the first contracting officer awarding a contract subject to the plan during the contractor's fiscal year, or, if the contractor has ongoing contracts with commercial plans, to the contracting officer responsible for the contract with the latest completion date. The contracting officer shall negotiate the commercial plan for the Government. The approved commercial plan shall remain in effect during the contractor's fiscal year for all Government contracts in effect during that period; and

19.705-1 General support of the program.

The contracting officer shall take the following actions to determine whether a proposed contractual action requires a subcontracting plan:

(a) Determine whether the proposed contractual action will meet the dollar threshold in 19.702(a)(1) or (2). If the action includes options or similar provisions, include their value in determining whether the threshold is met.

(b) Determine whether subcontracting possibilities exist by considering relevant factors such as--

(1) Whether firms engaged in the business of furnishing the types of items to be acquired customarily contract for performance of part of the work or maintain sufficient in-house capability to perform the work; and

(2) Whether there are likely to be product prequalification requirements.

(c) If it is determined that there are no subcontracting possibilities, the determination must be approved at a level above the contracting officer and placed in the contract file.

The contracting officer shall review the subcontracting plan for adequacy, ensuring that the required information, goals, and assurances are included (see 19.704).

(a) No detailed standards apply to every subcontracting plan. Instead, the contracting officer must consider each plan in terms of the circumstances of the particular acquisition, including--

(1) Previous involvement of small business concerns as prime contractors or subcontractors in similar acquisitions;

(2) Proven methods of involving small business concerns as subcontractors in similar acquisitions; and

(3) The relative success of methods the contractor intends to use to meet the goals and requirements of the plan, as evidenced by records maintained by contractors.

(b) If, under a sealed bid solicitation, a bidder submits a plan that does not cover each of the 11 required elements (see 19.704), the contracting officer shall advise the bidder of the deficiency and request submission of a revised plan by a specific date. If the bidder does not submit a plan that incorporates the required elements within the time allotted, the bidder shall be ineligible for award. If the plan, although responsive, evidences the bidder's intention not to comply with its obligations under the clause at 52.219-8, Utilization of Small Business Concerns, the contracting officer may find the bidder nonresponsible.

(c) In negotiated acquisitions, the contracting officer shall determine whether the plan is acceptable based on the negotiation of each of the 11 elements of the plan (see 19.704). Subcontracting goals should be set at a level that the parties reasonably expect can result from the offeror expending good faith efforts to use small business, HUBZone small business, small disadvantaged business, and women-owned small business subcontractors to the maximum practicable extent. The contracting officer shall take particular care to ensure that the offeror has not submitted unreasonably low goals to minimize exposure to liquidated damages and to avoid the administrative burden of substantiating good faith efforts. Additionally, particular attention should be paid to the identification of steps that, if taken, would be considered a good faith effort. No goal should be negotiated upward if it is apparent that a higher goal will significantly increase the Government's cost or seriously impede the attainment of acquisition objectives. An incentive subcontracting clause (see 52.219-10, Incentive Subcontracting Program), may be used when additional and unique contract effort, such as providing technical assistance, could significantly increase subcontract awards to small business, HUBZone small business, or women-owned small business concerns.

(d) In determining the acceptability of a proposed subcontracting plan, the contracting officer should take the following actions:

(1) Obtain information available from the cognizant contract administration office, as provided for in 19.706(a), and evaluate the offeror's past performance in awarding subcontracts for the same or similar products or services to small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns. If information is not available on a specific type of product or service, evaluate the offeror's overall past performance and consider the performance of other contractors on similar efforts.

(2) In accordance with 15 U.S.C. 637(d)(4)(F)(iii), ensure that the goals offered are attainable in relation to--

(i) The subcontracting opportunities available to the contractor, commensurate with the efficient and economical performance of the contract;

(ii) The pool of eligible subcontractors available to fulfill the subcontracting opportunities; and

(iii) The actual performance of such contractor in fulfilling the subcontracting goals specified in prior plans.

(3) Ensure that the subcontracting goals are consistent with the offeror's cost or pricing data or information other than cost or pricing data.

(4) Evaluate the offeror's make-or-buy policy or program to ensure that it does not conflict with the offeror's proposed subcontracting plan and is in the Government's interest. If the contract involves products or services that are particularly specialized or not generally available in the commercial market, consider the offeror's current capacity to perform the work and the possibility of reduced subcontracting opportunities.

(5) Evaluate subcontracting potential, considering the offeror's make-or-buy policies or programs, the nature of the supplies or services to be subcontracted, the known availability of small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns in the geographical area where the work will be performed, and the potential contractor's long-standing contractual relationship with its suppliers.

(6) Advise the offeror of available sources of information on potential small business, HUBZone small business, small disadvantaged business, and women-owned small business subcontractors, as well as any specific concerns known to be potential subcontractors. If the offeror's proposed goals are questionable, the contracting officer shall emphasize that the information should be used to develop realistic and acceptable goals.

(a) In making an award that requires a subcontracting plan, the contracting officer shall be responsible for the following:

(1) Consider the contractor's compliance with the subcontracting plans submitted on previous contracts as a factor in determining contractor responsibility.

(2) Assure that a subcontracting plan was submitted when required.

(3) Notify the SBA resident procurement center representative of the opportunity to review the proposed contract (including the plan and supporting documentation). The notice shall be issued in sufficient time to provide the representative a reasonable time to review the material and submit advisory recommendations to the contracting officer. Failure of the representative to respond in a reasonable period of time shall not delay contract award.

(4) Determine any fee that may be payable if an incentive is used in conjunction with the subcontracting plan.

(5) Ensure that an acceptable plan is incorporated into and made a material part of the contract.

After a contract or contract modification containing a subcontracting plan is awarded, the contracting officer who approved the plan is responsible for the following:

(a) Notifying the SBA of the award by sending a copy of the award document to the Area Director, Office of Government Contracting, in the SBA area office where the contract will be performed.

(b) Forwarding a copy of each commercial plan and any associated approvals to the Area Director, Office of Government Contracting, in the SBA area office where the contractor's headquarters is located.

(c) Giving to the assigned SBA resident procurement center representative (if any) a copy of--

(1) Any subcontracting plan submitted in response to a sealed bid solicitation; and

(2) The final negotiated subcontracting plan that was incorporated into a negotiated contract or contract modification.

(d) Notifying the SBA resident procurement center representative of the opportunity to review subcontracting plans in connection with contract modifications.

(e) Forwarding a copy of each plan, or a determination that there is no requirement for a subcontracting plan, to the cognizant contract administration office.

(f) Initiating action to assess liquidated damages in accordance with 19.705-7 upon a recommendation by the administrative contracting officer or receipt of other reliable evidence to indicate that such action is warranted.

(a) Maximum practicable utilization of small business, HUBZone small business, small disadvantaged and women-owned small business concerns as subcontractors in Government contracts is a matter of national interest with both social and economic benefits. When a contractor fails to make a good faith effort to comply with a subcontracting plan, these objectives are not achieved, and 15 U.S.C. 637(d)(4)(F) directs that liquidated damages shall be paid by the contractor.

(b) The amount of damages attributable to the contractor's failure to comply shall be an amount equal to the actual dollar amount by which the contractor failed to achieve each subcontracting goal.

(c) If, at completion of the basic contract or any option, or in the case of a commercial plan, at the close of the fiscal year for which the plan is applicable, a contractor has failed to meet its subcontracting goals, the contracting officer shall review all available information for an indication that the contractor has not made a good faith effort to comply with the plan. If no such indication is found, the contracting officer shall document the file accordingly. If the contracting officer decides in accordance with paragraph (d) of this subsection that the contractor failed to make a good faith effort to comply with its subcontracting plan, the contracting officer shall give the contractor written notice specifying the failure, advising the contractor of the possibility that the contractor may have to pay to the Government liquidated damages, and providing a period of 15 working days (or longer period as necessary) within which to respond. The notice shall give the contractor an opportunity to demonstrate what good faith efforts have been made before the contracting officer issues the final decision, and shall further state that failure of the contractor to respond may be taken as an admission that no valid explanation exists.

(d) In determining whether a contractor failed to make a good faith effort to comply with its subcontracting plan, a contracting officer must look to the totality of the contractor's actions, consistent with the information and assurances provided in its plan. The fact that the contractor failed to meet its subcontracting goals does not, in and of itself, constitute a failure to make a good faith effort. For example, notwithstanding a contractor's diligent effort to identify and solicit offers from small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns, factors such as unavailability of anticipated sources or unreasonable prices may frustrate achievement of the contractor's goals. However, when considered in the context of the contractor's total effort in accordance with its plan, the following, though not all inclusive, may be considered as indicators of a failure to make a good faith effort: a failure to attempt to identify, contact, solicit, or consider for contract award small business, HUBZone small business, small disadvantaged business, or women-owned small business concerns; a failure to designate and maintain a company official to administer the subcontracting program and monitor and enforce compliance with the plan; a failure to submit Standard Form (SF) 294, Subcontracting Report for Individual Contracts, or SF 295, Summary Subcontract Report, in accordance with the instructions on the forms or as provided in agency regulations; a failure to maintain records or otherwise demonstrate procedures adopted to comply with the plan; or the adoption of company policies or procedures that have as their objectives the frustration of the objectives of the plan.

(e) If, after consideration of all the pertinent data, the contracting officer finds that the contractor failed to make a good faith effort to comply with its subcontracting plan, the contracting officer shall issue a final decision to the contractor to that effect and require the payment of liquidated damages in an amount stated. The contracting officer's final decision shall state that the contractor has the right to appeal under the clause in the contract entitled Disputes.

(f) With respect to commercial plans approved under the clause at 52.219-9, Small Business Subcontracting Plan, the contracting officer that approved the plan shall--

(1) Perform the functions of the contracting officer under this subsection on behalf of all agencies with contracts covered by the commercial plan;

(2) Determine whether or not the goals in the commercial plan were achieved and, if they were not achieved, review all available information for an indication that the contractor has not made a good faith effort to comply with the plan, and document the results of the review;

(3) If a determination is made to assess liquidated damages, in order to calculate and assess the amount of damages, the contracting officer shall ask the contractor to provide--

(i) Contract numbers for the Government contracts subject to the plan;

(ii) The total Government sales during the contractor's fiscal year; and

(iii) The amount of payments made under the Government contracts subject to that plan that contributed to the contractor's total sales during the contractor's fiscal year; and

(4) When appropriate, assess liquidated damages on the Government's behalf, based on the pro rata share of subcontracting attributable to the Government contracts. For example: The contractor's total actual sales were $50 million and its actual subcontracting was $20 million. The Government's total payments under contracts subject to the plan contributing to the contractor's total sales were $5 million, which accounted for 10 percent of the contractor's total sales. Therefore, the pro rata share of subcontracting attributable to the Government contracts would be 10 percent of $20 million, or $2 million. To continue the example, if the contractor failed to achieve its small business goal by 1 percent, the liquidated damages would be calculated as 1 percent of $2 million, or $20,000. The contracting officer shall make similar calculations for each category of small business where the contractor failed to achieve its goal and the sum of the dollars for all of the categories equals the amount of the liquidated damages to be assessed. A copy of the contracting officer's final decision assessing liquidated damages shall be provided to other contracting officers with contracts subject to the commercial plan.

(g) Liquidated damages shall be in addition to any other remedies that Government may have.

The administrative contracting officer is responsible for assisting in evaluating subcontracting plans, and for monitoring, evaluating, and documenting contractor performance under the clause prescribed in 19.708(b) and any subcontracting plan included in the contract. The contract administration office shall provide the necessary information and advice to support the contracting officer, as appropriate, by furnishing--

(a) Documentation on the contractor's performance and compliance with subcontracting plans under previous contracts;

(b) Information on the extent to which the contractor is meeting the plan's goals for subcontracting with eligible small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns;

(c) Information on whether the contractor's efforts to ensure the participation of small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns are in accordance with its subcontracting plan;

(d) Information on whether the contractor is requiring its subcontractors to adopt similar subcontracting plans;

(e) Immediate notice if, during performance, the contractor is failing to meet its commitments under the clause prescribed in 19.708(b) or the subcontracting plan;

(f) Immediate notice and rationale if, during performance, the contractor is failing to comply in good faith with the subcontracting plan; and

(a) Under the program, the SBA may--

(1) Assist both Government agencies and contractors in carrying out their responsibilities with regard to subcontracting plans;

(2) Review (within 5 working days) any solicitation that meets the dollar threshold in 19.702(a)(1) or (2) before the solicitation is issued;

(3) Review (within 5 working days) before execution any negotiated contractual document requiring a subcontracting plan, including the plan itself, and submit recommendations to the contracting officer, which shall be advisory in nature; and

(4) Evaluate compliance with subcontracting plans, either on a contract-by-contract basis, or, in the case of contractors having multiple contracts, on an aggregate basis.

(b) The SBA is not authorized to--

(1) Prescribe the extent to which any contractor or subcontractor shall subcontract,

(2) Specify concerns to which subcontracts will be awarded, or

(a) The contracting officer shall insert the clause at 52.219-8, Utilization of Small Business Concerns, in solicitations and contracts when the contract amount is expected to be over the simplified acquisition threshold unless--

(1) A personal services contract is contemplated (see 37.104); or

(2) The contract, together with all its subcontracts, is to be performed entirely outside of any State, territory, or possession of the United States, the District of Columbia, and the Commonwealth of Puerto Rico.

(b)(1) The contracting officer shall, when contracting by negotiation, insert the clause at 52.219-9, Small Business Subcontracting Plan, in solicitations and contracts that offer subcontracting possibilities, are expected to exceed $500,000 ($1,000,000 for construction of any public facility), and are required to include the clause at 52.219-8, Utilization of Small Business Concerns, unless the acquisition is set aside or is to be accomplished under the 8(a) program. When contracting by sealed bidding rather than by negotiation, the contracting officer shall use the clause with its Alternate I. When contracting by negotiation, and subcontracting plans are required with initial proposals as provided for in 19.705-2(d), the contracting officer shall use the clause with its Alternate II.

(2) The contracting officer shall insert the clause at 52.219-16, Liquidated Damages--Subcontracting Plan, in all solicitations and contracts containing the clause at 52.219-9, Small Business Subcontracting Plan, or the clause with its Alternate I or II.

(c)(1) The contracting officer may, when contracting by negotiation, insert in solicitations and contracts a clause substantially the same as the clause at 52.219-10, Incentive Subcontracting Program, when a subcontracting plan is required (see 19.702), and inclusion of a monetary incentive is, in the judgment of the contracting officer, necessary to increase subcontracting opportunities for small business, HUBZone small business, and women-owned small business concerns, and is commensurate with the efficient and economical performance of the contract; unless the conditions in paragraph (c)(3) of this section are applicable. The contracting officer may vary the terms of the clause as specified in paragraph (c)(2) of this section.

(2) Various approaches may be used in the development of small business, HUBZone small business, and women-owned small business concerns' subcontracting incentives. They can take many forms, from a fully quantified schedule of payments based on actual subcontract achievement to an award-fee approach employing subjective evaluation criteria (see paragraph (c)(3) of this section). The incentive should not reward the contractor for results other than those that are attributable to the contractor's efforts under the incentive subcontracting program.

19.800 General.

(a) Section 8(a) of the Small Business Act (15 U.S.C. 637(a)) established a program that authorizes the Small Business Administration (SBA) to enter into all types of contracts with other agencies and let subcontracts for performing those contracts to firms eligible for program participation. The SBA's subcontractors are referred to as "8(a) contractors."

(b) Contracts may be awarded to the SBA for performance by eligible 8(a) firms on either a sole source or competitive basis.

(c) When, acting under the authority of the program, the SBA certifies to an agency that the SBA is competent and responsible to perform a specific contract, the contracting officer is authorized, in the contracting officer's discretion, to award the contract to the SBA based upon mutually agreeable terms and conditions.

(d) The SBA refers to this program as the 8(a) Business Development (BD) Program.

(e) Before deciding to set aside an acquisition in accordance with Subpart 19.5 or 19.13, the contracting officer should review the acquisition for offering under the 8(a) Program. In making this decision, contracting officers in participating agencies (see 19.1302) are advised that SBA will give first priority to HUBZone 8(a) concerns.

(f) When SBA has delegated its 8(a) Program contract execution authority to an agency, the contracting officer must refer to its agency supplement or other policy directives for appropriate guidance.

19.801 [Reserved]

19.802 Selecting concerns for the 8(a) Program.

Through their cooperative efforts, the SBA and an agency match the agency's requirements with the capabilities of 8(a) concerns to establish a basis for the agency to contract with the SBA under the program. Selection is initiated in one of three ways--

(a) The SBA advises an agency contracting activity through a search letter of an 8(a) firm's capabilities and asks the agency to identify acquisitions to support the firm's business plans. In these instances, the SBA will provide at least the following information in order to enable the agency to match an acquisition to the firm's capabilities:

(1) Identification of the concern and its owners.

(2) Background information on the concern, including any and all information pertaining to the concern's technical ability and capacity to perform.

(3) The firm's present production capacity and related facilities.

(4) The extent to which contracting assistance is needed in the present and the future, described in terms that will enable the agency to relate the concern's plans to present and future agency requirements.

(5) If construction is involved, the request shall also include the following:

(i) The concern's capabilities in and qualifications for accomplishing various categories of maintenance, repair, alteration, and construction work in specific categories such as mechanical, electrical, heating and air conditioning, demolition, building, painting, paving, earth work, waterfront work, and general construction work.

(ii) The concern's capacity in each construction category in terms of estimated dollar value (e.g., electrical, up to $100,000).

(b) The SBA identifies a specific requirement for a particular 8(a) firm or firms and asks the agency contracting activity to offer the acquisition to the 8(a) Program for the firm(s). In these instances, in addition to the information in paragraph (a) of this section, the SBA will provide--

(1) A clear identification of the acquisition sought; e.g., project name or number;

(2) A statement as to how any additional needed facilities will be provided in order to ensure that the firm will be fully capable of satisfying the agency's requirements;

(3) If construction, information as to the bonding capability of the firm(s); and

(4) Either--

(i) If sole source request--

(A) The reasons why the firm is considered suitable for this particular acquisition; e.g., previous contracts for the same or similar supply or service; and

(B) A statement that the firm is eligible in terms of SIC code, business support levels, and business activity targets; or

(ii) If competitive, a statement that at least two 8(a) firms are considered capable of satisfying the agency's requirements and a statement that the firms are also eligible in terms of the SIC code, business support levels, and business activity targets. If requested by the contracting activity, SBA will identify at least two such firms and provide information concerning the firms' capabilities.

19.804-1 Agency evaluation.

In determining the extent to which a requirement should be offered in support of the 8(a) Program, the agency should evaluate--

(a) Its current and future plans to acquire the specific items or work that 8(a) contractors are seeking to provide, identified in terms of--

(1) Quantities required or the number of construction projects planned; and

(2) Performance or delivery requirements, including required monthly production rates, when applicable;

(b) Its current and future plans to acquire items or work similar in nature and complexity to that specified in the business plan;

(c) Problems encountered in previous acquisitions of the items or work from the 8(a) contractors and/or other contractors;

(d) The impact of any delay in delivery;

(e) Whether the items or work have previously been acquired using small business set-asides; and

(a) After completing its evaluation, the agency shall notify the SBA of the extent of its plans to place 8(a) contracts with the SBA for specific quantities of items or work. The notification must identify the time frames within which prime contract and subcontract actions must be completed in order for the agency to meet its responsibilities. The notification must also contain the following information applicable to each prospective contract:

(1) A description of the work to be performed or items to be delivered, and a copy of the statement of work, if available.

(2) The estimated period of performance.

(3) The SIC code that applies to the principal nature of the acquisition.

(4) The anticipated dollar value of the requirement, including options, if any.

(5) Any special restrictions or geographical limitations on the requirement (for construction, include the location of the work to be performed).

(6) Any special capabilities or disciplines needed for contract performance.

(7) The type of contract anticipated.

(8) The acquisition history, if any, of the requirement, including the names and addresses of any small business contractors that have performed this requirement during the previous 24 months.

(9) A statement that prior to the offering no solicitation for the specific acquisition has been issued as a small business or HUBZone set-aside and that no other public communication (such as a notice in the Commerce Business Daily) has been made showing the contracting agency's clear intention to set-aside the acquisition for small business or HUBZone small business concerns.

(10) Identification of any particular 8(a) concern designated for consideration, including a brief justification, such as--

(i) The 8(a) concern, through its own efforts, marketed the requirement and caused it to be reserved for the 8(a) Program; or

(ii) The acquisition is a follow-on or renewal contract and the nominated concern is the incumbent.

(11) Bonding requirements, if applicable.

(12) Identification of all known 8(a) concerns, including HUBZone 8(a) concerns, that have expressed an interest in being considered for the specific requirement.

(13) Identification of all SBA field offices that have asked for the acquisition for the 8(a) Program.

(14) A request, if appropriate, that a requirement with an estimated contract value under the applicable competitive threshold be awarded as an 8(a) competitive contract (see 19.805-1(d)).

(15) A request, if appropriate, that a requirement with a contract value over the applicable competitive threshold be awarded as a sole source contract (see 19.805-1(b)).

(16) Any other pertinent and reasonably available data.

(b)(1) An agency offering a construction requirement should submit it to the SBA District Office for the geographical area where the work is to be performed.

(2) Sole source requirements, other than construction, should be forwarded directly to the district office that services the nominated firm. If the contracting officer is not nominating a specific firm, the offering letter should be forwarded to the district office servicing the geographical area in which the contracting office is located.

(a) Upon receipt of the contracting agency's offer, the SBA will determine whether to accept the requirement for the 8(a) Program. The SBA's decision whether to accept the requirement will be transmitted to the contracting agency in writing within 10 working days of receipt of the offer if the contract is likely to exceed the simplified acquisition threshold and within 2 days of receipt if the contract is at or below the simplified acquisition threshold. The contracting agency may grant an extension of these time periods. If SBA does not respond to an offering letter within 10 days, the contracting activity may seek SBA's acceptance through the Associate Administrator (AA)/8(a)BD.

(b) If the acquisition is accepted as a sole source, the SBA will advise the contracting activity of the 8(a) firm selected for negotiation. Generally, the SBA will accept a contracting activity's recommended source.

(c) For acquisitions not exceeding the simplified acquisition threshold, when the contracting activity makes an offer to the 8(a) Program on behalf of a specific 8(a) firm and does not receive a reply to its offer within 2 days, the contracting activity may assume the offer is accepted and proceed with award of an 8(a) contract.

(d) As part of the acceptance process, SBA will review the appropriateness of the SIC code designation assigned to the requirement by the contracting activity.

(1) SBA will not challenge the SIC code assigned to the requirement by the contracting activity if it is reasonable, even though other SIC codes may also be reasonable.

In order for repetitive acquisitions to be awarded through the 8(a) Program, there must be separate offers and acceptances. This allows the SBA to determine--

(a) Whether the requirement should be a competitive 8(a) award;

(b) A nominated firm's eligibility, whether or not it is the same firm that performed the previous contract;

(c) The effect that contract award would have on the equitable distribution of 8(a) contracts; and

(a) The contracting activity must offer, and SBA must accept, each order under a basic ordering agreement (BOA) in addition to offering and accepting the BOA itself.

(b) SBA will not accept for award on a sole-source basis any order that would cause the total dollar amount of orders issued under a specific BOA to exceed the competitive threshold amount in 19.805-1.

(a) Separate offers and acceptances must not be made for individual orders under multiple award or Federal Supply Schedule (FSS) contracts. SBA's acceptance of the original multiple award or FSS contract is valid for the term of the contract.

(b) The requirements of 19.805-1 do not apply to individual orders that exceed the competitive threshold as long as the original contract was competed.

19.805-1 General.

(a) Except as provided in paragraph (b) of this subsection, an acquisition offered to the SBA under the 8(a) Program shall be awarded on the basis of competition limited to eligible 8(a) firms if--

(1) There is a reasonable expectation that at least two eligible and responsible 8(a) firms will submit offers and that award can be made at a fair market price; and

(2) The anticipated total value of the contract, including options, will exceed $5,000,000 for acquisitions assigned manufacturing standard industrial classification (SIC) codes and $3,000,000 for all other acquisitions.

(b) Where an acquisition exceeds the competitive threshold, the SBA may accept the requirement for a sole source 8(a) award if--

(1) There is not a reasonable expectation that at least two eligible and responsible 8(a) firms will submit offers at a fair market price; or

(2) SBA accepts the requirement on behalf of a concern owned by an Indian tribe or an Alaska Native Corporation.

(c) A proposed 8(a) requirement with an estimated value exceeding the applicable competitive threshold amount shall not be divided into several requirements for lesser amounts in order to use 8(a) sole source procedures for award to a single firm.

(a) Offers shall be solicited from those sources identified in accordance with 19.804-3.

(b) The SBA will determine the eligibility of the firms for award of the contract. Eligibility will be determined by the SBA as of the time of submission of initial offers which include price. Eligibility is based on Section 8(a) Program criteria.

(1) In sealed bid acquisitions, upon receipt of offers, the contracting officer will provide the SBA a copy of the solicitation, the estimated fair market price, and a list of offerors ranked in the order of their standing for award (i.e., first low, second low, etc.) with the total evaluated price for each offer, differentiating between basic requirements and any options. The SBA will consider the eligibility of the first low offeror. If the first low offeror is not determined to be eligible, the SBA will consider the eligibility of the next low offeror until an eligible offeror is identified. The SBA will determine the eligibility of the firms and advise the contracting officer within 5 working days after its receipt of the list of bidders. Once eligibility has been established by the SBA, the successful offeror will be determined by the contracting activity in accordance with normal contracting procedures.

(2) In negotiated acquisition, the SBA will determine eligibility when the successful offeror has been established by the agency and the contract transmitted for signature unless a referral has been made under 19.809, in which case the SBA will determine eligibility at that point.

(c) In any case in which a firm is determined to be ineligible, the SBA will notify the firm of that determination.

(a) The contracting officer shall price the 8(a) contract in accordance with Subpart 15.4. If required by Subpart 15.4, the SBA shall obtain cost or pricing data from the 8(a) contractor. If the SBA requests audit assistance to determine the reasonableness of the proposed price in a sole source acquisition, the contracting activity shall furnish it to the extent it is available.

(b) An 8(a) contract, sole source or competitive, may not be awarded if the price of the contract results in a cost to the contracting agency which exceeds a fair market price.

(c) If requested by the SBA, the contracting officer shall make available the data used to estimate the fair market price within 10 working days.

(a) The contracting officer shall estimate the fair market price of the work to be performed by the 8(a) contractor.