Four Winds Services, Inc., No. 4319 (August 19, 1998) Docket No. SIC-98-7-27-36 UNITED STATES OF AMERICA SMALL BUSINESS ADMINISTRATION OFFICE OF HEARINGS AND APPEALS WASHINGTON, D.C. _______________________________ ) SIC APPEAL OF: ) ) Four Winds Services, Inc. ) Docket No. SIC-98-7-27-36 ) Appellant ) Decided: August 19, 1998 ) Solicitation No. ) F64605-98-R-0018 ) Department of the Air Force ) Hickam Air Force Base, Hawaii ) ______________________________ ) APPEARANCES Denis M. Carson for Appellant DIGEST A SIC appeal is timely if it is filed within ten days after a procurement is materially amended by assigning a Standard Industrial Classification code and the accompanying size standard. A procurement for operating a base information transfer center and a postal service center, which requires a variety of mail delivery, mail pickup, and staff support services, is appropriately classified under Standard Industrial Classification code 4215 (Courier Services, Except by Air), with an $18.5 million size standard, rather than SIC code 8744 (Facilities Support Management Services), with a $5 million size standard, designated by the Contracting Officer. DECISION BLAZSIK, Administrative Judge: Jurisdiction This appeal is decided under the Small Business Act of 1958, 15 U.S.C. Sections 631 et seq., and 13 C.F.R. Parts 121 and 134, as amended. 63 Fed. Reg. 35726, 35738-39, 35766 (June 30, 1998). Issues Whether a SIC appeal is timely when it is filed within ten days after a procurement is materially amended by assigning a Standard Industrial Classification code and the accompanying size standard. Whether the appropriate SIC code for this procurement is 4215 (Courier Services, Except by Air) or 8744 (Facilities Support Management Services). Facts On June 29, 1998, the Contracting Officer, Hickam Air Force Base, in Hawaii, issued this negotiated small business set-aside procurement for a "Base Information Transfer Center and Postal Service Center." The procurement initially did not designate a Standard Industrial Classification (SIC) code or a size standard. By amendment 0001 dated July 15, 1998, the Contracting Officer assigned to it Standard Industrial Classification (SIC) code 7389 (Business Services, Not Elsewhere Classified), which has a $5 million average annual receipts size standard. By amendment 0002 dated July 27, 1998, the Contracting Officer changed the classification to SIC code 8744 (Facilities Support Management Services), which also has a $5 million average annual receipts size standard. Proposals were due on August 7, 1998. Statement of Work The procurement has two parts: First, the base information transfer center, which receives, processes, delivers, and picks up official mail. Second, the postal service center, receives mail; processes and distributes deliverable mail; sells postage and offers other customer support; and issues cluster boxes to dormitory personnel. The contractor must perform all functions necessary to operate the base information and postal service centers. The contractor's duties include receiving, processing, distributing, and dispatching official mail; distributing administrative information bulletins and sheets; picking up all official outgoing mail and packages; consolidating and sorting packages and mail, and applying correct postage; and ensuring that all mail and information is timely processed. The contractor also must provide the necessary personnel, vehicles, equipment, tools, and materials for the operation of the information and postal service centers. The contractor also must maintain and keep up-to-date a base personnel locator and provide for records maintenance. The Appeal On July 27, 1998, Four Winds Services, Inc. (Appellant) appealed the Contracting Officer's SIC classification. Appellant asserts the appropriate classification is SIC code 4215 (Courier Services, Except By Air), which has an $18.5 million average annual receipts size standard. Appellant asserts the solicitation primarily seeks a variety of mail messenger and mail processing services, which include mail sorting, mail delivery, and mail clerical staff services. Appellant relies on OHA precedent involving similar solicitations, where OHA found SIC code 4215 was appropriate. [1] Finally, Appellant asserts that the designated SIC code, 8744, is not appropriate for this procurement since the classification description does not best describe the work to be performed. [2] Contracting Officer's Response On August 12, 1998, the Contracting Officer responded to the appeal. She asserts the procurement requires mail and base information, operation of a postal center, customer support, and a base locator service; and that delivery service comprises only about 50% of the requirement. The other tasks are postal center, records maintenance, and base personnel locator. She also asserts she selected SIC code 8744 as the appropriate classification, based on advice from the SBA Area Office. On August 13, 1998, Appellant filed a response to the Contracting Officer's comments. Appellant generally reiterates its previous assertions why SIC code 4215 is appropriate here. Discussion A timely SIC appeal must be filed within ten days after issuance of the initial procurement. 13 C.F.R. Section 134.304(a)(3). Because the Contracting Officer first issued this procurement on June 29, 1998, Appellant's July 27th appeal ordinarily would be untimely. However, the June 29th procurement did not specify a SIC code or size standard. The Contracting Officer's July 15th amendment, which first designated the SIC code and size standard, thus materially amended the solicitation. This Office often has held that an amendment to a solicitation which affects the SIC code designation or the assigned size standard may alter the deadline for filing an appeal. SIC Appeal of Engineering Spectrum, Incorporated, No. 3899 (1994). Since Appellant filed its July 27th appeal within ten days of the material amendment, this appeal is timely. SIC Appeal of Madison Services, Inc., No. 4223 (1996). In a SIC appeal, Appellant has the burden of proof, by a preponderance of the evidence to show error in the Contracting Officer's SIC code designation. SIC Appeal of Information Ventures, Inc., No. 4259 (1997) (citing SIC Appeal of The Scientific Consulting Group, Inc., No. 4186 (1996)). The Administrative Judge finds, upon review of the procurement's Statement of Work, that the Contracting Officer incorrectly designated SIC code 8744 (Facilities Support Management Services), for the procurement. The SIC Manual [3] describes the firms covered by this SIC code as establishments-- primarily engaged in furnishing personnel to perform a range of services in support of the operations of other establishments or in providing a number of different continuing services.... Footnote 11 to 13 C.F.R. Section 121.201, further describes them as -- 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. This Office previously has found SIC code 8744 appropriate for a base supply facility at an Air Force Base (SIC Appeal of Proteus Corporation, Inc., No. 3629 (1992)); and for support services at a naval training center (SIC Appeal of I.T.S. Corporation, No. 3537 (1991)). In each of these cases, the procurement required word processing, communication, and filing services. These procurements did not specify as the primary focus, mail dissemination, base information, base locator services, and records maintenance as here. The SIC Manual lists the following services for SIC code 4215, urged by Appellant-- Establishments primarily engaged in the delivery of individually addressed letters, parcels, and packages...except by means of air transportation or by the United States Postal Service. The listed examples include courier services, mail and package delivery, and parcel delivery. Here, the principal purpose of the procurement is to provide a variety of mail messenger, mail processing, and mail and package pick-up and delivery services. In addition, the procurement requires maintaining an up-to-date register and locator of all base personnel; maintaining a full-time postal service center; and maintaining records. In fact, the procurement is almost identical to that involved in SIC Appeal of Four Winds, supra, where OHA found SIC code 4215 appropriate. In another similar case, OHA found SIC code 4215 appropriate where the procurement required a variety of mail, messenger, and staff support services. SIC Appeal of RAI, supra. The Administrative Judge concludes SIC code 4215 also is appropriate here. The Statement of Work clearly and unambiguously requires the types of services described for SIC code 4215 in the SIC Manual, and which OHA found previously appropriate. Therefore, SIC code 4215, with an $18.5 million size standard, best describes the services sought here. Conclusion The appropriate SIC code for this procurement is SIC code 4215, with an $18.5 million size standard. The Administrative Judge REVERSES the Contracting Officer's designation, and GRANTS the appeal. This is the Small Business Administration's final decision. 13 C.F.R. Section 134.316(b). _____________________________ GLORIA E. BLAZSIK Administrative Judge _________________________ [1] SIC Appeal of Four Winds Services, Inc., No. 3968 (1994) (a procurement for the operation of an information and distribution center, requiring a variety of mail, messenger, and staff support); and SIC Appeal of RAI, No. 3808 (1993) (a procurement for the operation of an agency's main and satellite mailrooms, requiring mail processing and delivery functions for letters, parcels, and packages). [2] Appellant also asserts SIC code 7389, the Contracting Officer's original SIC code designation, is inappropriate because that classification has been reserved for procurement involving commissary shelf-stocking, warehousing, and custodial services. Because this classification was superseded by SIC code 8744, the Administrative Judge need not consider the assertion. [3] Standard Industrial Classification Manual, 1987 Edition, Office of Management and Budget. Posted: August, 1998