WAIS Document Retrieval

[Code of Federal Regulations]
[Title 13, Volume 1]
[Revised as of January 1, 2006]
From the U.S. Government Printing Office via GPO Access
[CITE: 13CFR121]

[Page 286-341]

TITLE 13--BUSINESS CREDIT AND ASSISTANCE

CHAPTER I--SMALL BUSINESS ADMINISTRATION

PART 121_SMALL BUSINESS SIZE REGULATIONS

Subpart A_Size Eligibility Provisions and Standards

Provisions of General Applicability

Sec.
121.101 What are SBA size standards?
121.102 How does SBA establish size standards?
121.103 How does SBA determine affiliation?
121.104 How does SBA calculate annual receipts?
121.105 How does SBA define ``business concern or concern''?
121.106 How does SBA calculate number of employees?
121.107 How does SBA determine a concern's ``primary industry''?
121.108 What are the penalties for misrepresentation of size status?

Size Standards Used to Define Small Business Concerns

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

Size Eligibility Requirements for SBA Financial Assistance

121.301 What size standards are applicable to financial assistance
programs?
121.302 When does SBA determine the size status of an applicant?
121.303 What size procedures are used by SBA before it makes a formal
size determination?
121.304 What are the size requirements for refinancing an existing SBA
loan?
121.305 What size eligibility requirements exist for obtaining financial
assistance relating to particular procurements?

Size Eligibility Requirements for Government Procurement

121.401 What procurement programs are subject to size determinations?

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121.402 What size standards are applicable to Federal Government
Contracting programs?
121.403 Are SBA size determinations and NAICS code designations binding
on parties?
121.404 When does SBA determine the size status of a business concern?
121.405 May a business concern self-certify its small business size
status?
121.406 How does a small business concern qualify to provide
manufactured products under small business set-aside or 8(a)
contracts?
121.407 What are the size procedures for multiple item procurements?
121.408 What are the size procedures for SBA's Certificate of Competency
Program?
121.409 What size standard applies in an unrestricted procurement for
Certificate of Competency purposes?
121.410 What are the size standards for SBA's Section 8(d)
Subcontracting Program?
121.411 What are the size procedures for SBA's Section 8(d)
Subcontracting Program?
121.412 What are the size procedures for partial small business set-
asides?
121.413 [Reserved]

Size Eligibility Requirements for Sales or Lease of Government Property

121.501 What programs for sales or leases of Government property are
subject to size determinations?
121.502 What size standards are applicable to programs for sales or
leases of Government property?
121.503 Are SBA size determinations binding on parties?
121.504 When does SBA determine the size status of a business concern?
121.505 What is the effect of a self-certification?
121.506 What definitions are important for sales or leases of
Government-owned timber?
121.507 What are the size standards and other requirements for the
purchase of Government-owned timber (other than Special
Salvage Timber)?
121.508 What are the size standards and other requirements for the
purchase of Government-owned Special Salvage Timber?
121.509 What is the size standard for leasing of Government land for
coal mining?
121.510 What is the size standard for leasing of Government land for
uranium mining?
121.511 What is the size standard for buying Government-owned petroleum?
121.512 What is the size standard for stockpile purchases?

Size Eligibility Requirements for the 8(a) Business Development Program

121.601 What is a small business for purposes of admission to SBA's 8(a)
Business Development program?
121.602 At what point in time must a 8(a) BD applicant be small?
121.603 How does SBA determine whether a Participant is small for a
particular 8(a) BD subcontract?
121.604 Are 8(a) BD Participants considered small for purposes of other
SBA assistance?

Size Eligibility Requirements for the Small Business Innovation Research
(SBIR) Program

121.701 What SBIR programs are subject to size determinations?
121.702 What size standards are applicable to the SBIR program?
121.703 Are formal size determinations binding on parties?
121.704 When does SBA determine the size status of a business concern?
121.705 Must a business concern self-certify its size status?

Size Eligibility Requirements for Paying Reduced Patent Fees

121.801 May patent fees be reduced if a concern is small?
121.802 What size standards are applicable to reduced patent fees
programs?
121.803 Are formal size determinations binding on parties?
121.804 When does SBA determine the size status of a business concern?
121.805 May a business concern self-certify its size status?

Size Eligibility Requirements for Compliance With Programs of Other
Agencies

121.901 Can other Government agencies obtain SBA size determinations?
121.902 What size standards are applicable to programs of other
agencies?
121.903 How may an agency use size standards for its programs that are
different than those established by SBA?
121.904 When does SBA determine the size status of a business concern?

Procedures for Size Protests and Requests for Formal Size Determinations

121.1001 Who may initiate a size protest or a request for formal size
determination?
121.1002 Who makes a formal size determination?
121.1003 Where should a size protest be filed?
121.1004 What time limits apply to size protests?
121.1005 How must a protest be filed with the contracting officer?

[[Page 288]]

121.1006 When will a size protest be referred to an SBA Government
Contracting Area Office?
121.1007 Must a protest of size status relate to a particular
procurement and be specific?
121.1008 What occurs after SBA receives a size protest or request for a
formal size determination?
121.1009 What are the procedures for making the size determination?
121.1010 How does a concern become recertified as a small business?

Appeals of Size Determinations and NAICS Code Designations

121.1101 Are formal size determinations subject to appeal?
121.1102 Are NAICS code designations subject to appeal?
121.1103 What are the procedures for appealing an NAICS code
designation?

Subpart B_Other Applicable Provisions

Waivers of the Nonmanufacturer Rule for Classes of Products and
Individual Contracts

121.1201 What is the Nonmanufacturer Rule?
121.1202 When will a waiver of the Nonmanufacturer Rule be granted for a
class of products?
121.1203 When will a waiver of the Nonmanufacturer Rule be granted for
an individual contract?
121.1204 What are the procedures for requesting and granting waivers?
121.1205 How is a list of previously granted class waivers obtained?

Authority: 15 U.S.C. 632, 634(b)(6), 636(b), 637(a), 644, and
662(5); and Pub. L. 105-135, sec. 401 et seq., 111 Stat. 2592.

Source: 61 FR 3286, Jan. 31, 1996, unless otherwise noted.

Subpart A_Size Eligibility Provisions and Standards

Provisions of General Applicability

Sec. 121.101 What are SBA size standards?

(a) SBA's size standards define whether a business entity is small
and, thus, eligible for Government programs and preferences reserved for
``small business'' concerns. Size standards have been established for
types of economic activity, or industry, generally under the North
American Industry Classification System (NAICS).
(b) NAICS is described in the North American Industry Classification
Manual--United States, which is available from the National Technical
Information Service, 5285 Port Royal Road, Springfield, VA 22161; by
calling 1(800) 553-6847 or 1(703) 605-6000; or via the Internet at
http://www.ntis.gov/yellowbk/1nty205.htm. The manual includes
definitions for each industry, tables showing relationships between 1997
NAICS and 1987 SICs, and a comprehensive index. NAICS assigns codes to
all economic activity within twenty broad sectors. Section 121.201
provides a full table of small business size standards matched to the
U.S. NAICS industry codes. A full table matching a size standard with
each NAICS Industry or U.S. Industry code is also published annually by
SBA in the Federal Register.

[65 FR 30840, May 15, 2000, as amended at 67 FR 52602, Aug. 13, 2002]

Sec. 121.102 How does SBA establish size standards?

(a) SBA considers economic characteristics comprising the structure
of an industry, including degree of competition, average firm size,
start-up costs and entry barriers, and distribution of firms by size. It
also considers technological changes, competition from other industries,
growth trends, historical activity within an industry, unique factors
occurring in the industry which may distinguish small firms from other
firms, and the objectives of its programs and the impact on those
programs of different size standard levels.
(b) As part of its review of a size standard, SBA will investigate
if any concern at or below a particular standard would be dominant in
the industry. SBA will take into consideration market share of a concern
and other appropriate factors which may allow a concern to exercise a
major controlling influence on a national basis in which a number of
business concerns are engaged. Size standards seek to ensure that a
concern that meets a specific size standard is not dominant in its field
of operation.
(c) As part of its review of size standards, SBA's Office of Size
Standards will examine the impact of inflation on monetary-based size
standards (e.g., receipts, net income, assets) at least once every five
years and submit a report to

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the Administrator or designee. If SBA finds that inflation has
significantly eroded the value of the monetary-based size standards, it
will issue a proposed rule to increase size standards.
(d) Please address any requests to change existing size standards or
establish new ones for emerging industries to the Assistant
Administrator for Size Standards, Small Business Administration, 409 3rd
Street, SW., Washington, DC 20416.

[61 FR 3286, Jan. 31, 1996, as amended at 67 FR 3045, Jan. 23, 2002]

Sec. 121.103 How does SBA determine affiliation?

(a) General Principles of Affiliation. (1) Concerns and entities are
affiliates of each other when one controls or has the power to control
the other, or a third party or parties controls or has the power to
control both. It does not matter whether control is exercised, so long
as the power to control exists.
(2) SBA considers factors such as ownership, management, previous
relationships with or ties to another concern, and contractual
relationships, in determining whether affiliation exists.
(3) Control may be affirmative or negative. Negative control
includes, but is not limited to, instances where a minority shareholder
has the ability, under the concern's charter, by-laws, or shareholder's
agreement, to prevent a quorum or otherwise block action by the board of
directors or shareholders.
(4) Affiliation may be found where an individual, concern, or entity
exercises control indirectly through a third party.
(5) In determining whether affiliation exists, SBA will consider the
totality of the circumstances, and may find affiliation even though no
single factor is sufficient to constitute affiliation.
(6) In determining the concern's size, SBA counts the receipts,
employees, or other measure of size of the concern whose size is at
issue and all of its domestic and foreign affiliates, regardless of
whether the affiliates are organized for profit.
(b) Exceptions to affiliation coverage. (1) Business concerns owned
in whole or substantial part by investment companies licensed, or
development companies qualifying, under the Small Business Investment
Act of 1958, as amended, are not considered affiliates of such
investment companies or development companies.
(2)(i) Business concerns owned and controlled by Indian Tribes,
Alaska Native Corporations (ANCs) organized pursuant to the Alaska
Native Claims Settlement Act (43 U.S.C. 1601 et seq.), Native Hawaiian
Organizations (NHOs), Community Development Corporations (CDCs)
authorized by 42 U.S.C. 9805, or wholly-owned entities of Indian Tribes,
ANCs, NHOs, or CDCs are not considered affiliates of such entities.
(ii) Business concerns owned and controlled by Indian Tribes, ANCs,
NHOs, CDCs, or wholly-owned entities of Indian Tribes, ANCs, NHOs, or
CDCs are not considered to be affiliated with other concerns owned by
these entities because of their common ownership or common management.
In addition, affiliation will not be found based upon the performance of
common administrative services, such as bookkeeping and payroll, so long
as adequate payment is provided for those services. Affiliation may be
found for other reasons.
(3) Business concerns which are part of an SBA approved pool of
concerns for a joint program of research and development as authorized
by the Small Business Act are not affiliates of one another because of
the pool.
(4) Business concerns which lease employees from concerns primarily
engaged in leasing employees to other businesses or which enter into a
co-employer arrangement with a Professional Employer Organization (PEO)
are not affiliated with the leasing company or PEO solely on the basis
of a leasing agreement.
(5) For financial, management or technical assistance under the
Small Business Investment Act of 1958, as amended, (an applicant is not
affiliated with the investors listed in paragraphs (b)(5) (i) through
(vi) of this section.
(i) Venture capital operating companies, as defined in the U.S.
Department of Labor regulations found at 29 CFR 2510.3-101(d);
(ii) Employee benefit or pension plans established and maintained by
the Federal government or any state, or their political subdivisions, or
any

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agency or instrumentality thereof, for the benefit of employees;
(iii) Employee benefit or pension plans within the meaning of the
Employee Retirement Income Security Act of 1974, as amended (29 U.S.C.
1001, et seq.);
(iv) Charitable trusts, foundations, endowments, or similar
organizations exempt from Federal income taxation under section 501(c)
of the Internal Revenue Code of 1986, as amended (26 U.S.C. 501(c));
(v) Investment companies registered under the Investment Company Act
of 1940, as amended (1940 Act) (15 U.S.C. 80a-1, et seq.); and
(vi) Investment companies, as defined under the 1940 Act, which are
not registered under the 1940 Act because they are beneficially owned by
less than 100 persons, if the company's sales literature or
organizational documents indicate that its principal purpose is
investment in securities rather than the operation of commercial
enterprises.
(6) A protege firm is not an affiliate of a mentor firm solely
because the protege firm receives assistance from the mentor firm under
Federal Mentor-Protege programs. Affiliation may be found for other
reasons.
(7) The member shareholders of a small agricultural cooperative, as
defined in the Agricultural Marketing Act (12 U.S.C. 1141j), are not
considered affiliated with the cooperative by virtue of their membership
in the cooperative.
(c) Affiliation based on stock ownership. (1) A person (including
any individual, concern or other entity) that owns, or has the power to
control, 50 percent or more of a concern's voting stock, or a block of
voting stock which is large compared to other outstanding blocks of
voting stock, controls or has the power to control the concern.
(2) If two or more persons (including any individual, concern or
other entity) each owns, controls, or has the power to control less than
50 percent of a concern's voting stock, and such minority holdings are
equal or approximately equal in size, and the aggregate of these
minority holdings is large as compared with any other stock holding, SBA
presumes that each such person controls or has the power to control the
concern whose size is at issue. This presumption may be rebutted by a
showing that such control or power to control does not in fact exist.
(3) If a concern's voting stock is widely held and no single block
of stock is large as compared with all other stock holdings, the
concern's Board of Directors and CEO or President will be deemed to have
the power to control the concern in the absence of evidence to the
contrary.
(d) Affiliation arising under stock options, convertible securities,
and agreements to merge. (1) In determining size, SBA considers stock
options, convertible securities, and agreements to merge (including
agreements in principle) to have a present effect on the power to
control a concern. SBA treats such options, convertible securities, and
agreements as though the rights granted have been exercised.
(2) Agreements to open or continue negotiations towards the
possibility of a merger or a sale of stock at some later date are not
considered ``agreements in principle'' and are thus not given present
effect.
(3) Options, convertible securities, and agreements that are subject
to conditions precedent which are incapable of fulfillment, speculative,
conjectural, or unenforceable under state or Federal law, or where the
probability of the transaction (or exercise of the rights) occurring is
shown to be extremely remote, are not given present effect.
(4) An individual, concern or other entity that controls one or more
other concerns cannot use options, convertible securities, or agreements
to appear to terminate such control before actually doing so. SBA will
not give present effect to individuals', concerns' or other entities'
ability to divest all or part of their ownership interest in order to
avoid a finding of affiliation.
(e) Affiliation based on common management. Affiliation arises where
one or more officers, directors, managing members, or partners who
control the board of directors and/or management of one concern also
control the board of directors or management of one or more other
concerns.

[[Page 291]]

(f) Affiliation based on identity of interest. Affiliation may arise
among two or more persons with an identity of interest. Individuals or
firms that have identical or substantially identical business or
economic interests (such as family members, individuals or firms with
common investments, or firms that are economically dependent through
contractual or other relationships) may be treated as one party with
such interests aggregated. Where SBA determines that such interests
should be aggregated, an individual or firm may rebut that determination
with evidence showing that the interests deemed to be one are in fact
separate.
(g) Affiliation based on the newly organized concern rule.
Affiliation may arise where former officers, directors, principal
stockholders, managing members, or key employees of one concern organize
a new concern in the same or related industry or field of operation, and
serve as the new concern's officers, directors, principal stockholders,
managing members, or key employees, and the one concern is furnishing or
will furnish the new concern with contracts, financial or technical
assistance, indemnification on bid or performance bonds, and/or other
facilities, whether for a fee or otherwise. A concern may rebut such an
affiliation determination by demonstrating a clear line of fracture
between the two concerns. A ``key employee'' is an employee who, because
of his/her position in the concern, has a critical influence in or
substantive control over the operations or management of the concern.
(h) Affiliation based on joint ventures. A joint venture is an
association of individuals and/or concerns with interests in any degree
or proportion by way of contract, express or implied, consorting to
engage in and carry out no more than three specific or limited-purpose
business ventures for joint profit over a two year period, for which
purpose they combine their efforts, property, money, skill, or
knowledge, but not on a continuing or permanent basis for conducting
business generally. This means that the joint venture entity cannot
submit more than three offers over a two year period, starting from the
date of the submission of the first offer. A joint venture may or may
not be in the form of a separate legal entity. The joint venture is
viewed as a business entity in determining power to control its
management. SBA may also determine that the relationship between a prime
contractor and its subcontractor is a joint venture, and that
affiliation between the two exists, pursuant to paragraph (h)(4) of this
section.
(1) Parties to a joint venture are affiliates if any one of them
seeks SBA financial assistance for use in connection with the joint
venture.
(2) Except as provided in paragraph (h)(3) of this section, concerns
submitting offers on a particular procurement or property sale as joint
venturers are affiliated with each other with regard to the performance
of that contract.
(3) Exception to affiliation for certain joint ventures. (i) A joint
venture of two or more business concerns may submit an offer as a small
business for a Federal procurement without regard to affiliation under
paragraph (h) of this section so long as each concern is small under the
size standard corresponding to the NAICS code assigned to the contract,
provided:
(A) The procurement qualifies as a ``bundled'' requirement, at any
dollar value, within the meaning of Sec. 125.2(d)(1)(i) of this
chapter; or
(B) The procurement is other than a ``bundled'' requirement within
the meaning of Sec. 125.2(d)(1)(i) of this chapter, and:
(1) For a procurement having a receipts based size standard, the
dollar value of the procurement, including options, exceeds half the
size standard corresponding to the NAICS code assigned to the contract;
or
(2) For a procurement having an employee-based size standard, the
dollar value of the procurement, including options, exceeds $10 million.
(ii) A joint venture of at least one 8(a) Participant and one or
more other business concerns may submit an offer for a competitive 8(a)
procurement without regard to affiliation under paragraph (h) of this
section so long as the requirements of Sec. 124.513(b)(1) of this
chapter are met.
(iii) Two firms approved by SBA to be a mentor and
prot[eacute]g[eacute] under 13 CFR 124.520 may joint venture as a small

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business for any Federal Government procurement, provided the
prot[eacute]g[eacute] qualifies as small for the size standard
corresponding to the NAICS code assigned to the procurement and, for
purposes of 8(a) sole source requirements, has not reached the dollar
limit set forth in 13 CFR 124.519.
(4) A contractor and its ostensible subcontractor are treated as
joint venturers, and therefore affiliates, for size determination
purposes. An ostensible subcontractor is a subcontractor that performs
primary and vital requirements of a contract, or of an order under a
multiple award schedule contract, or a subcontractor upon which the
prime contractor is unusually reliant. All aspects of the relationship
between the prime and subcontractor are considered, including, but not
limited to, the terms of the proposal (such as contract management,
technical responsibilities, and the percentage of subcontracted work),
agreements between the prime and subcontractor (such as bonding
assistance or the teaming agreement), and whether the subcontractor is
the incumbent contractor and is ineligible to submit a proposal because
it exceeds the applicable size standard for that solicitation.
(5) For size purposes, a concern must include in its receipts its
proportionate share of joint venture receipts, and in its total number
of employees its proportionate share of joint venture employees.
(i) Affiliation based on franchise and license agreements. The
restraints imposed on a franchisee or licensee by its franchise or
license agreement relating to standardized quality, advertising,
accounting format and other similar provisions, generally will not be
considered in determining whether the franchisor or licensor is
affiliated with the franchisee or licensee provided the franchisee or
licensee has the right to profit from its efforts and bears the risk of
loss commensurate with ownership. Affiliation may arise, however,
through other means, such as common ownership, common management or
excessive restrictions upon the sale of the franchise interest.

[61 FR 3286, Jan. 31, 1996, as amended at 62 FR 26381, May 14, 1997; 63
FR 35738, June 30, 1998; 64 FR 57370, Oct. 25, 1999; 65 FR 30840, May
15, 2000; 65 FR 35812, June 6, 2000; 65 FR 45833, July 26, 2000; 69 FR
29201, May 21, 2004; 70 FR 51248, Aug. 30, 2005]

Sec. 121.104 How does SBA calculate annual receipts?

(a) Receipts means ``total income'' (or in the case of a sole
proprietorship, ``gross income'') plus ``cost of goods sold'' as these
terms are defined and reported on Internal Revenue Service (IRS) tax
return forms (such as Form 1120 for corporations; Form 1120S and
Schedule K for S corporations; Form 1120, Form 1065 or Form 1040 for
LLCs; Form 1065 and Schedule K for partnerships; Form 1040, Schedule F
for farms; Form 1040, Schedule C for other sole proprietorships).
Receipts do not include net capital gains or losses; taxes collected for
and remitted to a taxing authority if included in gross or total income,
such as sales or other taxes collected from customers and excluding
taxes levied on the concern or its employees; proceeds from transactions
between a concern and its domestic or foreign affiliates; and amounts
collected for another by a travel agent, real estate agent, advertising
agent, conference management service provider, freight forwarder or
customs broker. For size determination purposes, the only exclusions
from receipts are those specifically provided for in this paragraph. All
other items, such as subcontractor costs, reimbursements for purchases a
contractor makes at a customer's request, and employee-based costs such
as payroll taxes, may not be excluded from receipts.
(1) The Federal income tax return and any amendments filed with the
IRS on or before the date of self-certification must be used to
determine the size status of a concern. SBA will not use tax returns or
amendments filed with the IRS after the initiation of a size
determination.
(2) When a concern has not filed a Federal income tax return with
the IRS for a fiscal year which must be included in the period of
measurement,

[[Page 293]]

SBA will calculate the concern's annual receipts for that year using any
other available information, such as the concern's regular books of
account, audited financial statements, or information contained in an
affidavit by a person with personal knowledge of the facts.
(b) Completed fiscal year means a taxable year including any short
year. ``Taxable year'' and ``short year'' have the meanings attributed
to them by the IRS.
(c) Period of measurement. (1) Annual receipts of a concern that has
been in business for three or more completed fiscal years means the
total receipts of the concern over its most recently completed three
fiscal years divided by three.
(2) Annual receipts of a concern which has been in business for less
than three complete fiscal years means the total receipts for the period
the concern has been in business divided by the number of weeks in
business, multiplied by 52.
(3) Where a concern has been in business three or more complete
fiscal years but has a short year as one of the years within its period
of measurement, annual receipts means the total receipts for the short
year and the two full fiscal years divided by the total number of weeks
in the short year and the two full fiscal years, multiplied by 52.
(d) Annual receipts of affiliates. (1) The average annual receipts
size of a business concern with affiliates is calculated by adding the
average annual receipts of the business concern with the average annual
receipts of each affiliate.
(2) If a concern has acquired an affiliate or been acquired as an
affiliate during the applicable period of measurement or before the date
on which it self-certified as small, the annual receipts used in
determining size status includes the receipts of the acquired or
acquiring concern. Furthermore, this aggregation applies for the entire
period of measurement, not just the period after the affiliation arose.
(3) If the business concern or an affiliate has been in business for
a period of less than three years, the receipts for the fiscal year with
less than a 12 month period are annualized in accordance with paragraph
(c)(2) of this section. Receipts are determined for the concern and its
affiliates in accordance with paragraph (c) of this section even though
this may result in using a different period of measurement to calculate
an affiliate's annual receipts.
(4) The annual receipts of a former affiliate are not included if
affiliation ceased before the date used for determining size. This
exclusion of annual receipts of a former affiliate applies during the
entire period of measurement, rather than only for the period after
which affiliation ceased.
(e) Unless otherwise defined in this section, all terms shall have
the meaning attributed to them by the IRS.

[61 FR 3286, Jan. 31, 1996, as amended at 65 FR 48604, Aug. 9, 2000; 69
FR 29203, May 21, 2004]

Sec. 121.105 How does SBA define ``business concern or concern''?

(a)(1) Except for small agricultural cooperatives, a business
concern eligible for assistance from SBA as a small business is a
business entity organized for profit, with a place of business located
in the United States, and which operates primarily within the United
States or which makes a significant contribution to the U.S. economy
through payment of taxes or use of American products, materials or
labor.
(2) A small agricultural cooperative is an association (corporate or
otherwise) acting pursuant to the provisions of the Agricultural
Marketing Act (12 U.S.C.A. 1141j) whose size does not exceed the size
standard established by SBA for other similar agricultural small
business concerns. A small agricultural cooperative's member
shareholders are not considered to be affiliates of the cooperative by
virtue of their membership in the cooperative. However, a business
concern or cooperative that does not qualify as small under this part
may not be a member of a small agricultural cooperative.
(b) A business concern may be in the legal form of an individual
proprietorship, partnership, limited liability company, corporation,
joint venture,

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association, trust or cooperative, except that where the form is a joint
venture there can be no more than 49 percent participation by foreign
business entities in the joint venture.
(c) A firm will not be treated as a separate business concern if a
substantial portion of its assets and/or liabilities are the same as
those of a predecessor entity. In such a case, the annual receipts and
employees of the predecessor will be taken into account in determining
size.

[61 FR 3286, Jan. 31, 1996, as amended at 70 FR 51248, Aug. 30, 2005]

Sec. 121.106 How does SBA calculate number of employees?

(a) In determining a concern's number of employees, SBA counts all
individuals employed on a full-time, part-time, or other basis. This
includes employees obtained from a temporary employee agency,
professional employee organization or leasing concern. SBA will consider
the totality of the circumstances, including criteria used by the IRS
for Federal income tax purposes, in determining whether individuals are
employees of a concern. Volunteers (i.e., individuals who receive no
compensation, including no in-kind compensation, for work performed) are
not considered employees.
(b) Where the size standard is number of employees, the method for
determining a concern's size includes the following principles:
(1) The average number of employees of the concern is used
(including the employees of its domestic and foreign affiliates) based
upon numbers of employees for each of the pay periods for the preceding
completed 12 calendar months.
(2) Part-time and temporary employees are counted the same as full-
time employees.
(3) If a concern has not been in business for 12 months, the average
number of employees is used for each of the pay periods during which it
has been in business.
(4)(i) The average number of employees of a business concern with
affiliates is calculated by adding the average number of employees of
the business concern with the average number of employees of each
affiliate. If a concern has acquired an affiliate or been acquired as an
affiliate during the applicable period of measurement or before the date
on which it self-certified as small, the employees counted in
determining size status include the employees of the acquired or
acquiring concern. Furthermore, this aggregation applies for the entire
period of measurement, not just the period after the affiliation arose.
(ii) The employees of a former affiliate are not counted if
affiliation ceased before the date used for determining size. This
exclusion of employees of a former affiliate applies during the entire
period of measurement, rather than only for the period after which
affiliation ceased.

[61 FR 3286, Jan. 31, 1996, as amended at 69 FR 29203, May 21, 2004]

Sec. 121.107 How does SBA determine a concern's ``primary industry''?

In determining the primary industry in which a concern or a concern
combined with its affiliates is engaged, SBA considers the distribution
of receipts, employees and costs of doing business among the different
industries in which business operations occurred for the most recently
completed fiscal year. SBA may also consider other factors, such as the
distribution of patents, contract awards, and assets.

Sec. 121.108 What are the penalties for misrepresentation of size
status?

In addition to other laws which may be applicable, section 16(d) of
the Small Business Act, 15 U.S.C. 645(d), provides severe criminal
penalties for knowingly misrepresenting the small business size status
of a concern in connection with procurement programs. Section 16(a) of
the Act also provides, in part, for criminal penalties for knowingly
making false statements or misrepresentations to SBA for the purpose of
influencing in any way the actions of the Agency.

[[Page 295]]

Size Standards Used To Define Small Business Concerns

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

The size standards described in this section apply to all SBA
programs unless otherwise specified in this part. The size standards
themselves are expressed either in number of employees or annual
receipts in millions of dollars, unless otherwise specified. The number
of employees or annual receipts indicates the maximum allowed for a
concern and its affiliates to be considered small.

Small Business Size Standards by NAICS Industry
----------------------------------------------------------------------------------------------------------------
Size standards Size standards
NAICS codes NAICS U.S. industry title in millions of in number of
dollars employees
----------------------------------------------------------------------------------------------------------------
Sector 11--Agriculture, Forestry, Fishing and Hunting
----------------------------------------------------------------------------------------------------------------
Subsector 111--Crop Production
----------------------------------------------------------------------------------------------------------------
111110................................. Soybean Farming........................ $0.75 ..............
111120................................. Oilseed (except Soybean) Farming....... $0.75 ..............
111130................................. Dry Pea and Bean Farming............... $0.75 ..............
111140................................. Wheat Farming.......................... $0.75 ..............
111150................................. Corn Farming........................... $0.75 ..............
111160................................. Rice Farming........................... $0.75 ..............
111191................................. Oilseed and Grain Combination Farming.. $0.75 ..............
111199................................. All Other Grain Farming................ $0.75 ..............
111211................................. Potato Farming......................... $0.75 ..............
111219................................. Other Vegetable (except Potato) and $0.75 ..............
Melon Farming.
111310................................. Orange Groves.......................... $0.75 ..............
111320................................. Citrus (except Orange) Groves.......... $0.75 ..............
111331................................. Apple Orchards......................... $0.75 ..............
111332................................. Grape Vineyards........................ $0.75 ..............
111333................................. Strawberry Farming..................... $0.75 ..............
111334................................. Berry (except Strawberry) Farming...... $0.75 ..............
111335................................. Tree Nut Farming....................... $0.75 ..............
111336................................. Fruit and Tree Nut Combination Farming. $0.75 ..............
111339................................. Other Noncitrus Fruit Farming.......... $0.75 ..............
111411................................. Mushroom Production.................... $0.75 ..............
111419................................. Other Food Crops Grown Under Cover..... $0.75 ..............
111421................................. Nursery and Tree Production............ $0.75 ..............
111422................................. Floriculture Production................ $0.75 ..............
111910................................. Tobacco Farming........................ $0.75 ..............
111920................................. Cotton Farming......................... $0.75 ..............
111930................................. Sugarcane Farming...................... $0.75 ..............
111940................................. Hay Farming............................ $0.75 ..............
111991................................. Sugar Beet Farming..................... $0.75 ..............
111992................................. Peanut Farming......................... $0.75 ..............
111998................................. All Other Miscellaneous Crop Farming... $0.75 ..............
----------------------------------------------------------------------------------------------------------------
Subsector 112--Animal Production
----------------------------------------------------------------------------------------------------------------
112111................................. Beef Cattle Ranching and Farming....... $0.75 ..............
112112................................. Cattle Feedlots........................ $2.00 ..............
112120................................. Dairy Cattle and Milk Production....... $0.75 ..............
112210................................. Hog and Pig Farming.................... $0.75 ..............
112310................................. Chicken Egg Production................. $11.5 ..............
112320................................. Broilers and Other Meat Type Chicken $0.75 ..............
Production.
112330................................. Turkey Production...................... $0.75 ..............
112340................................. Poultry Hatcheries..................... $0.75 ..............
112390................................. Other Poultry Production............... $0.75 ..............
112410................................. Sheep Farming.......................... $0.75 ..............
112420................................. Goat Farming........................... $0.75 ..............
112511................................. Finfish Farming and Fish Hatcheries.... $0.75 ..............
112512................................. Shellfish Farming...................... $0.75 ..............
112519................................. Other Animal Aquaculture............... $0.75 ..............
112910................................. Apiculture............................. $0.75 ..............
112920................................. Horse and Other Equine Production...... $0.75 ..............
112930................................. Fur-Bearing Animal and Rabbit $0.75 ..............
Production.
112990................................. All Other Animal Production............ $0.75 ..............
----------------------------------------------------------------------------------------------------------------
Subsector 113--Forestry and Logging
----------------------------------------------------------------------------------------------------------------
113110................................. Timber Tract Operations................ $6.5 ..............

[[Page 296]]

113210................................. Forest Nurseries and Gathering of $6.5 ..............
Forest Products.
113310................................. Logging................................ .............. 500
----------------------------------------------------------------------------------------------------------------
Subsector 114--Fishing, Hunting and Trapping
----------------------------------------------------------------------------------------------------------------
114111................................. Finfish Fishing........................ $4.0 ..............
114112................................. Shellfish Fishing...................... $4.0 ..............
114119................................. Other Marine Fishing................... $4.0 ..............
114210................................. Hunting and Trapping................... $4.0 ..............
----------------------------------------------------------------------------------------------------------------
Subsector 115--Support Activities for Agriculture and Forestry
----------------------------------------------------------------------------------------------------------------
115111................................. Cotton Ginning......................... $6.5 ..............
115112................................. Soil Preparation, Planting, and $6.5 ..............
Cultivating.
115113................................. Crop Harvesting, Primarily by Machine.. $6.5 ..............
115114................................. Postharvest Crop Activities (except $6.5 ..............
Cotton Ginning).
115115................................. Farm Labor Contractors and Crew Leaders $6.5 ..............
115116................................. Farm Management Services............... $6.5 ..............
115210................................. Support Activities for Animal $6.5 ..............
Production.
115310................................. Support Activities for Forestry........ $6.5 ..............
EXCEPT Forest Fire Suppression \17\........... \17\ 16.5 ..............
EXCEPT Fuels Management Services \17\......... \17\ 16.5 ..............
----------------------------------------------------------------------------------------------------------------
Sector 21--Mining
----------------------------------------------------------------------------------------------------------------
Subsector 211--Oil and Gas Extraction
----------------------------------------------------------------------------------------------------------------
211111................................. Crude Petroleum and Natural Gas .............. 500
Extraction.
211112................................. Natural Gas Liquid Extraction.......... .............. 500
----------------------------------------------------------------------------------------------------------------
Subsector 212--Mining (except Oil and Gas)
----------------------------------------------------------------------------------------------------------------
212111................................. Bituminous Coal and Lignite Surface .............. 500
Mining.
212112................................. Bituminous Coal Underground Mining..... .............. 500
212113................................. Anthracite Mining...................... .............. 500
212210................................. Iron Ore Mining........................ .............. 500
212221................................. Gold Ore Mining........................ .............. 500
212222................................. Silver Ore Mining...................... .............. 500
212231................................. Lead Ore and Zinc Ore Mining........... .............. 500
212234................................. Copper Ore and Nickel Ore Mining....... .............. 500
212291................................. Uranium-Radium-Vanadium Ore Mining..... .............. 500
212299................................. All Other Metal Ore Mining............. .............. 500
212311................................. Dimension Stone Mining and Quarrying... .............. 500
212312................................. Crushed and Broken Limestone Mining and .............. 500
Quarrying.
212313................................. Crushed and Broken Granite Mining and .............. 500
Quarrying.
212319................................. Other Crushed and Broken Stone Mining .............. 500
and Quarrying.
212321................................. Construction Sand and Gravel Mining.... .............. 500
212322................................. Industrial Sand Mining................. .............. 500
212324................................. Kaolin and Ball Clay Mining............ .............. 500
212325................................. Clay and Ceramic and Refractory .............. 500
Minerals Mining.
212391................................. Potash, Soda, and Borate Mineral Mining .............. 500
212392................................. Phosphate Rock Mining.................. .............. 500
212393................................. Other Chemical and Fertilizer Mineral .............. 500
Mining.
212399................................. All Other Nonmetallic Mineral Mining... .............. 500
----------------------------------------------------------------------------------------------------------------
Subsector 213--Support Activities for Mining
----------------------------------------------------------------------------------------------------------------
213111................................. Drilling Oil and Gas Wells............. .............. 500
213112................................. Support Activities for Oil and Gas $6.5 ..............
Operations.
213113................................. Support Activities for Coal Mining..... $6.5 ..............
213114................................. Support Activities for Metal Mining.... $6.5 ..............
213115................................. Support Activities for Nonmetallic $6.5 ..............
Minerals (except Fuels).
----------------------------------------------------------------------------------------------------------------
Sector 22--Utilities
----------------------------------------------------------------------------------------------------------------
Subsector 221--Utilities
----------------------------------------------------------------------------------------------------------------
221111................................. Hydroelectric Power Generation......... See footnote 1 ..............
221112................................. Fossil Fuel Electric Power Generation.. See footnote 1 ..............
221113................................. Nuclear Electric Power Generation...... See footnote 1 ..............
221119................................. Other Electric Power Generation........ See footnote 1 ..............

[[Page 297]]

221121................................. Electric Bulk Power Transmission and See footnote 1
Control.
221122................................. Electric Power Distribution............ See footnote 1 ..............
221210................................. Natural Gas Distribution............... .............. 500
221310................................. Water Supply and Irrigation Systems.... $6.5 ..............
221320................................. Sewage Treatment Facilities............ $6.5 ..............
221330................................. Steam and Air-Conditioning Supply...... $11.5 ..............
----------------------------------------------------------------------------------------------------------------
Sector 23--Construction
----------------------------------------------------------------------------------------------------------------
Subsector 236--Construction of Buildings
----------------------------------------------------------------------------------------------------------------
236115................................. New Single-Family Housing Construction $31.0 ..............
(except Operative Builders).
236116................................. New Multifamily Housing Construction $31.0 ..............
(except Operative Builders).
236117................................. New Housing Operative Builders......... $31.0 ..............
236118................................. Residential Remodelers................. $31.0 ..............
236210................................. Industrial Building Construction....... $31.0 ..............
236220................................. Commercial and Institutional Building $31.0 ..............
Construction.
----------------------------------------------------------------------------------------------------------------
Subsector 237--Heavy and Civil Engineering Construction
----------------------------------------------------------------------------------------------------------------
237110................................. Water and Sewer Line and Related $31.0 ..............
Structures Construction.
237120................................. Oil and Gas Pipeline and Related $31.0 ..............
Structures Construction.
237130................................. Power and Communication Line and $31.0 ..............
Related Structures Construction.
237210................................. Land Subdivision....................... $6.5 ..............
237310................................. Highway, Street, and Bridge $31.0 ..............
Construction.
237990................................. Other Heavy and Civil Engineering $31.0 ..............
Construction.
EXCEPT, Dredging and Surface Cleanup Activities \2\ $18.5 ..............
\2\.
----------------------------------------------------------------------------------------------------------------
Subsector 238--Specialty Trade Contractors
----------------------------------------------------------------------------------------------------------------
238110................................. Poured Concrete Foundation and $13.0 ..............
Structure Contractors.
238120................................. Structural Steel and Precast Concrete $13.0 ..............
Contractors.
238130................................. Framing Contractors.................... $13.0 ..............
238140................................. Masonry Contractors.................... $13.0 ..............
238150................................. Glass and Glazing Contractors.......... $13.0 ..............
238160................................. Roofing Contractors.................... $13.0 ..............
238170................................. Siding Contractors..................... $13.0 ..............
238190................................. Other Foundation, Structure, and $13.0 ..............
Building Exterior Contractors.
238210................................. Electrical Contractors................. $13.0 ..............
238220................................. Plumbing, Heating, and Air-Conditioning $13.0 ..............
Contractors.
238290................................. Other Building Equipment Contractors... $13.0 ..............
238310................................. Drywall and Insulation Contractors..... $13.0 ..............
238320................................. Painting and Wall Covering Contractors. $13.0 ..............
238330................................. Flooring Contractors................... $13.0 ..............
238340................................. Tile and Terrazzo Contractors.......... $13.0 ..............
238350................................. Finish Carpentry Contractors........... $13.0 ..............
238390................................. Other Building Finishing Contractors... $13.0 ..............
238910................................. Site Preparation Contractors........... $13.0 ..............
238990................................. All Other Specialty Trade Contractors \13\ $13.0 ..............
\13\.
238990................................. Building and Property Specialty Trade \13\ $13.0 ..............
Services \13\.
EXCEPT, Building and Property Specialty Trade \13\ $12.0 ..............
Services \13\.
----------------------------------------------------------------------------------------------------------------
Sectors 31-33--Manufacturing
----------------------------------------------------------------------------------------------------------------
Subsector 311--Food Manufacturing
----------------------------------------------------------------------------------------------------------------
311111................................. Dog and Cat Food Manufacturing......... .............. 500
311119................................. Other Animal Food Manufacturing........ .............. 500
311211................................. Flour Milling.......................... .............. 500
311212................................. Rice Milling........................... .............. 500
311213................................. Malt Manufacturing..................... .............. 500
311221................................. Wet Corn Milling....................... .............. 750
311222................................. Soybean Processing..................... .............. 500
311223................................. Other Oilseed Processing............... .............. 1,000
311225................................. Fats and Oils Refining and Blending.... .............. 1,000
311230................................. Breakfast Cereal Manufacturing......... .............. 1,000
311311................................. Sugarcane Mills........................ .............. 500
311312................................. Cane Sugar Refining.................... .............. 750
311313................................. Beet Sugar Manufacturing............... .............. 750
311320................................. Chocolate and Confectionery .............. 500
Manufacturing from Cacao Beans.
311330................................. Confectionery Manufacturing from .............. 500
Purchased Chocolate.

[[Page 298]]

311340................................. Non-Chocolate Confectionery .............. 500
Manufacturing.
311411................................. Frozen Fruit, Juice and Vegetable .............. 500
Manufacturing.
311412................................. Frozen Specialty Food Manufacturing.... .............. 500
311421................................. Fruit and Vegetable Canning \3\........ .............. \3\ 500
311422................................. Specialty Canning...................... .............. 1,000
311423................................. Dried and Dehydrated Food Manufacturing .............. 500
311511................................. Fluid Milk Manufacturing............... .............. 500
311512................................. Creamery Butter Manufacturing.......... .............. 500
311513................................. Cheese Manufacturing................... .............. 500
311514................................. Dry, Condensed, and Evaporated Dairy .............. 500
Product Manufacturing.
311520................................. Ice Cream and Frozen Dessert .............. 500
Manufacturing.
311611................................. Animal (except Poultry) Slaughtering... .............. 500
311612................................. Meat Processed from Carcasses.......... .............. 500
311613................................. Rendering and Meat By-product .............. 500
Processing.
311615................................. Poultry Processing..................... .............. 500
311711................................. Seafood Canning........................ .............. 500
311712................................. Fresh and Frozen Seafood Processing.... .............. 500
311811................................. Retail Bakeries........................ .............. 500
311812................................. Commercial Bakeries.................... .............. 500
311813................................. Frozen Cakes, Pies, and Other Pastries .............. 500
Manufacturing.
311821................................. Cookie and Cracker Manufacturing....... .............. 750
311822................................. Flour Mixes and Dough Manufacturing .............. 500
from Purchased Flour.
311823................................. Dry Pasta Manufacturing................ .............. 500
311830................................. Tortilla Manufacturing................. .............. 500
311911................................. Roasted Nuts and Peanut Butter .............. 500
Manufacturing.
311919................................. Other Snack Food Manufacturing......... .............. 500
311920................................. Coffee and Tea Manufacturing........... .............. 500
311930................................. Flavoring Syrup and Concentrate .............. 500
Manufacturing.
311941................................. Mayonnaise, Dressing and Other Prepared .............. 500
Sauce Manufacturing.
311942................................. Spice and Extract Manufacturing........ .............. 500
311991................................. Perishable Prepared Food Manufacturing. .............. 500
311999................................. All Other Miscellaneous Food .............. 500
Manufacturing.
----------------------------------------------------------------------------------------------------------------
Subsector 312--Beverage and Tobacco Product Manufacturing
----------------------------------------------------------------------------------------------------------------
312111................................. Soft Drink Manufacturing............... .............. 500
312112................................. Bottled Water Manufacturing............ .............. 500
312113................................. Ice Manufacturing...................... .............. 500
312120................................. Breweries.............................. .............. 500
312130................................. Wineries............................... .............. 500
312140................................. Distilleries........................... .............. 750
312210................................. Tobacco Stemming and Redrying.......... .............. 500
312221................................. Cigarette Manufacturing................ .............. 1,000
312229................................. Other Tobacco Product Manufacturing.... .............. 500
----------------------------------------------------------------------------------------------------------------
Subsector 313--Textile Mills
----------------------------------------------------------------------------------------------------------------
313111................................. Yarn Spinning Mills.................... .............. 500
313112................................. Yarn Texturizing, Throwing and Twisting .............. 500
Mills.
313113................................. Thread Mills........................... .............. 500
313210................................. Broadwoven Fabric Mills................ .............. 1,000
313221................................. Narrow Fabric Mills.................... .............. 500
313222................................. Schiffli Machine Embroidery............ .............. 500
313230................................. Nonwoven Fabric Mills.................. .............. 500
313241................................. Weft Knit Fabric Mills................. .............. 500
313249................................. Other Knit Fabric and Lace Mills....... .............. 500
313311................................. Broadwoven Fabric Finishing Mills...... .............. 1,000
313312................................. Textile and Fabric Finishing (except .............. 500
Broadwoven Fabric) Mills.
313320................................. Fabric Coating Mills................... .............. 1,000
----------------------------------------------------------------------------------------------------------------
Subsector 314--Textile Product Mills
----------------------------------------------------------------------------------------------------------------
314110................................. Carpet and Rug Mills................... .............. 500
314121................................. Curtain and Drapery Mills.............. .............. 500
314129................................. Other Household Textile Product Mills.. .............. 500
314911................................. Textile Bag Mills...................... .............. 500
314912................................. Canvas and Related Product Mills....... .............. 500
314991................................. Rope, Cordage and Twine Mills.......... .............. 500
314992................................. Tire Cord and Tire Fabric Mills........ .............. 1,000
314999................................. All Other Miscellaneous Textile Product .............. 500
Mills.
----------------------------------------------------------------------------------------------------------------

[[Page 299]]

Subsector 315--Apparel Manufacturing
----------------------------------------------------------------------------------------------------------------
315111................................. Sheer Hosiery Mills.................... .............. 500
315119................................. Other Hosiery and Sock Mills........... .............. 500
315191................................. Outerwear Knitting Mills............... .............. 500
315192................................. Underwear and Nightwear Knitting Mills. .............. 500
315211................................. Men's and Boys' Cut and Sew Apparel .............. 500
Contractors.
315212................................. Women's, Girls', and Infants' Cut and .............. 500
Sew Apparel Contractors.
315221................................. Men's and Boys' Cut and Sew Underwear .............. 500
and Nightwear Manufacturing.
315222................................. Men's and Boys' Cut and Sew Suit, Coat .............. 500
and Overcoat Manufacturing.
315223................................. Men's and Boys' Cut and Sew Shirt .............. 500
(except Work Shirt) Manufacturing.
315224................................. Men's and Boys' Cut and Sew Trouser, .............. 500
Slack and Jean Manufacturing.
315225................................. Men's and Boys' Cut and Sew Work .............. 500
Clothing Manufacturing.
315228................................. Men's and Boys' Cut and Sew Other .............. 500
Outerwear Manufacturing.
315231................................. Women's and Girls' Cut and Sew .............. 500
Lingerie, Loungewear and Nightwear
Manufacturing.
315232................................. Women's and Girls' Cut and Sew Blouse .............. 500
and Shirt Manufacturing.
315233................................. Women's and Girls' Cut and Sew Dress .............. 500
Manufacturing.
315234................................. Women's and Girls' Cut and Sew Suit, .............. 500
Coat, Tailored Jacket and Skirt
Manufacturing.
315239................................. Women's and Girls' Cut and Sew Other .............. 500
Outerwear Manufacturing.
315291................................. Infants' Cut and Sew Apparel .............. 500
Manufacturing.
315292................................. Fur and Leather Apparel Manufacturing.. .............. 500
315299................................. All Other Cut and Sew Apparel .............. 500
Manufacturing.
315991................................. Hat, Cap and Millinery Manufacturing... .............. 500
315992................................. Glove and Mitten Manufacturing......... .............. 500
315993................................. Men's and Boys' Neckwear Manufacturing. .............. 500
315999................................. Other Apparel Accessories and Other .............. 500
Apparel Manufacturing.
----------------------------------------------------------------------------------------------------------------
Subsector 316--Leather and Allied Product Manufacturing
----------------------------------------------------------------------------------------------------------------
316110................................. Leather and Hide Tanning and Finishing. .............. 500
316211................................. Rubber and Plastics Footwear .............. 1,000
Manufacturing.
316212................................. House Slipper Manufacturing............ .............. 500
316213................................. Men's Footwear (except Athletic) .............. 500
Manufacturing.
316214................................. Women's Footwear (except Athletic) .............. 500
Manufacturing.
316219................................. Other Footwear Manufacturing........... .............. 500
316991................................. Luggage Manufacturing.................. .............. 500
316992................................. Women's Handbag and Purse Manufacturing .............. 500
316993................................. Personal Leather Good (except Women's .............. 500
Handbag and Purse) Manufacturing.
316999................................. All Other Leather Good Manufacturing... .............. 500
----------------------------------------------------------------------------------------------------------------
Subsector 321--Wood Product Manufacturing
----------------------------------------------------------------------------------------------------------------
321113................................. Sawmills............................... .............. 500
321114................................. Wood Preservation...................... .............. 500
321211................................. Hardwood Veneer and Plywood .............. 500
Manufacturing.
321212................................. Softwood Veneer and Plywood .............. 500
Manufacturing.
321213................................. Engineered Wood Member (except Truss) .............. 500
Manufacturing.
321214................................. Truss Manufacturing.................... .............. 500
321219................................. Reconstituted Wood Product .............. 500
Manufacturing.
321911................................. Wood Window and Door Manufacturing..... .............. 500
321912................................. Cut Stock, Resawing Lumber, and Planing .............. 500
321918................................. Other Millwork (including Flooring).... .............. 500
321920................................. Wood Container and Pallet Manufacturing .............. 500
321991................................. Manufactured Home (Mobile Home) .............. 500
Manufacturing.
321992................................. Prefabricated Wood Building .............. 500
Manufacturing.
321999................................. All Other Miscellaneous Wood Product .............. 500
Manufacturing.
----------------------------------------------------------------------------------------------------------------
Subsector 322--Paper Manufacturing
----------------------------------------------------------------------------------------------------------------
322110................................. Pulp Mills............................. .............. 750
322121................................. Paper (except Newsprint) Mills......... .............. 750
322122................................. Newsprint Mills........................ .............. 750
322130................................. Paperboard Mills....................... .............. 750
322211................................. Corrugated and Solid Fiber Box .............. 500
Manufacturing.

[[Page 300]]

322212................................. Folding Paperboard Box Manufacturing... .............. 750
322213................................. Setup Paperboard Box Manufacturing..... .............. 500
322214................................. Fiber Can, Tube, Drum, and Similar .............. 500
Products Manufacturing.
322215................................. Non-Folding Sanitary Food Container .............. 750
Manufacturing.
322221................................. Coated and Laminated Packaging Paper .............. 500
and Plastics Film Manufacturing.
322222................................. Coated and Laminated Paper .............. 500
Manufacturing.
322223................................. Plastics, Foil, and Coated Paper Bag .............. 500
Manufacturing.
322224................................. Uncoated Paper and Multiwall Bag .............. 500
Manufacturing.
322225................................. Laminated Aluminum Foil Manufacturing .............. 500
for Flexible Packaging Uses.
322226................................. Surface-Coated Paperboard Manufacturing .............. 500
322231................................. Die-Cut Paper and Paperboard Office .............. 500
Supplies Manufacturing.
322232................................. Envelope Manufacturing................. .............. 500
322233................................. Stationery, Tablet, and Related Product .............. 500
Manufacturing.
322291................................. Sanitary Paper Product Manufacturing... .............. 500
322299................................. All Other Converted Paper Product .............. 500
Manufacturing.
----------------------------------------------------------------------------------------------------------------
Subsector 323--Printing and Related Support Activities
----------------------------------------------------------------------------------------------------------------
323110................................. Commercial Lithographic Printing....... .............. 500
323111................................. Commercial Gravure Printing............ .............. 500
323112................................. Commercial Flexographic Printing....... .............. 500
323113................................. Commercial Screen Printing............. .............. 500
323114................................. Quick Printing......................... .............. 500
323115................................. Digital Printing....................... .............. 500
323116................................. Manifold Business Forms Printing....... .............. 500
323117................................. Books Printing......................... .............. 500
323118................................. Blankbook, Loose-leaf Binder and Device .............. 500
Manufacturing.
323119................................. Other Commercial Printing.............. .............. 500
323121................................. Tradebinding and Related Work.......... .............. 500
323122................................. Prepress Services...................... .............. 500
----------------------------------------------------------------------------------------------------------------
Subsector 324--Petroleum and Coal Products Manufacturing
----------------------------------------------------------------------------------------------------------------
324110................................. Petroleum Refineries\4\................ .............. \4\ 1,500
324121................................. Asphalt Paving Mixture and Block .............. 500
Manufacturing.
324122................................. Asphalt Shingle and Coating Materials .............. 750
Manufacturing.
324191................................. Petroleum Lubricating Oil and Grease .............. 500
Manufacturing.
324199................................. All Other Petroleum and Coal Products .............. 500
Manufacturing.
----------------------------------------------------------------------------------------------------------------
Subsector 325--Chemical Manufacturing
----------------------------------------------------------------------------------------------------------------
325110................................. Petrochemical Manufacturing............ .............. 1,000
325120................................. Industrial Gas Manufacturing........... .............. 1,000
325131................................. Inorganic Dye and Pigment Manufacturing .............. 1,000
325132................................. Synthetic Organic Dye and Pigment .............. 750
Manufacturing.
325181................................. Alkalies and Chlorine Manufacturing.... .............. 1,000
325182................................. Carbon Black Manufacturing............. .............. 500
325188................................. All Other Basic Inorganic Chemical .............. 1,000
Manufacturing.
325191................................. Gum and Wood Chemical Manufacturing.... .............. 500
325192................................. Cyclic Crude and Intermediate .............. 750
Manufacturing.
325193................................. Ethyl Alcohol Manufacturing............ .............. 1,000
325199................................. All Other Basic Organic Chemical .............. 1,000
Manufacturing.
325211................................. Plastics Material and Resin .............. 750
Manufacturing.
325212................................. Synthetic Rubber Manufacturing......... .............. 1,000
325221................................. Cellulosic Organic Fiber Manufacturing. .............. 1,000
325222................................. Noncellulosic Organic Fiber .............. 1,000
Manufacturing.
325311................................. Nitrogenous Fertilizer Manufacturing... .............. 1,000
325312................................. Phosphatic Fertilizer Manufacturing.... .............. 500
325314................................. Fertilizer (Mixing Only) Manufacturing. .............. 500
325320................................. Pesticide and Other Agricultural .............. 500
Chemical Manufacturing.
325411................................. Medicinal and Botanical Manufacturing.. .............. 750
325412................................. Pharmaceutical Preparation .............. 750
Manufacturing.
325413................................. In-Vitro Diagnostic Substance .............. 500
Manufacturing.
325414................................. Biological Product (except Diagnostic) .............. 500
Manufacturing.
325510................................. Paint and Coating Manufacturing........ .............. 500
325520................................. Adhesive Manufacturing................. .............. 500
325611................................. Soap and Other Detergent Manufacturing. .............. 750
325612................................. Polish and Other Sanitation Good .............. 500
Manufacturing.
325613................................. Surface Active Agent Manufacturing..... .............. 500
325620................................. Toilet Preparation Manufacturing....... .............. 500

[[Page 301]]

325910................................. Printing Ink Manufacturing............. .............. 500
325920................................. Explosives Manufacturing............... .............. 750
325991................................. Custom Compounding of Purchased Resins. .............. 500
325992................................. Photographic Film, Paper, Plate and .............. 500
Chemical Manufacturing.
325998................................. All Other Miscellaneous Chemical .............. 500
Product and Preparation Manufacturing.
----------------------------------------------------------------------------------------------------------------
Subsector 326--Plastics and Rubber Products Manufacturing
----------------------------------------------------------------------------------------------------------------
326111................................. Unsupported Plastics Bag Manufacturing. .............. 500
326112................................. Unsupported Plastics Packaging Film and .............. 500
Sheet Manufacturing.
326113................................. Unsupported Plastics Film and Sheet .............. 500
(except Packaging) Manufacturing.
326121................................. Unsupported Plastics Profile Shapes .............. 500
Manufacturing.
326122................................. Plastics Pipe and Pipe Fitting .............. 500
Manufacturing.
326130................................. Laminated Plastics Plate, Sheet and .............. 500
Shape Manufacturing.
326140................................. Polystyrene Foam Product Manufacturing. .............. 500
326150................................. Urethane and Other Foam Product (except .............. 500
Polystyrene) Manufacturing.
326160................................. Plastics Bottle Manufacturing.......... .............. 500
326191................................. Plastics Plumbing Fixture Manufacturing .............. 500
326192................................. Resilient Floor Covering Manufacturing. .............. 750
326199................................. All Other Plastics Product .............. 500
Manufacturing.
326211................................. Tire Manufacturing (except .............. \5\ 1,000
Retreading)\5\.
326212................................. Tire Retreading........................ .............. 500
326220................................. Rubber and Plastics Hoses and Belting .............. 500
Manufacturing.
326291................................. Rubber Product Manufacturing for .............. 500
Mechanical Use.
326299................................. All Other Rubber Product Manufacturing. .............. 500
----------------------------------------------------------------------------------------------------------------
Subsector 327--Nonmetallic Mineral Product Manufacturing
----------------------------------------------------------------------------------------------------------------
327111................................. Vitreous China Plumbing Fixture and .............. 750
China and Earthenware Bathroom
Accessories Manufacturing.
327112................................. Vitreous China, Fine Earthenware and .............. 500
Other Pottery Product Manufacturing.
327113................................. Porcelain Electrical Supply .............. 500
Manufacturing.
327121................................. Brick and Structural Clay Tile .............. 500
Manufacturing.
327122................................. Ceramic Wall and Floor Tile .............. 500
Manufacturing.
327123................................. Other Structural Clay Product .............. 500
Manufacturing.
327124................................. Clay Refractory Manufacturing.......... .............. 500
327125................................. Nonclay Refractory Manufacturing....... .............. 750
327211................................. Flat Glass Manufacturing............... .............. 1,000
327212................................. Other Pressed and Blown Glass and .............. 750
Glassware Manufacturing.
327213................................. Glass Container Manufacturing.......... .............. 750
327215................................. Glass Product Manufacturing Made of .............. 500
Purchased Glass.
327310................................. Cement Manufacturing................... .............. 750
327320................................. Ready-Mix Concrete Manufacturing....... .............. 500
327331................................. Concrete Block and Brick Manufacturing. .............. 500
327332................................. Concrete Pipe Manufacturing............ .............. 500
327390................................. Other Concrete Product Manufacturing... .............. 500
327410................................. Lime Manufacturing..................... .............. 500
327420................................. Gypsum Product Manufacturing........... .............. 1,000
327910................................. Abrasive Product Manufacturing......... .............. 500
327991................................. Cut Stone and Stone Product .............. 500
Manufacturing.
327992................................. Ground or Treated Mineral and Earth .............. 500
Manufacturing.
327993................................. Mineral Wool Manufacturing............. .............. 750
327999................................. All Other Miscellaneous Nonmetallic .............. 500
Mineral Product Manufacturing.
----------------------------------------------------------------------------------------------------------------
Subsector 331--Primary Metal Manufacturing
----------------------------------------------------------------------------------------------------------------
331111................................. Iron and Steel Mills................... .............. 1,000
331112................................. Electrometallurgical Ferroalloy Product .............. 750
Manufacturing.
331210................................. Iron and Steel Pipe and Tube .............. 1,000
Manufacturing from Purchased Steel.
331221................................. Cold-Rolled Steel Shape Manufacturing.. .............. 1,000
331222................................. Steel Wire Drawing..................... .............. 1,000
331311................................. Alumina Refining....................... .............. 1,000
331312................................. Primary Aluminum Production............ .............. 1,000
331314................................. Secondary Smelting and Alloying of .............. 750
Aluminum.
331315................................. Aluminum Sheet, Plate and Foil .............. 750
Manufacturing.
331316................................. Aluminum Extruded Product Manufacturing .............. 750
331319................................. Other Aluminum Rolling and Drawing..... .............. 750

[[Page 302]]

331411................................. Primary Smelting and Refining of Copper .............. 1,000
331419................................. Primary Smelting and Refining of .............. 750
Nonferrous Metal (except Copper and
Aluminum).
331421................................. Copper Rolling, Drawing and Extruding.. .............. 750
331422................................. Copper Wire (except Mechanical) Drawing .............. 1,000
331423................................. Secondary Smelting, Refining, and .............. 750
Alloying of Copper.
331491................................. Nonferrous Metal (except Copper and .............. 750
Aluminum) Rolling, Drawing and
Extruding.
331492................................. Secondary Smelting, Refining, and .............. 750
Alloying of Nonferrous Metal (except
Copper and Aluminum).
331511................................. Iron Foundries......................... .............. 500
331512................................. Steel Investment Foundries............. .............. 500
331513................................. Steel Foundries (except Investment).... .............. 500
331521................................. Aluminum Die-Casting Foundries......... .............. 500
331522................................. Nonferrous (except Aluminum) Die- .............. 500
Casting Foundries.
331524................................. Aluminum Foundries (except Die-Casting) .............. 500
331525................................. Copper Foundries (except Die-Casting).. .............. 500
331528................................. Other Nonferrous Foundries (except Die- .............. 500
Casting).
----------------------------------------------------------------------------------------------------------------
Subsector 332--Fabricated Metal Product Manufacturing
----------------------------------------------------------------------------------------------------------------
332111................................. Iron and Steel Forging................. .............. 500
332112................................. Nonferrous Forging..................... .............. 500
332114................................. Custom Roll Forming.................... .............. 500
332115................................. Crown and Closure Manufacturing........ .............. 500
332116................................. Metal Stamping......................... .............. 500
332117................................. Powder Metallurgy Part Manufacturing... .............. 500
332211................................. Cutlery and Flatware (except Precious) .............. 500
Manufacturing.
332212................................. Hand and Edge Tool Manufacturing....... .............. 500
332213................................. Saw Blade and Handsaw Manufacturing.... .............. 500
332214................................. Kitchen Utensil, Pot and Pan .............. 500
Manufacturing.
332311................................. Prefabricated Metal Building and .............. 500
Component Manufacturing.
332312................................. Fabricated Structural Metal .............. 500
Manufacturing.
332313................................. Plate Work Manufacturing............... .............. 500
332321................................. Metal Window and Door Manufacturing.... .............. 500
332322................................. Sheet Metal Work Manufacturing......... .............. 500
332323................................. Ornamental and Architectural Metal Work .............. 500
Manufacturing.
332410................................. Power Boiler and Heat Exchanger .............. 500
Manufacturing.
332420................................. Metal Tank (Heavy Gauge) Manufacturing. .............. 500
332431................................. Metal Can Manufacturing................ .............. 1,000
332439................................. Other Metal Container Manufacturing.... .............. 500
332510................................. Hardware Manufacturing................. .............. 500
332611................................. Spring (Heavy Gauge) Manufacturing..... .............. 500
332612................................. Spring (Light Gauge) Manufacturing..... .............. 500
332618................................. Other Fabricated Wire Product .............. 500
Manufacturing.
332710................................. Machine Shops.......................... .............. 500
332721................................. Precision Turned Product Manufacturing. .............. 500
332722................................. Bolt, Nut, Screw, Rivet and Washer .............. 500
Manufacturing.
332811................................. Metal Heat Treating.................... .............. 750
332812................................. Metal Coating, Engraving (except .............. 500
Jewelry and Silverware), and Allied
Services to Manufacturers.
332813................................. Electroplating, Plating, Polishing, .............. 500
Anodizing and Coloring.
332911................................. Industrial Valve Manufacturing......... .............. 500
332912................................. Fluid Power Valve and Hose Fitting .............. 500
Manufacturing.
332913................................. Plumbing Fixture Fitting and Trim .............. 500
Manufacturing.
332919................................. Other Metal Valve and Pipe Fitting .............. 500
Manufacturing.
332991................................. Ball and Roller Bearing Manufacturing.. .............. 750
332992................................. Small Arms Ammunition Manufacturing.... .............. 1,000
332993................................. Ammunition (except Small Arms) .............. 1,500
Manufacturing.
332994................................. Small Arms Manufacturing............... .............. 1,000
332995................................. Other Ordnance and Accessories .............. 500
Manufacturing.
332996................................. Fabricated Pipe and Pipe Fitting .............. 500
Manufacturing.
332997................................. Industrial Pattern Manufacturing....... .............. 500
332998................................. Enameled Iron and Metal Sanitary Ware .............. 750
Manufacturing.
332999................................. All Other Miscellaneous Fabricated .............. 500
Metal Product Manufacturing.
----------------------------------------------------------------------------------------------------------------
Subsector 333--Machinery Manufacturing \6\
----------------------------------------------------------------------------------------------------------------
333111................................. Farm Machinery and Equipment .............. 500
Manufacturing.
333112................................. Lawn and Garden Tractor and Home Lawn .............. 500
and Garden Equipment Manufacturing.

[[Page 303]]

333120................................. Construction Machinery Manufacturing... .............. 750
333131................................. Mining Machinery and Equipment .............. 500
Manufacturing.
333132................................. Oil and Gas Field Machinery and .............. 500
Equipment Manufacturing.
333210................................. Sawmill and Woodworking Machinery .............. 500
Manufacturing.
333220................................. Plastics and Rubber Industry Machinery .............. 500
Manufacturing.
333291................................. Paper Industry Machinery Manufacturing. .............. 500
333292................................. Textile Machinery Manufacturing........ .............. 500
333293................................. Printing Machinery and Equipment .............. 500
Manufacturing.
333294................................. Food Product Machinery Manufacturing... .............. 500
333295................................. Semiconductor Machinery Manufacturing.. .............. 500
333298................................. All Other Industrial Machinery .............. 500
Manufacturing.
333311................................. Automatic Vending Machine Manufacturing .............. 500
333312................................. Commercial Laundry, Drycleaning and .............. 500
Pressing Machine Manufacturing.
333313................................. Office Machinery Manufacturing......... .............. 1,000
333314................................. Optical Instrument and Lens .............. 500
Manufacturing.
333315................................. Photographic and Photocopying Equipment .............. 500
Manufacturing.
333319................................. Other Commercial and Service Industry .............. 500
Machinery Manufacturing.
333411................................. Air Purification Equipment .............. 500
Manufacturing.
333412................................. Industrial and Commercial Fan and .............. 500
Blower Manufacturing.
333414................................. Heating Equipment (except Warm Air .............. 500
Furnaces) Manufacturing.
333415................................. Air-Conditioning and Warm Air Heating .............. 750
Equipment and Commercial and
Industrial Refrigeration Equipment
Manufacturing.
333511................................. Industrial Mold Manufacturing.......... .............. 500
333512................................. Machine Tool (Metal Cutting Types) .............. 500
Manufacturing.
333513................................. Machine Tool (Metal Forming Types) .............. 500
Manufacturing.
333514................................. Special Die and Tool, Die Set, Jig and .............. 500
Fixture Manufacturing.
333515................................. Cutting Tool and Machine Tool Accessory .............. 500
Manufacturing.
333516................................. Rolling Mill Machinery and Equipment .............. 500
Manufacturing.
333518................................. Other Metalworking Machinery .............. 500
Manufacturing.
333611................................. Turbine and Turbine Generator Set Unit .............. 1,000
Manufacturing.
333612................................. Speed Changer, Industrial High- Speed .............. 500
Drive and Gear Manufacturing.
333613................................. Mechanical Power Transmission Equipment .............. 500
Manufacturing.
333618................................. Other Engine Equipment Manufacturing... .............. 1,000
333911................................. Pump and Pumping Equipment .............. 500
Manufacturing.
333912................................. Air and Gas Compressor Manufacturing... .............. 500
333913................................. Measuring and Dispensing Pump .............. 500
Manufacturing.
333921................................. Elevator and Moving Stairway .............. 500
Manufacturing.
333922................................. Conveyor and Conveying Equipment .............. 500
Manufacturing.
333923................................. Overhead Traveling Crane, Hoist and .............. 500
Monorail System Manufacturing.
333924................................. Industrial Truck, Tractor, Trailer and .............. 750
Stacker Machinery Manufacturing.
333991................................. Power-Driven Hand Tool Manufacturing... .............. 500
333992................................. Welding and Soldering Equipment .............. 500
Manufacturing.
333993................................. Packaging Machinery Manufacturing...... .............. 500
333994................................. Industrial Process Furnace and Oven .............. 500
Manufacturing.
333995................................. Fluid Power Cylinder and Actuator .............. 500
Manufacturing.
333996................................. Fluid Power Pump and Motor .............. 500
Manufacturing.
333997................................. Scale and Balance (except Laboratory) .............. 500
Manufacturing.
333999................................. All Other Miscellaneous General Purpose .............. 500
Machinery Manufacturing.
----------------------------------------------------------------------------------------------------------------
Subsector 334--Computer and Electronic Product Manufacturing \6\
----------------------------------------------------------------------------------------------------------------
334111................................. Electronic Computer Manufacturing...... .............. 1,000
334112................................. Computer Storage Device Manufacturing.. .............. 1,000
334113................................. Computer Terminal Manufacturing........ .............. 1,000
334119................................. Other Computer Peripheral Equipment .............. 1,000
Manufacturing.
334210................................. Telephone Apparatus Manufacturing...... .............. 1,000
334220................................. Radio and Television Broadcasting and .............. 750
Wireless Communications Equipment
Manufacturing.
334290................................. Other Communications Equipment .............. 750
Manufacturing.
334310................................. Audio and Video Equipment Manufacturing .............. 750
334411................................. Electron Tube Manufacturing............ .............. 750
334412................................. Bare Printed Circuit Board .............. 500
Manufacturing.
334413................................. Semiconductor and Related Device .............. 500
Manufacturing.
334414................................. Electronic Capacitor Manufacturing..... .............. 500
334415................................. Electronic Resistor Manufacturing...... .............. 500
334416................................. Electronic Coil, Transformer, and Other .............. 500
Inductor Manufacturing.

[[Page 304]]

334417................................. Electronic Connector Manufacturing..... .............. 500
334418................................. Printed Circuit Assembly (Electronic .............. 500
Assembly) Manufacturing.
334419................................. Other Electronic Component .............. 500
Manufacturing.
334510................................. Electromedical and Electrotherapeutic .............. 500
Apparatus Manufacturing.
334511................................. Search, Detection, Navigation, .............. 750
Guidance, Aeronautical, and Nautical
System and Instrument Manufacturing.
334512................................. Automatic Environmental Control .............. 500
Manufacturing for Residential,
Commercial and Appliance Use.
334513................................. Instruments and Related Products .............. 500
Manufacturing for Measuring,
Displaying, and Controlling Industrial
Process Variables.
334514................................. Totalizing Fluid Meter and Counting .............. 500
Device Manufacturing.
334515................................. Instrument Manufacturing for Measuring .............. 500
and Testing Electricity and Electrical
Signals.
334516................................. Analytical Laboratory Instrument .............. 500
Manufacturing.
334517................................. Irradiation Apparatus Manufacturing.... .............. 500
334518................................. Watch, Clock, and Part Manufacturing... .............. 500
334519................................. Other Measuring and Controlling Device .............. 500
Manufacturing.
334611................................. Software Reproducing................... .............. 500
334612................................. Prerecorded Compact Disc (except .............. 750
Software), Tape, and Record
Reproducing.
334613................................. Magnetic and Optical Recording Media .............. 1,000
Manufacturing.
----------------------------------------------------------------------------------------------------------------
Subsector 335--Electrical Equipment, Appliance and Component Manufacturing \6\
----------------------------------------------------------------------------------------------------------------
335110................................. Electric Lamp Bulb and Part .............. 1,000
Manufacturing.
335121................................. Residential Electric Lighting Fixture .............. 500
Manufacturing.
335122................................. Commercial, Industrial and .............. 500
Institutional Electric Lighting
Fixture Manufacturing.
335129................................. Other Lighting Equipment Manufacturing. .............. 500
335211................................. Electric Housewares and Household Fan .............. 750
Manufacturing.
335212................................. Household Vacuum Cleaner Manufacturing. .............. 750
335221................................. Household Cooking Appliance .............. 750
Manufacturing.
335222................................. Household Refrigerator and Home Freezer .............. 1,000
Manufacturing.
335224................................. Household Laundry Equipment .............. 1,000
Manufacturing.
335228................................. Other Major Household Appliance .............. 500
Manufacturing.
335311................................. Power, Distribution and Specialty .............. 750
Transformer Manufacturing.
335312................................. Motor and Generator Manufacturing...... .............. 1,000
335313................................. Switchgear and Switchboard Apparatus .............. 750
Manufacturing.
335314................................. Relay and Industrial Control .............. 750
Manufacturing.
335911................................. Storage Battery Manufacturing.......... .............. 500
335912................................. Primary Battery Manufacturing.......... .............. 1,000
335921................................. Fiber Optic Cable Manufacturing........ .............. 1,000
335929................................. Other Communication and Energy Wire .............. 1,000
Manufacturing.
335931................................. Current-Carrying Wiring Device .............. 500
Manufacturing.
335932................................. Noncurrent-Carrying Wiring Device .............. 500
Manufacturing.
335991................................. Carbon and Graphite Product .............. 750
Manufacturing.
335999................................. All Other Miscellaneous Electrical .............. 500
Equipment and Component Manufacturing.
----------------------------------------------------------------------------------------------------------------
Subsector 336--Transportation Equipment Manufacturing \6\
----------------------------------------------------------------------------------------------------------------
336111................................. Automobile Manufacturing............... .............. 1,000
336112................................. Light Truck and Utility Vehicle .............. 1,000
Manufacturing.
336120................................. Heavy Duty Truck Manufacturing......... .............. 1,000
336211................................. Motor Vehicle Body Manufacturing....... .............. 1,000
336212................................. Truck Trailer Manufacturing............ .............. 500
336213................................. Motor Home Manufacturing............... .............. 1,000
336214................................. Travel Trailer and Camper Manufacturing .............. 500
336311................................. Carburetor, Piston, Piston Ring and .............. 500
Valve Manufacturing.
336312................................. Gasoline Engine and Engine Parts .............. 750
Manufacturing.
336321................................. Vehicular Lighting Equipment .............. 500
Manufacturing.
336322................................. Other Motor Vehicle Electrical and .............. 750
Electronic Equipment Manufacturing.
336330................................. Motor Vehicle Steering and Suspension .............. 750
Components (except Spring)
Manufacturing.
336340................................. Motor Vehicle Brake System .............. 750
Manufacturing.
336350................................. Motor Vehicle Transmission and Power .............. 750
Train Parts Manufacturing.
336360................................. Motor Vehicle Seating and Interior Trim .............. 500
Manufacturing.
336370................................. Motor Vehicle Metal Stamping........... .............. 500
336391................................. Motor Vehicle Air-Conditioning .............. 750
Manufacturing.
336399................................. All Other Motor Vehicle Parts .............. 750
Manufacturing.

[[Page 305]]

336411................................. Aircraft Manufacturing................. .............. 1,500
336412................................. Aircraft Engine and Engine Parts .............. 1,000
Manufacturing.
336413................................. Other Aircraft Part and Auxiliary .............. \7\ 1,000
Equipment Manufacturing \7\.
336414................................. Guided Missile and Space Vehicle .............. 1,000
Manufacturing.
336415................................. Guided Missile and Space Vehicle .............. 1,000
Propulsion Unit and Propulsion Unit
Parts Manufacturing.
336419................................. Other Guided Missile and Space Vehicle .............. 1,000
Parts and Auxiliary Equipment
Manufacturing.
336510................................. Railroad Rolling Stock Manufacturing... .............. 1,000
336611................................. Ship Building and Repairing............ .............. 1,000
336612................................. Boat Building.......................... .............. 500
336991................................. Motorcycle, Bicycle and Parts .............. 500
Manufacturing.
336992................................. Military Armored Vehicle, Tank and Tank .............. 1,000
Component Manufacturing.
336999................................. All Other Transportation Equipment .............. 500
Manufacturing.
----------------------------------------------------------------------------------------------------------------
Subsector 337--Furniture and Related Product Manufacturing
----------------------------------------------------------------------------------------------------------------
337110................................. Wood Kitchen Cabinet and Counter Top .............. 500
Manufacturing.
337121................................. Upholstered Household Furniture .............. 500
Manufacturing.
337122................................. Nonupholstered Wood Household Furniture .............. 500
Manufacturing.
337124................................. Metal Household Furniture Manufacturing .............. 500
337125................................. Household Furniture (except Wood and .............. 500
Metal) Manufacturing.
337127................................. Institutional Furniture Manufacturing.. .............. 500
337129................................. Wood Television, Radio, and Sewing .............. 500
Machine Cabinet Manufacturing.
337211................................. Wood Office Furniture Manufacturing.... .............. 500
337212................................. Custom Architectural Woodwork and .............. 500
Millwork Manufacturing.
337214................................. Office Furniture (Except Wood) .............. 500
Manufacturing.
337215................................. Showcase, Partition, Shelving, and .............. 500
Locker Manufacturing.
337910................................. Mattress Manufacturing................. .............. 500
337920................................. Blind and Shade Manufacturing.......... .............. 500
----------------------------------------------------------------------------------------------------------------
Subsector 339--Miscellaneous Manufacturing
----------------------------------------------------------------------------------------------------------------
339111................................. Laboratory Apparatus and Furniture .............. 500
Manufacturing.
339112................................. Surgical and Medical Instrument .............. 500
Manufacturing.
339113................................. Surgical Appliance and Supplies .............. 500
Manufacturing.
339114................................. Dental Equipment and Supplies .............. 500
Manufacturing.
339115................................. Ophthalmic Goods Manufacturing......... .............. 500
339116................................. Dental Laboratories.................... .............. 500
339911................................. Jewelry (except Costume) Manufacturing. .............. 500
339912................................. Silverware and Hollowware Manufacturing .............. 500
339913................................. Jewelers' Material and Lapidary Work .............. 500
Manufacturing.
339914................................. Costume Jewelry and Novelty .............. 500
Manufacturing.
339920................................. Sporting and Athletic Goods .............. 500
Manufacturing.
339931................................. Doll and Stuffed Toy Manufacturing..... .............. 500
339932................................. Game, Toy, and Children's Vehicle .............. 500
Manufacturing.
339941................................. Pen and Mechanical Pencil Manufacturing .............. 500
339942................................. Lead Pencil and Art Good Manufacturing. .............. 500
339943................................. Marking Device Manufacturing........... .............. 500
339944................................. Carbon Paper and Inked Ribbon .............. 500
Manufacturing.
339950................................. Sign Manufacturing..................... .............. 500
339991................................. Gasket, Packing, and Sealing Device .............. 500
Manufacturing.
339992................................. Musical Instrument Manufacturing....... .............. 500
339993................................. Fastener, Button, Needle and Pin .............. 500
Manufacturing.
339994................................. Broom, Brush and Mop Manufacturing..... .............. 500
339995................................. Burial Casket Manufacturing............ .............. 500
339999................................. All Other Miscellaneous Manufacturing.. .............. 500
----------------------------------------------------------------------------------------------------------------
Sector 42--Wholesale Trade
(Not applicable to Government procurement of supplies. The nonmanufacturer size standard of 500 employees shall
be used for purposes of Government procurement of supplies.)
----------------------------------------------------------------------------------------------------------------
Subsector 423--Merchant Wholesalers, Durable Goods
----------------------------------------------------------------------------------------------------------------
423110................................. Automobile and Other Motor Vehicle .............. 100
Merchant Wholesalers.
423120................................. Motor Vehicle Supplies and New Parts .............. 100
Merchant Wholesalers.
423130................................. Tire and Tube Merchant Wholesalers..... .............. 100
423140................................. Motor Vehicle Parts (Used) Merchant .............. 100
Wholesalers.
423210................................. Furniture Merchant Wholesalers......... .............. 100
423220................................. Home Furnishing Merchant Wholesalers... .............. 100

[[Page 306]]

423310................................. Lumber, Plywood, Millwork, and Wood .............. 100
Panel Merchant Wholesalers.
423320................................. Brick, Stone, and Related Construction .............. 100
Material Merchant Wholesalers.
423330................................. Roofing, Siding, and Insulation .............. 100
Material Merchant Wholesalers.
423390................................. Other Construction Material Merchant .............. 100
Wholesalers.
423410................................. Photographic Equipment and Supplies .............. 100
Merchant Wholesalers.
423420................................. Office Equipment Merchant Wholesalers.. .............. 100
423430................................. Computer and Computer Peripheral .............. 100
Equipment and Software Merchant
Wholesalers.
423440................................. Other Commercial Equipment Merchant .............. 100
Wholesalers.
423450................................. Medical, Dental, and Hospital Equipment .............. 100
and Supplies Merchant Wholesalers.
423460................................. Ophthalmic Goods Merchant Wholesalers.. .............. 100
423490................................. Other Professional Equipment and .............. 100
Supplies Merchant Wholesalers.
423510................................. Metal Service Centers and Other Metal .............. 100
Merchant Wholesalers.
423520................................. Coal and Other Mineral and Ore Merchant .............. 100
Wholesalers.
423610................................. Electrical Apparatus and Equipment, .............. 100
Wiring Supplies, and Related Equipment
Merchant Wholesalers.
423620................................. Electrical and Electronic Appliance, .............. 100
Television, and Radio Set Merchant
Wholesalers.
423690................................. Other Electronic Parts and Equipment .............. 100
Merchant Wholesalers.
423710................................. Hardware Merchant Wholesalers.......... .............. 100
423720................................. Plumbing and Heating Equipment and .............. 100
Supplies (Hydronics) Merchant
Wholesalers.
423730................................. Warm Air Heating and Air-Conditioning .............. 100
Equipment and Supplies Merchant
Wholesalers.
423740................................. Refrigeration Equipment and Supplies .............. 100
Merchant Wholesalers.
423810................................. Construction and Mining (except Oil .............. 100
Well) Machinery and Equipment Merchant
Wholesalers.
423820................................. Farm and Garden Machinery and Equipment .............. 100
Merchant Wholesalers.
423830................................. Industrial Machinery and Equipment .............. 100
Merchant Wholesalers.
423840................................. Industrial Supplies Merchant .............. 100
Wholesalers.
423850................................. Service Establishment Equipment and .............. 100
Supplies Merchant Wholesalers.
423860................................. Transportation Equipment and Supplies .............. 100
(except Motor Vehicle) Merchant
Wholesalers.
423910................................. Sporting and Recreational Goods and .............. 100
Supplies Merchant Wholesalers.
423920................................. Toy and Hobby Goods and Supplies .............. 100
Merchant Wholesalers.
423930................................. Recyclable Material Merchant .............. 100
Wholesalers.
423940................................. Jewelry, Watch, Precious Stone, and .............. 100
Precious Metal Merchant Wholesalers.
423990................................. Other Miscellaneous Durable Goods .............. 100
Merchant Wholesalers.
----------------------------------------------------------------------------------------------------------------
Subsector 424--Merchant Wholesalers, Nondurable Goods
----------------------------------------------------------------------------------------------------------------
424110................................. Printing and Writing Paper Merchant .............. 100
Wholesalers.
424120................................. Stationary and Office Supplies Merchant .............. 100
Wholesalers.
424130................................. Industrial and Personal Service Paper .............. 100
Merchant Wholesalers.
424210................................. Drugs and Druggists' Sundries Merchant .............. 100
Wholesalers.
424310................................. Piece Goods, Notions, and Other Dry .............. 100
Goods Merchant Wholesalers.
424320................................. Men's and Boys' Clothing and .............. 100
Furnishings Merchant Wholesalers.
424330................................. Women's, Children's, and Infants' .............. 100
Clothing and Accessories Merchant
Wholesalers.
424340................................. Footwear Merchant Wholesalers.......... .............. 100
424410................................. General Line Grocery Merchant .............. 100
Wholesalers.
424420................................. Packaged Frozen Food Merchant .............. 100
Wholesalers.
424430................................. Dairy Product (except Dried or Canned) .............. 100
Merchant Wholesalers.
424440................................. Poultry and Poultry Product Merchant .............. 100
Wholesalers.
424450................................. Confectionery Merchant Wholesalers..... .............. 100
424460................................. Fish and Seafood Merchant Wholesalers.. .............. 100
424470................................. Meat and Meat Product Merchant .............. 100
Wholesalers.
424480................................. Fresh Fruit and Vegetable Merchant .............. 100
Wholesalers.
424490................................. Other Grocery and Related Products .............. 100
Merchant Wholesalers.
424510................................. Grain and Field Bean Merchant .............. 100
Wholesalers.
424520................................. Livestock Merchant Wholesalers......... .............. 100
424590................................. Other Farm Product Raw Material .............. 100
Merchant Wholesalers.
424610................................. Plastics Materials and Basic Forms and .............. 100
Shapes Merchant Wholesalers.
424690................................. Other Chemical and Allied Products .............. 100
Merchant Wholesalers.

[[Page 307]]

424710................................. Petroleum Bulk Stations and Terminals.. .............. 100
424720................................. Petroleum and Petroleum Products .............. 100
Merchant Wholesalers (except Bulk
Stations and Terminals).
424810................................. Beer and Ale Merchant Wholesalers...... .............. 100
424820................................. Wine and Distilled Alcoholic Beverage .............. 100
Merchant Wholesalers.
424910................................. Farm Supplies Merchant Wholesalers..... .............. 100
424920................................. Book, Periodical, and Newspaper .............. 100
Merchant Wholesalers.
424930................................. Flower, Nursery Stock, and Florists' .............. 100
Supplies Merchant Wholesalers.
424940................................. Tobacco and Tobacco Product Merchant .............. 100
Wholesalers.
424950................................. Paint, Varnish, and Supplies Merchant .............. 100
Wholesalers.
424990................................. Other Miscellaneous Nondurable Goods .............. 100
Merchant Wholesalers.
----------------------------------------------------------------------------------------------------------------
Subsector 425--Wholesale Electronic Markets and Agents and Brokers
----------------------------------------------------------------------------------------------------------------
425110................................. Business to Business Electronic Markets .............. 100
425120................................. Wholesale Trade Agents and Brokers..... .............. 100
----------------------------------------------------------------------------------------------------------------
Sectors 44-45--Retail Trade
(Not applicable to Government procurement of supplies. The nonmanufacturer size standard of 500 employees shall
be used for purposes of Government procurement of supplies.)
----------------------------------------------------------------------------------------------------------------
Subsector 441--Motor Vehicle and Parts Dealers
----------------------------------------------------------------------------------------------------------------
441110................................. New Car Dealers........................ $26.5 ..............
441120................................. Used Car Dealers....................... $21.0 ..............
441210................................. Recreational Vehicle Dealers........... $6.5 ..............
441221................................. Motorcycle Dealers..................... $6.5 ..............
441222................................. Boat Dealers........................... $6.5 ..............
441229................................. All Other Motor Vehicle Dealers........ $6.5 ..............
Except, Aircraft Dealers, Retail............... $9.0 ..............
441310................................. Automotive Parts and Accessories Stores $6.5 ..............
441320................................. Tire Dealers........................... $6.5 ..............
----------------------------------------------------------------------------------------------------------------
Subsector 442--Furniture and Home Furnishings Stores
----------------------------------------------------------------------------------------------------------------
442110................................. Furniture Stores....................... $6.5 ..............
442210................................. Floor Covering Stores.................. $6.5 ..............
442291................................. Window Treatment Stores................ $6.5 ..............
442299................................. All Other Home Furnishings Stores...... $6.5 ..............
----------------------------------------------------------------------------------------------------------------
Subsector 443--Electronics and Appliance Stores
----------------------------------------------------------------------------------------------------------------
443111................................. Household Appliance Stores............. $8.0 ..............
443112................................. Radio, Television and Other Electronics $8.0 ..............
Stores.
443120................................. Computer and Software Stores........... $8.0 ..............
443130................................. Camera and Photographic Supplies Stores $6.5 ..............
----------------------------------------------------------------------------------------------------------------
Subsector 444--Building Material and Garden Equipment and Supplies Dealers
----------------------------------------------------------------------------------------------------------------
444110................................. Home Centers........................... $6.5 ..............
444120................................. Paint and Wallpaper Stores............. $6.5 ..............
444130................................. Hardware Stores........................ $6.5 ..............
444190................................. Other Building Material Dealers........ $6.5 ..............
444210................................. Outdoor Power Equipment Stores......... $6.5 ..............
444220................................. Nursery and Garden Centers............. $6.5 ..............
----------------------------------------------------------------------------------------------------------------
Subsector 445--Food and Beverage Stores
----------------------------------------------------------------------------------------------------------------
445110................................. Supermarkets and Other Grocery (except $25.0 ..............
Convenience) Stores.
445120................................. Convenience Stores..................... $25.0 ..............
445210................................. Meat Markets........................... $6.5 ..............
445220................................. Fish and Seafood Markets............... $6.5 ..............
445230................................. Fruit and Vegetable Markets............ $6.5 ..............
445291................................. Baked Goods Stores..................... $6.5 ..............
445292................................. Confectionery and Nut Stores........... $6.5 ..............
445299................................. All Other Specialty Food Stores........ $6.5 ..............
445310................................. Beer, Wine and Liquor Stores........... $6.5 ..............
----------------------------------------------------------------------------------------------------------------
Subsector 446--Health and Personal Care Stores
----------------------------------------------------------------------------------------------------------------
446110................................. Pharmacies and Drug Stores............. $6.5 ..............

[[Page 308]]

446120................................. Cosmetics, Beauty Supplies and Perfume $6.5 ..............
Stores.
446130................................. Optical Goods Stores................... $6.5 ..............
446191................................. Food (Health) Supplement Stores........ $6.5 ..............
446199................................. All Other Health and Personal Care $6.5 ..............
Stores.
----------------------------------------------------------------------------------------------------------------
Subsector 447--Gasoline Stations
----------------------------------------------------------------------------------------------------------------
447110................................. Gasoline Stations with Convenience $25.0 ..............
Stores.
447190................................. Other Gasoline Stations................ $8.0 ..............
----------------------------------------------------------------------------------------------------------------
Subsector 448--Clothing and Clothing Accessories Stores
----------------------------------------------------------------------------------------------------------------
448110................................. Men's Clothing Stores.................. $8.0 ..............
448120................................. Women's Clothing Stores................ $8.0 ..............
448130................................. Children's and Infants' Clothing Stores $6.5 ..............
448140................................. Family Clothing Stores................. $8.0 ..............
448150................................. Clothing Accessories Stores............ $6.5 ..............
448190................................. Other Clothing Stores.................. $6.5 ..............
448210................................. Shoe Stores............................ $8.0 ..............
448310................................. Jewelry Stores......................... $6.5 ..............
448320................................. Luggage and Leather Goods Stores....... $6.5 ..............
----------------------------------------------------------------------------------------------------------------
Subsector 451--Sporting Good, Hobby, Book and Music Stores
----------------------------------------------------------------------------------------------------------------
451110................................. Sporting Goods Stores.................. $6.5 ..............
451120................................. Hobby, Toy and Game Stores............. $6.5 ..............
451130................................. Sewing, Needlework and Piece Goods $6.5 ..............
Stores.
451140................................. Musical Instrument and Supplies Stores. $6.5 ..............
451211................................. Book Stores............................ $6.5 ..............
451212................................. News Dealers and Newsstands............ $6.5 ..............
451220................................. Prerecorded Tape, Compact Disc and $6.5 ..............
Record Stores.
----------------------------------------------------------------------------------------------------------------
Subsector 452--General Merchandise Stores
----------------------------------------------------------------------------------------------------------------
452111................................. Department Stores (except Discount $25.0 ..............
Department Stores).
452112................................. Discount Department Stores............. $25.0 ..............
452910................................. Warehouse Clubs and Superstores........ $25.0 ..............
452990................................. All Other General Merchandise Stores... $10.5 ..............
----------------------------------------------------------------------------------------------------------------
Subsector 453--Miscellaneous Store Retailers
----------------------------------------------------------------------------------------------------------------
453110................................. Florists............................... $6.5 ..............
453210................................. Office Supplies and Stationery Stores.. $6.5 ..............
453220................................. Gift, Novelty and Souvenir Stores...... $6.5 ..............
453310................................. Used Merchandise Stores................ $6.5 ..............
453910................................. Pet and Pet Supplies Stores............ $6.5 ..............
453920................................. Art Dealers............................ $6.5 ..............
453930................................. Manufactured (Mobile) Home Dealers..... $12.0 ..............
453991................................. Tobacco Stores......................... $6.5 ..............
453998................................. All Other Miscellaneous Store Retailers $6.5 ..............
(except Tobacco Stores).
----------------------------------------------------------------------------------------------------------------
Subsector 454--Nonstore Retailers
----------------------------------------------------------------------------------------------------------------
454111................................. Electronic Shopping.................... $23.0 ..............
454112................................. Electronic Auctions.................... $23.0 ..............
454113................................. Mail-Order Houses...................... $23.0 ..............
454210................................. Vending Machine Operators.............. $6.5 ..............
454311................................. Heating Oil Dealers.................... $11.5 ..............
454312................................. Liquefied Petroleum Gas (Bottled Gas) $6.5 ..............
Dealers.
454319................................. Other Fuel Dealers..................... $6.5 ..............
454390................................. Other Direct Selling Establishments.... $6.5 ..............
----------------------------------------------------------------------------------------------------------------
Sectors 48-49--Transportation
----------------------------------------------------------------------------------------------------------------
Subsector 481--Air Transportation
----------------------------------------------------------------------------------------------------------------
481111................................. Scheduled Passenger Air Transportation. .............. 1,500
481112................................. Scheduled Freight Air Transportation... .............. 1,500
481211................................. Nonscheduled Chartered Passenger Air .............. 1,500
Transportation.
Except, Offshore Marine Air Transportation $25.5 ..............
Services.
481212................................. Nonscheduled Chartered Freight Air .............. 1,500
Transportation.

[[Page 309]]

Except, Offshore Marine Air Transportation $25.5 ..............
Services.
481219................................. Other Nonscheduled Air Transportation.. $6.5 ..............
----------------------------------------------------------------------------------------------------------------
Subsector 482--Rail Transportation
----------------------------------------------------------------------------------------------------------------
482111................................. Line-Haul Railroads.................... .............. 1,500
482112................................. Short Line Railroads................... .............. 500
----------------------------------------------------------------------------------------------------------------
Subsector 483--Water Transportation \15\
----------------------------------------------------------------------------------------------------------------
483111................................. Deep Sea Freight Transportation........ .............. 500
483112................................. Deep Sea Passenger Transportation...... .............. 500
483113................................. Coastal and Great Lakes Freight .............. 500
Transportation.
483114................................. Coastal and Great Lakes Passenger .............. 500
Transportation.
483211................................. Inland Water Freight Transportation.... .............. 500
483212................................. Inland Water Passenger Transportation.. .............. 500
----------------------------------------------------------------------------------------------------------------
Subsector 484--Truck Transportation
----------------------------------------------------------------------------------------------------------------
484110................................. General Freight Trucking, Local........ $23.5 ..............
484121................................. General Freight Trucking, Long- $23.5 ..............
Distance, Truckload.
484122................................. General Freight Trucking, Long- $23.5 ..............
Distance, Less Than Truckload.
484210................................. Used Household and Office Goods Moving. $23.5 ..............
484220................................. Specialized Freight (except Used Goods) $23.5 ..............
Trucking, Local.
484230................................. Specialized Freight (except Used Goods) $23.5 ..............
Trucking, Long-Distance.
----------------------------------------------------------------------------------------------------------------
Subsector 485--Transit and Ground Passenger Transportation
----------------------------------------------------------------------------------------------------------------
485111................................. Mixed Mode Transit Systems............. $6.5 ..............
485112................................. Commuter Rail Systems.................. $6.5 ..............
485113................................. Bus and Motor Vehicle Transit Systems.. $6.5 ..............
485119................................. Other Urban Transit Systems............ $6.5 ..............
485210................................. Interurban and Rural Bus Transportation $6.5 ..............
485310................................. Taxi Service........................... $6.5 ..............
485320................................. Limousine Service...................... $6.5 ..............
485410................................. School and Employee Bus Transportation. $6.5 ..............
485510................................. Charter Bus Industry................... $6.5 ..............
485991................................. Special Needs Transportation........... $6.5 ..............
485999................................. All Other Transit and Ground Passenger $6.5 ..............
Transportation.
----------------------------------------------------------------------------------------------------------------
Subsector 486--Pipeline Transportation
----------------------------------------------------------------------------------------------------------------
486110................................. Pipeline Transportation of Crude Oil... .............. 1,500
486210................................. Pipeline Transportation of Natural Gas. $6.5 ..............
486910................................. Pipeline Transportation of Refined .............. 1,500
Petroleum Products.
486990................................. All Other Pipeline Transportation...... $31.5 ..............
----------------------------------------------------------------------------------------------------------------
Subsector 487--Scenic and Sightseeing Transportation
----------------------------------------------------------------------------------------------------------------
487110................................. Scenic and Sightseeing Transportation, $6.5 ..............
Land.
487210................................. Scenic and Sightseeing Transportation, $6.5 ..............
Water.
487990................................. Scenic and Sightseeing Transportation, $6.5 ..............
Other.
----------------------------------------------------------------------------------------------------------------
Subsector 488--Support Activities for Transportation
----------------------------------------------------------------------------------------------------------------
488111................................. Air Traffic Control.................... $6.5 ..............
488119................................. Other Airport Operations............... $6.5 ..............
488190................................. Other Support Activities for Air $6.5 ..............
Transportation.
488210................................. Support Activities for Rail $6.5 ..............
Transportation.
488310................................. Port and Harbor Operations............. $23.5 ..............
488320................................. Marine Cargo Handling.................. $23.5 ..............
488330................................. Navigational Services to Shipping...... $6.5 ..............
488390................................. Other Support Activities for Water $6.5 ..............
Transportation.
488410................................. Motor Vehicle Towing................... $6.5 ..............
488490................................. Other Support Activities for Road $6.5 ..............
Transportation.
488510................................. Freight Transportation Arrangement \10\ \10\ $6.5 ..............
Except, Non-Vessel Owning Common Carriers and $23.5 ..............
Household Goods Forwarders.
488991................................. Packing and Crating.................... $23.5 ..............
488999................................. All Other Support Activities for $6.5 ..............
Transportation.
----------------------------------------------------------------------------------------------------------------

[[Page 310]]

Subsector 491--Postal Service
----------------------------------------------------------------------------------------------------------------
491110................................. Postal Service......................... $6.5 ..............
----------------------------------------------------------------------------------------------------------------
Subsector 492--Couriers and Messengers
----------------------------------------------------------------------------------------------------------------
492110................................. Couriers............................... .............. 1,500
492210................................. Local Messengers and Local Delivery.... $23.5 ..............
----------------------------------------------------------------------------------------------------------------
Subsector 493--Warehousing and Storage
----------------------------------------------------------------------------------------------------------------
493110................................. General Warehousing and Storage........ $23.5 ..............
493120................................. Refrigerated Warehousing and Storage... $23.5 ..............
493130................................. Farm Product Warehousing and Storage... $23.5 ..............
493190................................. Other Warehousing and Storage.......... $23.5 ..............
----------------------------------------------------------------------------------------------------------------
Sector 51--Information
----------------------------------------------------------------------------------------------------------------
Subsector 511--Publishing Industries (except Internet)
----------------------------------------------------------------------------------------------------------------
511110................................. Newspaper Publishers................... .............. 500
511120................................. Periodical Publishers.................. .............. 500
511130................................. Book Publishers........................ .............. 500
511140................................. Directory and Mailing List Publishers.. .............. 500
511191................................. Greeting Card Publishers............... .............. 500
511199................................. All Other Publishers................... .............. 500
511210................................. Software Publishers.................... $23.0 ..............
----------------------------------------------------------------------------------------------------------------
Subsector 512--Motion Picture and Sound Recording Industries
----------------------------------------------------------------------------------------------------------------
512110................................. Motion Picture and Video Production.... $27.0 ..............
512120................................. Motion Picture and Video Distribution.. $27.0 ..............
512131................................. Motion Picture Theaters (except Drive- $6.5 ..............
Ins).
512132................................. Drive-In Motion Picture Theaters....... $6.5 ..............
512191................................. Teleproduction and Other Postproduction $27.0 ..............
Services.
512199................................. Other Motion Picture and Video $6.5 ..............
Industries.
512210................................. Record Production...................... $6.5 ..............
512220................................. Integrated Record Production/ .............. 750
Distribution.
512230................................. Music Publishers....................... .............. 500
512240................................. Sound Recording Studios................ $6.5 ..............
512290................................. Other Sound Recording Industries....... $6.5 ..............
----------------------------------------------------------------------------------------------------------------
Subsector 515--Broadcasting (except Internet)
----------------------------------------------------------------------------------------------------------------
515111................................. Radio Networks......................... $6.5 ..............
515112................................. Radio Stations......................... $6.5 ..............
515120................................. Television Broadcasting................ $13.0 ..............
515210................................. Cable and Other Subscription $13.5 ..............
Programming.
----------------------------------------------------------------------------------------------------------------
Subsector 516--Internet Publishing and Broadcasting
----------------------------------------------------------------------------------------------------------------
516110................................. Internet Publishing and Broadcasting... .............. 500
----------------------------------------------------------------------------------------------------------------
Subsector 517--Telecommunications
----------------------------------------------------------------------------------------------------------------
517110................................. Wired Telecommunications Carriers...... .............. 1,500
517211................................. Paging................................. .............. 1,500
517212................................. Cellular and Other Wireless .............. 1,500
Telecommunications.
517310................................. Telecommunications Resellers........... .............. 1,500
517410................................. Satellite Telecommunications........... $13.5 ..............
517510................................. Cable and Other Program Distribution... $13.5 ..............
517910................................. Other Telecommunications............... $13.5 ..............
----------------------------------------------------------------------------------------------------------------
Subsector 518--Internet Service Providers, Web Search Portals, and Data Processing Services
----------------------------------------------------------------------------------------------------------------
518111................................. Internet Service Providers............. $23.0 ..............
518112................................. Web Search Portals..................... $6.5 ..............
518210................................. Data Processing, Hosting, and Related $23.0 ..............
Services.
----------------------------------------------------------------------------------------------------------------
Subsector 519--Other Information Services
----------------------------------------------------------------------------------------------------------------
519110................................. News Syndicates........................ $6.5 ..............

[[Page 311]]

519120................................. Libraries and Archives................. $6.5 ..............
519190................................. All Other Information Services......... $6.5 ..............
----------------------------------------------------------------------------------------------------------------
Sector 52--Finance and Insurance
----------------------------------------------------------------------------------------------------------------
Subsector 522--Credit Intermediation and Related Activities
----------------------------------------------------------------------------------------------------------------
522110................................. Commercial Banking \8\................. \8\ $165 ..............
million in
assets
522120................................. Savings Institutions \8\............... \8\ $165 ..............
million in
assets
522130................................. Credit Unions \8\...................... \8\ $165 ..............
million in
assets
522190................................. Other Depository Credit Intermediation \8\ $165 ..............
\8\. million in
assets
522210................................. Credit Card Issuing \8\................ \8\ $165 ..............
million in
assets
522220................................. Sales Financing........................ $6.5 ..............
522291................................. Consumer Lending....................... $6.5 ..............
522292................................. Real Estate Credit..................... $6.5 ..............
522293................................. International Trade Financing \8\...... \8\ $165 ..............
million in
assets
522294................................. Secondary Market Financing............. $6.5 ..............
522298................................. All Other Non-Depository Credit $6.5 ..............
Intermediation.
522310................................. Mortgage and Nonmortgage Loan Brokers.. $6.5 ..............
522320................................. Financial Transactions Processing, $6.5 ..............
Reserve, and Clearing House Activities.
522390................................. Other Activities Related to Credit $6.5 ..............
Intermediation.
----------------------------------------------------------------------------------------------------------------
Subsector 523--Financial Investments and Related Activities
----------------------------------------------------------------------------------------------------------------
523110................................. Investment Banking and Securities $6.5 ..............
Dealing.
523120................................. Securities Brokerage................... $6.5 ..............
523130................................. Commodity Contracts Dealing............ $6.5 ..............
523140................................. Commodity Contracts Brokerage.......... $6.5 ..............
523210................................. Securities and Commodity Exchanges..... $6.5 ..............
523910................................. Miscellaneous Intermediation........... $6.5 ..............
523920................................. Portfolio Management................... $6.5 ..............
523930................................. Investment Advice...................... $6.5 ..............
523991................................. Trust, Fiduciary and Custody Activities $6.5 ..............
523999................................. Miscellaneous Financial Investment $6.5 ..............
Activities.
----------------------------------------------------------------------------------------------------------------
Subsector 524--Insurance Carriers and Related Activities
----------------------------------------------------------------------------------------------------------------
524113................................. Direct Life Insurance Carriers......... $6.5 ..............
524114................................. Direct Health and Medical Insurance $6.5 ..............
Carriers.
524126................................. Direct Property and Casualty Insurance .............. 1,500
Carriers.
524127................................. Direct Title Insurance Carriers........ $6.5 ..............
524128................................. Other Direct Insurance (except Life, $6.5 ..............
Health and Medical) Carriers.
524130................................. Reinsurance Carriers................... $6.5 ..............
524210................................. Insurance Agencies and Brokerages...... $6.5 ..............
524291................................. Claims Adjusting....................... $6.5 ..............
524292................................. Third Party Administration of Insurance $6.5 ..............
and Pension Funds.
524298................................. All Other Insurance Related Activities. $6.5 ..............
----------------------------------------------------------------------------------------------------------------
Subsector 525--Funds, Trusts and Other Financial Vehicles
----------------------------------------------------------------------------------------------------------------
525110................................. Pension Funds.......................... $6.5 ..............
525120................................. Health and Welfare Funds............... $6.5 ..............
525190................................. Other Insurance Funds.................. $6.5 ..............
525910................................. Open-End Investment Funds.............. $6.5 ..............
525920................................. Trusts, Estates, and Agency Accounts... $6.5 ..............
525930................................. Real Estate Investment Trusts.......... $6.5 ..............
525990................................. Other Financial Vehicles............... $6.5 ..............
----------------------------------------------------------------------------------------------------------------
Sector 53--Real Estate and Rental and Leasing
----------------------------------------------------------------------------------------------------------------
Subsector 531--Real Estate
----------------------------------------------------------------------------------------------------------------
531110................................. Lessors of Residential Buildings and $6.5 ..............
Dwellings.
531120................................. Lessors of Nonresidential Buildings $6.5 ..............
(except Miniwarehouses).

[[Page 312]]

531130................................. Lessors of Miniwarehouses and Self $23.5 ..............
Storage Units.
531190................................. Lessors of Other Real Estate Property.. $6.5 ..............
Except, Leasing of Building Space to Federal \9\ $19.0 ..............
Government by Owners \9\.
531210................................. Offices of Real Estate Agents and \10\ $2.0 ..............
Brokers \10\.
531311................................. Residential Property Managers.......... $2.0 ..............
531312................................. Nonresidential Property Managers....... $2.0 ..............
531320................................. Offices of Real Estate Appraisers...... $2.0 ..............
531390................................. Other Activities Related to Real Estate $2.0 ..............
----------------------------------------------------------------------------------------------------------------
Subsector 532--Rental and Leasing Services
----------------------------------------------------------------------------------------------------------------
532111................................. Passenger Car Rental................... $23.5 ..............
532112................................. Passenger Car Leasing.................. $23.5 ..............
532120................................. Truck, Utility Trailer, and RV $23.5 ..............
(Recreational Vehicle) Rental and
Leasing.
532210................................. Consumer Electronics and Appliances $6.5 ..............
Rental.
532220................................. Formal Wear and Costume Rental......... $6.5 ..............
532230................................. Video Tape and Disc Rental............. $6.5 ..............
532291................................. Home Health Equipment Rental........... $6.5 ..............
532292................................. Recreational Goods Rental.............. $6.5 ..............
532299................................. All Other Consumer Goods Rental........ $6.5 ..............
532310................................. General Rental Centers................. $6.5 ..............
532411................................. Commercial Air, Rail, and Water $6.5 ..............
Transportation Equipment Rental and
Leasing.
532412................................. Construction, Mining and Forestry $6.5 ..............
Machinery and Equipment Rental and
Leasing.
532420................................. Office Machinery and Equipment Rental $23.0 ..............
and Leasing.
532490................................. Other Commercial and Industrial $6.5 ..............
Machinery and Equipment Rental and
Leasing.
----------------------------------------------------------------------------------------------------------------
Subsector 533--Lessors of Nonfinancial Intangible Assets (except Copyrighted Works)
----------------------------------------------------------------------------------------------------------------
533110................................. Lessors of Nonfinancial Intangible $6.5 ..............
Assets (except Copyrighted Works).
----------------------------------------------------------------------------------------------------------------
Sector 54--Professional, Scientific and Technical Services
----------------------------------------------------------------------------------------------------------------
Subsector 541--Professional, Scientific and Technical Services
----------------------------------------------------------------------------------------------------------------
541110................................. Offices of Lawyers..................... $6.5 ..............
541191................................. Title Abstract and Settlement Offices.. $6.5 ..............
541199................................. All Other Legal Services............... $6.5 ..............
541211................................. Offices of Certified Public Accountants $7.5 ..............
541213................................. Tax Preparation Services............... $6.5 ..............
541214................................. Payroll Services....................... $7.5 ..............
541219................................. Other Accounting Services.............. $7.5 ..............
541310................................. Architectural Services................. $4.5 ..............
541320................................. Landscape Architectural Services....... $6.5 ..............
541330................................. Engineering Services................... $4.5 ..............
Except, Military and Aerospace Equipment and $25.0 ..............
Military Weapons.
Except, Contracts and Subcontracts for $25.0 ..............
Engineering Services Awarded Under the
National Energy Policy Act of 1992.
Except, Marine Engineering and Naval $17.0 ..............
Architecture.
541340................................. Drafting Services...................... $6.5 ..............
Except, Map Drafting........................... $4.5 ..............
541350................................. Building Inspection Services........... $6.5 ..............
541360................................. Geophysical Surveying and Mapping $4.5 ..............
Services.
541370................................. Surveying and Mapping (except $4.5 ..............
Geophysical) Services.
541380................................. Testing Laboratories................... $11.0 ..............
541410................................. Interior Design Services............... $6.5 ..............
541420................................. Industrial Design Services............. $6.5 ..............
541430................................. Graphic Design Services................ $6.5 ..............
541490................................. Other Specialized Design Services...... $6.5 ..............
541511................................. Custom Computer Programming Services... $23.0 ..............
541512................................. Computer Systems Design Services....... $23.0 ..............
541513................................. Computer Facilities Management Services $23.0 ..............
541519................................. Other Computer Related Services........ $23.0 ..............
Except, Information Technology Value Added .............. \18\ 150
Resellers \18\.
541611................................. Administrative Management and General $6.5 ..............
Management Consulting Services.
541612................................. Human Resources and Executive Search $6.5 ..............
Consulting Services.

[[Page 313]]

541613................................. Marketing Consulting Services.......... $6.5 ..............
541614................................. Process, Physical Distribution and $6.5 ..............
Logistics Consulting Services.
541618................................. Other Management Consulting Services... $6.5 ..............
541620................................. Environmental Consulting Services...... $6.5 ..............
541690................................. Other Scientific and Technical $6.5 ..............
Consulting Services.
541710................................. Research and Development in the .............. \11\ 500
Physical, Engineering, and Life
Sciences\11\.
EXCEPT, Aircraft............................... .............. 1,500
EXCEPT, Aircraft Parts, and Auxiliary .............. 1,000
Equipment, and Aircraft Engine Parts.
EXCEPT, Space Vehicles and Guided Missiles, .............. 1,000
their Propulsion Units, their
Propulsion Units Parts, and their
Auxiliary Equipment and Parts.
541720................................. Research and Development in the Social $6.5 ..............
Sciences and Humanities.
541810................................. Advertising Agencies \10\.............. \10\ $6.5 ..............
541820................................. Public Relations Agencies.............. $6.5 ..............
541830................................. Media Buying Agencies.................. $6.5 ..............
541840................................. Media Representatives.................. $6.5 ..............
541850................................. Display Advertising.................... $6.5 ..............
541860................................. Direct Mail Advertising................ $6.5 ..............
541870................................. Advertising Material Distribution $6.5 ..............
Services.
541890................................. Other Services Related to Advertising.. $6.5 ..............
541910................................. Marketing Research and Public Opinion $6.5 ..............
Polling.
541921................................. Photography Studios, Portrait.......... $6.5 ..............
541922................................. Commercial Photography................. $6.5 ..............
541930................................. Translation and Interpretation Services $6.5 ..............
541940................................. Veterinary Services.................... $6.5 ..............
541990................................. All Other Professional, Scientific and $6.5 ..............
Technical Services.
----------------------------------------------------------------------------------------------------------------
Sector 55--Management of Companies and Enterprises
----------------------------------------------------------------------------------------------------------------
Subsector 551--Management of Companies and Enterprises
----------------------------------------------------------------------------------------------------------------
551111................................. Offices of Bank Holding Companies...... $6.5 ..............
551112................................. Offices of Other Holding Companies..... $6.5 ..............
----------------------------------------------------------------------------------------------------------------
Sector 56--Administrative and Support, Waste Management and Remediation Services
----------------------------------------------------------------------------------------------------------------
Subsector 561--Administrative and Support Services
----------------------------------------------------------------------------------------------------------------
561110................................. Office Administrative Services......... $6.5 ..............
561210................................. Facilities Support Services \12\....... \12\ $32.5 ..............
561310................................. Employment Placement Agencies.......... $6.5 ..............
561320................................. Temporary Help Services................ $12.5 ..............
561330................................. Employee Leasing Services.............. $12.5 ..............
561410................................. Document Preparation Services.......... $6.5 ..............
561421................................. Telephone Answering Services........... $6.5 ..............
561422................................. Telemarketing Bureaus.................. $6.5 ..............
561431................................. Private Mail Centers................... $6.5 ..............
561439................................. Other Business Service Centers $6.5 ..............
(including Copy Shops).
561440................................. Collection Agencies.................... $6.5 ..............
561450................................. Credit Bureaus......................... $6.5 ..............
561491................................. Repossession Services.................. $6.5 ..............
561492................................. Court Reporting and Stenotype Services. $6.5 ..............
561499................................. All Other Business Support Services.... $6.5 ..............
561510................................. Travel Agencies \10\................... \10\ $3.510 ..............
561520................................. Tour Operators \10\.................... \10\ $6.5 ..............
561591................................. Convention and Visitors Bureaus........ $6.5 ..............
561599................................. All Other Travel Arrangement and $6.5 ..............
Reservation Services.
561611................................. Investigation Services................. $11.5 ..............
561612................................. Security Guards and Patrol Services.... $11.5 ..............
561613................................. Armored Car Services................... $11.5 ..............
561621................................. Security Systems Services (except $11.5 ..............
Locksmiths).
561622................................. Locksmiths............................. $6.5 ..............
561710................................. Exterminating and Pest Control Services $6.5 ..............
561720................................. Janitorial Services.................... $15.0 ..............
561730................................. Landscaping Services................... $6.5 ..............
561740................................. Carpet and Upholstery Cleaning Services $4.5 ..............
561790................................. Other Services to Buildings and $6.5 ..............
Dwellings.
561910................................. Packaging and Labeling Services........ $6.5 ..............
561920................................. Convention and Trade Show Organizers \10\ $6.5 ..............
\10\.
561990................................. All Other Support Services............. $6.5 ..............
----------------------------------------------------------------------------------------------------------------

[[Page 314]]

Subsector 562--Waste Management and Remediation Services
----------------------------------------------------------------------------------------------------------------
562111................................. Solid Waste Collection................. $11.5 ..............
562112................................. Hazardous Waste Collection............. $11.5 ..............
562119................................. Other Waste Collection................. $11.5 ..............
562211................................. Hazardous Waste Treatment and Disposal. $11.5 ..............
562212................................. Solid Waste Landfill................... $11.5 ..............
562213................................. Solid Waste Combustors and Incinerators $11.5 ..............
562219................................. Other Nonhazardous Waste Treatment and $11.5 ..............
Disposal.
562910................................. Remediation Services................... $13.0 ..............
Except, Environmental Remediation Services \14\ .............. \14\ 500
562920................................. Materials Recovery Facilities.......... $11.5 ..............
562991................................. Septic Tank and Related Services....... $6.5 ..............
562998................................. All Other Miscellaneous Waste $6.5 ..............
Management Services.
----------------------------------------------------------------------------------------------------------------
Sector 61--Educational Services
----------------------------------------------------------------------------------------------------------------
Subsector 611--Educational Services
----------------------------------------------------------------------------------------------------------------
611110................................. Elementary and Secondary Schools....... $6.5 ..............
611210................................. Junior Colleges........................ $6.5 ..............
611310................................. Colleges, Universities and Professional $6.5 ..............
Schools.
611410................................. Business and Secretarial Schools....... $6.5 ..............
611420................................. Computer Training...................... $6.5 ..............
611430................................. Professional and Management Development $6.5 ..............
Training.
611511................................. Cosmetology and Barber Schools......... $6.5 ..............
611512................................. Flight Training........................ $23.5 ..............
611513................................. Apprenticeship Training................ $6.5 ..............
611519................................. Other Technical and Trade Schools...... $6.5 ..............
Except, Job Corps Centers \16\................. \16\ $32.5 ..............
611610................................. Fine Arts Schools...................... $6.5 ..............
611620................................. Sports and Recreation Instruction...... $6.5 ..............
611630................................. Language Schools....................... $6.5 ..............
611691................................. Exam Preparation and Tutoring.......... $6.5 ..............
611692................................. Automobile Driving Schools............. $6.5 ..............
611699................................. All Other Miscellaneous Schools and $6.5 ..............
Instruction.
611710................................. Educational Support Services........... $6.5 ..............
----------------------------------------------------------------------------------------------------------------
Sector 62--Health Care and Social Assistance
----------------------------------------------------------------------------------------------------------------
Subsector 621--Ambulatory Health Care Services
----------------------------------------------------------------------------------------------------------------
621111................................. Offices of Physicians (except Mental $9.0 ..............
Health Specialists).
621112................................. Offices of Physicians, Mental Health $9.0 ..............
Specialists.
621210................................. Offices of Dentists.................... $6.5 ..............
621310................................. Offices of Chiropractors............... $6.5 ..............
621320................................. Offices of Optometrists................ $6.5 ..............
621330................................. Offices of Mental Health Practitioners $6.5 ..............
(except Physicians).
621340................................. Offices of Physical, Occupational and $6.5 ..............
Speech Therapists and Audiologists.
621391................................. Offices of Podiatrists................. $6.5 ..............
621399................................. Offices of All Other Miscellaneous $6.5 ..............
Health Practitioners.
621410................................. Family Planning Centers................ $9.0 ..............
621420................................. Outpatient Mental Health and Substance $9.0 ..............
Abuse Centers.
621491................................. HMO Medical Centers.................... $9.0 ..............
621492................................. Kidney Dialysis Centers................ $31.5 ..............
621493................................. Freestanding Ambulatory Surgical and $9.0 ..............
Emergency Centers.
621498................................. All Other Outpatient Care Centers...... $9.0 ..............
621511................................. Medical Laboratories................... $12.5 ..............
621512................................. Diagnostic Imaging Centers............. $12.5 ..............
621610................................. Home Health Care Services.............. $12.5 ..............
621910................................. Ambulance Services..................... $6.5 ..............
621991................................. Blood and Organ Banks.................. $9.0 ..............
621999................................. All Other Miscellaneous Ambulatory $9.0 ..............
Health Care Services.
----------------------------------------------------------------------------------------------------------------
Subsector 622--Hospitals
----------------------------------------------------------------------------------------------------------------
622110................................. General Medical and Surgical Hospitals. $31.5 ..............
622210................................. Psychiatric and Substance Abuse $31.5 ..............
Hospitals.
622310................................. Specialty (except Psychiatric and $31.5 ..............
Substance Abuse) Hospitals.
----------------------------------------------------------------------------------------------------------------

[[Page 315]]

Subsector 623--Nursing and Residential Care Facilities
----------------------------------------------------------------------------------------------------------------
623110................................. Nursing Care Facilities................ $12.5 ..............
623210................................. Residential Mental Retardation $9.0 ..............
Facilities.
623220................................. Residential Mental Health and Substance $6.5 ..............
Abuse Facilities.
623311................................. Continuing Care Retirement Communities. $12.5 ..............
623312................................. Homes for the Elderly.................. $6.5 ..............
623990................................. Other Residential Care Facilities...... $6.5 ..............
----------------------------------------------------------------------------------------------------------------
Subsector 624--Social Assistance
----------------------------------------------------------------------------------------------------------------
624110................................. Child and Youth Services............... $6.5 ..............
624120................................. Services for the Elderly and Persons $6.5 ..............
with Disabilities.
624190................................. Other Individual and Family Services... $6.5 ..............
624210................................. Community Food Services................ $6.5 ..............
624221................................. Temporary Shelters..................... $6.5 ..............
624229................................. Other Community Housing Services....... $6.5 ..............
624230................................. Emergency and Other Relief Services.... $6.5 ..............
624310................................. Vocational Rehabilitation Services..... $6.5 ..............
624410................................. Child Day Care Services................ $6.5 ..............
----------------------------------------------------------------------------------------------------------------
Sector 71--Arts, Entertainment and Recreation
----------------------------------------------------------------------------------------------------------------
Sector 71--Arts, Entertainment and Recreation
----------------------------------------------------------------------------------------------------------------
Subsector 711--Performing Arts, Spectator Sports and Related Industries
----------------------------------------------------------------------------------------------------------------
711110................................. Theater Companies and Dinner Theaters.. $6.5 ..............
711120................................. Dance Companies........................ $6.5 ..............
711130................................. Musical Groups and Artists............. $6.5 ..............
711190................................. Other Performing Arts Companies........ $6.5 ..............
711211................................. Sports Teams and Clubs................. $6.5 ..............
711212................................. Race Tracks............................ $6.5 ..............
711219................................. Other Spectator Sports................. $6.5 ..............
711310................................. Promoters of Performing Arts, Sports $6.5 ..............
and Similar Events with Facilities.
711320................................. Promoters of Performing Arts, Sports $6.5 ..............
and Similar Events without Facilities.
711410................................. Agents and Managers for Artists, $6.5 ..............
Athletes, Entertainers and Other
Public Figures.
711510................................. Independent Artists, Writers, and $6.5 ..............
Performers.
----------------------------------------------------------------------------------------------------------------
Subsector 712--Museums, Historical Sites and Similar Institutions
----------------------------------------------------------------------------------------------------------------
712110................................. Museums................................ $6.5 ..............
712120................................. Historical Sites....................... $6.5 ..............
712130................................. Zoos and Botanical Gardens............. $6.5 ..............
712190................................. Nature Parks and Other Similar $6.5 ..............
Institutions.
----------------------------------------------------------------------------------------------------------------
Subsector 713--Amusement, Gambling and Recreation Industries
----------------------------------------------------------------------------------------------------------------
713110................................. Amusement and Theme Parks.............. $6.5 ..............
713120................................. Amusement Arcades...................... $6.5 ..............
713210................................. Casinos (except Casino Hotels)......... $6.5 ..............
713290................................. Other Gambling Industries.............. $6.5 ..............
713910................................. Golf Courses and Country Clubs......... $6.5 ..............
713920................................. Skiing Facilities...................... $6.5 ..............
713930................................. Marinas................................ $6.5 ..............
713940................................. Fitness and Recreational Sports Centers $6.5 ..............
713950................................. Bowling Centers........................ $6.5 ..............
713990................................. All Other Amusement and Recreation $6.5 ..............
Industries.
----------------------------------------------------------------------------------------------------------------
Sector 72--Accommodation and Food Services
----------------------------------------------------------------------------------------------------------------
Subsector 721--Accommodation
----------------------------------------------------------------------------------------------------------------
721110................................. Hotels (except Casino Hotels) and $6.5 ..............
Motels.
721120................................. Casino Hotels.......................... $6.5 ..............
721191................................. Bed and Breakfast Inns................. $6.5 ..............
721199................................. All Other Traveler Accommodation....... $6.5 ..............
721211................................. RV (Recreational Vehicle) Parks and $6.5 ..............
Campgrounds.

[[Page 316]]

721214................................. Recreational and Vacation Camps (except $6.5 ..............
Campgrounds).
721310................................. Rooming and Boarding Houses............ $6.5 ..............
----------------------------------------------------------------------------------------------------------------
Subsector 722--Food Services and Drinking Places
----------------------------------------------------------------------------------------------------------------
722110................................. Full-Service Restaurants............... $6.5 ..............
722211................................. Limited-Service Restaurants............ $6.5 ..............
722212................................. Cafeterias............................. $6.5 ..............
722213................................. Snack and Nonalcoholic Beverage Bars... $6.5 ..............
722310................................. Food Service Contractors............... $19.0 ..............
722320................................. Caterers............................... $6.5 ..............
722330................................. Mobile Food Services................... $6.5 ..............
722410................................. Drinking Places (Alcoholic Beverages).. $6.5 ..............
----------------------------------------------------------------------------------------------------------------
Sector 81--Other Services
----------------------------------------------------------------------------------------------------------------
Subsector 811--Repair and Maintenance
----------------------------------------------------------------------------------------------------------------
811111................................. General Automotive Repair.............. $6.5 ..............
811112................................. Automotive Exhaust System Repair....... $6.5 ..............
811113................................. Automotive Transmission Repair......... $6.5 ..............
811118................................. Other Automotive Mechanical and $6.5 ..............
Electrical Repair and Maintenance.
811121................................. Automotive Body, Paint and Interior $6.5 ..............
Repair and Maintenance.
811122................................. Automotive Glass Replacement Shops..... $6.5 ..............
811191................................. Automotive Oil Change and Lubrication $6.5 ..............
Shops.
811192................................. Car Washes............................. $6.5 ..............
811198................................. All Other Automotive Repair and $6.5 ..............
Maintenance.
811211................................. Consumer Electronics Repair and $6.5 ..............
Maintenance.
811212................................. Computer and Office Machine Repair and $23.0 ..............
Maintenance.
811213................................. Communication Equipment Repair and $6.5 ..............
Maintenance.
811219................................. Other Electronic and Precision $6.5 ..............
Equipment Repair and Maintenance.
811310................................. Commercial and Industrial Machinery and $6.5 ..............
Equipment (except Automotive and
Electronic) Repair and Maintenance.
811411................................. Home and Garden Equipment Repair and $6.5 ..............
Maintenance.
811412................................. Appliance Repair and Maintenance....... $6.5 ..............
811420................................. Reupholstery and Furniture Repair...... $6.5 ..............
811430................................. Footwear and Leather Goods Repair...... $6.5 ..............
811490................................. Other Personal and Household Goods $6.5 ..............
Repair and Maintenance.
----------------------------------------------------------------------------------------------------------------
Subsector 812--Personal and Laundry Services
----------------------------------------------------------------------------------------------------------------
812111................................. Barber Shops........................... $6.5 ..............
812112................................. Beauty Salons.......................... $6.5 ..............
812113................................. Nail Salons............................ $6.5 ..............
812191................................. Diet and Weight Reducing Centers....... $6.5 ..............
812199................................. Other Personal Care Services........... $6.5 ..............
812210................................. Funeral Homes and Funeral Services..... $6.5 ..............
812220................................. Cemeteries and Crematories............. $6.5 ..............
812310................................. Coin-Operated Laundries and Drycleaners $6.5 ..............
812320................................. Drycleaning and Laundry Services $4.5 ..............
(except Coin-Operated).
812331................................. Linen Supply........................... $13.0 ..............
812332................................. Industrial Launderers.................. $13.0 ..............
812910................................. Pet Care (except Veterinary) Services.. $6.5 ..............
812921................................. Photo Finishing Laboratories (except $6.5 ..............
One-Hour).
812922................................. One-Hour Photo Finishing............... $6.5 ..............
812930................................. Parking Lots and Garages............... $6.5 ..............
812990................................. All Other Personal Services............ $6.5 ..............
----------------------------------------------------------------------------------------------------------------
Subsector 813--Religious, Grantmaking, Civic, Professional and Similar Organizations
----------------------------------------------------------------------------------------------------------------
813110................................. Religious Organizations................ $6.5 ..............
813211................................. Grantmaking Foundations................ $6.5 ..............
813212................................. Voluntary Health Organizations......... $6.5 ..............
813219................................. Other Grantmaking and Giving Services.. $6.5 ..............
813311................................. Human Rights Organizations............. $6.5 ..............
813312................................. Environment, Conservation and Wildlife $6.5 ..............
Organizations.
813319................................. Other Social Advocacy Organizations.... $6.5 ..............
813410................................. Civic and Social Organizations......... $6.5 ..............
813910................................. Business Associations.................. $6.5 ..............
813920................................. Professional Organizations............. $6.5 ..............
813930................................. Labor Unions and Similar Labor $6.5 ..............
Organizations.

[[Page 317]]

813940................................. Political Organizations................ $6.5 ..............
813990................................. Other Similar Organizations (except $6.5 ..............
Business, Professional, Labor, and
Political Organizations).
----------------------------------------------------------------------------------------------------------------
Sector 92--Public Administration \19\
----------------------------------------------------------------------------------------------------------------
(Small business size standards are not established for this sector. Establishments in the Public Administration
sector are Federal, state, and local government agencies which administer and oversee government programs and
activities that are not performed by private establishments.)
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------

Footnotes

1. NAICS codes 221111, 221112, 221113, 221119, 221121, and 221122--A
firm is small if, including its affiliates, it is primarily engaged in
the generation, transmission, and/or distribution of electric energy for
sale and its total electric output for the preceding fiscal year did not
exceed 4 million megawatt hours.
2. NAICS code 237990--Dredging: To be considered small for purposes
of Government procurement, a firm must perform at least 40 percent of
the volume dredged with its own equipment or equipment owned by another
small dredging concern.
3. NAICS code 311421--For purposes of Government procurement for
food canning and preserving, the standard of 500 employees excludes
agricultural labor as defined in 3306(k) of the Internal Revenue Code,
26 U.S.C. 3306(k).
4. NAICS code 324110--For purposes of Government procurement, the
petroleum refiner must be a concern that has no more than 1,500
employees nor more than 125,000 barrels per calendar day total Operable
Atmospheric Crude Oil Distillation capacity. 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. NAICS code 326211--For Government procurement, a firm is small
for bidding on a contract for pneumatic tires within Census
Classification codes 30111 and 30112, provided that:
(a) 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,
(b) 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
(c) The value of the principal product which it manufactured or
otherwise produced, or sold worldwide during the preceding calendar year
is less than 10 percent of the total value of such products manufactured
or otherwise produced or sold in the United States during that period.
6. NAICS Subsectors 333, 334, 335 and 336--For rebuilding machinery
or equipment on a factory basis, or equivalent, use the NAICS 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 NAICS code. Ordinary repair services or preservation are
not considered rebuilding.
7. NAICS code 336413--Contracts for the rebuilding or overhaul of
aircraft ground support equipment on a contract basis are classified
under NAICS code 336413.
8. NAICS Codes 522110, 522120, 522130, 522190, 522210 and 522293--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.
9. NAICS code 531190--Leasing of building space to the Federal
Government by Owners: For Government procurement, a size standard of
$19.0 million in gross receipts applies to the owners of building space
leased to the Federal Government. The standard does not apply to an
agent.
10. NAICS codes 488510 (part) 531210, 541810, 561510, 561520, and
561920--As measured by total revenues, but excluding funds received in
trust for an unaffiliated third party, such as bookings or sales subject
to commissions. The commissions received are included as revenues.
11. NAICS code 541710--For research and development contracts
requiring the delivery of a manufactured product, the appropriate

[[Page 318]]

size standard is that of the manufacturing industry.
(a) ``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.
(b) For purposes of the Small Business Innovation Research (SBIR)
program only, a different definition has been established by law. See
Sec. 121.701 of these regulations.
(c) ``Research and Development'' for guided missiles and space
vehicles includes evaluations and simulation, and other services
requiring thorough knowledge of complete missiles and spacecraft.
12. NAICS code 561210--Facilities Support Services:
(a) If one or more activities of Facilities Support Services as
defined in paragraph (b) (below in this footnote) can be identified with
a specific industry and that industry accounts for 50% or more of the
value of an entire procurement, then the proper classification of the
procurement is that of the specific industry, not Facilities Support
Services.
(b) ``Facilities Support Services'' requires the performance of
three or more separate activities in the areas of services or specialty
trade contractors industries. If services are performed, these service
activities must each be in a separate NAICS industry. If the procurement
requires the use of specialty trade contractors (plumbing, painting,
plastering, carpentry, etc.), all such specialty trade contractors
activities are considered a single activity and classified as ``Building
and Property Specialty Trade Services.'' Since ``Building and Property
Specialty Trade Services'' is only one activity, two additional
activities of separate NAICS industries are required for a procurement
to be classified as ``Facilities Support Services.''
13. NAICS code 238990--Building and Property Specialty Trade
Services: If a procurement requires the use of multiple specialty trade
contractors (i.e., plumbing, painting, plastering, carpentry, etc.), and
no specialty trade accounts for 50% or more of the value of the
procurement, all such specialty trade contractors activities are
considered a single activity and classified as Building and Property
Specialty Trade Services.
14. NAICS 562910--Environmental Remediation Services:
(a) For SBA assistance as a small business concern in the industry
of Environmental Remediation Services, other than for Government
procurement, a concern must be engaged primarily in furnishing a range
of services for the remediation of a contaminated environment to an
acceptable condition including, but not limited to, preliminary
assessment, site inspection, testing, remedial investigation,
feasibility studies, remedial design, containment, remedial action,
removal of contaminated materials, storage of contaminated materials and
security and site closeouts. If one of such activities accounts for 50
percent or more of a concern's total revenues, employees, or other
related factors, the concern's primary industry is that of the
particular industry and not the Environmental Remediation Services
Industry.
(b) For purposes of classifying a Government procurement as
Environmental Remediation Services, the general purpose of the
procurement must be to restore or directly support the restoration of a
contaminated environment (such as, preliminary assessment, site
inspection, testing, remedial investigation, feasibility studies,
remedial design, remediation services, containment, removal of
contaminated materials, storage of contaminated materials or security
and site closeouts), although the general purpose of the procurement
need not necessarily include remedial actions. Also, the procurement
must be composed of activities in three or more separate industries with
separate NAICS codes or, in some instances (e.g., engineering), smaller
sub-components of NAICS codes with separate, distinct size standards.
These activities may include, but are not limited to, separate
activities in industries such as: Heavy Construction; Specialty Trade
Contractors; Engineering Services; Architectural Services; Management
Consulting Services; Hazardous and Other Waste Collection; Remediation
Services, Testing Laboratories; and Research and Development in the
Physical, Engineering and Life Sciences. If any activity in the
procurement can be identified with a separate NAICS code, or component
of a code with a separate distinct size standard, and that industry
accounts for 50 percent or more of the value of the entire procurement,
then the proper size standard is the one for that particular industry,
and not the Environmental Remediation Service size standard.
15. Subsector 483--Water Transportation--Offshore Marine Services:
The applicable size standard shall be $25.5 million for firms furnishing
specific transportation services to concerns engaged in offshore oil
and/or natural gas exploration, drilling production, or marine research;
such services encompass passenger and freight transportation, anchor
handling, and related logistical services to and from the work site or
at sea.
16. NAICS codes 611519--Job Corps Centers. For classifying a Federal
procurement, the purpose of the solicitation must be for the management
and operation of a U.S. Department of Labor Job Corps Center. The
activities involved include admissions activities, life skills training,
educational activities, comprehensive career preparation activities,

[[Page 319]]

career development activities, career transition activities, as well as
the management and support functions and services needed to operate and
maintain the facility. For SBA assistance as a small business concern,
other than for Federal Government procurements, a concern must be
primarily engaged in providing the services to operate and maintain
Federal Job Corps Centers.
17. NAICS code 115310 (Support Activities for Forestry)--Forest Fire
Suppression and Fuels Management Services are two components of Support
Activities for Forestry. Forest Fire Suppression includes establishments
which provide services to fight forest fires. These firms usually have
fire-fighting crews and equipment. Fuels Management Services firms
provide services to clear land of hazardous materials that would fuel
forest fires. The treatments used by these firms may include prescribed
fire, mechanical removal, establishing fuel breaks, thinning, pruning,
and piling.
18. NAICS code 541519--An Information Technology Value Added
Reseller provides a total solution to information technology
acquisitions by providing multi-vendor hardware and software along with
significant services. Significant value added services consist of, but
are not limited to, configuration consulting and design, systems
integration, installation of multi-vendor computer equipment,
customization of hardware or software, training, product technical
support, maintenance, and end user support. For purposes of Government
procurement, an information technology procurement classified under this
industry category must consist of at least 15% and not more than 50% of
value added services as measured by the total price less the cost of
information technology hardware, computer software, and profit. If the
contract consists of less than 15% of value added services, then it must
be classified under a NAICS manufacturing industry. If the contract
consists of more than 50% of value added services, then it must be
classified under the NAICS industry that best describes the predominate
service of the procurement. To qualify as an Information Technology
Value Added Reseller for purposes of SBA assistance, other than for
Government procurement, a concern must be primarily engaged in providing
information technology equipment and computer software and provide value
added services which account for at least 15% of its receipts but not
more than 50% of its receipts.
19. NAICS Sector 92--Small business size standards are not
established for this sector. Establishments in the Public Administration
sector are Federal, State, and local government agencies which
administer and oversee government programs and activities that are not
performed by private establishments. Concerns performing operational
services for the administration of a government program are classified
under the NAICS private sector industry based on the activities
performed. Similarly, procurements for these types of services are
classified under the NAICS private sector industry that best describes
the activities to be performed. For example, if a government agency
issues a procurement for law enforcement services, the requirement would
be classified using one of the NAICS industry codes under 56161,
Investigation, Guard, and Armored Car Services.

[65 FR 30840, May 15, 2000, as amended at 65 FR 53535, Sept. 5, 2000; 65
FR 60343, Oct. 11, 2000; 65 FR 69438, Nov. 17, 2000; 65 FR 70637, Nov.
24, 2000; 66 FR 30647, June 7, 2001; 66 FR 32416, June 14, 2001; 67 FR
3045, Jan. 23, 2002; 67 FR 11880, Mar. 15, 2002; 67 FR 19637, Apr. 23,
2002; 67 FR 38191, May 31, 2002; 67 FR 56906, Sept. 6, 2002; 67 FR
62292, Oct. 4, 2002; 67 FR 67103, 67253, Nov. 4, 2002; 68 FR 13811, Mar.
21, 2003; 68 FR 15050, Mar. 28, 2003; 68 FR 16408, Apr. 4, 2003; 68 FR
33354, June 4, 2003; 68 FR 59314, Oct. 15, 2003; 68 FR 74841, 74842,
74847, Dec. 29, 2003; 69 FR 29203, May 21, 2004; 70 FR 72583, Dec. 6,
2005]

Size Eligibility Requirements For SBA Financial Assistance

Sec. 121.301 What size standards are applicable to financial
assistance programs?

(a) For Business Loans and Disaster Loans (other than physical
disaster loans), an applicant business concern must satisfy two
criteria:
(1) The size of the applicant alone (without affiliates) must not
exceed the size standard designated for the industry in which the
applicant is primarily engaged; and
(2) The size of the applicant combined with its affiliates must not
exceed the size standard designated for either the primary industry of
the applicant alone or the primary industry of the applicant and its
affiliates, whichever is higher. These size standards are set forth in
Sec. 121.201.
(b) For Development Company programs, an applicant must meet one of
the following standards:
(1) The same standards applicable under paragraph (a) of this
section; or
(2) Including its affiliates, tangible net worth not in excess of
$7.5 million, and average net income after Federal income taxes
(excluding any carry-over losses) for the preceding two completed fiscal
years not in excess of $2.5 million. If the applicant is not required by
law to pay Federal income taxes at the

[[Page 320]]

enterprise level, but is required to pass income through to its
shareholders, partners, beneficiaries, or other equitable owners, the
applicant's ``net income after Federal income taxes'' will be its net
income reduced by an amount computed as follows:
(i) If the applicant is not required by law to pay State (and local,
if any) income taxes at the enterprise level, multiply its net income by
the marginal State income tax rate (or by the combined State and local
income tax rates, as applicable) that would have applied if it were a
taxable corporation.
(ii) Multiply the applicant's net income, less any deduction for
State and local income taxes calculated under paragraph (b)(2)(i) of
this section, by the marginal Federal income tax rate that would have
applied if the applicant were a taxable corporation.
(iii) Sum the results obtained in paragraphs (b)(2)(i) and
(b)(2)(ii) of this section.
(c) For the Small Business Investment Company (SBIC) program, an
applicant must meet one of the following standards:
(1) The same standards applicable under paragraph (a) of this
section; or
(2) Including its affiliates, tangible net worth not in excess of
$18 million, and average net income after Federal income taxes
(excluding any carry-over losses) for the preceding two completed fiscal
years not in excess of $6 million. If the applicant is not required by
law to pay Federal income taxes at the enterprise level, but is required
to pass income through to its shareholders, partners, beneficiaries, or
other equitable owners, the applicant's ``net income after Federal
income taxes'' will be its net income reduced by an amount computed as
follows:
(i) If the applicant is not required by law to pay State (and local,
if any) income taxes at the enterprise level, multiply its net income by
the marginal State income tax rate (or by the combined State and local
income tax rates, as applicable) that would have applied if it were a
taxable corporation.
(ii) Multiply the applicant's net income, less any deduction for
State and local income taxes calculated under paragraph (c)(2)(i) of
this section, by the marginal Federal income tax rate that would have
applied if the applicant were a taxable corporation.
(iii) Add the results obtained in paragraphs (c)(2)(i) and
(c)(2)(ii) of this section.
(d) For Surety Bond Guarantee assistance--
(1) Any construction (general or special trade) concern or concern
performing a contract for services is small if, together with its
affiliates, its average annual receipts does not exceed $6.5 million.
(2) Any concern not specified in paragraph (d)(1) of this section
must meet the size standard for the primary industry in which it,
combined with its affiliates, is engaged.
(3) For any contract or subcontract, public or private, to be
performed in the Presidentially-declared disaster areas resulting from
the 2005 Hurricanes Katrina, Rita, or Wilma, the construction (general
or special trade) concern or concern performing a contract for services
is small if it meets the size standard for the primary industry in which
it, together with its affiliates, is engaged, or if it meets the size
standard set forth in paragraph (d)(1), whichever is higher.
(e) The applicable size standards for purposes of SBA's financial
assistance programs, excluding the Surety Bond Guarantee assistance
program, are increased by 25% whenever the applicant agrees to use all
of the financial assistance within a labor surplus area. Labor surplus
areas are listed monthly in the Department of Labor publication ``Area
Trends in Employment and Unemployment.''

[61 FR 3286, Jan. 31, 1996, as amended at 66 FR 30648, June 7, 2001; 67
FR 3056, Jan. 23, 2002; 69 FR 29204, May 21, 2004; 70 FR 69047, 69052,
Nov. 14, 2005; 70 FR 72594, Dec. 6, 2005]

Sec. 121.302 When does SBA determine the size status of an applicant?

(a) The size status of an applicant for SBA financial assistance is
determined as of the date the application for financial assistance is
accepted for processing by SBA, except for applications under the
Preferred Lenders Program (PLP), the Disaster Loan program, the

[[Page 321]]

SBIC program, and the New Markets Venture Capital (NMCV) program.
(b) For the Preferred Lenders program, size is determined as of the
date of approval of the loan by the Preferred Lender.
(c) For disaster loan assistance (other than physical disaster
loans), size status is determined as of the date the disaster commenced,
as set forth in the Disaster Declaration. For economic injury disaster
loan assistance under disaster declarations for Hurricanes Katrina,
Rita, and Wilma, size status is determined as of the date SBA accepts
the application for processing, and for applications submitted before
December 6, 2005, whether denied because of size status or pending, such
applications shall be deemed resubmitted on December 6, 2005. For pre-
disaster mitigation loans, size status is determined as of the date SBA
accepts a complete Pre-Disaster Mitigation Small Business Loan
Application for processing. Refer to Sec. 123.408 of this chapter to
find out what SBA considers to be a complete Pre-Disaster Mitigation
Small Business Loan Application.
(d) For financial assistance from an SBIC licensee or an NMVC
company, size is determined as of the date a concern's application is
accepted for processing by the SBIC or the NMVC company.
(e) Changes in size after the applicable date when size is
determined will not disqualify an applicant for assistance.

[61 FR 3286, Jan. 31, 1996, as amended at 64 FR 48276, Sept. 3, 1999; 67
FR 11880, Mar. 15, 2002; 67 FR 62337, Oct. 7, 2002; 69 FR 29204, May 21,
2004; 70 FR 72594, Dec. 6, 2005]

Sec. 121.303 What size procedures are used by SBA before it makes a
formal size determination?

(a) A concern that submits an application for financial assistance
is deemed to have certified that it is small under the applicable size
standard. SBA may question the concern's status based on information
supplied in the application or from any other source.
(b) A small business investment company, a development company, a
surety bond company, or a preferred lender may accept as true the size
information provided by an applicant, unless credible evidence to the
contrary is apparent.
(c) Size is initially considered by the individual with final
financial assistance authority. This is not a formal size determination.
A formal determination may be requested prior to a denial of eligibility
based on size.
(d) An applicant may request a formal size determination when
assistance has been denied for size ineligibility. Except for disaster
loan eligibility, a request for a formal size determination must be made
to the Government Contracting Area Director serving the area in which
the headquarters of the applicant is located, regardless of the location
of the parent company or affiliates. For disaster loan assistance, the
request for a size determination must be made to the Area Director for
the Disaster Area Office which denied the assistance.
(e) There are no time limitations for making a formal size
determination for purposes of financial assistance. The official making
the formal size determination must provide a copy of the determination
to the applicant, to the requesting SBA official, and to other
interested SBA program officials.

Sec. 121.304 What are the size requirements for refinancing an
existing SBA loan?

(a) A concern that applies to refinance an existing SBA loan or
guarantee will be considered small for the refinancing even though its
size has increased since the date of the original financing to exceed
its applicable size standard, provided that:
(1) The increase in size is due to natural growth (as distinguished
from merger, acquisition or similar management action); and
(2) SBA determines that refinancing is necessary to protect the
Government's financial interest.
(b) If a concern's size has increased other than by natural growth,
the concern and its affiliates must be small at the time the application
for refinancing is accepted for processing by SBA.

[[Page 322]]

Sec. 121.305 What size eligibility requirements exist for obtaining
financial assistance relating to particular procurements?

A concern qualified as small for a particular procurement, including
an 8(a) subcontract, is small for financial assistance directly and
primarily relating to the performance of the particular procurement.

Size Eligibility Requirements for Government Procurement

Sec. 121.401 What procurement programs are subject to size
determinations?

The rules set forth in Sec. Sec. 121.401 through 121.413 apply to
all Federal procurement programs for which status as a small business is
required or advantageous, including the small business set-aside
program, SBA's Certificate of Competency program, SBA's 8(a) Business
Development program, SBA's HUBZone program, SBA's Service-Disabled
Veteran-Owned Small Business program, the Small Business Subcontracting
program, and the Federal Small Disadvantaged Business (SDB) program.

[70 FR 56814, Sept. 29, 2005]

Sec. 121.402 What size standards are applicable to Federal Government
Contracting programs?

(a) A concern must not exceed the size standard for the NAICS code
specified in the solicitation. The contracting officer must specify the
size standard in effect on the date the solicitation is issued. If SBA
amends the size standard and it becomes effective before the date
initial offers (including price) are due, the contracting officer may
amend the solicitation and use the new size standard.
(b) The procuring agency contracting officer, or authorized
representative, designates the proper NAICS code and size standard in a
solicitation, selecting the NAICS code which best describes the
principal purpose of the product or service being acquired. Primary
consideration is given to the industry descriptions in the NAICS United
States Manual, the product or service description in the solicitation
and any attachments to it, the relative value and importance of the
components of the procurement making up the end item being procured, and
the function of the goods or services being purchased. Other factors
considered include previous Government procurement classifications of
the same or similar products or services, and the classification which
would best serve the purposes of the Small Business Act. A procurement
is usually classified according to the component which accounts for the
greatest percentage of contract value. Procurements for supplies must be
classified under the appropriate manufacturing NAICS code, not under the
wholesale trade NAICS code.
(c) The NAICS code assigned to a procurement and its corresponding
size standard is final unless timely appealed to SBA's Office of
Hearings and Appeals (OHA), or unless SBA assigns an NAICS code or size
standard as provided in paragraph (d) of this section.
(d) An unclear, incomplete or missing NAICS code designation or size
standard in the solicitation may be clarified, completed or supplied by
SBA in connection with a formal size determination or size appeal.
(e) Any offeror or other interested party adversely affected by an
NAICS code designation or size standard designation may appeal the
designations to OHA under part 134 of this chapter.

[61 FR 3286, Jan. 31, 1996, as amended at 65 FR 30863, May 15, 2000; 69
FR 29205, May 21, 2004]

Sec. 121.403 Are SBA size determinations and NAICS code designations
binding on parties?

Formal size determinations and NAICS code designations made by
authorized SBA officials are binding upon the parties. Opinions
otherwise provided by SBA officials to contracting officers or others
are advisory in nature, and are not binding or appealable.

[61 FR 3286, Jan. 31, 1996, as amended at 65 FR 30863, May 15, 2000]

Sec. 121.404 When does SBA determine the size status of a business
concern?

(a) SBA determines the size status of a concern, including its
affiliates, as of the date the concern submits a written self-
certification that it is small to the

[[Page 323]]

procuring activity as part of its initial offer (or other formal
response to a solicitation) which includes price. Where an agency
modifies a solicitation so that initial offers are no longer responsive
to the solicitation, a concern must recertify that it is a small
business at the time it submits a responsive offer, which includes
price, to the modified solicitation.
(b) A concern applying to be certified as a Participant in SBA's
8(a) Business Development program (under part 124, subpart A, of this
chapter), as a small disadvantaged business (under part 124, subpart B,
of this chapter), or as a HUBZone small business (under part 126 of this
chapter) must qualify as a small business for its primary industry
classification as of the date of its application and the date of
certification by SBA.
(c) The size status of an applicant for a Certificate of Competency
(COC) relating to an unrestricted procurement is determined as of the
date of the concern's application for the COC.
(d) Size status for purposes of compliance with the nonmanufacturer
rule set forth in Sec. 121.406(b)(1) and the ostensible subcontractor
rule set forth in Sec. 121.103(h)(4) is determined as of the date of
the final proposal revision for negotiated acquisitions and final bid
for sealed bidding.
(e) For subcontracting purposes, a concern must qualify as small as
of the date that it certifies that it is small for the subcontract. The
applicable size standard is that which is set forth in Sec. 121.410 and
which is in effect at the time the concern self-certifies that it is
small for the subcontract.
(f) For purposes of two-step sealed bidding under subpart 14.5 of
the FAR, 48 CFR, a concern must qualify as small as of the date that it
certifies that it is small as part of its step one proposal.
(g) A concern that qualified as a small business at the time it
receives a contract is considered a small business throughout the life
of that contract. Where a concern grows to be other than small, the
procuring agency may exercise options and still count the award as an
award to a small business.
(h) A follow-on or renewal contract is a new contracting action. As
such, size is determined as of the date the concern submits a written
self-certification that it is small to the procuring agency as part of
its initial offer including price for the follow-on or renewal contract.
(i) At the time a novation or change-of-name agreement has been
executed pursuant to FAR subpart 42.12, the new entity must submit a
written self-certification that it is small to the procuring agency so
that the agency can count the award, options, or orders issued pursuant
to the contract towards its small business goals.

[69 FR 29205, May 21, 2004]

Sec. 121.405 May a business concern self-certify its small business
size status?

(a) A concern must self-certify it is small under the size standard
specified in the solicitation, or as clarified, completed or supplied by
SBA pursuant to Sec. 121.402(d).
(b) A contracting officer may accept a concern's self-certification
as true for the particular procurement involved in the absence of a
written protest by other offerors or other credible information which
causes the contracting officer or SBA to question the size of the
concern.
(c) Procedures for protesting the self-certification of an offeror
are set forth in Sec. Sec. 121.1001 through 121.1009.

Sec. 121.406 How does a small business concern qualify to provide
manufactured products under small business set-aside or 8(a)
contracts?

(a) General. In order to qualify as a small business concern for a
small business set-aside or 8(a) contract to provide manufactured
products, an offeror must either:
(1) Be the manufacturer of the end item being procured (and the end
item must be manufactured or produced in the United States); or
(2) Comply with the requirements of paragraph (b), (c) or (d) of
this section as a nonmanufacturer, a kit assembler or a supplier under
Simplified Acquisition Procedures.
(b) Nonmanufacturers. (1) A concern may qualify for a requirement to
provide manufactured products as a nonmanufacturer if it:

[[Page 324]]

(i) Does not exceed 500 employees;
(ii) Is primarily engaged in the retail or wholesale trade and
normally sells the type of item being supplied; and
(iii) Will supply the end item of a small business manufacturer or
processor made in the United States, or obtains a waiver of such
requirement pursuant to paragraph (b)(3) of this section.
(2) For size purposes, there can be only one manufacturer of the end
item being acquired. The manufacturer is the concern which, with its own
facilities, performs the primary activities in transforming inorganic or
organic substances, including the assembly of parts and components, into
the end item being acquired. The end item must possess characteristics
which, as a result of mechanical, chemical or human action, it did not
possess before the original substances, parts or components were
assembled or transformed. The end item may be finished and ready for
utilization or consumption, or it may be semifinished as a raw material
to be used in further manufacturing. Firms which perform only minimal
operations upon the item being procured do not qualify as manufacturers
of the end item. Firms that add substances, parts, or components to an
existing end item to modify its performance will not be considered the
end item manufacturer where those identical modifications can be
performed by and are available from the manufacturer of the existing end
item:
(i) SBA will evaluate the following factors in determining whether a
concern is the manufacturer of the end item:
(A) The proportion of total value in the end item added by the
efforts of the concern, excluding costs of overhead, testing, quality
control, and profit;
(B) The importance of the elements added by the concern to the
function of the end item, regardless of their relative value; and
(C) The concern's technical capabilities; plant, facilities and
equipment; production or assembly line processes; packaging and boxing
operations; labeling of products; and product warranties.
(ii) Firms that provide computer and other information technology
equipment primarily consisting of component parts (such as motherboards,
video cards, network cards, memory, power supplies, storage devices, and
similar items) who install components totaling less than 50% of the
value of the end item are generally not considered the manufacturer of
the end item.
(3) The Administrator or designee may waive the requirement set
forth in paragraph (b)(1)(iii) of this section under the following two
circumstances:
(i) The contracting officer has determined that no small business
manufacturer or processor reasonably can be expected to offer a product
meeting the specifications (including period for performance) required
by a particular solicitation and SBA reviews and accepts that
determination; or
(ii) SBA determines that no small business manufacturer or processor
of the product or class of products is available to participate in the
Federal procurement market.
(4) The two waiver possibilities identified in paragraph (b)(3) of
this section are called ``individual'' and ``class'' waivers
respectively, and the procedures for them are contained in Sec.
121.1204 .
(5) Any SBA waiver of the nonmanufacturer rule has no effect on
requirements external to the Small Business Act which involve domestic
sources of supply, such as the Buy American Act.
(c) Kit assemblers. (1) Where the manufactured item being acquired
is a kit of supplies or other goods provided by an offeror for a special
purpose, the offeror cannot exceed 500 employees, and 50 percent of the
total value of the components of the kit must be manufactured by
business concerns in the United States which are small under the size
standards for the NAICS codes of the components being assembled. The
offeror need not itself be the manufacturer of any of the items
assembled.
(2) Where the Government has specified an item for the kit which is
not produced by U.S. small business concerns, such item shall be
excluded from the calculation of total value in paragraph (c)(1) of this
section.

[[Page 325]]

(d) Simplified Acquisition Procedures. Where the procurement of a
manufactured item is processed under Simplified Acquisition Procedures,
as defined in Sec. 13.101 of the Federal Acquisition Regulation (FAR)
(48 CFR 13.101), and where the anticipated cost of the procurement will
not exceed $25,000, the offeror need not supply the end product of a
small business concern as long as the product acquired is manufactured
or produced in the United States, and the offeror does not exceed 500
employees. The offeror need not itself be the manufacturer of any of the
items acquired.
(e) These requirements do not apply to small business concern
subcontractors.

[61 FR 3286, Jan. 31, 1996; 61 FR 7986, Mar. 1, 1996, as amended at 65
FR 30863, May 15, 2000; 69 FR 29205, May 21, 2004]

Sec. 121.407 What are the size procedures for multiple item
procurements?

If a procurement calls for two or more specific end items or types
of services with different size standards and the offeror may submit an
offer on any or all end items or types of services, the offeror must
meet the size standard for each end item or service item for which it
submits an offer. If the procurement calls for more than one specific
end item or type of service and an offeror is required to submit an
offer on all items, the offeror may qualify as a small business for the
procurement if it meets the size standard of the item which accounts for
the greatest percentage of the total contract value.

Sec. 121.408 What are the size procedures for SBA's Certificate of
Competency Program?

(a) A firm which applies for a COC must file an ``Application for
Small Business Size Determination'' (SBA Form 355). If the initial
review of SBA Form 355 indicates the applicant, including its
affiliates, is small for purposes of the COC program, SBA will process
the application for COC. If the review indicates the applicant,
including its affiliates, is other than small, SBA will initiate a
formal size determination as set forth in Sec. 121.1009. In such a
case, SBA will not further process the COC application until a formal
size determination is made.
(b) A concern is ineligible for a COC if a formal SBA size
determination finds the concern other than small.

Sec. 121.409 What size standard applies in an unrestricted procurement
for Certificate of Competency purposes?

For the purpose of receiving a Certificate of Competency in an
unrestricted procurement, the applicable size standard is that
corresponding to the NAICS code set forth in the solicitation. For a
manufactured product, a concern must also furnish a domestically
produced or manufactured product, regardless of the size status of the
product manufacturer. The offeror need not be the manufacturer of any of
the items acquired.

[61 FR 3286, Jan. 31, 1996, as amended at 65 FR 30863, May 15, 2000]

Sec. 121.410 What are the size standards for SBA's Section 8(d)
Subcontracting Program?

For subcontracting purposes pursuant to sections 8(d) of the Small
Business Act, a concern is small for subcontracts which relate to
Government procurements if it does not exceed the size standard for the
NAICS code that the prime contractor believes best describes the product
or service being acquired by the subcontract. However, subcontracts for
engineering services awarded under the National Energy Policy Act of
1992 have the same size standard as Military and Aerospace Equipment and
Military Weapons under NAICS 541213.

[61 FR 3286, Jan. 31, 1996, as amended at 65 FR 30863, May 15, 2000; 69
FR 29205, May 21, 2004]

Sec. 121.411 What are the size procedures for SBA's Section 8(d)
Subcontracting Program?

(a) Prime contractors may rely on the information contained in the
Central Contractor Registration (CCR), or equivalent data base
maintained or sanctioned by SBA, as an accurate representation of a
concern's size and ownership characteristics for purposes of maintaining
a small business source list. Even though a concern is on a

[[Page 326]]

small business source list, it must still qualify and self-certify as a
small business at the time it submits its offer as a section 8(d)
subcontractor.
(b) Upon determination of the successful subcontract offeror for a
competitive subcontract, but prior to award, the prime contractor must
inform each unsuccessful subcontract offeror in writing of the name and
location of the apparent successful offeror.
(c) The self-certification of a concern subcontracting or proposing
to subcontract under section 8(d) of the Small Business Act may be
protested by the contracting officer, the prime contractor, the
appropriate SBA official or any other interested party.

[61 FR 3286, Jan. 31, 1996, as amended at 69 FR 29205, May 21, 2004]

Sec. 121.412 What are the size procedures for partial small business
set-asides?

A firm is required to meet size standard requirements only for the
small business set-aside portion of a procurement, and is not required
to qualify as a small business for the unrestricted portion.

Sec. 121.413 [Reserved]

Size Eligibility Requirements for Sales or Lease of Government Property

Sec. 121.501 What programs for sales or leases of Government property
are subject to size determinations?

Sections 121.501 through 121.512 apply to small business size
determinations for the purpose of the sale or lease of Government
property, including the Timber Sales Program, the Special Salvage Timber
Sales Program, and the sale of Government petroleum, coal and uranium.

Sec. 121.502 What size standards are applicable to programs for sales
or leases of Government property?

(a) Unless otherwise specified in this part--
(1) A concern primarily engaged in manufacturing is small for sales
or leases of Government property if it does not exceed 500 employees;
(2) A concern not primarily engaged in manufacturing is small for
sales or leases of Government property if it has annual receipts not
exceeding $6.5 million.
(b) Size status for such sales and leases is determined by the
primary industry of the applicant business concern.

[61 FR 3286, Jan. 31, 1996, as amended at 67 FR 3056, Jan. 23, 2002; 70
FR 72594, Dec. 6, 2005]

Sec. 121.503 Are SBA size determinations binding on parties?

Formal size determinations based upon a specific Government sale or
lease, or made in response to a request from another Government agency
under Sec. 121.901, are binding upon the parties. Other SBA opinions
provided to contracting officers or others are only advisory, and are
not binding or appealable.

Sec. 121.504 When does SBA determine the size status of a business
concern?

SBA determines the size status of a concern (including its
affiliates) as of the date the concern submits a written self-
certification that it is small to the Government as part of its initial
offer including price where there is a specific sale or lease at issue,
or as set forth in Sec. 121.903 if made in response to a request of
another Government agency.

Sec. 121.505 What is the effect of a self-certification?

(a) A contracting officer may accept a concern's self-certification
as true for the particular sale or lease involved, in the absence of a
written protest by other offerors or other credible information which
would cause the contracting officer or SBA to question the size of the
concern.
(b) Procedures for protesting the self-certification of an offeror
are set forth in Sec. Sec. 121.1001 through 121.1009.

Sec. 121.506 What definitions are important for sales or leases of
Government-owned timber?

(a) Forest product industry means logging, wood preserving, and the
manufacture of lumber and wood related products such as veneer, plywood,
hardboard, particle board, or wood

[[Page 327]]

pulp, and of products of which lumber or wood related products are the
principal raw materials.
(b) Logging of timber means felling and bucking, yarding, and/or
loading. It does not mean hauling.
(c) Manufacture of logs means, at a minimum, breaking down logs into
rough cuts of the finished product.
(d) Sell means, in addition to its usual and customary meaning, the
exchange of sawlogs for sawlogs on a product-for-product basis with or
without monetary adjustment, and an indirect transfer, such as the sale
of the assets of a concern after it has been awarded one or more set-
aside sales of timber.
(e) Significant logging of timber means that a concern uses its own
employees to perform at least two of the following: felling and bucking,
yarding, and loading.

Sec. 121.507 What are the size standards and other requirements for
the purchase of Government-owned timber (other than Special
Salvage Timber)?

(a) To be small for purposes of the sale of Government-owned timber
(other than Special Salvage Timber) a concern must:
(1) Be primarily engaged in the logging or forest products industry;
(2) Not exceed 500 employees, taking into account its affiliates;
and
(3) If it does not intend at the time of the offer to resell the
timber--
(i) Agree that it will manufacture the logs with its own facilities
or those of another business which meets the requirements of paragraphs
(a)(1) and (a)(2) of this section;
(ii) Agree that if it eventually resells the timber, it will resell
no more than 30% of the sawtimber volume to other businesses which do
not meet the requirements of paragraphs (a)(1) and (a)(2) of this
section; and
(iii) Agree that if it becomes acquired or controlled by a business
which does not meet the requirements of paragraphs (a)(1) and (a)(2) of
this section, it will require as a condition of the acquisition or
change of control that the acquiring or controlling business resell at
least 70% of the sawtimber volume to businesses which do meet the
requirements of paragraphs (a)(1) and (a)(2) of this section; or
(4) If it intends at the time of offer to resell the timber--
(i) Agree that it will not sell more than 30% of such timber (50% of
such timber if the concern is an Alaskan business) to a business which
does not meet the requirements of paragraphs (a)(1) and (a)(2) of this
section; and
(ii) Agree that if it becomes acquired or controlled by a business
which does not meet the requirements of paragraphs (a)(1) and (a)(2) of
this section, it will require as a condition of the acquisition or
change of control that the acquiring or controlling business resell at
least 70% of the sawtimber volume (or at least 50% of the sawtimber
volume, if it is an Alaskan business) to businesses which meet the
requirements of paragraphs (a)(1) and (a)(2) of this section.
(b) For a period of three years following the date upon which a
concern purchases timber under a small business set-aside (other than
through the Special Salvage Timber Sale program), it must maintain a
record of:
(1) The name, address and size status of every concern to which it
sells the timber or sawlogs; and
(2) The species, grades and volumes of sawlogs sold.
(c) For a period of three years following the date upon which a
concern purchases timber, it must by contract require all small business
repurchasers of the sawlogs or timber it purchased under the small
business set-aside to maintain the records described in paragraph (b) of
this section.

Sec. 121.508 What are the size standards and other requirements for
the purchase of Government-owned Special Salvage Timber?

(a) In order to purchase Government-owned Special Salvage Timber
from the United States Forest Service or the Bureau of Land Management
as a small business, a concern must:
(1) Be primarily engaged in the logging or forest product industry;
(2) Have, together with its affiliates, no more than twenty-five
employees during any pay period for the last twelve months; and
(3) If it does not intend at the time of offer to resell the
timber--

[[Page 328]]

(i) Agree that it will manufacture a significant portion of the logs
with its own employees; and
(ii) Agree that it will log the timber only with its own employees
or with employees of another business which is eligible for award of a
Special Salvage Timber sales contract; or
(4) If it intends at the time of offer to resell the timber, agree
that it will perform a significant portion of timber logging with its
own employees and that it will subcontract the remainder of the timber
logging to a concern which is eligible for award of a Special Salvage
Timber sales contract.

Sec. 121.509 What is the size standard for leasing of Government land
for coal mining?

A concern is small for this purpose if it:
(a) Together with its affiliates, does not have more than 250
employees;
(b) Maintains management and control of the actual mining operations
of the tract; and
(c) Agrees that if it subleases the Government land, it will be to
another small business, and that it will require its sublessors to agree
to the same.

Sec. 121.510 What is the size standard for leasing of Government land
for uranium mining?

A concern is small for this purpose if it, together with its
affiliates, does not have more than 100 employees.

Sec. 121.511 What is the size standard for buying Government-owned
petroleum?

A concern is small for this purpose if it is primarily engaged in
petroleum refining and meets the size standard for a petroleum refining
business.

Sec. 121.512 What is the size standard for stockpile purchases?

A concern is small for this purpose if:
(a) It is primarily engaged in the purchase of materials which are
not domestic products; and
(b) Its annual receipts, together with its affiliates, do not exceed
$51.5 million.

[61 FR 3286, Jan. 31, 1996, as amended at 67 FR 3056, Jan. 23, 2002; 70
FR 72594, Dec. 6, 2005]

Size Eligibility Requirements for the 8(a) Business Development Program

Sec. 121.601 What is a small business for purposes of admission to
SBA's 8(a) Business Development program?

An applicant must not exceed the size standard corresponding to its
primary industry classification in order to qualify for admission to
SBA's 8(a) Business Development Program.

[69 FR 29205, May 21, 2004]

Sec. 121.602 At what point in time must a 8(a) BD applicant be small?

A 8(a) BD applicant must be small for its primary industry at the
time SBA certifies it for admission into the program.

[61 FR 3286, Jan. 31, 1996, as amended at 69 FR 29206, May 21, 2004]

Sec. 121.603 How does SBA determine whether a Participant is small for
a particular 8(a) BD subcontract?

(a) Self certification by Participant. A 8(a) BD Participant must
certify that it qualifies as a small business under the NAICS code
assigned to a particular 8(a) BD subcontract as part of its initial
offer including price to the procuring agency. The Participant also must
submit a copy of its offer, including its self-certification as to size,
to the appropriate SBA district office at the same time it submits the
offer to the procuring agency. See Sec. 121.404 for the time at which
size is determined for, and Sec. 121.406 for the applicability of the
nonmanufacturer rule to, 8(a) BD procurements.
(b) Verification of size by SBA. Within 30 days of its receipt of a
Participant's size self-certification for a particular 8(a) BD
subcontract, the SBA district office serving the geographic area in
which the Participant's principal office is located will review the
Participant's self-certification and determine if it is small for
purposes of that subcontract. The SBA district office will review the
Participant's most recent financial statements and other relevant data
and then notify the Participant of its decision.
(c) Changes in size between date of self-certification and date of
award. (1) Where

[[Page 329]]

SBA verifies that the selected Participant is small for a particular
procurement, subsequent changes in size up to the date of award, except
those due to merger with or acquisition by another business concern,
will not affect the firm's size status for that procurement.
(2) Where a Participant has merged with or been acquired by another
business concern between the date of its self-certification and the date
of award, the concern must recertify its size status, and SBA must
verify the new certification before award can occur.
(d) Finding Participant to be other than small. (1) A Participant
may request a formal size determination (pursuant to Sec. Sec. 121.1001
through 121.1009) with the SBA Government Contracting Area Office
serving the geographic area in which the principal office of the
Participant is located within 5 working days of its receipt of notice
from the SBA district office that it is not small for a particular 8(a)
BD subcontract.
(2) Where the Participant does not timely request a formal size
determination, SBA may accept the procurement in support of another
Participant, or may rescind its acceptance of the offer for the 8(a) BD
program, as appropriate.

[61 FR 3286, Jan. 31, 1996, as amended at 65 FR 30863, May 15, 2000; 69
FR 29206, May 21, 2004]

Sec. 121.604 Are 8(a) BD Participants considered small for purposes of
other SBA assistance?

A concern which SBA determines to be a small business for the award
of a 8(a) BD subcontract will be considered to have met applicable size
eligibility requirements of other SBA programs where that assistance
directly and primarily relates to the performance of the 8(a) BD
subcontract in question.

[61 FR 3286, Jan. 31, 1996, as amended at 69 FR 29206, May 21, 2004]

Size Eligibility Requirements for the Small Business Innovation Research
(SBIR) Program

Sec. 121.701 What SBIR programs are subject to size determinations?

(a) These sections apply to size status for award of a funding
agreement pursuant to the Small Business Innovation Development Act of
1982 (Pub. L. 97-219, 15 U.S.C. 638(e) through (k)).
(b) Funding agreement officer means a contracting officer, a grants
officer, or a cooperative agreement officer.
(c) Funding agreement means any contract, grant or cooperative
agreement entered into between any Federal agency and any small business
for the performance of experimental, developmental, or research work
funded in whole or in part by the Federal Government. Such work
includes:
(1) A systematic, intensive study directed toward greater knowledge
or understanding of the subject studied;
(2) A systematic study directed specifically toward applying new
knowledge to meet a recognized need; or
(3) A systematic application of knowledge toward the production of
useful materials, devices, and systems or methods, including design,
development, and improvement of prototypes and new processes to meet
specific requirements.

Sec. 121.702 What size standards are applicable to the SBIR program?

To be eligible for award of funding agreements in the SBA's Small
Business Innovation Research (SBIR) program, a business concern must
meet the requirements of paragraphs (a) and (b) below:
(a) Ownership and control. (1) An SBIR awardee must (i) be a concern
which is at least 51% owned and controlled by one or more individuals
who are citizens of the United States, or permanent resident aliens in
the United States; or
(ii) Be a concern which is at least 51% owned and controlled by
another business concern that is itself at least 51% owned and
controlled by individuals who are citizens of, or permanent resident
aliens in the United States; or
(iii) Be a joint venture in which each entity to the venture must
meet the requirements set forth in either paragraphs (a)(1)(i) or
(a)(1)(ii) of this section.
(2) If an Employee Stock Option Plan owns all or part of the
concern, SBA considers each stock trustee and plan member to be an
owner.

[[Page 330]]

(3) If a trust owns all or part of the concern, SBA considers each
trustee and trust beneficiary to be an owner.
(b) Size. An SBIR awardee, together with its affiliates, not have
more than 500 employees.

[69 FR 70185, Dec. 3, 2004]

Sec. 121.703 Are formal size determinations binding on parties?

Size determinations by authorized SBA officials are formal actions
based upon a specific funding agreement, and are binding upon the
parties. Other SBA opinions provided to funding agreement officers or
others, are only advisory, and are not binding or appealable.

Sec. 121.704 When does SBA determine the size status of a business
concern?

The size status of a concern for the purpose of a funding agreement
under the SBIR program is determined as of the date of the award for
both Phase I and Phase II SBIR awards or on the date of the request for
a size determination, if an award is pending.

[69 FR 29206, May 21, 2004]

Sec. 121.705 Must a business concern self-certify its size status?

(a) A firm must self-certify that it currently meets the eligibility
requirements set forth in Sec. 121.702 of this title or will meet those
eligibility requirements on the date of award of a funding agreement for
a Phase I or Phase II SBIR award.
(b) A funding agreement officer may accept a concern's self-
certification as true for the particular funding agreement involved in
the absence of a written protest by other offerors or other credible
information which would cause the funding agreement officer or SBA to
question the size of the concern.
(c) Procedures for protesting an offeror's self-certification are
set forth in Sec. Sec. 121.1001 through 121.1009.

[61 FR 3286, Jan. 31, 1996, as amended at 69 FR 29206, May 21, 2004]

Size Eligibility Requirements for Paying Reduced Patent Fees

Sec. 121.801 May patent fees be reduced if a concern is small?

These sections apply to size status for the purpose of paying
reduced patent fees authorized by Pub. L. 97-247, 96 Stat. 317. The
eligibility requirements for independent inventors and nonprofit
organizations for the purpose of paying reduced patent fees are set
forth in regulations of the Patent and Trademark Office of the
Department of Commerce, 37 CFR 1.9, 1.27, 1.28.

Sec. 121.802 What size standards are applicable to reduced patent fees
programs?

A concern eligible for reduced patent fees is one:
(a) Whose number of employees, including affiliates, does not exceed
500 persons; and
(b) Which has not assigned, granted, conveyed, or licensed (and is
under no obligation to do so) any rights in the invention to any person
who made it and could not be classified as an independent inventor, or
to any concern which would not qualify as a non-profit organization or a
small business concern under this section.

Sec. 121.803 Are formal size determinations binding on parties?

Size determinations by authorized SBA officials are formal actions,
based upon a specific patent application pursuant to the rules of the
Patent and Trademark Office, Department of Commerce, and are binding
upon the parties. Other SBA opinions provided to patent applicants or
others are only advisory, and are not binding or appealable.

Sec. 121.804 When does SBA determine the size status of a business
concern?

Size status is determined as of the date of the patent applicant's
written verification of size.

Sec. 121.805 May a business concern self-certify its size status?

(a) A concern verifies its size status with its submission of its
patent application.

[[Page 331]]

(b) Any attempt to establish small size status improperly
(fraudulently, through gross negligence, or otherwise) may result in
remedial action by the Patent and Trademark Office.
(c) In the absence of credible information indicating otherwise, the
Patent and Trademark Office may accept the verification by the concern
as a small business as true.
(d) Questions concerning the size verification are resolved
initially by the Patent and Trademark Office. If not verified as small,
the applicant may request a formal SBA size determination.

Size Eligibility Requirements for Compliance With Programs of Other
Agencies

Sec. 121.901 Can other Government agencies obtain SBA size
determinations?

Upon request by another Government agency, SBA will provide a size
determination, under SBA rules, standards and procedures, for its use in
determining compliance with small business requirements of its statutes,
regulations or programs.

Sec. 121.902 What size standards are applicable to programs of other
agencies?

SBA size standards. The size standards for compliance with programs
of other agencies are those for SBA programs which are most comparable
to the programs of such other agencies, unless the agency and SBA agree
otherwise.

[67 FR 13716, Mar. 26, 2002]

Sec. 121.903 How may an agency use size standards for its programs
that are different than those established by SBA?

(a) Federal agencies or departments promulgating regulations
relating to small businesses usually use SBA size criteria. In limited
circumstances, if they decide the SBA size standard is not suitable for
their programs, then agency heads may establish a more appropriate small
business definition for the exclusive use in such programs, but only
when:
(1) The size standard will determine:
(i) The size of a manufacturing concern by its average number of
employees based on the preceding twelve calendar months, determined
according to Sec. 121.106;
(ii) The size of a services concern by its average annual receipts
over a period of at least three years, determined according to Sec.
121.104;
(iii) The size of other concerns on data over a period of at least
three years; or,
(iv) Other factors approved by SBA;
(2) The agency has consulted in writing with SBA's Assistant
Administrator for Size Standards at least fourteen (14) calendar days
before publishing the proposed rule which is part of the rulemaking
process. The written consultation will include:
(i) What size standard the agency contemplates using;
(ii) To what agency program it will apply;
(iii) How the agency arrived at this particular size standard for
this program; and,
(iv) Why SBA's existing size standards do not satisfy the program
requirements;
(3) The agency proposes the size standard for public comment
pursuant to the Administrative Procedure Act, 5 U.S.C. 553;
(4) The agency provides a copy of the proposed rule, when it
publishes it for public comment as part of the rulemaking process, to
SBA's Assistant Administrator for Size Standards; and
(5) SBA's Administrator approves the size standard before the agency
adopts a final rule or otherwise prescribes the size standard for its
use. The agency's request for the SBA Administrator's approval must
include:
(i) Copies of all comments on the proposed size standard received in
response to the proposed rule;
(ii) A separate written justification for the intended size
standard;
(iii) A copy of the intended final rule if available at that time,
or a copy of the intended final rule and preamble prior to its
publication; and
(iv) Other information SBA may request in connection with the
request.
(b) When approving any size standard established pursuant to this
section, SBA's Administrator will ensure that

[[Page 332]]

the size standard varies from industry to industry to the extent
necessary to reflect the differing characteristics of the various
industries, and consider other relevant factors.
(c) Where the agency head is developing a size standard for the sole
purpose of performing a Regulatory Flexibility Analysis pursuant to
section 601(3) of the Regulatory Flexibility Act, the department or
agency may, after consultation with the SBA Office of Advocacy,
establish a size standard different from SBA's which is more appropriate
for such analysis.

[67 FR 13716, Mar. 26, 2002]

Sec. 121.904 When does SBA determine the size status of a business
concern?

For compliance with programs of other agencies, SBA will base its
size determination on the size of the concern as of the date set forth
in the request of the other agency.

[67 FR 13716, Mar. 26, 2002]

Procedures for Size Protests and Requests for Formal Size Determinations

Sec. 121.1001 Who may initiate a size protest or request a formal size
determination?

(a) Size Status Protests. (1) For SBA's Small Business Set-Aside
Program, including the Property Sales Program, or any instance in which
a procurement or order has been restricted to or reserved for small
business or a particular group of small business, the following entities
may file a size protest in connection with a particular procurement,
sale or order:
(i) Any offeror whom the contracting officer has not eliminated for
reasons unrelated to size;
(ii) The contracting officer;
(iii) The SBA Government Contracting Area Director having
responsibility for the area in which the headquarters of the protested
offeror is located, regardless of the location of a parent company or
affiliates, or the Associate Administrator for Government Contracting;
and
(iv) Other interested parties. Other interested parties include
large businesses where only one concern submitted an offer for the
specific procurement in question. A concern found to be other than small
in connection with the procurement is not an interested party unless
there is only one remaining offeror after the concern is found to be
other than small.
(2) For competitive 8(a) contracts, the following entities may
protest:
(i) Any offeror whom the contracting officer has not eliminated for
reasons unrelated to size;
(ii) The contracting officer; or
(iii) The SBA District Director, or designee, in either the district
office serving the geographical area in which the procuring activity is
located or the district office that services the apparent successful
offeror, or the Associate Administrator for 8(a) Business Development.
(3) For SBA's Subcontracting Program, the following entities may
protest:
(i) The prime contractor;
(ii) The contracting officer;
(iii) Other potential subcontractors;
(iv) The responsible SBA Government Contracting Area Director or the
Associate Administrator for Government Contracting; and
(v) Other interested parties.
(4) For SBA's Small Business Innovation Research (SBIR) Program, the
following entities may protest:
(i) A prospective offeror;
(ii) The funding agreement officer;
(iii) The responsible SBA Government Contracting Area Director or
the Assistant Administrator for Technology; and
(iv) Other interested parties.
(5) For the Department of Defense's Small Disadvantaged Business
(SDB) Program, and any other similar program of another Federal agency,
the following entities may file a protest in connection with a
particular SDB procurement:
(i) Any offeror for the specific SDB requirement whom the
contracting officer has not eliminated for reasons unrelated to size;
(ii) The contracting officer; and
(iii) The responsible SBA Area Director for Government Contracting,
the

[[Page 333]]

SBA Associate Administrator for Government Contracting, or the SBA
Associate Administrator for 8(a) Business Development;
(6) For SBA's HUBZone program, the following entities may protest in
connection with a particular HUBZone procurement:
(i) Any concern that submits an offer for a specific HUBZone set-
aside procurement that the contracting officer has not eliminated for
reasons unrelated to size;
(ii) Any concern that submitted an offer in full and open
competition and its opportunity for award will be affected by a price
evaluation preference given a qualified HUBZone SBC;
(iii) The contracting officer; and
(iv) The SBA Associate Administrator for the HUBZone Program, or
designee.
(7) For any unrestricted Government procurement in which a business
concern has represented itself as a small business concern, the
following entities may protest in connection with a particular
procurement:
(i) Any offeror;
(ii) The contracting officer; and
(iii) The responsible SBA Government Contracting Area Director, the
Associate Administrator for Government Contracting, or the Associate
Administrator for MED.
(8) For SBA's Service Disabled Veteran-Owned Small Business Concern
program, the following entities may protest in connection with a
particular service-disabled veteran-owned procurement:
(i) Any concern that submits an offer for a specific service-
disabled veteran-owned small business set-aside contract;
(ii) The contracting officer;
(iii) The SBA Government Contracting Area Director; and
(iv) The Associate Administrator for Government Contracting, or
designee.
(b) Request for Size Determinations. (1) For SBA's Financial
Assistance Programs, the following entities may request a formal size
determination:
(i) The applicant for assistance; and
(ii) The SBA official with authority to take final action on the
assistance requested. That official may also request the appropriate
Government Contracting Area Office to determine whether affiliation
exists between an applicant for financial assistance and one or more
other entities for purposes of determining whether the applicant would
exceed the loan limit amount imposed by Sec. 120.151 of this chapter.
(iii) The SBA Associate Administrator for Investment or designee may
request a formal size determination for any purpose relating to the SBIC
program (see part 107 of this chapter) or the NMVC program (see part 108
of this chapter). A formal size determination includes a request to
determine whether or not affiliation exists between two or more entities
for any purpose relating to the SBIC program.
(2) For SBA's 8(a) BD program:
(i) Concerning initial or continued 8(a) BD eligibility, the
following entities may request a formal size determination:
(A) The 8(a) BD applicant concern or Participant; or
(B) The Assistant Administrator of the Division of Program
Certification and Eligibility or the Associate Administrator for 8(a)BD.
(ii) Concerning individual sole source 8(a) contract awards, the
following entities may request a formal size determination:
(A) The Participant nominated for award of the particular sole
source contract;
(B) The SBA program official with authority to execute the 8(a)
contract or, where applicable, the procuring activity contracting
officer who has been delegated SBA's 8(a) contract execution functions;
or
(C) The SBA District Director in the district office that services
the Participant, or the Associate Administrator for 8(a)BD.
(3) For SBA's Certificate of Competency Program, the following
entities may request a formal size determination:
(i) The offeror who has applied for a COC; and
(ii) The responsible SBA Government Contracting Area Director or the
Associate Administrator for Government Contracting.
(4) For SBA's sale or lease of government property, the following
entities

[[Page 334]]

may request a formal size determination:
(i) The responsible SBA Government Contracting Area Director or the
Associate Administrator for Government Contracting; and
(ii) Authorized officials of other Federal agencies administering a
property sales program.
(5) For eligibility to pay reduced patent fees, the following
entities may request a formal size determination:
(i) The applicant for the reduced patent fees; and
(ii) The Patent and Trademark Office.
(6) For purposes of determining compliance with small business
requirements of another Government agency program not otherwise
specified in this section, an official with authority to administer the
program involved may request a formal size determination.
(7) In connection with initial or continued eligibility for the
Small Disadvantaged Business (SDB) program, the following may request a
formal size determination:
(i) The applicant or SDB concern; or
(ii) The Assistant Administrator of the Division of Program
Certification and Eligibility or the Associate Administrator for 8(a)BD.
(8) In connection with initial or continued eligibility for the
HUBZone program, the following may request a formal size determination:
(i) The applicant or qualified HUBZone business concern; or
(ii) The Associate Administrator for the HUBZone program, or
designee.
(9) For purposes of validating that firms listed in the Central
Contractor Registration database are small, the Government Contracting
Area Director or the Associate Administrator for Government Contracting
may initiate a formal size determination when sufficient information
exists that calls into question a firm's small business status. The
current date will be used to determine size, and SBA will initiate the
process to remove from the database the small business designation of
any firm found to be other than small.

[61 FR 3286, Jan. 31, 1996, as amended at 63 FR 31907, June 11, 1998; 63
FR 35739, June 30, 1998; 69 FR 25266, May 5, 2004; 69 FR 29206, May 21,
2004; 69 FR 29420, May 24, 2004; 69 FR 44461, July 26, 2004]

Sec. 121.1002 Who makes a formal size determination?

The responsible Government Contracting Area Director or designee
makes all formal size determinations in response to either a size
protest or a request for a formal size determination, with the exception
of size determinations for purposes of the Disaster Loan Program, which
will be made by the Disaster Area Office Director or designee
responsible for the area in which the disaster occurred.

Sec. 121.1003 Where should a size protest be filed?

A protest involving a government procurement or sale must be filed
with the contracting officer for the procurement or sale, who must
forward the protest to the SBA Government Contracting Area Office
serving the area in which the headquarters of the protested concern is
located, regardless of the location of any parent company or affiliates.

Sec. 121.1004 What time limits apply to size protests?

(a) Protests by entities other than contracting officers or SBA--(1)
Non-negotiated procurement or sale. A protest must be received by the
contracting officer prior to the close of business on the 5th day,
exclusive of Saturdays, Sundays, and legal holidays, after bid or
proposal opening.
(2) Negotiated procurement. A protest must be received by the
contracting officer prior to the close of business on the 5th day,
exclusive of Saturdays, Sundays, and legal holidays, after the
contracting officer has notified the protestor of the identity of the
prospective awardee.
(3) Multiple award schedule. On a multiple award schedule
procurement set aside for small business, protests will be considered
timely if received by

[[Page 335]]

SBA at any time prior to the expiration of the contract period
(including renewals).
(4) Electronic notification of award. Where notification of award is
made electronically, such as posting on the Internet under Simplified
Acquisition Procedures, a protest must be received by the contracting
officer before close of business on the fifth day, exclusive of
Saturdays, Sundays, and legal holidays, after the electronic posting.
(5) No notice of award. Where there is no requirement for written
pre-award notice or notice of award, or where the contracting officer
has failed to provide written notification of award, the 5-day protest
period will commence upon oral notification by the contracting officer
or authorized representative or another means (such as public
announcements or other oral communications) of the identity of the
apparent successful offeror.
(b) Protests by contracting officers or SBA. The time limitations in
paragraph (a) of this section do not apply to contracting officers or
SBA, and they may file protests before or after awards, except to the
extent set forth in paragraph (e) of this section. Notwithstanding
paragraph (e), for purposes of the SBIR program the contracting officer
and SBA may file a protest in anticipation of award.
(c) Effect of contract award. A timely filed protest applies to the
procurement in question even though a contracting officer awarded the
contract prior to receipt of the protest.
(d) Untimely protests. A protest received after the allotted time
limits must still be forwarded to SBA. SBA will dismiss untimely
protests.
(e) Premature protests. A protest filed by any party, including the
contracting officer, before bid opening or notification to offerors of
the selection of the apparent successful offer will be dismissed as
premature.

[61 FR 3286, Jan. 31, 1996, as amended at 69 FR 29206, May 21, 2004]

Sec. 121.1005 How must a protest be filed with the contracting
officer?

A protest must be delivered to the contracting officer by hand,
telegram, mail, facsimile, Federal Express or other overnight delivery
service, e-mail, or telephone. If a protest is made by telephone, the
contracting officer must later receive a confirming letter either within
the 5-day period in Sec. 121.1004(a)(1) or postmarked no later than one
day after the date of the telephone protest.

[61 FR 3286, Jan. 31, 1996, as amended at 69 FR 29206, May 21, 2004]

Sec. 121.1006 When will a size protest be referred to an SBA
Government Contracting Area Office?

(a) A contracting officer who receives a protest (other than from
SBA) must forward the protest promptly to the SBA Government Contracting
Area Office serving the area in which the headquarters of the offeror is
located.
(b) A contracting officer's referral must contain the following
information:
(1) The protest and any accompanying materials;
(2) A copy of the self-certification as to size;
(3) Identification of the applicable size standard;
(4) A copy of the solicitation;
(5) Identification of the date of bid opening or notification
provided to unsuccessful offerors;
(6) The date on which the protest was received; and
(7) A complete address and point of contact for the protested
concern.

Sec. 121.1007 Must a protest of size status relate to a particular
procurement and be specific?

(a) Particular procurement. A protest challenging the size of a
concern which does not pertain to a particular procurement or sale will
not be acted on by SBA.
(b) A protest must include specific facts. A protest must be
sufficiently specific to provide reasonable notice as to the grounds
upon which the protested concern's size is questioned. Some basis for
the belief or allegation stated in the protest must be given. A protest
merely alleging that the protested concern is not small or is affiliated
with unnamed other concerns does not specify adequate grounds for the
protest. No particular form is prescribed

[[Page 336]]

for a protest. Where materials supporting the protest are available,
they should be submitted with the protest.
(c) Non-specific protests will be dismissed. Protests which do not
contain sufficient specificity will be dismissed by SBA. The following
are examples of allegation specificity:

Example 1: An allegation that concern X is large because it employs
more than 500 employees (where 500 employees is the applicable size
standard) without setting forth a basis for the allegation is non-
specific.
Example 2: An allegation that concern X is large because it exceeds
the 500 employee size standard (where 500 employees is the applicable
size standard) because a higher employment figure was published in
publication Y is sufficiently specific.
Example 3: An allegation that concern X is affiliated with concern Y
without setting forth any basis for the allegation is non-specific.
Example 4: An allegation that concern X is affiliated with concern Y
because Mr. A is the majority shareholder in both concerns is
sufficiently specific.
Example 5: An allegation that concern X has revenues in excess of $5
million (where $5 million is the applicable size standard) without
setting forth a basis for the allegation is non-specific.
Example 6: An allegation that concern X exceeds the size standard
(where the applicable size standard is $5 million) because it received
Government contracts in excess of $5 million last year is sufficiently
specific.

[61 FR 3286, Jan. 31, 1996, as amended at 69 FR 29206, May 21, 2004]

Sec. 121.1008 What occurs after SBA receives a size protest or request
for a formal size determination?

(a) When SBA receives a size protest, the SBA Area Director for
Government Contracting, or designee, will notify the contracting
officer, the protested concern, and the protestor that the protest has
been received. If the protest pertains to a requirement involving SBA's
HUBZone program, the Area Director will also notify the AA/HUB of the
protest. If the protest pertains to a requirement involving SBA's SBIR
Program, the Area Director will also notify the Assistant Administrator
for Technology. If the protest involves the size status of a concern
that SBA has certified as a small disadvantaged business (SDB) (see part
124, subpart B of this chapter) the Area Director will notify SBA's AA/
8(a) BD. If the protest pertains to a requirement that has been reserved
for competition among eligible 8(a) BD program participants, the Area
Director will notify the SBA district office servicing the 8(a) concern
whose size status has been protested. SBA will provide a copy of the
protest to the protested concern together with SBA Form 355, Application
for Small Business Size Determination, by certified mail, return receipt
requested, or by any overnight delivery service that provides proof of
receipt. SBA will ask the protested concern to complete the form and
respond to the allegations in the protest.
(b) When SBA receives a request for a formal size determination in
accord with Sec. 121.1001(b), SBA will provide a blank copy of SBA Form
355 to the concern whose size is at issue.
(c) The protested concern or concern whose size is at issue must
return the completed SBA Form 355 and all other requested information to
SBA within 3 working days from the date of receipt of the blank form
from SBA. SBA has discretion to grant an extension of time to file the
form. The firm must attach to the completed SBA Form 355 its answers to
the allegations contained in the protest, where applicable, together
with any supporting material.
(d) If a concern whose size status is at issue fails to submit a
completed SBA Form 355, responses to the allegations of the protest, or
other requested information within the time allowed by SBA, or if it
submits incomplete information, SBA may presume that disclosure of the
information required by the form or other missing information would
demonstrate that the concern is other than a small business. A concern
whose size status is at issue must furnish information about its alleged
affiliates to SBA, despite any third party claims of privacy or
confidentiality, because SBA will not disclose information obtained in
the course of a size determination except as permitted by Federal law.

[61 FR 3286, Jan. 31, 1996, as amended at 63 FR 31908, June 11, 1998; 69
FR 29207, May 21, 2004]

[[Page 337]]

Sec. 121.1009 What are the procedures for making the size
determination?

(a) Time frame for making size determination. After receipt of a
protest or a request for a formal size determination, SBA will make a
formal size determination within 10 working days, if possible.
(b) Basis for determination. The size determination will be based
primarily on the information supplied by the protestor or the entity
requesting the size determination and that provided by the concern whose
size status is at issue. The determination, however, may also be based
on grounds not raised in the protest or request for size determination.
SBA may use other information and may make requests for additional
information to the protestor, the concern whose size status is at issue
and any alleged affiliates, or other parties.
(c) Burden of persuasion. The concern whose size is under
consideration has the burden of establishing its small business size.
(d) Weight of evidence. SBA will give greater weight to specific,
signed, factual evidence than to general, unsupported allegations or
opinions. In the case of refusal or failure to furnish requested
information within a required time period, SBA may assume that
disclosure would be contrary to the interests of the party failing to
make disclosure.
(e) Formal size determination. The SBA will base its formal size
determination upon the record, including reasonable inferences from the
record, and will state in writing the basis for its findings and
conclusions.
(f) Notification of determination. SBA will promptly notify the
contracting officer, the protestor, and the protested offeror, as well
as each affiliate or alleged affiliate, of the size determination. The
notification will be by certified mail, return receipt requested, or by
any overnight delivery service that provides proof of receipt.
(g) Results of an SBA Size Determination. (1) A formal size
determination becomes effective immediately and remains in full force
and effect unless and until reversed by OHA.
(2) A contracting officer may award a contract based on SBA's formal
size determination.
(3) If the formal size determination is appealed to OHA, the OHA
decision on appeal will apply to the pending procurement or sale if the
decision is received before award. OHA decisions received after contract
award will not apply to that procurement or sale, but will have future
effect, unless the contracting officer agrees to apply the OHA decision
to the procurement or sale.
(4) Once SBA has determined that a concern is other than small for
purposes of a particular procurement, the concern cannot later become
eligible for the procurement by reducing its size.
(5) A concern determined to be other than small under a particular
size standard is ineligible for any procurement or any assistance
authorized by the Small Business Act or the Small Business Investment
Act of 1958 which requires the same or a lower size standard, unless SBA
recertifies the concern to be small pursuant to Sec. 121.1010 or OHA
reverses the adverse size determination. After an adverse size
determination, a concern cannot self-certify as small under the same or
lower size standard unless it is first recertified as small by SBA. If a
concern does so, it may be in violation of criminal laws, including
section 16(d) of the Small Business Act, 15 U.S.C. 645(d). If the
concern has already certified itself as small on a pending procurement
or on an application for SBA assistance, the concern must immediately
inform the officials responsible for the pending procurement or
requested assistance of the adverse size determination.
(h) Limited reopening of size determinations. In cases where the
size determination contains clear administrative error or a clear
mistake of fact, SBA may, in its sole discretion, reopen the size
determination to correct the error or mistake, provided no appeal has
been filed with OHA.

[61 FR 3286, Jan. 31, 1996, as amended at 67 FR 47245, July 18, 2002; 69
FR 29207, May 21, 2004]

[[Page 338]]

Sec. 121.1010 How does a concern become recertified as a small
business?

(a) A concern may request SBA to recertify it as small at any time
by filing an application for recertification with the Government
Contracting Area Office responsible for the area in which the
headquarters of the applicant is located, regardless of the location of
parent companies or affiliates. No particular form is prescribed for the
application; however, the request for recertification must be
accompanied by a current completed SBA Form 355 and any other
information sufficient to show a significant change in its ownership,
management, or other factors bearing on its status as a small concern.
(b) Recertification will not be required nor will the prohibition
against future self-certification apply if the adverse SBA size
determination is based solely on a finding of affiliation due to a joint
venture (e.g., ostensible subcontracting) limited to a particular
Government procurement or property sale, or is based on an ineligible
manufacturer where the eligible small business bidder or offeror is a
nonmanufacturer on a particular Government procurement.
(c) A denial of an application for recertification is a formal size
determination and may be reviewed by OHA at the discretion of that
office.
(d) The granting of an application for recertification has future
effect only. While it is a formal size determination, notice of
recertification is required to be given only to the applicant.

Appeals of Size Determinations and NAICS Code Designations

Sec. 121.1101 Are formal size determinations subject to appeal?

(a) Appeals from formal size determinations may be made to OHA.
Unless an appeal is made to OHA, the size determination made by a SBA
Government Contracting Area Office or Disaster Area Office is the final
decision of the agency. The procedures for appealing a formal size
determination to OHA are set forth in part 134 of this chapter. The OHA
appeal is an administrative remedy that must be exhausted before
judicial review of a formal size determination may be sought in a court.
(b) OHA will not review a formal size determination where the
contract has been awarded and the issue(s) raised in a petition for
review are contract specific, such as compliance with the
nonmanufacturer rule (see Sec. 121.406(b)), or joint venture or
ostensible subcontractor rule (see Sec. 121.103(h)).

[69 FR 29207, May 21, 2004]

Sec. 121.1102 Are NAICS code designations subject to appeal?

A NAICS code designation made by a procuring activity contracting
officer may be appealed to OHA. The procedures governing OHA appeals are
set forth in part 134 of this chapter. The OHA appeal is an
administrative remedy that must be exhausted before judicial review of a
NAICS code designation may be sought in a court.

[67 FR 47245, July 18, 2002]

Sec. 121.1103 What are the procedures for appealing a NAICS code
designation?

(a) Any interested party adversely affected by a NAICS code
designation may appeal the designation to OHA. The only exception is
that, for a sole source contract reserved under SBA's 8(a) Business
Development program (see part 124 of this chapter), only SBA's Associate
Administrator for 8(a) Business Development may appeal the NAICS code
designation.
(b) The contracting officer's determination of the applicable NAICS
code is final unless appealed as follows:
(1) An appeal from a contracting officer's NAICS code designation
and applicable size standard must be served and filed within 10 calendar
days after the issuance of the initial solicitation. OHA will summarily
dismiss an untimely NAICS code appeal.
(2)(i) The appeal petition must be in writing and must be sent to
the Office of Hearings & Appeals, U.S. Small Business Administration,
409 3rd Street, SW., Suite 5900, Washington, DC 20416.
(ii) There is no required format for a NAICS code appeal, but an
appeal must include the following information: the solicitation or
contract number; the

[[Page 339]]

name, address, and telephone number of the contracting officer; a full
and specific statement as to why the NAICS code designation is
erroneous, and argument in support thereof; and the name, address and
telephone number of the appellant or its attorney.
(3) The appellant must serve the appeal petition upon the
contracting officer who assigned the NAICS code to the acquisition and
SBA's Office of General Counsel, Associate General Counsel for
Procurement Law, 409 3rd Street, SW., Washington, DC 20416.
(4) Upon receipt of a NAICS code appeal, OHA will notify the
contracting officer by notice and order of the date OHA received the
appeal, the docket number, and the Judge assigned to the case. The
contracting officer's response to the appeal must include argument and
supporting evidence (see part 134, subpart C, of this chapter) and must
be received by OHA within 10 calendar days from the date of the
docketing notice and order, unless otherwise specified by the 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 NAICS code appeal.
(5) After close of the record, OHA will issue a decision and inform
all interested parties, including the appellant and contracting officer.
If OHA's decision is received by the contracting officer before the date
offers are due, the solicitation must be amended if the contracting
officer's designation of the NAICS code is reversed. If OHA's decision
is received by the contracting officer after the due date of initial
offers, the decision will not apply to the pending procurement, but will
apply to future solicitations for the same products or services.

[69 FR 29207, May 21, 2004]

Subpart B_Other Applicable Provisions

Waivers of the Nonmanufacturer Rule for Classes of Products and
Individual Contracts

Sec. 121.1201 What is the Nonmanufacturer Rule?

The Nonmanufacturer Rule is set forth in Sec. 121.406(b).

Sec. 121.1202 When will a waiver of the Nonmanufacturer Rule be
granted for a class of products?

(a) A waiver for a class of products (class waiver) will be granted
when there are no small business manufacturers or processors available
to participate in the Federal market for that class of products.
(b) Federal market means acquisitions by the Federal Government from
offerors located in the United States, or such smaller area as SBA
designates if it concludes that the class of products is not supplied on
a national basis.
(1) When considering the appropriate market area for a product, SBA
presumes that the entire United States is the relevant Federal market,
unless it is clearly demonstrated that a class of products cannot be
procured on a national basis. This presumption may be particularly
difficult to overcome in the case of manufactured products, since such
items typically have a market area encompassing the entire United
States.
(2) When considering geographic segmentation of a Federal market,
SBA will not necessarily use market definitions dependent on airline
radius, political, or SBA regional boundaries. Market areas typically
follow established transportation routes rather than jurisdictional
borders. SBA examines the following factors, among others, in cases
where geographic segmentation for a class of products is urged:
(i) Whether perishability affects the area in which the product can
practically be sold;
(ii) Whether transportation costs are high as a proportion of the
total value of the product so as to limit the economic distribution of
the product;
(iii) Whether there are legal barriers to transportation of the
item;
(iv) Whether a fixed, well-delineated boundary exists for the
purported market area and whether this boundary has been stable over
time; and
(v) Whether a small business, not currently selling in the defined
market area, could potentially enter the market from another area and
supply the market at a reasonable price.
(c) Available to participate in the context of the Federal market
means that

[[Page 340]]

contractors exist that have been awarded or have performed a contract to
supply a specific class of products to the Federal Government within 24
months from the date of the request for waiver, either directly or
through a dealer, or who have submitted an offer on a solicitation for
that class of products within that time frame.
(d) Class of products is an individual subdivision within an NAICS
Industry Number as established by the Office of Management and Budget in
the NAICS Manual.

[61 FR 3286, Jan. 31, 1996, as amended at 65 FR 30863, May 15, 2000]

Sec. 121.1203 When will a waiver of the Nonmanufacturer Rule be
granted for an individual contract?

An individual waiver for a product in a specific solicitation will
be approved when the SBA Associate Administrator for Government
Contracting reviews and accepts a contracting officer's determination
that no small business manufacturer or processor can reasonably be
expected to offer a product meeting the specifications of a
solicitation, including the period of performance.

Sec. 121.1204 What are the procedures for requesting and granting
waivers?

(a) Waivers for classes of products. (1) SBA may, at its own
initiative, examine a class of products for possible waiver of the
Nonmanufacturer Rule.
(2) Any interested person, business, association, or Federal agency
may submit a request for a waiver for a particular class of products.
Requests should be addressed or hand-carried to the Associate
Administrator of Government Contracting, Small Business Administration,
409 3rd Street SW., Washington, DC 20416.
(3) Requests for a waiver of a class of products need not be in any
particular form, but should include a statement of the class of products
to be waived, the applicable NAICS code, and detailed information on the
efforts made to identify small business manufacturers or processors for
the class.
(4) If SBA decides that there are small business manufacturers or
processors in the Federal procurement market, it will deny the request
for waiver, issue notice of the denial, and provide the names,
addresses, and telephone numbers of the sources found. If SBA does not
initially confirm the existence of small business manufacturers or
processors in the Federal market, it will:
(i) Publish notices in the Commerce Business Daily and the Federal
Register seeking information on small business manufacturers or
processors, announcing a notice of intent to waive the Nonmanufacturer
Rule for that class of products and affording the public a 15-day
comment period; and
(ii) If no small business sources are identified, publish a notice
in the Federal Register stating that no small business sources were
found and that a waiver of the Nonmanufacturer Rule for that class of
products has been granted.
(5) An expedited procedure for issuing a class waiver may be used
for emergency situations, but only if the contracting officer provides a
determination to the Associate Administrator for Government Contracting
that the procurement is proceeding under the authority of FAR Sec.
6.302-2 (48 CFR 6.302-2) for ``unusual and compelling urgency,'' or
provides a determination materially the same as one of unusual and
compelling urgency. Under the expedited procedure, if a small business
manufacturer or processor is not identified by a PASS search, the SBA
will grant the waiver for the class of products and then publish a
notice in the Federal Register. The notice will state that a waiver has
been granted, and solicit public comment for future procurements.
(6) The decision by the Associate Administrator for Government
Contracting to grant or deny a waiver is the final decision by the
Agency.
(7) A waiver of the Nonmanufacturer Rule for classes of products has
no specific time limitation. SBA will, however, periodically review
existing class waivers to the Nonmanufacturer Rule to determine if small
business manufacturers or processors have become available to
participate in the Federal market for the waived classes of products and
the waiver should be terminated.

[[Page 341]]

(i) Upon SBA's receipt of evidence that a small business
manufacturer or processor exists in the Federal market for a waived
class of products, the waiver will be terminated by the Associate
Administrator for Government Contracting. This evidence may be
discovered by SBA during a periodic review of existing waivers or may be
brought to SBA's attention by other sources.
(ii) SBA will announce its intent to terminate a waiver for a class
of products through the publication of a notice in the Federal Register,
asking for comments regarding the proposed termination.
(iii) Unless public comment reveals that no small business
manufacturer or processor in fact exists for the class of products in
question, SBA will publish a final Notice of Termination in the Federal
Register.
(b) Individual waivers for specific solicitations. (1) A contracting
officer's request for a waiver of the Nonmanufacturer Rule for specific
solicitations need not be in any particular form, but must, at a
minimum, include:
(i) A definitive statement of the specific item to be waived and
justification as to why the specific item is required;
(ii) The solicitation number, NAICS code, dollar amount of the
procurement, and a brief statement of the procurement history;
(iii) A determination by the contracting officer that there are no
known small business manufacturers or processors for the requested items
(the determination must contain a narrative statement of the contracting
officer's efforts to search for small business manufacturers or
processors of the item and the results of those efforts, and a statement
by the contracting officer that there are no known small business
manufacturers for the items and that no small business manufacturer or
processor can reasonably be expected to offer the required items); and
(iv) For contracts expected to exceed $500,000, a copy of the
Statement of Work.
(2) Requests should be addressed to the Associate Administrator for
Government Contracting, Small Business Administration, 409 3rd Street,
SW., Washington, DC 20416.
(3) SBA will examine the contracting officer's determination and any
other information it deems necessary to make an informed decision on the
individual waiver request. If SBA's research verifies that no small
business manufacturers or processors exist for the item, the Associate
Administrator for Government Contracting will grant an individual, one-
time waiver. If a small business manufacturer or processor is found for
the product in question, the Associate Administrator will deny the
request. Either decision represents a final decision by SBA.

[61 FR 3286, Jan. 31, 1996, as amended at 65 FR 30863, May 15, 2000]

Sec. 121.1205 How is a list of previously granted class waivers
obtained?

A list of classes of products for which waivers of the
Nonmanufacturer Rule have been granted is maintained in SBA's Web site
at www.sba.gov/GC/approved.html. A list of such waivers may also be
obtained by contacting the Office of Government Contracting, U.S. Small
Business Administration, 409 3rd Street, SW., Washington, DC 20416, or
the nearest SBA Government Contracting Area Office.

[69 FR 29208, May 21, 2004]