Small Business Administration Issues Revised Size Standards for Small Businesses


The Small Business Administration (SBA) today announced final revised size standards for qualification as a small business in the Professional, Scientific and Technical Services sector of the North American Industry Classification System (NAICS).  A business that qualifies as “small” under the SBA standards is eligible for preferential treatment for Federal contracting purposes, as well as SBA assistance programs.  The changes will be effective March 12, 2012.  The changes could increase the number of firms competing for Federal contracting preferences, and also will allow some businesses that have grown to remain eligible for those preferences. 

The revised size standards were issued as part of SBA’s ongoing revision of its size standards.  The NAICS sectors in which SBA made changes are Professional, Scientific and Technical Services (Sector 54), and one industry in Other Services (Except Public Administration) (Sector 81)-- Computer and Office Repair and Maintenance.  In those industries, all of the size standards are based on annual receipts, rather than the number of employees. 

In the Professional, Scientific, and Technical Services Sector, SBA increased size standards for 34 industries, and left 11 unchanged.  The increases generally were significant, with the lowest threshold going from $4.5 million to $14 million, and the largest going from $27 million to $35 million.  The Computer and Office Repair and Maintenance standard increased slightly, from $25 million to $25.5 million. 

SBA pointed out that its methodology for size standards indicated that in a few instances, the standards should be decreased, but it declined to do so because that would “would run counter to what the Agency and the Federal Government are doing to help small businesses and to create jobs.”

The full SBA rule-making notice is here. 
 
 
 
 
 

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