Part II
[Federal Register: March 19, 2004 (Volume 69, Number 54)]
[Proposed Rules]
[Page 13129-13164]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr19mr04-16]
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Part II
Small Business Administration
13 CFR Part 121
Small Business Size Standards; Restructuring of Size Standards; Proposed Rule
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SMALL BUSINESS ADMINISTRATION
13 CFR Part 121
RIN 3245-AF11
Small Business Size Standards; Restructuring of Size Standards
AGENCY: Small Business Administration (SBA).
ACTION: Proposed rule.
SUMMARY: The U.S. Small Business Administration (SBA) proposes to modify its small business size standards by establishing size standards in terms of the number of employees of a business concern for most industries and SBA programs. This change will reduce the number of different size standard levels and at the same time simplify size standards and their application to Federal Government programs. Under this proposal, size standards will range between 50 employees and 1,500 employees, depending on the industry or SBA program.
For a limited number of industries, SBA proposes to establish a maximum average annual receipts amount (referred to as a receipts cap) along with the employee-based size standard. Concerns in those industries that meet the employee-based size standard also cannot exceed a specific receipts cap to qualify as an eligible small business.
To further simplify size standards, SBA also proposes the following: (1) modify the size standard for the Surety Bond Guarantee (SBG) Program by replacing the $6 million size standard with the requirement that the contractor meet the size standard for its primary industry; (2) extend the 125,000 barrels per calendar day component of the size standard for petroleum refiners beyond Federal Government procurement to all Federal small business programs using SBA's size standards; (3) eliminate the special size standard based on market share for tire manufacturers that applies to only Federal Government procurement; (4) modify three receipts-based size standards and one employee-based size standard for the sale or lease of Government property; and (5) revise the nonmanufacturer size standard applicable to Federal procurements from 500 employees to 100 employees, the size standard that applies to wholesale trade businesses for all other SBA programs.
DATES: Comments must be received on or before May 18, 2004.
ADDRESSES: Send comments to Gary M. Jackson, Assistant Administrator for Size Standards, 409 Third Street, SW., Mail Code 6530, Washington DC 20416; by email to restructure.sizestandards@sba.gov; or by facsimile at (202) 205-6390. You may also submit comments to http://www.regulations.gov. Upon receipt of a written request under the
Freedom of Information Act, SBA will make all public comments available.
FOR FURTHER INFORMATION CONTACT: Contact the SBA's Office of Size Standards at (202) 205-6618 or sizestandards@sba.gov.
SUPPLEMENTARY INFORMATION: SBA's 37 small business size standards have evolved over the past 40 years from a considerably smaller number that applied only to SBA's financial assistance programs and to Federal procurement programs. Presently, there are size standards for 1,151 industries and 11 special financial and procurement programs. Many of these size standards resulted from the expansion and development of new SBA programs, the increasing size and complexity of the U.S. economy, and demands from small businesses to address unique situations.
SBA's current size standards use two primary measures of business size--number of employees and average annual receipts. Financial assets, electric generation, and refining capacity are used for a few specialized industries. In addition, SBA's Small Business Investment Company (SBIC) and the Certified Development Company (CDC) Programs determine small business eligibility based on either the industry-based size standards or net worth and net income size standards.
The current structure of SBA's size standards has worked well. However, several recurring criticisms suggest that SBA should consider improving their current structure. These criticisms raise questions about the complexity of determining if a business is small, the fairness of defining a business as small in some industries but not others, the influence of Federal procurement programs in establishing size standards, and the intentional misclassification of Federal contracts or the primary industry activity of a business to apply a different, and usually a much higher, size standard.
SBA's last comprehensive attempt to address size standards was in the late 1970s and early 1980s. Although SBA considered several approaches, it made only a few minor changes. The most important change replaced two sets of size standards, one for procurement programs and one for financial programs, with a single set for all programs. SBA also adjusted receipts-based size standards for inflation and formalized a methodology for evaluating size standards.
In the early 1990s, SBA proposed to streamline size standards with nine levels of size standards (four receipts-based size standards and five employee-based size standards) similar to one aspect of this proposed rule. Public comments tended to favor this approach. However, SBA determined that converting receipts-based size standards in effect at that time to one of four proposed receipts levels created a number of unacceptable anomalies and, therefore, did not adopt it as a final rule.
Currently, SBA's size standards consist of 37 different size levels which apply to 1,151 industries and 13 sub-industry activities in the North American Industry Classification System (NAICS). In addition, a size standard has been established for 11 financial and procurement programs. Thirty size standards are based on annual receipts, five are based on number of employees, and two are based on other measures. Table 1a below summarizes the current receipts-based size standards and Table 1b summarizes the current employee-based and other size standards.
Table 1a.--Size Standards Based on Annual Receipts
Number of Number of different industries receipts- covered by
Range of receipts-based size standards based size size standards standards in the in this range
range
$48.5 million.................................
1
1 $21.5 million to $30 million..................
8
52 $12.5 million to $21 million..................
7
24
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$12 million...................................
1
24 $7 million to $11 million.....................
7
46 $6 million....................................
1
337 $1.5 million to $4 million....................
4
18 $0.75 million.................................
1
46
Table 1b.--Employee-based and Other Size Standards
Number of industries Size standard
covered by the size standard
1,500 employees............................................
17 1,000 employees............................................
66 750 employees..............................................
63 500 employees..............................................
388 100 employees..............................................
71 $150 million in assets.....................................
6 4 million megawatt hours...................................
6
Most variations in size standards occur among those based on annual receipts. In many cases, a specific receipts-based size standard applies to only one or a few industries. SBA believes it can simplify size standards and make them less complicated by establishing a single size standard measure and reducing the number of different size standard levels. With fewer size standards, they will be clearer, more consistent, and easier to understand, resulting in less confusion to users, particularly the non-governmental users, such as small businesses. In addition, a single size measure eliminates a problem that some concerns encounter when they operate in different industries that have different size standard measures. The information technology industries provide a good example of this situation. Many information technology businesses provide both goods and services. Yet, SBA's size standards are based on number of employees for providers of computer and peripheral equipment and receipts for providers of computer services. Consequently, an information technology business may be small for one type of work but not small for a related activity.
Proposal to Use Employee-based Size Standards for All Industries
SBA proposes to restructure its size standards by establishing an employee-based size standard for each industry. The number of employees of a business concern is its average number of persons employed for each pay period over the firm's latest 12 months and includes the employees of all affiliates. Any person on the payroll must be included as one employee regardless of hours worked or temporary status. The number of employees of a firm in business under 12 months is based on the average for each pay period it has been in business. For more information on how SBA calculates the employment size of a business, see 13 CFR 121.106.
The size standards currently based on number of employees will be retained at their current levels. This proposal converts the current size standards that are based on receipts, financial assets, or generating capacity to employee-based size standards. SBA proposes to establish an employee-based size standard which varies for each industry, but is limited to one of the following ten employee levels:
Table 2.--Proposed Employee Size Standard Levels
50
100
150
200
300 400
500
750
1,000
1,500
SBA believes that fewer size standard levels also help to simplify size standards. In converting receipts-based size standards to employee-based size standards (described further below), five new employee size levels (50, 150, 200, 300, and 400) along with the current five employee size levels (100, 500, 750, 1,000 and 1,500) results in employee-based size standards that equate to about the same number of eligible small businesses as does the current receipts-based size standards. A fewer number of employee size levels would result in a much larger number of businesses gaining or losing small business eligibility while a greater number of employee size levels would apply to only a small number of businesses and not simplify the size standards to the same degree.
Why the SBA Proposes Employee-Based Size Standards for All Industries
SBA believes that a single measure of size helps make size standards less complex. Having a single size measure simplifies the structure and enables SBA to establish fewer size standard levels. Under a structure composed of one size measure and fewer size standard levels, many small businesses that currently operate in several industries each with different size standards would in many cases be subject to only one or two different size standards under the proposed employee-based size standards. SBA believes that the benefits of simplification that come from having a single size measure outweigh the benefits of retaining multiple size measures.
Proposing number of employees as the only measure of business size departs from SBA's long tradition of using receipts and other non- employee size measures. SBA has generally utilized receipts as a preferred size measure because it constitutes the value of a concern's output. Other measures of size are used where receipts tend to skew the value added by a concern in the production of goods and services. For example, SBA uses number of employees to define a small manufacturing concern. For manufacturing, two manufacturers in the same industry with the same number of employees can generate significantly different receipts depending on the number of stages in their production operations. Receipts for a manufacturer in its final production stage include the value added by the manufacturer(s) in its earlier production stages. This is true even though the value added by the final manufacturer may be minor relative to the value of the final product. Because of this characteristic of manufacturing, number of employees has a stronger correlation to value added than do receipts.
Several aspects of employee-based size standards support SBA's decision to use them as the single measure of size
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for all industries. The single best reason to do so is that they do not vary with changing economic conditions. Inflation, for example, has no direct impact on employee-based size standards. Similarly, rising costs unique to an industry have no direct impact on employee-based size standards. An ideal size standard would not affect eligibility, unless a company's level of real output of goods and services changes.
Employment also tends to be a more stable measure of business size. Businesses have economic incentives to maintain their workforce as business fluctuates to avoid recruitment and training costs. Using overtime can satisfy short-term increases in output until management is convinced that a permanent increase in business activity justifies adding personnel. Most businesses, especially small businesses, display a strong commitment to their employees and they are reluctant to change employment levels frequently in response to short-term business considerations.
Finally, number of employees is a widely accepted measure of business size. More than half of the present SBA size standards are expressed in employees. Although employment is an input into the production of goods and services, it generally accounts for a significant portion of total costs. A business's employment level is a representative indicator of its resources as well as its scale of operations. In one of the few studies conducted on an appropriate size standard measure, two researchers concluded that the number of employees of a business had a stronger correlation with the qualitative description of a small business (an approach to defining a small business preferred by many small business analysts) than did receipts. (See ``Definition of Small Business,'' Scott Holmes and Brian Gibson, The University of Newcastle, April 5, 2001. The report is available at http://www.smallbusiness.org.au/sbc/publications/sbc004a.htm.)
How SBA Determined the Number of Employees for Size Standards With Annual Receipts and Other Size Measures
SBA developed criteria for deciding which of the ten employee size standard levels to apply to an industry that currently has a receipts- based size standard. These criteria were designed to convert a receipts-based size standard to an equivalent employee-based size standard. The primary tool used to calculate the equivalent employee size standard associated with a receipts-based size standard is the receipts-to-employee ratio for an industry. Data to calculate these ratios were provided to the SBA by the U.S. Bureau of the Census in a special tabulation of the 1997 Economic Census (The 1997 Economic Census is available at http://www.census.gov/epcd/www/econ97.html). Since total receipts in an
industry are provided along with employees in the industry, SBA was able to calculate receipts per employee ratios for almost all industries covered by this rule. These ratios were next adjusted 8.54% to account for inflation that occurred from 1997 to 2002 (the year in which receipts-based size standards were last adjusted for inflation). SBA used the chain-type price index for gross domestic product (GDP) (as published by the U.S. Department of Commerce, Bureau of Economic Analysis, and is available at http://www.bea.gov/bea/ARTICLES/2003/10October/D-Pages/1003DpgC.pdf),
which is a broad measure of inflation for the economy as a whole. The resulting figure was divided into the present receipt-based size standard for the industry under review to calculate an employee equivalent size standard. This employee equivalent size standard was then rounded to the closest of the ten employee size standard levels to minimize the difference between the current receipts-based size standard and the calculated employee-based size standard.
The criteria also preserve the common size standard level that SBA currently has established for related industries. That is, for closely related industries that have the same receipts size standard, SBA has proposed an employee size standard that best represents an equivalent employee size standard for that group of industries, such as the computer services industries.
Below are the criteria and how SBA applied them to receipts-based size standards.
Selection of Employment Size Standard for Industries With a $6 Million Size Standard
For industries with a $6 million size standard, SBA had three considerations. The first consideration was whether to propose a 50 employee size standard for those industries. SBA's methodology for evaluating a size standard for a nonmanufacturing industry presumes that $6 million in average annual receipts is an appropriate size standard. This size standard is generally referred to as the ``nonmanufacturing anchor size standard.'' SBA considers a size standard higher or lower than the anchor level as appropriate for an industry when the structural economic characteristics of the industry are significantly different from the typical nonmanufacturing industry. SBA has decided to retain the concept of an anchor size standard for the nonmanufacturing industries as part of its restructuring and simplification of size standards. However, SBA proposes that the anchor size standard will be expressed in number of employees rather than receipts. Based on the ratio of receipts to employees in the nonmanufacturing industries, 50 employees is the employee anchor size standard for the nonmanufacturing industries. SBA is proposing a 50 employee size standard for industries currently with a $6 million size standard, unless the criteria discussed in the second and third considerations are present within an industry.
SBA's second consideration was whether the size standard should be higher than the 50 employee size standard anchor for industries where the conversion of receipts to employees produces a figure significantly above 50 employees. The SBA has decided to propose a size standard of 50 employees for industries where the conversion produces an equivalent size standard from 51 to 74 employees, since these levels round to the closest of the ten proposed employee size standards. For industries where the receipts to employees conversion results in a figure of 75 employees or more, the SBA selected a size standard above 50 employees, but only if other information justified the higher size standard. In these cases, a higher size standard is appropriate to (1) reflect the industrial structure of the industry, or (2) avoid a significant reduction in the number of small businesses currently eligible to compete for Federal procurements.\1\
\1\ Federal procurement is an appropriate consideration because of the special support provided by SBA to small businesses through the 8(a) Business Development Program, the Small Disadvantaged Business Program, the HUBZone Program, the Small Business Set-Aside program and subcontracting programs. Not only has SBA implemented policies to assist small businesses to develop through these Federal procurement programs, but the businesses themselves have made economic and business decisions affecting their eligibility for these programs. The SBA wants to avoid taking away small business eligibility for Federal procurement programs from a large number of small businesses that could otherwise result from this size standards restructuring proposal. This consideration is limited to industries in which significant Federal Government contracting opportunities exist, or with approximately $100 million or more in Federal contracting.
SBA's third consideration examined the relationship of the size standard with other size standards within an
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industry subsector or industry group (three-digit and four-digit NAICS codes, respectively). For several industries with a $6 million size standard, SBA decided to propose a size standard greater than 50 employees in order to maintain the size standard relationship within their industry group (such as for the Land Subdivision and Land Development industry, NAICS 236110).
An example of the decision process utilizing the three criteria is Barber Shops (NAICS 81211), whose present size standard is $6 million. Dividing $6 million by the inflation-adjusted figure of $34,700 receipts per employee resulted in the equivalent size standard of 172 employees. This level rounds to 150 employees using the preselected employee size standards. However, the SBA believes that a 150 employee size standard for barber shops is too high, and that the 50 employee proposed anchor size standard better matches the industry structure for barber shops, as well as public perception of what constitutes a small business in this industry. This industry has one of the largest concentrations of very small businesses, where the average size barber shop is only three employees.
By contrast, the present size standard for the Other Airport Operations industry (NAICS 488119) has the same $6 million anchor size standard. Dividing $6 million by the $56,969 receipts per employee resulted in the equivalent size standard of 105 employees, which the SBA rounded to 100 employees. The average size firm in this industry has 49 employees--more than four times the average size firm of 11 employees for the nonmanufacturing industries with a $6 million size standard. In addition, the 50 employee anchor size standard would render approximately 50 currently defined small businesses ineligible to compete for Federal procurements that require small business status. In FY 2002, the Federal Government awarded more than $280 million in contract awards, with small businesses obtaining less than $17 million in contracts. A 50 employee size standard would have the unintended result of further diminishing the participation of small businesses in Federal contracting within this industry activity.
Three hundred and thirty-seven industries have a size standard of $6 million. In applying the above considerations, SBA proposes a 50 employee size standard for 315 industries, and a higher size standard for the remaining 21 industries. The chart below identifies the 21 industries with a size standard higher than 50 employees and the basis for proposing a higher size standard.
Table 3.--Industries Currently With a $6 Million Size Standard That SBA Proposes a Size Standard Higher Than 50 Employees
Proposed
Reason for employee size NAICS codes
NAICS industry
employee size standard different from anchor standard
size standard
237210........................ Land Subdivision...............
200 Common size standard for all industries in Subsector 237 and impact on Federal procurement. 485111........................ Mixed Mode Transit Systems.....
100 Common size standard for most transit industries (NAICS Subsector 485). 485112........................ Commuter Rail Systems..........
100 Common size standard for most transit industries. 485113........................ Bus and Other Motor Vehicle
100 High average firm size. Transit Systems. 485119........................ Other Urban Transit Systems....
100 Common size standard for most transit industries. 485210........................ Interurban and Rural Bus
100 High average firm size. Transportation. 485410........................ School and Employee Bus
100 High average firm size and Transportation.
common size standard for most transit industries. 485510........................ Charter Bus Service............
100 Common size standard for most transit industries. 486210........................ Pipeline Transportation of
100 High average firm size and Natural Gas.
common size standard with NAICS 486990, All Other Pipeline Transportation. 488119........................ Other Airport Operations.......
100 High average firm size and impact on Federal procurement. 488190........................ Other Support Activities for
100 Common size standard with NAICS Air Transportation.
488119 and impact on Federal procurement. 512131........................ Motion Picture Theatres (except
100 High average firm size. Drive-In). 518112........................ Web Search Portals.............
150 Common size standard for all industries in Subsector 518 and impact on Federal procurement. 561422........................ Telemarketing Bureaus..........
150 High average firm size. 621910........................ Ambulance Services.............
100 High average firm size and common size standard with other ambulatory health services. 711310........................ Promoters of Performing Arts,
100 High average firm size. Sports, & Similar Events with Facilities. 713110........................ Amusement and Theme Parks......
100 High average firm size. 713920........................ Skiing Facilities..............
200 High average firm size. 721110........................ Hotels (except Casino Hotels)
100 High average firm size and and Motels.
impact on Federal procurement. 721120........................ Casino Hotels..................
100 High average firm size and common size standard with hotels and motels. 812930........................ Parking Lots and Garages.......
100 High average firm size.
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Selection of Employment Size Standard for Industries Size Standards Above or Below $6 Million
For industries that have a size standard below $6 million, SBA has proposed 50 employees. This would establish the policy that any business with 50 or fewer employees is a small business regardless of its industry. Only a few industries would be affected by this proposal, and we strongly believe that the benefits of simplification outweigh any impact on SBA's programs or on other Federal small business programs.
For industries with a size standard above $6 million, SBA calculated an equivalent employee size standard based on the ratio of receipts to employees. For example, the receipts per employee of a computer systems design firm is $152,000. A firm of $21 million equates to a firm with 127 employees. Because SBA is proposing to have size standards at one of ten employee levels, SBA rounded this figure to the nearest employee size standard, or 150 employees.
For most of these industries, SBA proposes the size standard resulting from the receipts per employee ratio. For closely related industries (those within the same 4-digit NAICS Industry Group or 3- digit NAICS Subsector) that currently have a common receipts-based size standard, SBA proposes a common employee-based size standard, even though a different size standard could be established for each closely related industry based on the receipts-to-employee calculation. SBA recognizes that small businesses are often eligible for SBA assistance in a number of closely related industries, and it simplifies size standards if closely related industries have the same size standard. An example of this pattern is the computer services industries in which businesses typically operate in at least several of the nine computer services industries. After reviewing the equivalent employee-based size standards for the nine computer services industries, SBA is recommending a common size standard of 150 employees for all nine computer services industries. Examples of other industries where SBA proposes a common size standard include the consulting service industries, the trucking industries, the warehousing industries, and the waste management industries.
Summary of Proposed Employee Size Standards
In summary, the major factors influencing the proposed employee size standard are:
A size standard of 50 employees generally applies when an industry receipt-based size standard is at the present anchor of $6 million in average annual receipts or is less than $6 million;
An employee size standard above 50 employees applies to an industry with a $6 million size standard if the calculated equivalent employee size standard is above 76 employees and industry structure, existing size standards relationships, or Federal procurement implications merited a size standard above 50 employees.
An employee size standard for an industry above $6 million is based on the calculated equivalent employee-based size standard.
Exceptions to these rules occurred when SBA attempted to maintain traditional size standards relationships within closely related industries.
Selection of Employment Size Standard for Industries With Size Standards Based on Electric Generation and Financial Assets
The size standard for the industries involved in the generation, transmission, or distribution of electric energy (NAICS 221111-221122) is 4 million megawatts of total electric output (see footnote 1 of the table to size standards in Sec. 121.210). The U.S. Bureau of the Census does not publish capacity data on businesses in this industry. SBA identified small electric utilities from the U.S. Department of Energy's publication ``Financial Statistics of Investor-Owned Electric Utilities, 1996'' (available at http://www.eia.doe.gov/cneaf/electricity/invest/invest --sum.html). SBA
reviewed publicly available information, such as Security and Exchange Commission 10-K reports, to determine the employment levels of small electric utilities. Based on this review, SBA is proposing a 1,000 employee size standard for the electrical generation, transmission, and distribution industries. At that employment size, electric utilities under the current 4 million megawatt size standard would continue to be defined as small without adding other electric utilities as small.
The size standard for the banking and other credit intermediation industries (NAICS 522110--522210, and 522293) is $150 million in financial assets (see footnote 8 to the table of size standards in Sec. 21.201). The U.S. Bureau of the Census does not publish industry financial data on the banking and credit industries. Using asset and employment data published by the Federal Deposit Insurance Corporation's Statistics on Depository Institutions (available at http://www2.fdic.gov/SDI/main4.asp), the average assets per employee of
smaller banks is about $2.5 million. Based on those data, a $150 million bank would have, on average, about 60 employees. Applying the methodology described above, SBA is proposing a 50 employee size standard for banking and other credit intermediation industries since that is the nearest of the ten employee size standards proposed by this rule.
Proposal To Add a Maximum Average Annual Receipts Cap as an Additional Component of the Size Standard for Certain Industries
SBA further proposes that 31 industries will have a maximum average annual receipts amount (referred to as a receipts cap) along with the employee-based size standard. To qualify as small, concerns in those industries would have to be no greater in size than the employee-based size standard and have average annual receipts less than the receipts cap amount. SBA proposes that 36 size standards in the following 31 industries have an annual receipts cap along with the proposed employee size standard. Table 4, below, lists those industries and SBA's proposed employee size standards and receipts caps.
Table 4.--Industries With Proposed Receipts Caps
Proposed Proposed
maximum
NAICS codes NAICS U.S. industry number of
annual title
employees receipts ($ million)
115310............ Support Activities
50
N/A for Forestry. Except,........... Forest Fire
400
$20.0 Suppression. Except,........... Fuels Management
400
$20.0 Services.
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236115............ New Single-Family
150
$35.0 Housing Construction (except Operative Builders). 236116............ New Multifamily
150
$35.0 Housing Construction (except Operative Builders). 236117............ New Housing
150
$35.0 Operative Builders. 236118............ Residential
150
$35.0 Remodelers. 236210............ Industrial Building
150
$35.0 Construction. 236220............ Commercial and
150
$35.0 Institutional Building Construction. 237110............ Water and Sewer Line
200
$35.0 and Related Structures Construction. 237120............ Oil and Gas Pipeline
200
$35.0 and Related Structures Construction. 237130............ Power and
200
$35.0 Communication Line and Related Structures Construction. 237210............ Land Subdivision....
200
$35.0 237310............ Highway, Street, and
200
$35.0 Bridge Construction. 237990............ Other Heavy and
200
$35.0 Civil Engineering Construction. Except,........... Dredging and Surface
150
$22.0 Cleanup Activities. 518210............ Data Processing,
150
$30.0 Hosting, and Related Services. 541310............ Architectural
50
$7.0 Services. 541330............ Engineering Services
50
$7.0 Except,........... Military and
200
$30.0 Aerospace Equipment and Military Weapons. Except,........... Contracts and
200
$30.0 Subcontracts for Engineering Services Awarded Under the National Energy Policy Act of 1992. Except,........... Marine Engineering
150
$30.0 and Naval Architecture. 541511............ Custom Computer
150
$30.0 Programming Services. 541512............ Computer Systems
150
$30.0 Design Services. 541513............ Computer Facilities
150
$30.0 Management Services. 541519............ Other Computer
150
$30.0 Related Services. 541611............ Administrative
50
$10.0 Management and General Management Consulting Services. 541612............ Human Resources and
50
$10.0 Executive Search Consulting Services. 541613............ Marketing Consulting
50
$10.0 Services. 541614............ Process, Physical
50
$10.0 Distribution and Logistics Consulting Services. 541618............ Other Management
50
$10.0 Consulting Services. 541620............ Environmental
50
$10.0 Consulting Services. 541690............ Other Scientific and
50
$10.0 Technical Consulting Services. 541990............ All Other
50
$10.0 Professional, Scientific and Technical Services. 561110............ Office
50
$10.0 Administrative Services. 561210............ Facilities Support
400
$40.0 Services. 611519............ Other Technical and
50
N/A Trade Schools. Except,........... Job Corps Centers...
400
$30.0
In some industries, businesses have more latitude in deciding whether to hire employees to perform work or to subcontract the work to others. For example, general contractors can decide what and how much construction work to perform themselves and what work to subcontract to others. Under an employee-based size standard, a business may exceed the size standard because it decided to perform more work in-house while another business performing the same level of work stays under the employee size standard because more work is subcontracted. Under SBA's Small Business Size Regulations, the employees of a subcontractor are not included in counting the number of employees of a business (unless affiliation was found between the business and subcontractor). SBA recognizes that such decisions and their implications on small business status are best made by the management of concerns that will be affected. SBA is concerned, however, about cases where businesses operating in industries that have greater latitude in subcontracting significant portions of work purposely subcontract an unusual amount of work relative to customary industry practices to retain small business status. Because of this potential, SBA proposes to establish an average annual receipts cap along with employee size standards in the 31 industries listed in Table 4, above.
In the industries for which SBA proposes an employee-based size standards and receipts cap size standard, it expects that most businesses which are small under the applicable employee size standard will also meet the corresponding receipts cap. The purpose of the receipts cap is to prevent businesses from creatively manipulating their employment levels to remain small. Without such a receipts cap requirement, SBA might otherwise, and inappropriately, provide large businesses with assistance that is intended for small businesses, and put small businesses in the position of competing against businesses that by any consideration are not small. As discussed further below, the receipts cap will include almost all businesses under the employee size standard, but exclude those businesses that have an inordinate amount of receipts for their level of employment.
How the SBA Determined the Maximum Annual Receipts Cap Level for the Industry Activities in Table 4 (Above)
The methodology in determining the receipts caps was to first examine the size distribution of firms that are presently in SBA's Procurement Marketing and Access (PRO-Net) database which was merged with the Department of Defense Central Contractor Registration--the SBA's list of small businesses interested in doing business with the Federal Government. For each of the 31 industries under review, it has data on the number of
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employees and the annual receipts of each firm in that database that is active in the industry. SBA analyzed employment and receipts data of small businesses near the proposed employee size standard. By calculating a receipts to employee ratio for each of these small businesses, and then multiplying that ratio by the proposed size standard in employees, the SBA was able to estimate at what point a small business would lose eligibility under a receipt cap if it were to expand to the new size standard limit based on employees. In other words, if a business has 110 employees, what level of receipts would it produce if it expanded to a proposed 150 employee size standard.
The proposed receipt caps were designed to permit a majority of the small businesses that are presently under the size standard to expand to the proposed employee-based size standard without exceeding the dollar caps. The receipts caps proposed generally range from 22% to 35% higher than the current receipts size standards for those industries with a size standard of $15 million or higher, and from 67% to 74% higher than the current receipts size standard for those industries that have a receipts size standard of $6 million or less. The only exemption to this analysis was for the newly established Job Corps Centers size standard (part of NAICS 611519). This sub-industry consists of a small number of businesses. The current receipts size standard fully captures all small businesses under the proposed employee size standard for this sub-industry category and is retained as the receipts cap.
Simplification of Other Program and Special Size Standards
SBA has established a number of size standards to meet the needs of specific programs or to address special Federal procurement considerations. SBA proposes to eliminate or modify six of these size standards in an attempt to further simplify size standards and to apply consistent size standards for all Federal Government programs and purposes.
1. Surety Bond Guarantee (SBG) Program size standard: SBA proposes that any construction (general or special trade) concern or a concern performing a contract for services is small provided it meets the size standard for the NAICS code for its primary industry. Currently, the size standard for the SBG Program is $6 million for performing contracts for construction (general or special trades) or services (see 13 CFR 121.301(d)(1)).
Federal procurement regulations require a contractor to meet the size standard for the NAICS code that best describes the principal purposes of the procurement. Therefore, if a contractor bids and is successful as a prime contractor on a Federal procurement, it may qualify as a small business if it meets the size standard for the procurement, even if the size standard exceeds $6 million. Further, Sec. 121.305 states ``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.'' SBA's SBG Program is a financial assistance program, and contractors awarded Federal contracts requiring a surety bond are therefore eligible for SBA's guarantee on the bond, if a guarantee is needed, including those with size standards in excess of $6 million, provided the contractor meets the size standard for its industry.
However, for SBA to guarantee a surety bond involving a subcontract or a bond running to an obligee other than the Federal Government, such as a private owner or non-Federal political subdivision or agency, a contractor is not eligible for an SBA guarantee unless it meets the current $6 million size standard. SBA believes this is inconsistent with the intent of its SBG Program because it does not provide assistance to small businesses otherwise eligible as small for SBA's other financial assistance programs. SBA proposes to eliminate the $6 million size standard. SBA proposes, rather, that a contractor applying for SBA's guarantee meet the size standard for its primary industry for any bond (Sec. 121.301(d)). This is consistent with the intent of this proposed rule, which is to base all size standards on number of employees and have a single size standard for all programs.
2. Petroleum refining size standard: The size standard for the Petroleum Refineries industry (NAICS 324110) is 1,500 employees. In addition, for purposes of the Federal Government's procurement of refined petroleum products, the refiner may not have more than 125,000 barrels per calendar day (bpcd) capacity of petroleum-based inputs, including crude oil or bona fide feedstocks. This is included in Footnote 4 to SBA's current table of small business size standards. SBA increased the refining capacity from 75,000 bpcd to 125,000 bpcd, effective April 28, 2003 (see 68 FR 15047 dated March 28, 2003, available at http://www.sba.gov/size/indexwhatsnew.html#petrol-fr).
SBA proposes to extend the 125,000 bpcd size standard component to all Federal Government programs. Before the April 28, 2003 revision, SBA had progressively increased the refining capacity component over a number of years. In its last two rulemaking actions pertaining to the petroleum refining size standard, SBA's proposed rules included a request for comments on whether SBA should retain or eliminate the refining capacity component. SBA retained it because industry comments have always been very strong in favor of doing so. The petroleum refining industry has always affirmed that refining capacity is the single best measure of a refiner's size. Further, it is the same measure that the U.S. Department of Energy, Energy Information Administration, uses to assess the size of refiners and their refineries.
Before proposing to increase the refining capacity component, SBA studied the petroleum refining industry to analyze the effect that it would have on existing small businesses. The final rule increasing it to 125,000 bpcd did not increase the number of small businesses, nor did any small businesses lose eligibility. That is, there was no change in the number of small refiners. There were other reasons for the rule, more fully described in the Federal Register notice cited above. This proposed change (footnote 5, Sec. 121.201) is consistent with SBA's intention to simplify size standards, by having a single size standard apply to an industry for all Federal Government programs and purposes.
Because the remaining eligibility requirements for petroleum refiners are Federal procurement specific, and not part of the size standard, SBA does not propose to extend them to other Federal programs.
3. Tire manufacturing size standard: The size standard for the Tire Manufacturing (except Retreading) industry (NAICS 326211) is 1,000 employees. For the Federal Government's procurement of pneumatic tires under this NAICS code and within Census Classification codes 30111 and 30112, SBA has established an alternative size standard based on a concern's share of the worldwide tire market (see Footnote 5 to SBA's current table of size standards). Tire manufacturers satisfying the provisions of this alternative size standard exceed 1,000 employees in size. SBA implemented these requirements effective January 18, 1967 (see 31 FR 15737). SBA believes, based on Federal procurement data, that this footnote is no longer necessary. A review of Federal
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contract awards in fiscal years 2001 and 2002 found that all small businesses receiving tire supply contracts met the current 1,000 employee size standard. SBA therefore proposes to eliminate this alternative size standard.
4. Sales or lease of Federal Government property: SBA proposes to modify the following three receipts-based and one employee-based size standards that pertain to programs involving the sale and lease of Federal Government property:
(a) Size standards for sales or leases of Government property: The current size standard for concerns not primarily engaged in manufacturing is $6 million (see Sec. 121.502(a)(2)). SBA proposes to establish a size standard of 50 employees for those concerns. This is consistent with the intent of this proposed rule, which is to base all size standards on number of employees. Also, this proposal is consistent with the criteria to propose a 50 employee size standard for industries that currently have a $6 million size standard unless certain conditions exits. SBA does not believe industry or procurement factors exist to warrant a different size standard.
(b) Size standards for the purchase of Government-owned Special Salvage Timber: To purchase Government-owned Special Salvage Timber from the U.S. Forest Service or the U.S. Bureau of Land Management, a concern, with its affiliates, can have no more than 25 employees during any of its pay periods for the last twelve months, and must meet other requirements as well (see Sec. 121.508). SBA proposes to increase this size standard to 50 employees. SBA believes that applying the 50 employee anchor size standard as a minimum size standard is warranted to achieve its overall goal of simplicity and uniformity among the various size standards. SBA does not propose to amend any other parts of Sec. 121.508, since they are Federal procurement specific requirements and not part of the size standard.
(c) Size standard for leasing of Government land for coal mining: Under the current size standard, a concern, together with its affiliates, may have no more than 250 employees (see Sec. 121.509(a)). SBA proposes increasing this to 300 employees. Retaining 250 employees as a size standard would increase the number of size standards overall (from 10 to 11), and this would be the only 250 employee size standard. SBA has decided to round up this size standard to the 300 employee level instead of rounding down to 250 employees to avoid eliminating eligibility of currently defined small businesses for this program.
(d) Size standard for stockpile purchases: Under the current standard, a concern, together with its affiliates, may not have average annual receipts that exceed $48.5 million (Sec. 121.512(b)). SBA proposes to establish a size standard of 400 employees for those concerns. Based on the ratio of receipts to employees of businesses with $48.5 million or less in receipts ($109,000 receipts per employee), this size standard equates to 445 employees. Four hundred employees is the closest of the 10 employee-based size standards proposed in this rule. SBA believes that the proposed size standard would not eliminate the eligibility of currently defined small businesses for this program
5. Nonmanufacturer size standard: The SBA proposes to revise the nonmanufacturer size standard from 500 employees to 100 employees. A nonmanufacturer is a business that provides a manufactured product to the Federal Government that it itself did not manufacture (see Sec. 121.406(b)). Substantially all nonmanufacturers are in industries categorized within the Wholesale Trade industries (NAICS Sector 42). A size standard of 100 employees applies to wholesalers for SBA and Federal Government programs, except for Federal procurement programs. Therefore, to further the simplification of small business size standards, the SBA is proposing to eliminate the special 500 employee nonmanufacturer size standard by applying the 100 employee size standard for Wholesale Trade to Federal procurement programs.
SBA continues to believe that 100 employees is an appropriate size standard for the Wholesale Trade Sector. The average size of a wholesaler is 16 employees. Wholesalers with fewer than 100 employees comprise 97% of all wholesalers, employ about 50% of all employees, and generate one-third of total industry receipts. The relatively small share of total industry receipts generated by small wholesalers, however, reflects the significantly higher receipts per employee generated by larger wholesalers in the industry than by small wholesalers. Given the industry share of firms and employment of wholesalers with fewer than 100 employees, SBA believes a current Wholesale Trade Sector size standard of 100 employees would be an appropriate size standard.
Exceptions to the SBA's Proposal To Simplify Size Standards by Basing All of Them on Number of Employees
This proposed rule does not change three size standards, because they are either established by statute or reflect unique program objectives. To ensure that the public is aware of the reasons for not modifying these size standards, SBA explains why it does not propose to modify the following:
1. Agricultural Enterprises: The Small Business Act (15 U.S.C. 632(a)(1)) states in section 3(a)(1) ``an agricultural enterprise shall be deemed to be a small business concern if it (including its affiliates) has annual receipts not in excess of $750,000.'' This provision applies to concerns in the Crop Production (NAICS Subsector 111) and Animal Production (NAICS Subsector 112) industries. SBA has no authority to modify this Congressionally-mandated size standard.
2. Net Worth/Net Income: Size standards based on the net worth and net income of a business concern are an alternative to SBA's industry- based size standards for the CDC and SBIC financial assistance programs authorized under Title III and Title V of the Small Business Investment Act (Pub. L. 100-107). That is, an applicant may qualify as a small business if it meets the size standard for its primary industry or the net worth and net income size standards. For the CDC program, an applicant must meet either: (a) SBA's size standard established for its primary industry activity; or (b) have tangible net worth not in excess of $7 million and average net income after Federal income taxes for its two preceding completed fiscal years not in excess of $2.5 million (Sec. 121.301(b)). For assistance under SBA's SBIC Program, an applicant must meet either: (a) SBA's size standard established for its primary industry activity; or, (b) with its affiliates, have tangible net worth not in excess of $18 million and average net income after Federal income taxes for its two preceding completed fiscal years not in excess of $6 million (Sec. 121.301(c)).
The alternative net worth and net income size standards for the CDC and SBIC programs have been in place for many years and have worked well in serving the intended beneficiaries. Most small businesses qualifying under the net worth and net income size standards also qualify under the industry-based size standards. However, the option to qualify as small under the industry-based size standards ensures that a small business eligible for other SBA programs is also eligible for assistance under the CDC and SBIC Programs. Therefore, SBA believes that the net worth and net income size standards should be retained for these programs.
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Impact on Small Business Eligibility of the Proposed Rule
This proposed rule would change the 514 size standards that are based on receipts, financial assets, or electric generation. As discussed above, the proposed conversion of these receipts-based size standards to employee-based size standards attempts to establish an employment level that is generally equivalent to the receipts-based size standard. Because of variation within industries, some businesses will gain or lose small business eligibility. The decision to establish only ten employee size standard levels also results in some businesses gaining or losing small business eligibility. An analysis of the impact of the proposed rule on small business eligibility shows that a relatively small number of businesses will be affected. Out of approximately 4.4 million businesses in the industries with revised size standards, 35,200 businesses could gain and 34,100 could lose small business eligibility, with the net effect of 1,110 additional businesses defined as small. The 69,300 businesses affected by this proposal represent 1.6% of the 4.4 million businesses in industries with changing size standards. The regulatory impact and regulatory flexibility analyses discussed below describe the impact of this proposal in greater detail.
Alternatives to This Proposed Rule
SBA considered a number of alternative approaches to simplify and restructure its size standards. These are briefly described below. SBA welcomes comments on these alternatives or other alternatives to restructure and simplify size standards.
1. Retain the existing employee-based size standards, while reducing the 30 receipts-based size standards to a fewer number of size standard levels, such as four to eight different receipts size standards. This approach is similar to SBA's proposals of December 31, 1992 (57 FR 62522) and September 2, 1993 (58 FR 46573), which SBA did not adopt as final rules. As discussed above in this proposed rule, SBA believes a single size measure (with a receipts size standards cap for a limited number of industries) represents a less complicated set of size standards.
2. Establish size standards by industry category that would generally be based on NAICS Industry Sectors or Subsectors, such as the size standards of the three Construction Subsectors. Under this approach, SBA could establish a size standard by number of employees and/or receipts for each industry group, and size standards across industries would vary considerably less. This approach would limit SBA's ability to fully assess the need for distinct size standards for specific industries, especially in the Professional, Scientific, and Technical Services Industry Sector.
3. Base all size standards on number of employees, with no receipts cap component. SBA discusses above in this proposed rule why it believes a receipts cap along with an employee size standard is needed for certain industries.
Request for Comments
SBA requests comments on its proposal to simplify and restructure size standards. Specifically, SBA requests comments on the following issues:
1. Are SBA's small business size standards complex, confusing or difficult to use? If so, please describe to what extent the proposed rule addresses this concern.
2. Should all small business size standards be based on number of employees?
3. Do the proposed size standards essentially maintain the level of small business eligibility within an industry that currently exists under the current receipts-based size standards?
4. Should there be a receipts cap component for those industries where subcontracting and outsourcing opportunities may allow a business to remain small but generate an unusually large amount of receipts?
5. Is it appropriate to apply an additional receipts cap requirement for the 31 industries in Table 4, above? Are there other industries that SBA should have a receipts cap?
6. Are the proposed receipts cap levels an appropriate or acceptable way to exclude large businesses?
7. Is one or more of the alternatives that SBA considered preferable to the proposed rule? If so, please explain why. What would be the impact of SBA's adopting one of the alternatives in place of the proposed rule?
8. Should SBA modify the size standard for its SBG Program and require that any construction (general or special trade) concern or concern performing a contract for services is small provided it meets the size standard for its primary industry?
9. Should SBA extend to all Federal Programs the 125,000 bpcd component of the size standard applicable to the Federal Government's procurement of refined petroleum, as described above?
10. Should the SBA eliminate the 500 employee size standard for nonmanufacturers applicable to Federal procurement programs and apply the Wholesale Trade Sector size standard of 100 employees?
11. Should SBA eliminate the special market share size standard for tire manufacturers, as described above?
12. Does the expanded use of employee-based size standards result in additional burdens on businesses verifying small business status or on Federal agencies that use SBA's size standards? These issues are discussed as part of SBA's regulatory impact and regulatory flexibility analyses of this proposed rule (see following two sections).
Compliance With Executive Orders 12866, 12988, and 13132, the Regulatory Flexibility Act (5 U.S.C. 601-612), and the Paperwork Reduction Act (44 U.S.C. Ch. 35)
The Office of Management and Budget (OMB) has determined that this rule is a significant regulatory action for purposes of Executive Order 12866. Size standards determine which businesses are eligible for Federal small business programs. This is not a major rule under the Congressional Review Act, 5 U.S.C. 800. For purposes of Executive Order 12988, SBA has determined that this rule is drafted, to the extent practicable, in accordance with the standards set forth in that order. For purposes of Executive Order 13132, SBA has determined that this rule does not have any federalism implications warranting the preparation of a Federalism Assessment.
For purposes of the Paperwork Reduction Act, 44 U.S.C. Ch. 35, SBA has determined that this rule would not impose new reporting or record keeping requirements. It is important to note, however, that while there are no new reporting and record keeping requirements, the size status of a business in industries that currently have a receipts-based size standard will no longer be based on a concern's Federal Income Tax returns, except for those industries whose size standards have receipts caps. Rather, proof of eligibility as a small business will be a concern's payroll records for the period of measurement specified in Sec. 121.106. SBA acknowledges that, in the event it must determine a business' employment size status, it may be more difficult to verify the accuracy of the payroll records submitted. At times, SBA may request a business provide more information to substantiate its employment information. SBA estimates that it takes four hours, on average, to complete an ``Application for Small Business Size Determination'' (SBA Form 355, OMB Approval No. 3245-0101). SBA invites comments on
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whether using employee-based size standards for new industries would be significantly more burdensome on small businesses and result in additional time to complete SBA Form 355. If so, how could SBA reduce the burden?
Regulatory Impact Analysis
1. Need for This Regulatory Action
Small business size standards have become complicated and burdensome for many users. Because size standards have become more complex over time, SBA believes that they should be made more uniform and easier to use. SBA believes that these simplified size standards will be less of a hindrance to small businesses that would like to participate in Federal small business programs and to personnel involved in small business Federal procurement and lending programs.
SBA is chartered to aid and assist small businesses through a variety of financial, procurement, business development, and advocacy programs. To effectively assist intended beneficiaries of these programs, SBA must establish distinct definitions by which businesses are deemed small businesses. The Small Business Act (Act) gives the SBA Administrator responsibility for establishing small business definitions. The Act also requires that small business definitions vary to reflect industry differences. The supplementary information to this proposed rule explains how SBA proposes to modify size standards, and why it believes that establishing employee-based size standards for all industries will be simpler while defining small businesses as equally well as the current structure. 2. Potential Benefits and Costs of This Regulatory Action
Small businesses will benefit because they will find it easier to use the small business size standards to determine if they are a small business. Also, there will be more common size standards among similar industries. Because size standards will be perceived as being less confusing and more straightforward, more small businesses will be encouraged to participate in Federal Government small business programs.
Other users of SBA's small business size standards, such as Federal Government Contracting Officers and commercial lenders that participate in SBA's financial assistance programs, will also benefit. There will be fewer size standards and they will be able to apply them more easily to their needs, and provide better and faster service to small businesses in need of assistance.
In the Federal Government, SBA's size standards are used for procurement programs, the Small Business Innovation Research Program (SBIR), loan programs, and regulatory flexibility analyses; plus, agencies use the size standards for other programmatic purposes. Currently, six agencies use small business size standards for various programs specific to their agencies. After discussions with each of these agencies, SBA believes that this proposed revision of its size standards would not negatively impact any of the program objectives of these agencies. Three agencies viewed positively the objective of simplifying size standards.
The U.S. Department of Transportation pointed out that certain Federal, state and local disadvantaged businesses enterprise (DBE) programs administer programs to certify businesses as small DBEs. Most of the businesses seeking DBE certification come from the construction and services industries that currently have receipts-based size standards. The change to employee size standards from receipts size standards will require applicants for small DBE certification to state their size in terms of number of employees. If a certification office questions the employment size of an applicant, the applicant will have to substantiate their employment size based on payroll records. A review of payroll records is a more time-consuming process than reviewing an applicant's Federal Income Tax return when questions arise concerning the applicant's receipts size. SBA believes that in most cases, the additional time to request and evaluate an applicant's employment size will not be substantial. SBA requests comments on the use of employee size standards on the DBE certification process and how to minimize an additional burden, if any, on the DBE process.
If an agency believes that a size standard different from an SBA's size standard is appropriate for its programs, it must contact SBA. If the agency seeks to change size standards in a general rulemaking context, then the agency should contact SBA's Office of Size Standards (see 13 CFR 121.901-904). If the agency seeks to change size standards for the purposes of its analysis under the Regulatory Flexibility Act (RFA), then the agency should contact SBA's Office of Advocacy (Advocacy) pursuant to section 601(3) of the RFA. Section 601(3) of the RFA requires the agency to consult with Advocacy and provide opportunity for public comment when it uses a different size standard for the RFA analysis.
Additional costs to the Federal Government will be negligible, if any. There will be approximately 1,100 additional small businesses under the proposed restructured size standards. This is less than 0.03% of the businesses in the affected industries. SBA believes that there will be a savings to the Federal Government because there will be fewer size standards, all having employee-based measures, which will reduce administrative costs.
In this rule, the SBA also proposes to revise the nonmanufacturer size standard from 500 employees to 100 employees. The great majority of nonmanufacturers are categorized under Wholesale Trade Sector (NAICS Sector 42) in which the size standard for all industries is 100 employees, except for Federal procurements. To further the simplification, SBA is proposing the same size standard of 100 employees for Federal procurement for wholesale trade industries under the nonmanufacturer size standard. This shift from a 500 employee size standard to one of 100 employees is estimated to affect 744 firms active in Federal procurement based on the SBA's Pro-Net data base of firms interested in doing business with the Federal Government. This data base includes a total of 30,700 firms in the wholesale trade NAICS codes, and a percentage loss of 2.4% would occur if the 100 employee size standard were finalized.
SBA estimates that there will be little distributional effects if this proposed rule is adopted. Small business size standards primarily serve Federal Government agencies in their procurement programs. Federal prime contractors also use them in their subcontracting plans. Since there will be less than a 0.03% increase in newly eligible small businesses, it is possible that a very limited amount of the Federal contracts will transfer from non-small businesses to small businesses.
The proposed revision to the current size standard structure is consistent with SBA's statutory mandate to assist small business. This regulatory action promotes the Administration's objectives. One of SBA's goals in support of the Administration's objectives is to help individual small businesses succeed through fair and equitable access to capital and credit. Reviewing and modifying size standards, when appropriate, ensures that intended beneficiaries have access to small business programs designed to assist them. Size standards do not interfere with State, local, or tribal governments in the exercise of their government functions. In a few cases, State and local governments and
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political subdivisions have voluntarily adopted SBA's size standards for their programs to eliminate the need to establish an administrative mechanism to develop their own size standards.
Initial Regulatory Flexibility Analysis
Under the RFA, this rule, if finalized, could have a significant impact on a substantial number of small entities because 35,200 businesses could gain and 34,100 could lose small business eligibility for Federal Government programs. SBA estimates that the net effect will be approximately 1,100 more eligible small businesses than at present. Immediately below, SBA sets forth an initial regulatory flexibility analysis of this rule addressing the following: (1) Need for and objective of the rule; (2) description and estimate of the number of small entities to which the rule will apply; (3) projected reporting, record keeping, and other compliance requirements of the rule; (4) relevant Federal rules that may duplicate, overlap, or conflict with the rule; and (5) alternatives to allow the Agency to accomplish its regulatory objectives while minimizing the impact on small entities. 1. Need for and Objective of the Rule
Small business size standards have become complicated and difficult to apply for many users. Because size standards have become so complex and confusing, SBA believes size standards should be more uniform and consistent, easier to use, and more reliable. SBA believes that these simplified size standards will be less of a hindrance to small businesses that would like to participate in Federal small business programs. In addition, it will reduce perceived impediments for providers of small business assistance who use them, such as personnel involved in Federal procurement and commercial lending, and possibly increase small business participation in Federal programs. 2. Description and Estimate of the Number of Small Entities To Which the Rule Will Apply
The SBA estimates that the simplification of size standards by converting receipt-based size standards to employee-based size standards will have a net impact of increasing the number of businesses eligible for SBA assistance by 1,100 firms. This includes an additional 35,200 businesses in 196 industries and the loss of 34,100 businesses in 229 industries. Overall, the SBA estimates that a total of 69,300 businesses could be impacted by this rule in terms of eligibility for SBA's programs. Since approximately 4.4 million businesses are active in industries covered by this rule, SBA estimates that 1.6% of businesses could be affected. However, the great majority of these businesses are not involved in SBA's programs in any one year, and the actual impact is likely to be only a small proportion of the 69,300 estimate. SBA's guaranteed loan program, for example, generated approximately 55,000 loans in FY 2002, indicating that just over one percent of eligible small businesses seek out SBA financial assistance in a given year. The SBA's PRO-Net database of small businesses interested in Federal procurement includes approximately 200,000 businesses--again, only a small proportion (about 4%) of businesses considered small by the SBA. Overall, SBA estimates that fewer than 3,000 businesses out of 4.4 million firms will be directly affected if these proposed changes were to be finalized, and that about half of these businesses would gain eligibility while the other half would lose eligibility.
Although the overall impact will be small relative to the number of businesses with revised size standards, certain industries will be impacted more than others. In particular, the SBA notes that the two restaurant industries, Full Service Restaurants (NAICS 722110) and Limited Service Restaurants (NAICS 722211), have the largest number of businesses losing eligibility for SBA assistance if this rule were to be finalized. In total, these two industries would lose about 14,600 businesses out of 272,000 businesses in both industries, a loss of 5.4% of the total. This stems from SBA's moving from a $6 million size standard to a 50 employee size standard in these industries. However, even under the new anchor size standard of 50 employees, 252,000 out of 272,000 businesses in these two restaurant industries would remain small and eligible for SBA assistance, almost 93% of the total. Other industries with relatively higher proportion of small businesses that could lose eligibility include Child Day Care Services (NAICS 624410), with a loss of 3.1% of businesses; Golf Courses and Country Clubs (NAICS 7138910), with a loss of 10.7% of businesses; Vocational Rehabilitation Services (NAICS 624310), with a loss of 20.7% of businesses; and Fitness and Recreational Sports Centers (NAICS 713940), with a loss of 5.4% of businesses. Among industries gaining eligibility, the biggest impact is Offices of Real Estate Agents and Brokers (NAICS 531210), with an additional 3,600 businesses out of a total of 54,700, or 6.6%.
Overall, SBA estimates that most industries will experience a very small impact from this rule relative to the total number of businesses that are active in industries covered by this rule. Among industries for which the SBA has industry data provided by the U.S. Bureau of the Census, there are a total of 440 industries with 4.4 million businesses, or approximately 10,000 businesses in the average industry. Of these 440 industries, 198 would have a total impact of fewer than 20 businesses, while 288 would have a total impact of fewer than 50 businesses.
Also in this rule, the SBA proposes to revise the nonmanufacturer size standard from 500 employees to 100 employees. The great majority of nonmanufacturers are categorized under Wholesale Trade Sector (NAICS Sector 42) in which the size standard for all industries is 100 employees, except for Federal procurements. To further the simplification, SBA is proposing the same size standard of 100 employees for Federal procurements for wholesale trade industries under the nonmanufacturer size standard. This shift from a 500 employee size standard to one of 100 employees is estimated to affect 744 firms active in Federal procurement based on the SBA's PRO-Net data base of firms interested in doing business with the Federal Government. This data base includes a total of 30,700 firms in the wholesale trade NAICS codes, and a percentage loss of 2.4% would occur if the 100 employee size standard were finalized. 3. Projected Reporting, Record Keeping, and Other Compliance Requirements of the Rule
The new table with all size standards based on number of employees does not impose any additional reporting, record keeping, or compliance requirements on small entities. Users may need to revise existing data bases that use current size standards. However, this is true anytime SBA changes or otherwise modifies a size standard. For example, a much more extensive change occurred when SBA converted from the Standard Industrial Classification (SIC) system to NAICS effective October 1, 2000, and later adopted, effective October 1, 2002, the U.S. Office of Management and Budget's 2002 modifications to NAICS. SBA was not made aware of any user problems with those actions.
It is important to note, however, that while there are no new reporting and record keeping requirements, the size status of a business in industries that currently have a receipts-size standard will no longer be based on a concern's Federal Income Tax returns, except for
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those industries whose size standards have receipts caps. Rather, proof of eligibility as a small business will be a concern's payroll records for the period of measurement specified in Sec. 121.106. SBA acknowledges that, in the event it must determine a business' employment size status, it may be more difficult to verify the accuracy of the payroll records submitted. At times, SBA may request a business to provide more information to substantiate its employment information. SBA estimates that it takes four hours, on average, to complete an ``Application for Small Business Size Determination'' (SBA Form 355). SBA invites comments as to whether using employee-based size standards for new industries would be significantly more burdensome on small businesses and result in additional time to complete a SBA Form 355 and, if so, how SBA could reduce the burden. 4. Relevant Federal Rules That May Duplicate, Overlap, or Conflict With the Rule
In the Federal Government, SBA's size standards are used for procurement programs, the SBIR Program, loan programs, and regulatory flexibility analysis; plus, agencies use the size standards for other programmatic purposes. Currently, six agencies use small business size standards for various programs specific to their agencies. After discussions with each of these agencies, SBA believes that this proposed revision of its size standards will not negatively impact any of the program objectives of these agencies. Three agencies viewed positively the objective of simplifying size standards.
The U.S. Department of Transportation pointed out that certain Federal, state, and local governments administer programs to certify businesses as small disadvantaged business enterprises (DBE). Most of the businesses seeking DBE certification come from the construction and services industries that currently have receipts-based size standards. The change to employee size standards from receipts size standards will require applicants for small DBE certification to state their size in terms of number of employees. If a certification office questions the employment size of an applicant, the applicant will have to substantiate its employment size based on payroll records. A review of payroll records is a more time-consuming process than reviewing an applicant's Federal Income Tax return when questions arise concerning the applicant's receipts size. SBA believes that in most cases, the additional time to request and evaluate an applicant's employment size will not be substantial. SBA requests comments on the use of employee size standards on the DBE certification process and how to minimize an additional burden, if any, on the DBE process. 5. Alternatives To Allow the Agency To Accomplish Its Regulatory Objectives While Minimizing the Impact on Small Entities
As discussed above in the Supplementary Information, there are three alternatives to the proposed rule: (a) Retain the existing employee-based size standards, while reducing the 30 receipts-based size standards to a fewer number of size standard levels, such as four to eight different receipts size standards; (b) establish size standards by industry category that would generally be based on NAICS Industry Sectors or Subsectors, such as the size standards of the three Construction Subsectors; and (c) base all size standards on number of employees, with no receipts cap component.
SBA believes the proposed size standards based on number of employees will simplify size standards and will likely have a minimal adverse impact on small entities. The other alternatives SBA considered would achieve fewer benefits in terms of simplifying size standards or have a much greater impact on the number of businesses either gaining or losing small business eligibility.
List of Subjects in 13 CFR Part 121
Administrative practice and procedure, Government procurement, Government property, Grant programs--business, Individuals with disabilities, Loan programs--business, Reporting and recordkeeping requirements, Small businesses.
For the reasons set forth in the preamble, SBA proposes to amend part 13 CFR Part 121.
PART 121--SMALL BUSINESS SIZE REGULATIONS
1. The authority citation for part 121 continues to read as follows:
Authority: 15 U.S.C. 632(a), 634(b)(6), 636(b), 637(a), 644(c), and 662(5); and Sec. 304, Pub. L. 103-403, 108 Stat. 4175, 4188, Pub. L. 106-24, 113 Stat. 39.
2. Revise Sec. 121.201 to read as follows:
3. Sec. 121.201 What size standards has SBA identified by North American Industry Classification System codes?
The size standards set forth in this section apply to all SBA programs unless otherwise specified in this part. The size standards themselves are expressed in number of employees. Some of the NAICS industries have an additional maximum annual receipts amount. For those NAICS industries with additional annual receipts amounts, the business concern must not exceed the employee-based size standard and the annual receipts amount to qualify as a small business. The number of employees and annual receipts amount are together a single size standard, and they indicate the maximum allowed for a concern, together with its affiliates, to be considered a small business.
Maximum Size standards average
NAICS codes NAICS U.S. industry in number of annual title
employees receipts ($ million)
Sector 11--Agriculture, Forestry, Fishing and Hunting
Subsector 111--Crop Production
111110............ Soybean Farming..... ..............
$0.75 111120............ Oilseed (except ..............
$0.75 Soybean) Farming. 111130............ Dry Pea and Bean ..............
$0.75 Farming. 111140............ Wheat Farming....... ..............
$0.75 111150............ Corn Farming........ ..............
$0.75 111160............ Rice Farming........ ..............
$0.75 111191............ Oilseed and Grain ..............
$0.75 Combination Farming. 111199............ All Other Grain ..............
$0.75 Farming. 111211............ Potato Farming...... ..............
$0.75
[[Page 13142]]
111219............ Other Vegetable ..............
$0.75 (except Potato) and Melon Farming. 111310............ Orange Groves....... ..............
$0.75 111320............ Citrus (except
..............
$0.75 Orange) Groves. 111331............ Apple Orchards...... ..............
$0.75 111332............ Grape Vineyards..... ..............
$0.75 111333............ Strawberry Farming.. ..............
$0.75 111334............ Berry (except
..............
$0.75 Strawberry) Farming. 111335............ Tree Nut Farming.... ..............
$0.75 111336............ Fruit and Tree Nut ..............
$0.75 Combination Farming. 111339............ Other Noncitrus ..............
$0.75 Fruit Farming. 111411............ Mushroom Production. ..............
$0.75 111419............ Other Food Crops ..............
$0.75 Grown Under Cover. 111421............ Nursery and Tree ..............
$0.75 Production. 111422............ Floriculture
..............
$0.75 Production. 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
..............
$0.75 Miscellaneous Crop Farming.
Subsector 112--Animal Production
112111............ Beef Cattle Ranching ..............
$0.75 and Farming. 112112............ Cattle Feedlots.....
50 .............. 112120............ Dairy Cattle and ..............
$0.75 Milk Production. 112210............ Hog and Pig Farming. ..............
$0.75 112310............ Chicken Egg
50 .............. Production. 112320............ Broilers and Other ..............
$0.75 Meat Type Chicken Production. 112330............ Turkey Production... ..............
$0.75 112340............ Poultry Hatcheries.. ..............
$0.75 112390............ Other Poultry
..............
$0.75 Production. 112410............ Sheep Farming....... ..............
$0.75 112420............ Goat Farming........ ..............
$0.75 112511............ Finfish Farming and ..............
$0.75 Fish Hatcheries. 112512............ Shellfish Farming... ..............
$0.75 112519............ Other Animal
..............
$0.75 Aquaculture. 112910............ Apiculture.......... ..............
$0.75 112920............ Horse and Other ..............
$0.75 Equine Production. 112930............ Fur-Bearing Animal ..............
$0.75 and Rabbit Production. 112990............ All Other Animal ..............
$0.75 Production.
Subsector 113--Forestry and Logging
113110............ Timber Tract
50 .............. Operations. 113210............ Forest Nurseries and
50 .............. Gathering of Forest Products. 113310............ Logging.............
500 ..............
Subsector 114--Fishing, Hunting and Trapping
114111............ Finfish Fishing.....
50 .............. 114112............ Shellfish Fishing...
50 .............. 114119............ Other Marine Fishing
50 .............. 114210............ Hunting and Trapping
50 ..............
Subsector 115--Support Activities for Agriculture and Forestry
115111............ Cotton Ginning......
50 .............. 115112............ Soil Preparation,
50 .............. Planting, and Cultivating. 115113............ Crop Harvesting,
50 .............. Primarily by Machine. 115114............ Postharvest Crop
50 .............. Activities (except Cotton Ginning). 115115............ Farm Labor
50 .............. Contractors and Crew Leaders. 115116............ Farm Management
50 .............. Services. 115210............ Support Activities
50 .............. for Animal Production. 115310............ Support Activities
50 .............. for Forestry. Except,........... Forest Fire
\1\ 400 \1\ $20.0 Suppression \1\. Except,........... Fuels Management
\1\ 400 \1\ $20.0 Services \1\.
[[Page 13143]]
Sector 21--Mining
Subsector 211--Oil and Gas Extraction
211111............ Crude Petroleum and
500 .............. Natural Gas Extraction. 211112............ Natural Gas Liquid
500 .............. Extraction.
Subsector 212--Mining (except Oil and Gas)
212111............ Bituminous Coal and
500 .............. Lignite Surface Mining. 212112............ Bituminous Coal
500 .............. Underground Mining. 212113............ Anthracite Mining...
500 .............. 212210............ Iron Ore Mining.....
500 .............. 212221............ Gold Ore Mining.....
500 .............. 212222............ Silver Ore Mining...
500 .............. 212231............ Lead Ore and Zinc
500 .............. Ore Mining. 212234............ Copper Ore and
500 .............. Nickel Ore Mining. 212291............ Uranium-Radium-
500 .............. Vanadium Ore Mining. 212299............ All Other Metal Ore
500 .............. Mining. 212311............ Dimension Stone
500 .............. Mining and Quarrying. 212312............ Crushed and Broken
500 .............. Limestone Mining and Quarrying. 212313............ Crushed and Broken
500 .............. Granite Mining and Quarrying. 212319............ Other Crushed and
500 .............. Broken Stone Mining and Quarrying. 212321............ Construction Sand
500 .............. and Gravel Mining. 212322............ Industrial Sand
500 .............. Mining. 212324............ Kaolin and Ball Clay
500 .............. Mining. 212325............ Clay and Ceramic and
500 .............. Refractory Minerals Mining. 212391............ Potash, Soda, and
500 .............. Borate Mineral Mining. 212392............ Phosphate Rock
500 .............. Mining. 212393............ Other Chemical and
500 .............. Fertilizer Mineral Mining. 212399............ All Other
500 .............. Nonmetallic Mineral Mining.
Subsector 213--Support Activities for Mining
213111............ Drilling Oil and Gas
500 .............. Wells. 213112............ Support Activities
50 .............. for Oil and Gas Operations. 213113............ Support Activities
50 .............. for Coal Mining. 213114............ Support Activities
50 .............. for Metal Mining. 213115............ Support Activities
50 .............. for Nonmetallic Minerals (except Fuels).
Sector 22--Utilities
Subsector 221--Utilities
221111............ Hydroelectric Power
1,000 .............. Generation. 221112............ Fossil Fuel Electric
1,000 .............. Power Generation. 221113............ Nuclear Electric
1,000 .............. Power Generation. 221119............ Other Electric Power
1,000 .............. Generation. 221121............ Electric Bulk Power
1,000 .............. Transmission and Control. 221122............ Electric Power
1,000 .............. Distribution. 221210............ Natural Gas
500 .............. Distribution. 221310............ Water Supply and
50 .............. Irrigation Systems. 221320............ Sewage Treatment
50 .............. Facilities. 221330............ Steam and Air-
50 .............. Conditioning Supply.
Sector 23--Construction
Subsector 236--Construction of Buildings
236115............ New Single-Family
150
$35.0 Housing Construction (except Operative Builders). 236116............ New Multifamily
150
$35.0 Housing Construction (except Operative Builders). 236117............ New Housing
150
$35.0 Operative Builders. 236118............ Residential
150
$35.0 Remodelers. 236210............ Industrial Building
150
$35.0 Construction. 236220............ Commercial and
150
$35.0 Institutional Building Construction.
Subsector 237--Heavy and Civil Engineering Construction
237110............ Water and Sewer Line
200
$35.0 and Related Structures Construction. 237120............ Oil and Gas Pipeline
200
$35.0 and Related Structures Construction. 237130............ Power and
200
$35.0 Communication Line and Related Structures Construction.
[[Page 13144]]
237210............ Land Subdivision....
200
$35.0 237310............ Highway, Street, and
200
$35.0 Bridge Construction. 237990............ Other Heavy and
200
$35.0 Civil Engineering Construction. Except,........... Dredging and Surface
\2\ 150 \2\ $22.0 Cleanup Activities \2\.
Subsector 238--Specialty Trade Contractors
238110............ Poured Concrete
100 .............. Foundation and Structure Contractors. 238120............ Structural Steel and
100 .............. Precast Concrete Contractors. 238130............ Framing Contractors.
100 .............. 238140............ Masonry Contractors.
100 .............. 238150............ Glass and Glazing
100 .............. Contractors. 238160............ Roofing Contractors.
100 .............. 238170............ Siding Contractors..
100 .............. 238190............ Other Foundation,
100 .............. Structure, and Building Exterior Contractors. 238210............ Electrical
100 .............. Contractors. 238220............ Plumbing, Heating,
100 .............. and Air- Conditioning Contractors. 238290............ Other Building
100 .............. Equipment Contractors. 238310............ Drywall and
100 .............. Insulation Contractors. 238320............ Painting and Wall
100 .............. Covering Contractors. 238330............ Flooring Contractors
100 .............. 238340............ Tile and Terrazzo
100 .............. Contractors. 238350............ Finish Carpentry
100 .............. Contractors. 238390............ Other Building
100 .............. Finishing Contractors. 238910............ Site Preparation
100 .............. Contractors. 238990............ All Other Specialty
100 .............. Trade Contractors. Except,........... Building and
\3\ 100 .............. Property Specialty Trade Services \3\.
Sectors 31--33--Manufacturing
Subsector 311--Food Manufacturing
311111............ Dog and Cat Food
500 .............. Manufacturing. 311119............ Other Animal Food
500 .............. Manufacturing. 311211............ Flour Milling.......
500 .............. 311212............ Rice Milling........
500 .............. 311213............ Malt Manufacturing..
500 .............. 311221............ Wet Corn Milling....
750 .............. 311222............ Soybean Processing..
500 .............. 311223............ Other Oilseed
1,000 .............. Processing. 311225............ Fats and Oils
1,000 .............. Refining and Blending. 311230............ Breakfast Cereal
1,000 .............. Manufacturing. 311311............ Sugarcane Mills.....
500 .............. 311312............ Cane Sugar Refining.
750 .............. 311313............ Beet Sugar
750 .............. Manufacturing. 311320............ Chocolate and
500 .............. Confectionery Manufacturing from Cacao Beans. 311330............ Confectionery
500 .............. Manufacturing from Purchased Chocolate. 311340............ Non-Chocolate
500 .............. Confectionery Manufacturing. 311411............ Frozen Fruit, Juice
500 .............. and Vegetable Manufacturing. 311412............ Frozen Specialty
500 .............. Food Manufacturing. 311421............ Fruit and Vegetable
\4\ 500 .............. Canning \4\. 311422............ Specialty Canning...
1,000 .............. 311423............ Dried and Dehydrated
500 .............. Food Manufacturing. 311511............ Fluid Milk
500 .............. Manufacturing. 311512............ Creamery Butter
500 .............. Manufacturing. 311513............ Cheese Manufacturing
500 .............. 311514............ Dry, Condensed, and
500 .............. Evaporated Dairy Product Manufacturing. 311520............ Ice Cream and Frozen
500 .............. Dessert Manufacturing. 311611............ Animal (except
500 .............. Poultry) Slaughtering. 311612............ Meat Processed from
500 .............. Carcasses. 311613............ Rendering and Meat
500 .............. By-product Processing. 311615............ Poultry Processing..
500 .............. 311711............ Seafood Canning.....
500 .............. 311712............ Fresh and Frozen
500 .............. Seafood Processing. 311811............ Retail Bakeries.....
500 .............. 311812............ Commercial Bakeries.
500 .............. 311813............ Frozen Cakes, Pies,
500 .............. and Other Pastries Manufacturing. 311821............ Cookie and Cracker
750 .............. Manufacturing. 311822............ Flour Mixes and
500 .............. Dough Manufacturing from Purchased Flour. 311823............ Dry Pasta
500 .............. Manufacturing. 311830............ Tortilla
500 .............. Manufacturing.
[[Page 13145]]
311911............ Roasted Nuts and
500 .............. Peanut Butter Manufacturing. 311919............ Other Snack Food
500 .............. Manufacturing. 311920............ Coffee and Tea
500 .............. Manufacturing. 311930............ Flavoring Syrup and
500 .............. Concentrate Manufacturing. 311941............ Mayonnaise, Dressing
500 .............. and Other Prepared Sauce Manufacturing. 311942............ Spice and Extract
500 .............. Manufacturing. 311991............ Perishable Prepared
500 .............. Food Manufacturing. 311999............ All Other
500 .............. Miscellaneous Food Manufacturing.
Subsector 312--Beverage and Tobacco Product Manufacturing
312111............ Soft Drink
500 .............. Manufacturing. 312112............ Bottled Water
500 .............. Manufacturing. 312113............ Ice Manufacturing...
500 .............. 312120............ Breweries...........
500 .............. 312130............ Wineries............
500 .............. 312140............ Distilleries........
750 .............. 312210............ Tobacco Stemming and
500 .............. Redrying. 312221............ Cigarette
1,000 .............. Manufacturing. 312229............ Other Tobacco
500 .............. Product Manufacturing.
Subsector 313--Textile Mills
313111............ Yarn Spinning Mills.
500 .............. 313112............ Yarn Texturizing,
500 .............. Throwing and Twisting Mills. 313113............ Thread Mills........
500 .............. 313210............ Broadwoven Fabric
1,000 .............. Mills. 313221............ Narrow Fabric Mills.
500 .............. 313222............ Schiffli Machine
500 .............. Embroidery. 313230............ Nonwoven Fabric
500 .............. Mills. 313241............ Weft Knit Fabric
500 .............. Mills. 313249............ Other Knit Fabric
500 .............. and Lace Mills. 313311............ Broadwoven Fabric
1,000 .............. Finishing Mills. 313312............ Textile and Fabric
500 .............. Finishing (except Broadwoven Fabric) Mills. 313320............ Fabric Coating Mills
1,000 ..............
Subsector 314--Textile Product Mills
314110............ Carpet and Rug Mills
500 .............. 314121............ Curtain and Drapery
500 .............. Mills. 314129............ Other Household
500 .............. Textile Product Mills. 314911............ Textile Bag Mills...
500 .............. 314912............ Canvas and Related
500 .............. Product Mills. 314991............ Rope, Cordage and
500 .............. Twine Mills. 314992............ Tire Cord and Tire
1,000 .............. Fabric Mills. 314999............ All Other
500 .............. Miscellaneous Textile Product Mills.
Subsector 315--Apparel Manufacturing
315111............ Sheer Hosiery Mills.
500 .............. 315119............ Other Hosiery and
500 .............. Sock Mills. 315191............ Outerwear Knitting
500 .............. Mills. 315192............ Underwear and
500 .............. Nightwear Knitting Mills. 315211............ Men's and Boys' Cut
500 .............. and Sew Apparel Contractors. 315212............ Women's, Girls', and
500 .............. Infants' Cut and Sew Apparel Contractors. 315221............ Men's and Boys' Cut
500 .............. and Sew Underwear and Nightwear Manufacturing. 315222............ Men's and Boys' Cut
500 .............. and Sew Suit, Coat and Overcoat Manufacturing. 315223............ Men's and Boys' Cut
500 .............. and Sew Shirt (except Work Shirt) Manufacturing. 315224............ Men's and Boys' Cut
500 .............. and Sew Trouser, Slack and Jean Manufacturing. 315225............ Men's and Boys' Cut
500 .............. and Sew Work Clothing Manufacturing. 315228............ Men's and Boys' Cut
500 .............. and Sew Other Outerwear Manufacturing. 315231............ Women's and Girls'
500 .............. Cut and Sew Lingerie, Loungewear and Nightwear Manufacturing. 315232............ Women's and Girls'
500 .............. Cut and Sew Blouse and Shirt Manufacturing. 315233............ Women's and Girls'
500 .............. Cut and Sew Dress Manufacturing. 315234............ Women's and Girls'
500 .............. Cut and Sew Suit, Coat, Tailored Jacket and Skirt Manufacturing. 315239............ Women's and Girls'
500 .............. Cut and Sew Other Outerwear Manufacturing. 315291............ Infants' Cut and Sew
500 .............. Apparel Manufacturing. 315292............ Fur and Leather
500 .............. Apparel Manufacturing. 315299............ All Other Cut and
500 .............. Sew Apparel Manufacturing. 315991............ Hat, Cap and
500 .............. Millinery Manufacturing. 315992............ Glove and Mitten
500 .............. Manufacturing.
[[Page 13146]]
315993............ Men's and Boys'
500 .............. Neckwear Manufacturing. 315999............ Other Apparel
500 .............. Accessories and Other Apparel Manufacturing.
Subsector 316--Leather and Allied Product Manufacturing
316110............ Leather and Hide
500 .............. Tanning and Finishing. 316211............ Rubber and Plastics
1,000 .............. Footwear Manufacturing. 316212............ House Slipper
500 .............. Manufacturing. 316213............ Men's Footwear
500 .............. (except Athletic) Manufacturing. 316214............ Women's Footwear
500 .............. (except Athletic) Manufacturing. 316219............ Other Footwear
500 .............. Manufacturing. 316991............ Luggage
500 .............. Manufacturing. 316992............ Women's Handbag and
500 .............. Purse Manufacturing. 316993............ Personal Leather
500 .............. Good (except Women's Handbag and Purse) Manufacturing. 316999............ All Other Leather
500 .............. Good Manufacturing.
Subsector 321--Wood Product Manufacturing
321113............ Sawmills............
500 .............. 321114............ Wood Preservation...
500 .............. 321211............ Hardwood Veneer and
500 .............. Plywood Manufacturing. 321212............ Softwood Veneer and
500 .............. Plywood Manufacturing. 321213............ Engineered Wood
500 .............. Member (except Truss) Manufacturing. 321214............ Truss Manufacturing.
500 .............. 321219............ Reconstituted Wood
500 .............. Product Manufacturing. 321911............ Wood Window and Door
500 .............. Manufacturing. 321912............ Cut Stock, Resawing
500 .............. Lumber, and Planing. 321918............ Other Millwork
500 .............. (including Flooring). 321920............ Wood Container and
500 .............. Pallet Manufacturing. 321991............ Manufactured Home
500 .............. (Mobile Home) Manufacturing. 321992............ Prefabricated Wood
500 .............. Building Manufacturing. 321999............ All Other
500 .............. Miscellaneous Wood Product Manufacturing.
Subsector 322--Paper Manufacturing
322110............ Pulp Mills..........
750 .............. 322121............ Paper (except
750 .............. Newsprint) Mills. 322122............ Newsprint Mills.....
750 .............. 322130............ Paperboard Mills....
750 .............. 322211............ Corrugated and Solid
500 .............. Fiber Box Manufacturing. 322212............ Folding Paperboard
750 .............. Box Manufacturing. 322213............ Setup Paperboard Box
500 .............. Manufacturing. 322214............ Fiber Can, Tube,
500 .............. Drum, and Similar Products Manufacturing. 322215............ Non-Folding Sanitary
750 .............. Food Container Manufacturing. 322221............ Coated and Laminated
500 .............. Packaging Paper and Plastics Film Manufacturing. 322222............ Coated and Laminated
500 .............. Paper Manufacturing. 322223............ Plastics, Foil, and
500 .............. Coated Paper Bag Manufacturing. 322224............ Uncoated Paper and
500 .............. Multiwall Bag Manufacturing. 322225............ Laminated Aluminum
500 .............. Foil Manufacturing for Flexible Packaging Uses. 322226............ Surface-Coated
500 .............. Paperboard Manufacturing. 322231............ Die-Cut Paper and
500 .............. Paperboard Office Supplies Manufacturing. 322232............ Envelope
500 .............. Manufacturing. 322233............ Stationery, Tablet,
500 .............. and Related Product Manufacturing. 322291............ Sanitary Paper
500 .............. Product Manufacturing. 322299............ All Other Converted
500 .............. Paper Product Manufacturing.
Subsector 323--Printing and Related Support Activities
323110............ Commercial
500 .............. Lithographic Printing. 323111............ Commercial Gravure
500 .............. Printing. 323112............ Commercial
500 .............. Flexographic Printing. 323113............ Commercial Screen
500 .............. Printing. 323114............ Quick Printing......
500 .............. 323115............ Digital Printing....
500 .............. 323116............ Manifold Business
500 .............. Forms Printing. 323117............ Books Printing......
500 .............. 323118............ Blankbook, Loose-
500 .............. leaf Binder and Device Manufacturing. 323119............ Other Commercial
500 .............. Printing. 323121............ Tradebinding and
500 .............. Related Work. 323122............ Prepress Services...
500 ..............
[[Page 13147]]
Subsector 324--Petroleum and Coal Products Manufacturing
324110............ Petroleum Refineries \5\ 1,500 .............. \5\. 324121............ Asphalt Paving
500 .............. Mixture and Block Manufacturing. 324122............ Asphalt Shingle and
750 .............. Coating Materials Manufacturing. 324191............ Petroleum
500 .............. Lubricating Oil and Grease Manufacturing. 324199............ All Other Petroleum
500 .............. and Coal Products Manufacturing.
Subsector 325--Chemical Manufacturing
325110............ Petrochemical
1,000 .............. Manufacturing. 325120............ Industrial Gas
1,000 .............. Manufacturing. 325131............ Inorganic Dye and
1,000 .............. Pigment Manufacturing. 325132............ Synthetic Organic
750 .............. Dye and Pigment Manufacturing. 325181............ Alkalies and
1,000 .............. Chlorine Manufacturing. 325182............ Carbon Black
500 .............. Manufacturing. 325188............ All Other Basic
1,000 .............. Inorganic Chemical Manufacturing. 325191............ Gum and Wood
500 .............. Chemical Manufacturing. 325192............ Cyclic Crude and
750 .............. Intermediate Manufacturing. 325193............ Ethyl Alcohol
1,000 .............. Manufacturing. 325199............ All Other Basic
1,000 .............. Organic Chemical Manufacturing. 325211............ Plastics Material
750 .............. and Resin Manufacturing. 325212............ Synthetic Rubber
1,000 .............. Manufacturing. 325221............ Cellulosic Organic
1,000 .............. Fiber Manufacturing. 325222............ Noncellulosic
1,000 .............. Organic Fiber Manufacturing. 325311............ Nitrogenous
1,000 .............. Fertilizer Manufacturing. 325312............ Phosphatic
500 .............. Fertilizer Manufacturing. 325314............ Fertilizer (Mixing
500 .............. Only) Manufacturing. 325320............ Pesticide and Other
500 .............. Agricultural Chemical Manufacturing. 325411............ Medicinal and
750 .............. Botanical Manufacturing. 325412............ Pharmaceutical
750 .............. Preparation Manufacturing. 325413............ In-Vitro Diagnostic
500 .............. Substance Manufacturing. 325414............ Biological Product
500 .............. (except Diagnostic) Manufacturing. 325510............ Paint and Coating
500 .............. Manufacturing. 325520............ Adhesive
500 .............. Manufacturing. 325611............ Soap and Other
750 .............. Detergent Manufacturing. 325612............ Polish and Other
500 .............. Sanitation Good Manufacturing. 325613............ Surface Active Agent
500 .............. Manufacturing. 325620............ Toilet Preparation
500 .............. Manufacturing. 325910............ Printing Ink
500 .............. Manufacturing. 325920............ Explosives
750 .............. Manufacturing. 325991............ Custom Compounding
500 .............. of Purchased Resins. 325992............ Photographic Film,
500 .............. Paper, Plate and Chemical Manufacturing. 325998............ All Other
500 .............. Miscellaneous Chemical Product and Preparation Manufacturing.
Subsector 326--Plastics and Rubber Products Manufacturing
326111............ Unsupported Plastics
500 .............. Bag Manufacturing. 326112............ Unsupported Plastics
500 .............. Packaging Film and Sheet Manufacturing. 326113............ Unsupported Plastics
500 .............. Film and Sheet (except Packaging) Manufacturing. 326121............ Unsupported Plastics
500 .............. Profile Shapes Manufacturing. 326122............ Plastics Pipe and
500 .............. Pipe Fitting Manufacturing. 326130............ Laminated Plastics
500 .............. Plate, Sheet and Shape Manufacturing. 326140............ Polystyrene Foam
500 .............. Product Manufacturing. 326150............ Urethane and Other
500 .............. Foam Product (except Polystyrene) Manufacturing. 326160............ Plastics Bottle
500 .............. Manufacturing. 326191............ Plastics Plumbing
500 .............. Fixture Manufacturing. 326192............ Resilient Floor
750 .............. Covering Manufacturing. 326199............ All Other Plastics
500 .............. Product Manufacturing. 326211............ Tire Manufacturing
1,000 .............. (except Retreading). 326212............ Tire Retreading.....
500 .............. 326220............ Rubber and Plastics
500 .............. Hoses and Belting Manufacturing. 326291............ Rubber Product
500 .............. Manufacturing for Mechanical Use. 326299............ All Other Rubber
500 .............. Product Manufacturing.
Subsector 327--Nonmetallic Mineral Product Manufacturing
327111............ Vitreous China
750 .............. Plumbing Fixture and China and Earthenware Bathroom Accessories Manufacturing...... 327112............ Vitreous China, Fine
500 .............. Earthenware and Other Pottery Product Manufacturing. 327113............ Porcelain Electrical
500 .............. Supply Manufacturing.
[[Page 13148]]
327121............ Brick and Structural
500 .............. Clay Tile Manufacturing. 327122............ Ceramic Wall and
500 .............. Floor Tile Manufacturing. 327123............ Other Structural
500 .............. Clay Product Manufacturing. 327124............ Clay Refractory
500 .............. Manufacturing. 327125............ Nonclay Refractory
750 .............. Manufacturing. 327211............ Flat Glass
1,000 .............. Manufacturing. 327212............ Other Pressed and
750 .............. Blown Glass and Glassware Manufacturing. 327213............ Glass Container
750 .............. Manufacturing. 327215............ Glass Product
500 .............. Manufacturing Made of Purchased Glass. 327310............ Cement Manufacturing
750 .............. 327320............ Ready-Mix Concrete
500 .............. Manufacturing. 327331............ Concrete Block and
500 .............. Brick Manufacturing. 327332............ Concrete Pipe
500 .............. Manufacturing. 327390............ Other Concrete
500 .............. Product Manufacturing. 327410............ Lime Manufacturing..
500 .............. 327420............ Gypsum Product
1,000 .............. Manufacturing. 327910............ Abrasive Product
500 .............. Manufacturing. 327991............ Cut Stone and Stone
500 .............. Product Manufacturing. 327992............ Ground or Treated
500 .............. Mineral and Earth Manufacturing. 327993............ Mineral Wool
750 .............. Manufacturing. 327999............ All Other
500 .............. Miscellaneous Nonmetallic Mineral Product Manufacturing.
Subsector 331--Primary Metal Manufacturing
331111............ Iron and Steel Mills
1,000 .............. 331112............ Electrometallurgical
750 .............. Ferroalloy Product Manufacturing. 331210............ Iron and Steel Pipe
1,000 .............. and Tube Manufacturing from Purchased Steel. 331221............ Cold-Rolled Steel
1,000 .............. Shape Manufacturing. 331222............ Steel Wire Drawing..
1,000 .............. 331311............ Alumina Refining....
1,000 .............. 331312............ Primary Aluminum
1,000 .............. Production. 331314............ Secondary Smelting
750 .............. and Alloying of Aluminum. 331315............ Aluminum Sheet,
750 .............. Plate and Foil Manufacturing. 331316............ Aluminum Extruded
750 .............. Product Manufacturing. 331319............ Other Aluminum
750 .............. Rolling and Drawing. 331411............ Primary Smelting and
1,000 .............. Refining of Copper. 331419............ Primary Smelting and
750 .............. Refining of Nonferrous Metal (except Copper and Aluminum). 331421............ Copper Rolling,
750 .............. Drawing and Extruding. 331422............ Copper Wire (except
1,000 .............. Mechanical) Drawing. 331423............ Secondary Smelting,
750 .............. Refining, and Alloying of Copper. 331491............ Nonferrous Metal
750 .............. (except Copper and Aluminum) Rolling, Drawing and Extruding. 331492............ Secondary Smelting,
750 .............. Refining, and Alloying of Nonferrous Metal (except Copper and Aluminum).......... 331511............ Iron Foundries......
500 .............. 331512............ Steel Investment
500 .............. Foundries. 331513............ Steel Foundries
500 .............. (except Investment). 331521............ Aluminum Die-Casting
500 .............. Foundries. 331522............ Nonferrous (except
500 .............. Aluminum) Die- Casting Foundries. 331524............ Aluminum Foundries
500 .............. (except Die- Casting). 331525............ Copper Foundries
500 .............. (except Die- Casting). 331528............ Other Nonferrous
500 .............. Foundries (except Die-Casting).
Subsector 332--Fabricated Metal Product Manufacturing
332111............ Iron and Steel
500 .............. Forging. 332112............ Nonferrous Forging..
500 .............. 332114............ Custom Roll Forming.
500 .............. 332115............ Crown and Closure
500 .............. Manufacturing. 332116............ Metal Stamping......
500 .............. 332117............ Powder Metallurgy
500 .............. Part Manufacturing. 332211............ Cutlery and Flatware
500 .............. (except Precious) Manufacturing. 332212............ Hand and Edge Tool
500 .............. Manufacturing. 332213............ Saw Blade and
500 .............. Handsaw Manufacturing. 332214............ Kitchen Utensil, Pot
500 .............. and Pan Manufacturing. 332311............ Prefabricated Metal
500 .............. Building and Component Manufacturing. 332312............ Fabricated
500 .............. Structural Metal Manufacturing. 332313............ Plate Work
500 .............. Manufacturing. 332321............ Metal Window and
500 .............. Door Manufacturing. 332322............ Sheet Metal Work
500 .............. Manufacturing. 332323............ Ornamental and
500 .............. Architectural Metal Work Manufacturing. 332410............ Power Boiler and
500 .............. Heat Exchanger Manufacturing.
[[Page 13149]]
332420............ Metal Tank (Heavy
500 .............. Gauge) Manufacturing. 332431............ Metal Can
1,000 .............. Manufacturing. 332439............ Other Metal
500 .............. Container Manufacturing. 332510............ Hardware
500 .............. Manufacturing. 332611............ Spring (Heavy Gauge)
500 .............. Manufacturing. 332612............ Spring (Light Gauge)
500 .............. Manufacturing. 332618............ Other Fabricated
500 .............. Wire Product Manufacturing. 332710............ Machine Shops.......
500 .............. 332721............ Precision Turned
500 .............. Product Manufacturing. 332722............ Bolt, Nut, Screw,
500 .............. Rivet and Washer Manufacturing. 332811............ Metal Heat Treating.
750 .............. 332812............ Metal Coating,
500 .............. Engraving (except Jewelry and Silverware), and Allied Services to Manufacturers...... 332813............ Electroplating,
500 .............. Plating, Polishing, Anodizing and Coloring. 332911............ Industrial Valve
500 .............. Manufacturing. 332912............ Fluid Power Valve
500 .............. and Hose Fitting Manufacturing. 332913............ Plumbing Fixture
500 .............. Fitting and Trim Manufacturing. 332919............ Other Metal Valve
500 .............. and Pipe Fitting Manufacturing. 332991............ Ball and Roller
750 .............. Bearing Manufacturing. 332992............ Small Arms
1,000 .............. Ammunition Manufacturing. 332993............ Ammunition (except
1,500 .............. Small Arms) Manufacturing. 332994............ Small Arms
1,000 .............. Manufacturing. 332995............ Other Ordnance and
500 .............. Accessories Manufacturing. 332996............ Fabricated Pipe and
500 .............. Pipe Fitting Manufacturing. 332997............ Industrial Pattern
500 .............. Manufacturing. 332998............ Enameled Iron and
750 .............. Metal Sanitary Ware Manufacturing. 332999............ All Other
500 .............. Miscellaneous Fabricated Metal Product Manufacturing.
Subsector 333--Machinery Manufacturing \6\
333111............ Farm Machinery and
500 .............. Equipment Manufacturing. 333112............ Lawn and Garden
500 .............. Tractor and Home Lawn and Garden Equipment Manufacturing. 333120............ Construction
750 .............. Machinery Manufacturing. 333131............ Mining Machinery and
500 .............. Equipment Manufacturing. 333132............ Oil and Gas Field
500 .............. Machinery and Equipment Manufacturing. 333210............ Sawmill and
500 .............. Woodworking Machinery Manufacturing. 333220............ Plastics and Rubber
500 .............. Industry Machinery Manufacturing. 333291............ Paper Industry
500 .............. Machinery Manufacturing. 333292............ Textile Machinery
500 .............. Manufacturing. 333293............ Printing Machinery
500 .............. and Equipment Manufacturing. 333294............ Food Product
500 .............. Machinery Manufacturing. 333295............ Semiconductor
500 .............. Machinery Manufacturing. 333298............ All Other Industrial
500 .............. Machinery Manufacturing. 333311............ Automatic Vending
500 .............. Machine Manufacturing. 333312............ Commercial Laundry,
500 .............. Drycleaning and Pressing Machine Manufacturing. 333313............ Office Machinery
1,000 .............. Manufacturing. 333314............ Optical Instrument
500 .............. and Lens Manufacturing. 333315............ Photographic and
500 .............. Photocopying Equipment Manufacturing. 333319............ Other Commercial and
500 .............. Service Industry Machinery Manufacturing. 333411............ Air Purification
500 .............. Equipment Manufacturing. 333412............ Industrial and
500 .............. Commercial Fan and Blower Manufacturing. 333414............ Heating Equipment
500 .............. (except Warm Air Furnaces) Manufacturing. 333415............ Air-Conditioning and
750 .............. Warm Air Heating Equipment and Commercial and Industrial Refrigeration Equipment Manufacturing...... 333511............ Industrial Mold
500 .............. Manufacturing. 333512............ Machine Tool (Metal
500 .............. Cutting Types) Manufacturing. 333513............ Machine Tool (Metal
500 .............. Forming Types) Manufacturing. 333514............ Special Die and
500 .............. Tool, Die Set, Jig and Fixture Manufacturing. 333515............ Cutting Tool and
500 .............. Machine Tool Accessory Manufacturing. 333516............ Rolling Mill
500 .............. Machinery and Equipment Manufacturing. 333518............ Other Metalworking
500 .............. Machinery Manufacturing. 333611............ Turbine and Turbine
1,000 .............. Generator Set Unit Manufacturing. 333612............ Speed Changer,
500 .............. Industrial High- Speed Drive and Gear Manufacturing. 333613............ Mechanical Power
500 .............. Transmission Equipment Manufacturing. 333618............ Other Engine
1,000 .............. Equipment Manufacturing. 333911............ Pump and Pumping
500 .............. Equipment Manufacturing. 333912............ Air and Gas
500 .............. Compressor Manufacturing. 333913............ Measuring and
500 .............. Dispensing Pump Manufacturing. 333921............ Elevator and Moving
500 .............. Stairway Manufacturing. 333922............ Conveyor and
500 .............. Conveying Equipment Manufacturing. 333923............ Overhead Traveling
500 .............. Crane, Hoist and Monorail System Manufacturing.
[[Page 13150]]
333924............ Industrial Truck,
750 .............. Tractor, Trailer and Stacker Machinery Manufacturing. 333991............ Power-Driven Hand
500 .............. Tool Manufacturing. 333992............ Welding and
500 .............. Soldering Equipment Manufacturing. 333993............ Packaging Machinery
500 .............. Manufacturing. 333994............ Industrial Process
500 .............. Furnace and Oven Manufacturing. 333995............ Fluid Power Cylinder
500 .............. and Actuator Manufacturing. 333996............ Fluid Power Pump and
500 .............. Motor Manufacturing. 333997............ Scale and Balance
500 .............. (except Laboratory) Manufacturing. 333999............ All Other
500 .............. Miscellaneous General Purpose Machinery Manufacturing.
Subsector 334--Computer and Electronic Product Manufacturing \6\
334111............ Electronic Computer
1,000 .............. Manufacturing. 334112............ Computer Storage
1,000 .............. Device Manufacturing. 334113............ Computer Terminal
1,000 .............. Manufacturing. 334119............ Other Computer
1,000 .............. Peripheral Equipment Manufacturing. 334210............ Telephone Apparatus
1,000 .............. Manufacturing. 334220............ Radio and Television
750 .............. Broadcasting and Wireless Communications Equipment Manufacturing. 334290............ Other Communications
750 .............. Equipment Manufacturing. 334310............ Audio and Video
750 .............. Equipment Manufacturing. 334411............ Electron Tube
750 .............. Manufacturing. 334412............ Bare Printed Circuit
500 .............. Board Manufacturing. 334413............ Semiconductor and
500 .............. Related Device Manufacturing. 334414............ Electronic Capacitor
500 .............. Manufacturing. 334415............ Electronic Resistor
500 .............. Manufacturing. 334416............ Electronic Coil,
500 .............. Transformer, and Other Inductor Manufacturing. 334417............ Electronic Connector
500 .............. Manufacturing. 334418............ Printed Circuit
500 .............. Assembly (Electronic Assembly) Manufacturing. 334419............ Other Electronic
500 .............. Component Manufacturing. 334510............ Electromedical and
500 .............. Electrotherapeutic Apparatus Manufacturing. 334511............ Search, Detection,
750 .............. Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing...... 334512............ Automatic
500 .............. Environmental Control Manufacturing for Residential, Commercial and Appliance Use...... 334513............ Instruments and
500 .............. Related Products Manufacturing for Measuring, Displaying, and Controlling Industrial Process Variables.......... 334514............ Totalizing Fluid
500 .............. Meter and Counting Device Manufacturing. 334515............ Instrument
500 .............. Manufacturing for Measuring and Testing Electricity and Electrical Signals. 334516............ Analytical
500 .............. Laboratory Instrument Manufacturing. 334517............ Irradiation
500 .............. Apparatus Manufacturing. 334518............ Watch, Clock, and
500 .............. Part Manufacturing. 334519............ Other Measuring and
500 .............. Controlling Device Manufacturing. 334611............ Software Reproducing
500 .............. 334612............ Prerecorded Compact
750 .............. Disc (except Software), Tape, and Record Reproducing. 334613............ Magnetic and Optical
1,000 .............. Recording Media Manufacturing.
Subsector 335--Electrical Equipment, Appliance and Component Manufacturing \6\
335110............ Electric Lamp Bulb
1,000 .............. and Part Manufacturing. 335121............ Residential Electric
500 .............. Lighting Fixture Manufacturing. 335122............ Commercial,
500 .............. Industrial and Institutional Electric Lighting Fixture Manufacturing. 335129............ Other Lighting
500 .............. Equipment Manufacturing. 335211............ Electric Housewares
750 .............. and Household Fan Manufacturing. 335212............ Household Vacuum
750 .............. Cleaner Manufacturing. 335221............ Household Cooking
750 .............. Appliance Manufacturing. 335222............ Household
1,000 .............. Refrigerator and Home Freezer Manufacturing. 335224............ Household Laundry
1,000 .............. Equipment Manufacturing. 335228............ Other Major
500 .............. Household Appliance Manufacturing. 335311............ Power, Distribution
750 .............. and Specialty Transformer Manufacturing. 335312............ Motor and Generator
1,000 .............. Manufacturing. 335313............ Switchgear and
750 .............. Switchboard Apparatus Manufacturing. 335314............ Relay and Industrial
750 .............. Control Manufacturing. 335911............ Storage Battery
500 .............. Manufacturing. 335912............ Primary Battery
1,000 .............. Manufacturing. 335921............ Fiber Optic Cable
1,000 .............. Manufacturing. 335929............ Other Communication
1,000 .............. and Energy Wire Manufacturing. 335931............ Current-Carrying
500 .............. Wiring Device Manufacturing. 335932............ Noncurrent-Carrying
500 .............. Wiring Device Manufacturing. 335991............ Carbon and Graphite
750 .............. Product Manufacturing. 335999............ All Other
500 .............. Miscellaneous Electrical Equipment and Component Manufacturing.
[[Page 13151]]
Subsector 336--Transportation Equipment Manufacturing \7\
336111............ Automobile
1,000 .............. Manufacturing. 336112............ Light Truck and
1,000 .............. Utility Vehicle Manufacturing. 336120............ Heavy Duty Truck
1,000 .............. Manufacturing. 336211............ Motor Vehicle Body
1,000 .............. Manufacturing. 336212............ Truck Trailer
500 .............. Manufacturing. 336213............ Motor Home
1,000 .............. Manufacturing. 336214............ Travel Trailer and
500 .............. Camper Manufacturing. 336311............ Carburetor, Piston,
500 .............. Piston Ring and Valve Manufacturing. 336312............ Gasoline Engine and
750 .............. Engine Parts Manufacturing. 336321............ Vehicular Lighting
500 .............. Equipment Manufacturing. 336322............ Other Motor Vehicle
750 .............. Electrical and Electronic Equipment Manufacturing. 336330............ Motor Vehicle
750 .............. Steering and Suspension Components (except Spring) Manufacturing. 336340............ Motor Vehicle Brake
750 .............. System Manufacturing. 336350............ Motor Vehicle
750 .............. Transmission and Power Train Parts Manufacturing. 336360............ Motor Vehicle
500 .............. Seating and Interior Trim Manufacturing. 336370............ Motor Vehicle Metal
500 .............. Stamping. 336391............ Motor Vehicle Air-
750 .............. Conditioning Manufacturing. 336399............ All Other Motor
750 .............. Vehicle Parts Manufacturing. 336411............ Aircraft
1,500 .............. Manufacturing. 336412............ Aircraft Engine and
1,000 .............. Engine Parts Manufacturing. 336413............ Other Aircraft Part
\7\ 1,000 .............. and Auxiliary Equipment Manufacturing \7\. 336414............ Guided Missile and
1,000 .............. Space Vehicle Manufacturing. 336415............ Guided Missile and
1,000 .............. Space Vehicle Propulsion Unit and Propulsion Unit Parts Manufacturing. 336419............ Other Guided Missile
1,000 .............. and Space Vehicle Parts and Auxiliary Equipment Manufacturing. 336510............ Railroad Rolling
1,000 .............. Stock Manufacturing. 336611............ Ship Building and
1,000 .............. Repairing. 336612............ Boat Building.......
500 .............. 336991............ Motorcycle, Bicycle
500 .............. and Parts Manufacturing. 336992............ Military Armored
1,000 .............. Vehicle, Tank and Tank Component Manufacturing. 336999............ All Other
500 .............. Transportation Equipment Manufacturing.
Subsector 337--Furniture and Related Product Manufacturing
337110............ Wood Kitchen Cabinet
500 .............. and Counter Top Manufacturing. 337121............ Upholstered
500 .............. Household Furniture Manufacturing. 337122............ Nonupholstered Wood
500 .............. Household Furniture Manufacturing. 337124............ Metal Household
500 .............. Furniture Manufacturing. 337125............ Household Furniture
500 .............. (except Wood and Metal) Manufacturing. 337127............ Institutional
500 .............. Furniture Manufacturing. 337129............ Wood Television,
500 .............. Radio, and Sewing Machine Cabinet Manufacturing. 337211............ Wood Office
500 .............. Furniture Manufacturing. 337212............ Custom Architectural
500 .............. Woodwork and Millwork Manufacturing. 337214............ Office Furniture
500 .............. (except Wood) Manufacturing. 337215............ Showcase, Partition,
500 .............. Shelving, and Locker Manufacturing. 337910............ Mattress
500 .............. Manufacturing. 337920............ Blind and Shade
500 .............. Manufacturing.
Subsector 339--Miscellaneous Manufacturing
339111............ Laboratory Apparatus
500 .............. and Furniture Manufacturing. 339112............ Surgical and Medical
500 .............. Instrument Manufacturing. 339113............ Surgical Appliance
500 .............. and Supplies Manufacturing. 339114............ Dental Equipment and
500 .............. Supplies Manufacturing. 339115............ Ophthalmic Goods
500 .............. Manufacturing. 339116............ Dental Laboratories.
500 .............. 339911............ Jewelry (except
500 .............. Costume) Manufacturing. 339912............ Silverware and
500 .............. Hollowware Manufacturing. 339913............ Jewelers' Material
500 .............. and Lapidary Work Manufacturing. 339914............ Costume Jewelry and
500 .............. Novelty Manufacturing. 339920............ Sporting and
500 .............. Athletic Goods Manufacturing. 339931............ Doll and Stuffed Toy
500 .............. Manufacturing. 339932............ Game, Toy, and
500 .............. Children's Vehicle Manufacturing. 339941............ Pen and Mechanical
500 .............. Pencil Manufacturing. 339942............ Lead Pencil and Art
500 .............. Good Manufacturing. 339943............ Marking Device
500 .............. Manufacturing. 339944............ Carbon Paper and
500 .............. Inked Ribbon Manufacturing. 339950............ Sign Manufacturing..
500 .............. 339991............ Gasket, Packing, and
500 .............. Sealing Device Manufacturing. 339992............ Musical Instrument
500 .............. Manufacturing.
[[Page 13152]]
339993............ Fastener, Button,
500 .............. Needle and Pin Manufacturing. 339994............ Broom, Brush and Mop
500 .............. Manufacturing. 339995............ Burial Casket
500 .............. Manufacturing. 339999............ All Other
500 .............. Miscellaneous Manufacturing.
Sector 42--Wholesale Trade
Subsector 423--Merchant Wholesalers, Durable Goods
423110............ Automobile and Other
100 .............. Motor Vehicle Merchant Wholesalers. 423120............ Motor Vehicle
100 .............. Supplies and New Parts Merchant Wholesalers. 423130............ Tire and Tube
100 .............. Merchant Wholesalers. 423140............ Motor Vehicle Parts
100 .............. (Used) Merchant Wholesalers. 423210............ Furniture Merchant
100 .............. Wholesalers. 423220............ Home Furnishing
100 .............. Merchant Wholesalers. 423310............ Lumber, Plywood,
100 .............. Millwork, and Wood Panel Merchant Wholesalers. 423320............ Brick, Stone, and
100 .............. Related Construction Material Merchant Wholesalers. 423330............ Roofing, Siding, and
100 .............. Insulation Material Merchant Wholesalers. 423390............ Other Construction
100 .............. Material Merchant Wholesalers. 423410............ Photographic
100 .............. Equipment and Supplies Merchant Wholesalers. 423420............ Office Equipment
100 .............. Merchant Wholesalers. 423430............ Computer and
100 .............. Computer Peripheral Equipment and Software Merchant Wholesalers. 423440............ Other Commercial
100 .............. Equipment Merchant Wholesalers. 423450............ Medical, Dental, and
100 .............. Hospital Equipment and Supplies Merchant Wholesalers. 423460............ Ophthalmic Goods
100 .............. Merchant Wholesalers. 423490............ Other Professional
100 .............. Equipment and Supplies Merchant Wholesalers. 423510............ Metal Service
100 .............. Centers and Other Metal Merchant Wholesalers. 423520............ Coal and Other
100 .............. Mineral and Ore Merchant Wholesalers. 423610............ Electrical Apparatus
100 .............. and Equipment, Wiring Supplies, and Related Equipment Merchant Wholesalers........ 423620............ Electrical and
100 .............. Electronic Appliance, Television, and Radio Set Merchant Wholesalers. 423690............ Other Electronic
100 .............. Parts and Equipment Merchant Wholesalers. 423710............ Hardware Merchant
100 .............. Wholesalers. 423720............ Plumbing and Heating
100 .............. Equipment and Supplies (Hydronics) Merchant Wholesalers. 423730............ Warm Air Heating and
100 .............. Air-Conditioning Equipment and Supplies Merchant Wholesalers. 423740............ Refrigeration
100 .............. Equipment and Supplies Merchant Wholesalers. 423810............ Construction and
100 .............. Mining (except Oil Well) Machinery and Equipment Merchant Wholesalers. 423820............ Farm and Garden
100 .............. Machinery and Equipment Merchant Wholesalers. 423830............ Industrial Machinery
100 .............. and Equipment Merchant Wholesalers. 423840............ Industrial Supplies
100 .............. Merchant Wholesalers. 423850............ Service
100 .............. Establishment Equipment and Supplies Merchant Wholesalers. 423860............ Transportation
100 .............. Equipment and Supplies (except Motor Vehicle) Merchant Wholesalers. 423910............ Sporting and
100 .............. Recreational Goods and Supplies Merchant Wholesalers. 423920............ Toy and Hobby Goods
100 .............. and Supplies Merchant Wholesalers. 423930............ Recyclable Material
100 .............. Merchant Wholesalers. 423940............ Jewelry, Watch,
100 .............. Precious Stone, and Precious Metal Merchant Wholesalers. 423990............ Other Miscellaneous
100 .............. Durable Goods Merchant Wholesalers.
Subsector 424--Merchant Wholesalers, Nondurable Goods
424110............ Printing and Writing
100 .............. Paper Merchant Wholesalers. 424120............ Stationary and
100 .............. Office Supplies Merchant Wholesalers. 424130............ Industrial and
100 .............. Personal Service Paper Merchant Wholesalers. 424210............ Drugs and Druggists'
100 .............. Sundries Merchant Wholesalers. 424310............ Piece Goods,
100 .............. Notions, and Other Dry Goods Merchant Wholesalers. 424320............ Men's and Boys'
100 .............. Clothing and Furnishings Merchant Wholesalers. 424330............ Women's, Children's,
100 .............. and Infants' Clothing and Accessories Merchant Wholesalers. 424340............ Footwear Merchant
100 .............. Wholesalers. 424410............ General Line Grocery
100 .............. Merchant Wholesalers. 424420............ Packaged Frozen Food
100 .............. Merchant Wholesalers. 424430............ Dairy Product
100 .............. (except Dried or Canned) Merchant Wholesalers. 424440............ Poultry and Poultry
100 .............. Product Merchant Wholesalers. 424450............ Confectionery
100 .............. Merchant Wholesalers. 424460............ Fish and Seafood
100 .............. Merchant Wholesalers. 424470............ Meat and Meat
100 .............. Product Merchant Wholesalers. 424480............ Fresh Fruit and
100 .............. Vegetable Merchant Wholesalers. 424490............ Other Grocery and
100 .............. Related Products Merchant Wholesalers. 424510............ Grain and Field Bean
100 .............. Merchant Wholesalers. 424520............ Livestock Merchant
100 .............. Wholesalers. 424590............ Other Farm Product
100 .............. Raw Material Merchant Wholesalers. 424610............ Plastics Materials
100 .............. and Basic Forms and Shapes Merchant Wholesalers.
[[Page 13153]]
424690............ Other Chemical and
100 .............. Allied Products Merchant Wholesalers. 424710............ Petroleum Bulk
100 .............. Stations and Terminals. 424720............ Petroleum and
100 .............. Petroleum Products Merchant Wholesalers (except Bulk Stations and Terminals)......... 424810............ Beer and Ale
100 .............. Merchant Wholesalers. 424820............ Wine and Distilled
100 .............. Alcoholic Beverage Merchant Wholesalers. 424910............ Farm Supplies
100 .............. Merchant Wholesalers. 424920............ Book, Periodical,
100 .............. and Newspaper Merchant Wholesalers. 424930............ Flower, Nursery
100 .............. Stock, and Florists' Supplies Merchant Wholesalers. 424940............ Tobacco and Tobacco
100 .............. Product Merchant Wholesalers. 424950............ Paint, Varnish, and
100 .............. Supplies Merchant Wholesalers. 424990............ Other Miscellaneous
100 .............. Nondurable Goods Merchant Wholesalers.
Subsector 425--Wholesale Electronic Markets and Agents and Brokers
425110............ Business to Business
100 .............. Electronic Markets. 425120............ Wholesale Trade
100 .............. Agents and Brokers.
Sectors 44-45--Retail Trade
Subsector 441--Motor Vehicle and Parts Dealers
441110............ New Car Dealers.....
50 .............. 441120............ Used Car Dealers....
50 .............. 441210............ Recreational Vehicle
50 .............. Dealers. 441221............ Motorcycle Dealers..
50 .............. 441222............ Boat Dealers........
50 .............. 441229............ All Other Motor
50 .............. Vehicle Dealers. 441310............ Automotive Parts and
50 .............. Accessories Stores. 441320............ Tire Dealers........
50 ..............
Subsector 442--Furniture and Home Furnishings Stores
442110............ Furniture Stores....
50 .............. 442210............ Floor Covering
50 .............. Stores. 442291............ Window Treatment
50 .............. Stores. 442299............ All Other Home
50 .............. Furnishings Stores.
Subsector 443--Electronics and Appliance Stores
443111............ Household Appliance
50 .............. Stores. 443112............ Radio, Television
50 .............. and Other Electronics Stores. 443120............ Computer and
50 .............. Software Stores. 443130............ Camera and
50 .............. Photographic Supplies Stores.
Subsector 444--Building Material and Garden Equipment and Supplies Dealers
444110............ Home Centers........
50 .............. 444120............ Paint and Wallpaper
50 .............. Stores. 444130............ Hardware Stores.....
50 .............. 444190............ Other Building
50 .............. Material Dealers. 444210............ Outdoor Power
50 .............. Equipment Stores. 444220............ Nursery and Garden
50 .............. Centers.
Subsector 445--Food and Beverage Stores
445110............ Supermarkets and
150 .............. Other Grocery (except Convenience) Stores. 445120............ Convenience Stores..
150 .............. 445210............ Meat Markets........
50 .............. 445220............ Fish and Seafood
50 .............. Markets. 445230............ Fruit and Vegetable
50 .............. Markets. 445291............ Baked Goods Stores..
50 .............. 445292............ Confectionery and
50 .............. Nut Stores. 445299............ All Other Specialty
50 .............. Food Stores. 445310............ Beer, Wine and
50 .............. Liquor Stores.
Subsector 446--Health and Personal Care Stores
446110............ Pharmacies and Drug
50 .............. Stores. 446120............ Cosmetics, Beauty
50 .............. Supplies and Perfume Stores. 446130............ Optical Goods Stores
50 ..............
[[Page 13154]]
446191............ Food (Health)
50 .............. Supplement Stores. 446199............ All Other Health and
50 .............. Personal Care Stores.
Subsector 447--Gasoline Stations
447110............ Gasoline Stations
100 .............. with Convenience Stores. 447190............ Other Gasoline
50 .............. Stations.
Subsector 448--Clothing and Clothing Accessories Stores
448110............ Men's Clothing
50 .............. Stores. 448120............ Women's Clothing
50 .............. Stores. 448130............ Children's and
50 .............. Infants' Clothing Stores. 448140............ Family Clothing
50 .............. Stores. 448150............ Clothing Accessories
50 .............. Stores. 448190............ Other Clothing
50 .............. Stores. 448210............ Shoe Stores.........
50 .............. 448310............ Jewelry Stores......
50 .............. 448320............ Luggage and Leather
50 .............. Goods Stores.
Subsector 451--Sporting Good, Hobby, Book and Music Stores
451110............ Sporting Goods
50 .............. Stores. 451120............ Hobby, Toy and Game
50 .............. Stores. 451130............ Sewing, Needlework
50 .............. and Piece Goods Stores. 451140............ Musical Instrument
50 .............. and Supplies Stores. 451211............ Book Stores.........
50 .............. 451212............ News Dealers and
50 .............. Newsstands. 451220............ Prerecorded Tape,
50 .............. Compact Disc and Record Stores.
Subsector 452--General Merchandise Stores
452111............ Department Stores
150 .............. (except Discount Department Stores). 452112............ Discount Department
150 .............. Stores. 452910............ Warehouse Clubs and
150 .............. Superstores. 452990............ All Other General
100 .............. Merchandise Stores.
Subsector 453--Miscellaneous Store Retailers
453110............ Florists............
50 .............. 453210............ Office Supplies and
50 .............. Stationery Stores. 453220............ Gift, Novelty and
50 .............. Souvenir Stores. 453310............ Used Merchandise
50 .............. Stores. 453910............ Pet and Pet Supplies
50 .............. Stores. 453920............ Art Dealers.........
50 .............. 453930............ Manufactured
50 .............. (Mobile) Home Dealers. 453991............ Tobacco Stores......
50 .............. 453998............ All Other
50 .............. Miscellaneous Store Retailers (except Tobacco Stores).
Subsector 454--Nonstore Retailers
454111............ Electronic Shopping.
50 .............. 454112............ Electronic Auctions.
50 .............. 454113............ Mail-Order Houses...
50 .............. 454210............ Vending Machine
50 .............. Operators. 454311............ Heating Oil Dealers.
50 .............. 454312............ Liquefied Petroleum
50 .............. Gas (Bottled Gas) Dealers. 454319............ Other Fuel Dealers..
50 .............. 454390............ Other Direct Selling
50 .............. Establishments.
Sectors 48-49--Transportation
Subsector 481--Air Transportation
481111............ Scheduled Passenger
1,500 .............. Air Transportation. 481112............ Scheduled Freight
1,500 .............. Air Transportation. 481211............ Nonscheduled
1,500 .............. Chartered Passenger Air Transportation. Except,........... Offshore Marine Air
150 .............. Transportation Services. 481212............ Nonscheduled
1,500 .............. Chartered Freight Air Transportation. Except,........... Offshore Marine Air
150 .............. Transportation Services. 481219............ Other Nonscheduled
50 .............. Air Transportation.
[[Page 13155]]
Subsector 482--Rail Transportation
482111............ Line-Haul Railroads.
1,500 .............. 482112............ Short Line Railroads
500 ..............
Subsector 483--Water Transportation \8\
483111............ Deep Sea Freight
500 .............. Transportation. 483112............ Deep Sea Passenger
500 .............. Transportation. 483113............ Coastal and Great
500 .............. Lakes Freight Transportation. 483114............ Coastal and Great
500 .............. Lakes Passenger Transportation. 483211............ Inland Water Freight
500 .............. Transportation. 483212............ Inland Water
500 .............. Passenger Transportation.
Subsector 484--Truck Transportation
484110............ General Freight
200 .............. Trucking, Local. 484121............ General Freight
200 .............. Trucking, Long- Distance, Truckload. 484122............ General Freight
200 .............. Trucking, Long- Distance, Less Than Truckload. 484210............ Used Household and
200 .............. Office Goods Moving. 484220............ Specialized Freight
200 .............. (except Used Goods) Trucking, Local. 484230............ Specialized Freight
200 .............. (except Used Goods) Trucking, Long- Distance.
Subsector 485--Transit and Ground Passenger Transportation
485111............ Mixed Mode Transit
100 .............. Systems. 485112............ Commuter Rail
100 .............. Systems. 485113............ Bus and Motor
100 .............. Vehicle Transit Systems. 485119............ Other Urban Transit
100 .............. Systems. 485210............ Interurban and Rural
100 .............. Bus Transportation. 485310............ Taxi Service........
50 .............. 485320............ Limousine Service...
50 .............. 485410............ School and Employee
100 .............. Bus Transportation. 485510............ Charter Bus Industry
100 .............. 485991............ Special Needs
50 .............. Transportation. 485999............ All Other Transit
50 .............. and Ground Passenger Transportation.
Subsector 486--Pipeline Transportation
486110............ Pipeline
1,500 .............. Transportation of Crude Oil. 486210............ Pipeline
100 .............. Transportation of Natural Gas. 486910............ Pipeline
1,500 .............. Transportation of Refined Petroleum Products. 486990............ All Other Pipeline
100 .............. Transportation.
Subsector 487--Scenic and Sightseeing Transportation
487110............ Scenic and
50 .............. Sightseeing Transportation, Land. 487210............ Scenic and
50 .............. Sightseeing Transportation, Water. 487990............ Scenic and
50 .............. Sightseeing Transportation, Other.
Subsector 488--Support Activities for Transportation
488111............ Air Traffic Control.
50 .............. 488119............ Other Airport
100 .............. Operations. 488190............ Other Support
100 .............. Activities for Air Transportation. 488210............ Support Activities
50 .............. for Rail Transportation. 488310............ Port and Harbor
200 .............. Operations. 488320............ Marine Cargo
200 .............. Handling. 488330............ Navigational
50 .............. Services to Shipping. 488390............ Other Support
50 .............. Activities for Water Transportation. 488410............ Motor Vehicle Towing
50 .............. 488490............ Other Support
50 .............. Activities for Road Transportation. 488510............ Freight
50 .............. Transportation Arrangement. 488991............ Packing and Crating.
100 .............. 488999............ All Other Support
50 .............. Activities for Transportation.
Subsector 491--Postal Service
491110............ Postal Service......
50 ..............
Subsector 492--Couriers and Messengers
[[Page 13156]]
492110............ Couriers............
1,500 .............. 492210............ Local Messengers and
200 .............. Local Delivery.
Subsector 493--Warehousing and Storage
493110............ General Warehousing
200 .............. and Storage. 493120............ Refrigerated
200 .............. Warehousing and Storage. 493130............ Farm Product
200 .............. Warehousing and Storage. 493190............ Other Warehousing
200 .............. and Storage.
Sector 51--Information
Subsector 511--Publishing Industries (except Internet)
511110............ Newspaper Publishers
500 .............. 511120............ Periodical
500 .............. Publishers. 511130............ Book Publishers.....
500 .............. 511140............ Directory and
500 .............. Mailing List Publishers. 511191............ Greeting Card
500 .............. Publishers. 511199............ All Other Publishers
500 .............. 511210............ Software Publishers.
150 ..............
Subsector 512--Motion Picture and Sound Recording Industries
512110............ Motion Picture and
100 .............. Video Production. 512120............ Motion Picture and
100 .............. Video Distribution. 512131............ Motion Picture
100 .............. Theaters (except Drive-Ins). 512132............ Drive-In Motion
50 .............. Picture Theaters. 512191............ Teleproduction and
100 .............. Other Postproduction Services. 512199............ Other Motion Picture
50 .............. and Video Industries. 512210............ Record Production...
50 .............. 512220............ Integrated Record
750 .............. Production/ Distribution. 512230............ Music Publishers....
500 .............. 512240............ Sound Recording
50 .............. Studios. 512290............ Other Sound
50 .............. Recording Industries.
Subsector 515--Broadcasting (except Internet)
515111............ Radio Networks......
50 .............. 515112............ Radio Stations......
50 .............. 515120............ Television
100 .............. Broadcasting. 515210............ Cable and Other
100 .............. Subscription Programming.
Subsector 516--Internet Publishing and Broadcasting
516110............ Internet Publishing
500 .............. and Broadcasting.
Subsector 517--Telecommunications
517110............ Wired
1,500 .............. Telecommunications Carriers. 517211............ Paging..............
1,500 .............. 517212............ Cellular and Other
1,500 .............. Wireless Telecommunications. 517310............ Telecommunications
1,500 .............. Resellers. 517410............ Satellite
100 .............. Telecommunications. 517510............ Cable and Other
100 .............. Program Distribution. 517910............ Other
100 .............. Telecommunications.
Subsector 518--Internet Service Providers, Web Search Portals, and Data Processing Services
518111............ Internet Service
150 .............. Providers. 518112............ Web Search Portals..
150 .............. 518210............ Data Processing,
150
$30.0 Hosting, and Related Services.
Subsector 519--Other Information Services
519110............ News Syndicates.....
50 .............. 519120............ Libraries and
50 .............. Archives. 519190............ All Other
50 .............. Information Services.
[[Page 13157]]
Sector 52--Finance and Insurance
Subsector 522--Credit Intermediation and Related Activities
522110............ Commercial Banking..
50 .............. 522120............ Savings Institutions
50 .............. 522130............ Credit Unions.......
50 .............. 522190............ Other Depository
50 .............. Credit Intermediation. 522210............ Credit Card Issuing.
50 .............. 522220............ Sales Financing.....
50 .............. 522291............ Consumer Lending....
50 .............. 522292............ Real Estate Credit..
50 .............. 522293............ International Trade
50 .............. Financing. 522294............ Secondary Market
50 .............. Financing. 522298............ All Other Non-
50 .............. Depository Credit Intermediation. 522310............ Mortgage and
50 .............. Nonmortgage Loan Brokers. 522320............ Financial
50 .............. Transactions Processing, Reserve, and Clearing House Activities. 522390............ Other Activities
50 .............. Related to Credit Intermediation.
Subsector 523--Financial Investments and Related Activities
523110............ Investment Banking
50 .............. and Securities Dealing. 523120............ Securities Brokerage
50 .............. 523130............ Commodity Contracts
50 .............. Dealing. 523140............ Commodity Contracts
50 .............. Brokerage. 523210............ Securities and
50 .............. Commodity Exchanges. 523910............ Miscellaneous
50 .............. Intermediation. 523920............ Portfolio Management
50 .............. 523930............ Investment Advice...
50 .............. 523991............ Trust, Fiduciary and
50 .............. Custody Activities. 523999............ Miscellaneous
50 .............. Financial Investment Activities.
Subsector 524--Insurance Carriers and Related Activities
524113............ Direct Life
50 .............. Insurance Carriers. 524114............ Direct Health and
50 .............. Medical Insurance Carriers. 524126............ Direct Property and
1,500 .............. Casualty Insurance Carriers. 524127............ Direct Title
50 .............. Insurance Carriers. 524128............ Other Direct
50 .............. Insurance (except Life, Health and Medical) Carriers. 524130............ Reinsurance Carriers
50 .............. 524210............ Insurance Agencies
50 .............. and Brokerages. 524291............ Claims Adjusting....
50 .............. 524292............ Third Party
50 .............. Administration of Insurance and Pension Funds. 524298............ All Other Insurance
50 .............. Related Activities.
Subsector 525--Funds, Trusts and Other Financial Vehicles
525110............ Pension Funds.......
50 .............. 525120............ Health and Welfare
50 .............. Funds. 525190............ Other Insurance
50 .............. Funds. 525910............ Open-End Investment
50 .............. Funds. 525920............ Trusts, Estates, and
50 .............. Agency Accounts. 525930............ Real Estate
50 .............. Investment Trusts. 525990............ Other Financial
50 .............. Vehicles.
Sector 53--Real Estate and Rental and Leasing
Subsector 531--Real Estate
531110............ Lessors of
50 .............. Residential Buildings and Dwellings. 531120............ Lessors of
50 .............. Nonresidential Buildings (except Miniwarehouses). 531130............ Lessors of
150 .............. Miniwarehouses and Self Storage Units. 531190............ Lessors of Other
50 .............. Real Estate Property. Except,........... Leasing of Building
\9\ 150 .............. Space to Federal Government by Owners \9\. 531210............ Offices of Real
50 .............. Estate Agents and Brokers. 531311............ Residential Property
50 .............. Managers. 531312............ Nonresidential
50 .............. Property Managers. 531320............ Offices of Real
50 .............. Estate Appraisers. 531390............ Other Activities
50 .............. Related to Real Estate.
Subsector 532--Rental and Leasing Services
[[Page 13158]]
532111............ Passenger Car Rental
150 .............. 532112............ Passenger Car
150 .............. Leasing. 532120............ Truck, Utility
150 .............. Trailer, and RV (Recreational Vehicle) Rental and Leasing. 532210............ Consumer Electronics
50 .............. and Appliances Rental. 532220............ Formal Wear and
50 .............. Costume Rental. 532230............ Video Tape and Disc
50 .............. Rental. 532291............ Home Health
50 .............. Equipment Rental. 532292............ Recreational Goods
50 .............. Rental. 532299............ All Other Consumer
50 .............. Goods Rental. 532310............ General Rental
50 .............. Centers. 532411............ Commercial Air,
50 .............. Rail, and Water Transportation Equipment Rental and Leasing. 532412............ Construction, Mining
50 .............. and Forestry Machinery and Equipment Rental and Leasing. 532420............ Office Machinery and
50 .............. Equipment Rental and Leasing. 532490............ Other Commercial and
50 .............. Industrial Machinery and Equipment Rental and Leasing.
Subsector 533--Lessors of Nonfinancial Intangible Assets (except Copyrighted Works)
533110............ Lessors of
50 .............. Nonfinancial Intangible Assets (except Copyrighted Works).
Sector 54--Professional, Scientific and Technical Services
Subsector 541-- Professional, Scientific and Technical Services
541110............ Offices of Lawyers..
50 .............. 541191............ Title Abstract and
50 .............. Settlement Offices. 541199............ All Other Legal
50 .............. Services. 541211............ Offices of Certified
100 .............. Public Accountants. 541213............ Tax Preparation
50 .............. Services. 541214............ Payroll Services....
100 .............. 541219............ Other Accounting
100 .............. Services. 541310............ Architectural
50
$7.0 Services. 541320............ Landscape
50 .............. Architectural Services. 541330............ Engineering Services
50
$7.0 Except,........... Military and
200
$30.0 Aerospace Equipment and Military Weapons. Except,........... Contracts and
200
$30.0 Subcontracts for Engineering Services Awarded Under the National Energy Policy Act of 1992............ Except,........... Marine Engineering
150
$30.0 and Naval Architecture. 541340............ Drafting Services...
50 .............. 541350............ Building Inspection
50 .............. Services. 541360............ Geophysical
50 .............. Surveying and Mapping Services. 541370............ Surveying and
50 .............. Mapping (except Geophysical) Services. 541380............ Testing Laboratories
100 .............. 541410............ Interior Design
50 .............. Services. 541420............ Industrial Design
50 .............. Services. 541430............ Graphic Design
50 .............. Services. 541490............ Other Specialized
50 .............. Design Services. 541511............ Custom Computer
150
$30.0 Programming Services. 541512............ Computer Systems
150
$30.0 Design Services. 541513............ Computer Facilities
150
$30.0 Management Services. 541519............ Other Computer
150
$30.0 Related Services. Except,........... Information
\15\ 150 .............. Technology Value Added Resellers \15\. 541611............ Administrative
50
$10.0 Management and General Management Consulting Services. 541612............ Human Resources and
50
$10.0 Executive Search Consulting Services. 541613............ Marketing Consulting
50
$10.0 Services. 541614............ Process, Physical
50
$10.0 Distribution and Logistics Consulting Services. 541618............ Other Management
50
$10.0 Consulting Services. 541620............ Environmental
50
$10.0 Consulting Services. 541690............ Other Scientific and
50
$10.0 Technical Consulting Services. 541710............ Research and
\10\ 500 .............. Development in the Physical, Engineering, and Life Sciences \10\. Except,........... Aircraft............
1,500 .............. Except,........... Aircraft Parts, and
1,000 .............. Auxiliary Equipment, and Aircraft Engine Parts. Except,........... Space Vehicles and
1,000 .............. Guided Missiles, their Propulsion Units, their Propulsion Units Parts, and their Auxiliary Equipment and Parts.......... 541720............ Research and
50 .............. Development in the Social Sciences and Humanities. 541810............ Advertising Agencies
50 .............. 541820............ Public Relations
50 .............. Agencies. 541830............ Media Buying
50 .............. Agencies. 541840............ Media
50 .............. Representatives. 541850............ Display Advertising.
50 .............. 541860............ Direct Mail
50 .............. Advertising. 541870............ Advertising Material
50 .............. Distribution Services.
[[Page 13159]]
541890............ Other Services
50 .............. Related to Advertising. 541910............ Marketing Research
50 .............. and Public Opinion Polling. 541921............ Photography Studios,
50 .............. Portrait. 541922............ Commercial
50 .............. Photography. 541930............ Translation and
50 .............. Interpretation Services. 541940............ Veterinary Services.
50 .............. 541990............ All Other
50
$10.0 Professional, Scientific and Technical Services.
Sector 55--Management of Companies and Enterprises
Subsector 551--Management of Companies and Enterprises
551111............ Offices of Bank
50 .............. Holding Companies. 551112............ Offices of Other
50 .............. Holding Companies.
Sector 56--Administrative and Support, Waste Management and Remediation Services
Subsector 561--Administrative and Support Services
561110............ Office
50
$10.0 Administrative Services. 561210............ Facilities Support
\11\ 400 \11\ $40.0 Services \11\. 561310............ Employment Placement
50 .............. Agencies. 561320............ Temporary Help
500 .............. Services. 561330............ Employee Leasing
500 .............. Services. 561410............ Document Preparation
50 .............. Services. 561421............ Telephone Answering
50 .............. Services. 561422............ Telemarketing
150 .............. Bureaus. 561431............ Private Mail Centers
50 .............. 561439............ Other Business
50 .............. Service Centers (including Copy Shops). 561440............ Collection Agencies.
50 .............. 561450............ Credit Bureaus......
50 .............. 561491............ Repossession
50 .............. Services. 561492............ Court Reporting and
50 .............. Stenotype Services. 561499............ All Other Business
50 .............. Support Services. 561510............ Travel Agencies.....
50 .............. 561520............ Tour Operators......
50 .............. 561591............ Convention and
50 .............. Visitors Bureaus. 561599............ All Other Travel
50 .............. Arrangement and Reservation Services. 561611............ Investigation
200 .............. Services. 561612............ Security Guards and
500 .............. Patrol Services. 561613............ Armored Car Services
200 .............. 561621............ Security Systems
200 .............. Services (except Locksmiths). 561622............ Locksmiths..........
50 .............. 561710............ Exterminating and
50 .............. Pest Control Services. 561720............ Janitorial Services.
500 .............. 561730............ Landscaping Services
50 .............. 561740............ Carpet and
50 .............. Upholstery Cleaning Services. 561790............ Other Services to
50 .............. Buildings and Dwellings. 561910............ Packaging and
50 .............. Labeling Services. 561920............ Convention and Trade
50 .............. Show Organizers. 561990............ All Other Support
50 .............. Services.
Subsector 562--Waste Management and Remediation Services
562111............ Solid Waste
100 .............. Collection. 562112............ Hazardous Waste
100 .............. Collection. 562119............ Other Waste
100 .............. Collection. 562211............ Hazardous Waste
100 .............. Treatment and Disposal. 562212............ Solid Waste Landfill
100 .............. 562213............ Solid Waste
100 .............. Combustors and Incinerators. 562219............ Other Nonhazardous
100 .............. Waste Treatment and Disposal. 562910............ Remediation Services
100 .............. Except,........... Environmental
\12\ 500 .............. Remediation Services \12\. 562920............ Materials Recovery
100 .............. Facilities. 562991............ Septic Tank and
50 .............. Related Services. 562998............ All Other
50 .............. Miscellaneous Waste Management Services.
Sector 61--Educational Services
Subsector 611--Educational Services
[[Page 13160]]
611110............ Elementary and
50 .............. Secondary Schools. 611210............ Junior Colleges.....
50 .............. 611310............ Colleges,
50 .............. Universities and Professional Schools. 611410............ Business and
50 .............. Secretarial Schools. 611420............ Computer Training...
50 .............. 611430............ Professional and
50 .............. Management Development Training. 611511............ Cosmetology and
50 .............. Barber Schools. 611512............ Flight Training.....
200 .............. 611513............ Apprenticeship
50 .............. Training. 611519............ Other Technical and
50 .............. Trade Schools. Except,........... Job Corps Centers 13
\13\ 400 \13\ $30.0 611610............ Fine Arts Schools...
50 .............. 611620............ Sports and
50 .............. Recreation Instruction. 611630............ Language Schools....
50 .............. 611691............ Exam Preparation and
50 .............. Tutoring. 611692............ Automobile Driving
50 .............. Schools. 611699............ All Other
50 .............. Miscellaneous Schools and Instruction. 611710............ Educational Support
50 .............. Services.
Sector 62--Health Care and Social Assistance
Subsector 621--Ambulatory Health Care Services
621111............ Offices of
100 .............. Physicians (except Mental Health Specialists). 621112............ Offices of
100 .............. Physicians, Mental Health Specialists. 621210............ Offices of Dentists.
50 .............. 621310............ Offices of
50 .............. Chiropractors. 621320............ Offices of
50 .............. Optometrists. 621330............ Offices of Mental
50 .............. Health Practitioners (except Physicians). 621340............ Offices of Physical,
50 .............. Occupational and Speech Therapists and Audiologists. 621391............ Offices of
50 .............. Podiatrists. 621399............ Offices of All Other
50 .............. Miscellaneous Health Practitioners. 621410............ Family Planning
100 .............. Centers. 621420............ Outpatient Mental
100 .............. Health and Substance Abuse Centers. 621491............ HMO Medical Centers.
100 .............. 621492............ Kidney Dialysis
200 .............. Centers. 621493............ Freestanding
100 .............. Ambulatory Surgical and Emergency Centers. 621498............ All Other Outpatient
100 .............. Care Centers. 621511............ Medical Laboratories
100 .............. 621512............ Diagnostic Imaging
100 .............. Centers. 621610............ Home Health Care
300 .............. Services. 621910............ Ambulance Services..
100 .............. 621991............ Blood and Organ
100 .............. Banks. 621999............ All Other
100 .............. Miscellaneous Ambulatory Health Care Services.
Subsector 622--Hospitals
622110............ General Medical and
400 .............. Surgical Hospitals. 622210............ Psychiatric and
400 .............. Substance Abuse Hospitals. 622310............ Specialty (except
400 .............. Psychiatric and Substance Abuse) Hospitals.
Subsector 623--Nursing and Residential Care Facilities
623110............ Nursing Care
300 .............. Facilities. 623210............ Residential Mental
300 .............. Retardation Facilities. 623220............ Residential Mental
50 .............. Health and Substance Abuse Facilities. 623311............ Continuing Care
300 .............. Retirement Communities. 623312............ Homes for the
50 .............. Elderly. 623990............ Other Residential
50 .............. Care Facilities.
Subsector 624--Social Assistance
624110............ Child and Youth
50 .............. Services. 624120............ Services for the
50 .............. Elderly and Persons with Disabilities. 624190............ Other Individual and
50 .............. Family Services. 624210............ Community Food
50 .............. Services. 624221............ Temporary Shelters..
50 .............. 624229............ Other Community
50 .............. Housing Services. 624230............ Emergency and Other
50 .............. Relief Services. 624310............ Vocational
50 .............. Rehabilitation Services.
[[Page 13161]]
624410............ Child Day Care
50 .............. Services.
Sector 71--Arts, Entertainment and Recreation
Subsector 711--Performing Arts, Spectator Sports and Related Industries
711110............ Theater Companies
50 .............. and Dinner Theaters. 711120............ Dance Companies.....
50 .............. 711130............ Musical Groups and
50 .............. Artists. 711190............ Other Performing
50 .............. Arts Companies. 711211............ Sports Teams and
50 .............. Clubs. 711212............ Race Tracks.........
50 .............. 711219............ Other Spectator
50 .............. Sports. 711310............ Promoters of
100 .............. Performing Arts, Sports and Similar Events with Facilities. 711320............ Promoters of
50 .............. Performing Arts, Sports and Similar Events without Facilities. 711410............ Agents and Managers
50 .............. for Artists, Athletes, Entertainers and Other Public Figures. 711510............ Independent Artists,
50 .............. Writers, and Performers.
Subsector 712--Museums, Historical Sites and Similar Institutions
712110............ Museums.............
50 .............. 712120............ Historical Sites....
50 .............. 712130............ Zoos and Botanical
50 .............. Gardens. 712190............ Nature Parks and
50 .............. Other Similar Institutions.
Subsector 713--Amusement, Gambling and Recreation Industries
713110............ Amusement and Theme
100 .............. Parks. 713120............ Amusement Arcades...
50 .............. 713210............ Casinos (except
50 .............. Casino Hotels). 713290............ Other Gambling
50 .............. Industries. 713910............ Golf Courses and
50 .............. Country Clubs. 713920............ Skiing Facilities...
200 .............. 713930............ Marinas.............
50 .............. 713940............ Fitness and
50 .............. Recreational Sports Centers. 713950............ Bowling Centers.....
50 .............. 713990............ All Other Amusement
50 .............. and Recreation Industries.
Sector 72--Accommodation and Food Services
Subsector 721--Accommodation
721110............ Hotels (except
100 .............. Casino Hotels) and Motels. 721120............ Casino Hotels.......
100 .............. 721191............ Bed and Breakfast
50 .............. Inns. 721199............ All Other Traveler
50 .............. Accommodation. 721211............ RV (Recreational
50 .............. Vehicle) Parks and Campgrounds. 721214............ Recreational and
50 .............. Vacation Camps (except Campgrounds). 721310............ Rooming and Boarding
50 .............. Houses.
Subsector 722--Food Services and Drinking Places
722110............ Full-Service
50 .............. Restaurants. 722211............ Limited-Service
50 .............. Restaurants. 722212............ Cafeterias..........
50 .............. 722213............ Snack and
50 .............. Nonalcoholic Beverage Bars. 722310............ Food Service
400 .............. Contractors. 722320............ Caterers............
50 .............. 722330............ Mobile Food Services
50 .............. 722410............ Drinking Places
50 .............. (Alcoholic Beverages).
Sector 81--Other Services
Subsector 811--Repair and Maintenance
811111............ General Automotive
50 .............. Repair. 811112............ Automotive Exhaust
50 .............. System Repair. 811113............ Automotive
50 .............. Transmission Repair. 811118............ Other Automotive
50 .............. Mechanical and Electrical Repair and Maintenance. 811121............ Automotive Body,
50 .............. Paint and Interior Repair and Maintenance. 811122............ Automotive Glass
50 .............. Replacement Shops.
[[Page 13162]]
811191............ Automotive Oil
50 .............. Change and Lubrication Shops. 811192............ Car Washes..........
50 .............. 811198............ All Other Automotive
50 .............. Repair and Maintenance. 811211............ Consumer Electronics
50 .............. Repair and Maintenance. 811212............ Computer and Office
150 .............. Machine Repair and Maintenance. 811213............ Communication
50 .............. Equipment Repair and Maintenance. 811219............ Other Electronic and
50 .............. Precision Equipment Repair and Maintenance. 811310............ Commercial and
50 .............. Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance.... 811411............ Home and Garden
50 .............. Equipment Repair and Maintenance. 811412............ Appliance Repair and
50 .............. Maintenance. 811420............ Reupholstery and
50 .............. Furniture Repair. 811430............ Footwear and Leather
50 .............. Goods Repair. 811490............ Other Personal and
50 .............. Household Goods Repair and Maintenance.
Subsector 812--Personal and Laundry Services
812111............ Barber Shops........
50 .............. 812112............ Beauty Salons.......
50 .............. 812113............ Nail Salons.........
50 .............. 812191............ Diet and Weight
50 .............. Reducing Centers. 812199............ Other Personal Care
50 .............. Services. 812210............ Funeral Homes and
50 .............. Funeral Services. 812220............ Cemeteries and
50 .............. Crematories. 812310............ Coin-Operated
50 .............. Laundries and Drycleaners. 812320............ Drycleaning and
50 .............. Laundry Services (except Coin- Operated). 812331............ Linen Supply........
200 .............. 812332............ Industrial
200 .............. Launderers. 812910............ Pet Care (except
50 .............. Veterinary) Services. 812921............ Photo Finishing
50 .............. Laboratories (except One-Hour). 812922............ One-Hour Photo
50 .............. Finishing. 812930............ Parking Lots and
100 .............. Garages. 812990............ All Other Personal
50 .............. Services.
Subsector 813--Religious, Grantmaking, Civic, Professional and Similar Organizations
813110............ Religious
50 .............. Organizations. 813211............ Grantmaking
50 .............. Foundations. 813212............ Voluntary Health
50 .............. Organizations. 813219............ Other Grantmaking
50 .............. and Giving Services. 813311............ Human Rights
50 .............. Organizations. 813312............ Environment,
50 .............. Conservation and Wildlife Organizations. 813319............ Other Social
50 .............. Advocacy Organizations. 813410............ Civic and Social
50 .............. Organizations. 813910............ Business
50 .............. Associations. 813920............ Professional
50 .............. Organizations. 813930............ Labor Unions and
50 .............. Similar Labor Organizations. 813940............ Political
50 .............. Organizations. 813990............ Other Similar
50 .............. Organizations (except Business, Professional, Labor, and Political Organizations).....
Sector 92--Public Administration \14\
(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.)
\1\ 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. \2\ NAICS code 237990--Dredging: To be considered small for purposes of Government procurement, a firm must perform at least 40% of the volume dredged with its own equipment or equipment owned by another small dredging concern. \3\ 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. \4\ NAICS code 311421--Fruit and Vegetable Canning: For purposes of Government procurement for food canning and preserving, the standard of 500 employees excludes agricultural labor as defined in section 3306(k) of the Internal Revenue Code, 26 U.S.C. 3306(k). \5\ NAICS code 324110--Petroleum Refineries: To be an eligible small business, a firm may not have more than 1,500 employees or more than 125,000 barrels per day capacity of petroleum-based inputs, including crude oil or bona fide feedstocks. Capacity includes owned or leased facilities as well as facilities under a processing agreement or an arrangement such as an exchange agreement or a throughput. In addition, for the Federal Government's procurement of refined petroleum products, the total product to be delivered under the contract must be at least 90% refined by the successful bidder from either crude oil or bona fide feedstocks.
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\6\ NAICS Subsectors 333--Machinery Manufacturing; 334--Computer and Electronic Product Manufacturing; 335--Electrical Equipment, Appliance and Component Manufacturing; and 336--Transportation Equipment Manufacturing: 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--Other Aircraft Parts and Auxiliary Equipment Manufacturing: Contracts for the rebuilding or overhaul of aircraft ground support equipment on a contract basis are classified under NAICS code 336413. \8\ Subsector 483--Water Transportation--Offshore Marine Services: The applicable size standard shall be 150 employees 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. \9\ NAICS code 531190--Lessors of Other Real Property, Leasing of Building Space to the Federal Government by Owners: For Government procurement, a size standard of 150 employees applies to the owners of building space leased to the Federal Government. The standard does not apply to an agent. \10\ NAICS code 541710--Research and Development in the Physical, Engineering, and Life Sciences: For research and development contracts requiring the delivery of a manufactured product, the appropriate 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. 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. \11\ NAICS 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 construction 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 construction activities are considered a single activity and classified as Base Housing Maintenance. Since Base Housing Maintenance is only one activity, two additional activities of separate NAICS industries are required for a procurement to be classified as ``Facilities Support Services.'' \12\ 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% 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) and 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; Special Trade Construction; 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. \13\ NAICS code 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, 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. \14\ NAICS Sector 92--Public Administration: 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. \15\ 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.
* * * * *
3. Revise Sec. 121.301(d) to read as follows:
Sec. 121.301 What size standards are applicable to financial assistance programs?
* * * * *
(d) For Surety Bond Guarantee assistance an applicant, including its affiliates, must not exceed the size standard for the industry in which the applicant is primarily engaged. * * * * *
4. Revise Sec. 121.406(b)(1)(i) to read as follows:
Sec. 121.406 How does a small business concern qualify to provide manufactured products under small business set-aside or MED procurements?
* * * * *
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(b) Nonmanufacturers. (1) * * *
(i) Does not exceed 100 employees; * * * * *
5. Revise Sec. 121.502(a)(2) to read as follows:
Sec. 121.502 What size standards are applicable to programs for sales or leases of Government property?
(a) * * *
(2) A concern not primarily engaged in manufacturing is small for sales or leases of Government property if it does not exceed 50 employees. * * * * *
6. Revise Sec. 121.508(a)(2) to read as follows:
Sec. 121.508 What are the size standards and other requirements for the purchase of Government owned Special Salvage Timber?
(a) * * *
(2) Have, together with its affiliates, no more than 50 employees during any pay period for the last 12 months; and, * * * * *
7. Revise Sec. 121.509(a) to read as follows:
Sec. 121.509 What is the size standard for leasing of Government land for coal mining?
* * * * *
(a) Together with its affiliates, does not have more than 300 employees; * * * * *
9. Revise Sec. 121.512(b) to read as follows:
Sec. 121.512 What is the size standard for stockpile purchases?
* * * * *
(b) Together with its affiliates, it does not have more than 400 employees.
Dated: February 3, 2004. Hector V. Barreto, Administrator.
[FR Doc. 04-5049 Filed 3-18-04; 8:45 am]
BILLING CODE 8025-01-P