Small Business Size Standards; Restructuring of Size Standards

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

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 1

a.

—Size Standards Based on Annual Receipts

Range of receipts-based size standards

Number of different

receipts-

based size standards in the range

Number of industries covered by size

standards in

this range

$48.5 million

1

1

$21.5 million to $30 million

8

52

$12.5 million to $21 million

7

24

$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 1

b.

—Employee-based and Other Size Standards

Size standard

Number of industries 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

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

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

NAICS codes

NAICS industry

Proposed

employee

size

standard

Reason for employee size standard different from

anchor 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 Transit Systems

100

High average firm size.

485119

Other Urban Transit Systems

100

Common size standard for most transit industries.

485210

Interurban and Rural Bus Transportation

100

High average firm size.

485410

School and Employee Bus Transportation

100

High average firm size and common size standard for most transit industries.

485510

Charter Bus Service

100

Common size standard for most transit industries.

486210

Pipeline Transportation of Natural Gas

100

High average firm size and 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 Air Transportation

100

Common size standard with NAICS 488119 and impact on Federal procurement.

512131

Motion Picture Theatres (except Drive-In)

100

High average firm size.

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, Sports, & Similar Events with Facilities

100

High average firm size.

713110

Amusement and Theme Parks

100

High average firm size.

713920

Skiing Facilities

200

High average firm size.

721110

Hotels (except Casino Hotels) and Motels

100

High average firm size and 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.

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 § 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 § 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

NAICS codes

NAICS U.S. industry title

Proposed number of

employees

Proposed maximum

annual

receipts

($ million)

115310

Support Activities for Forestry

50

N/A

Except,

Forest Fire Suppression

400

$20.0

Except,

Fuels Management Services

400

$20.0

236115

New Single-Family Housing Construction (except Operative Builders)

150

$35.0

236116

New Multifamily Housing Construction (except Operative Builders)

150

$35.0

236117

New Housing Operative Builders

150

$35.0

236118

Residential Remodelers

150

$35.0

236210

Industrial Building Construction

150

$35.0

236220

Commercial and Institutional Building Construction

150

$35.0

237110

Water and Sewer Line and Related Structures Construction

200

$35.0

237120

Oil and Gas Pipeline and Related Structures Construction

200

$35.0

237130

Power and Communication Line and Related Structures Construction

200

$35.0

237210

Land Subdivision

200

$35.0

237310

Highway, Street, and Bridge Construction

200

$35.0

237990

Other Heavy and Civil Engineering Construction

200

$35.0

Except,

Dredging and Surface Cleanup Activities

150

$22.0

518210

Data Processing, Hosting, and Related Services

150

$30.0

541310

Architectural Services

50

$7.0

541330

Engineering Services

50

$7.0

Except,

Military and Aerospace Equipment and Military Weapons

200

$30.0

Except,

Contracts and Subcontracts for Engineering Services Awarded Under the National Energy Policy Act of 1992

200

$30.0

Except,

Marine Engineering and Naval Architecture

150

$30.0

541511

Custom Computer Programming Services

150

$30.0

541512

Computer Systems Design Services

150

$30.0

541513

Computer Facilities Management Services

150

$30.0

541519

Other Computer Related Services

150

$30.0

541611

Administrative Management and General Management Consulting Services

50

$10.0

541612

Human Resources and Executive Search Consulting Services

50

$10.0

541613

Marketing Consulting Services

50

$10.0

541614

Process, Physical Distribution and Logistics Consulting Services

50

$10.0

541618

Other Management Consulting Services

50

$10.0

541620

Environmental Consulting Services

50

$10.0

541690

Other Scientific and Technical Consulting Services

50

$10.0

541990

All Other Professional, Scientific and Technical Services

50

$10.0

561110

Office Administrative Services

50

$10.0

561210

Facilities Support Services

400

$40.0

611519

Other Technical and Trade Schools

50

N/A

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

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, § 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 (§ 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, § 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

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 § 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 § 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 § 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 § 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 (§ 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 § 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 (§ 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 (§ 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.

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 § 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

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

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

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 § 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 § 121.201 to read as follows:

3.

§ 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.

NAICS codes

NAICS U.S. industry title

Size standards in number of employees

Maximum

average

annual

receipts

($ million)

Sector 11—Agriculture, Forestry, Fishing and Hunting

Subsector 111—Crop Production

111110

Soybean Farming

$0.75

111120

Oilseed (except Soybean) Farming

$0.75

111130

Dry Pea and Bean Farming

$0.75

111140

Wheat Farming

$0.75

111150

Corn Farming

$0.75

111160

Rice Farming

$0.75

111191

Oilseed and Grain Combination Farming

$0.75

111199

All Other Grain Farming

$0.75

111211

Potato Farming

$0.75

111219

Other Vegetable (except Potato) and Melon Farming

$0.75

111310

Orange Groves

$0.75

111320

Citrus (except Orange) Groves

$0.75

111331

Apple Orchards

$0.75

111332

Grape Vineyards

$0.75

111333

Strawberry Farming

$0.75

111334

Berry (except Strawberry) Farming

$0.75

111335

Tree Nut Farming

$0.75

111336

Fruit and Tree Nut Combination Farming

$0.75

111339

Other Noncitrus Fruit Farming

$0.75

111411

Mushroom Production

$0.75

111419

Other Food Crops Grown Under Cover

$0.75

111421

Nursery and Tree Production

$0.75

111422

Floriculture Production

$0.75

111910

Tobacco Farming

$0.75

111920

Cotton Farming

$0.75

111930

Sugarcane Farming

$0.75

111940

Hay Farming

$0.75

111991

Sugar Beet Farming

$0.75

111992

Peanut Farming

$0.75

111998

All Other Miscellaneous Crop Farming

$0.75

Subsector 112—Animal Production

112111

Beef Cattle Ranching and Farming

$0.75

112112

Cattle Feedlots

50

112120

Dairy Cattle and Milk Production

$0.75

112210

Hog and Pig Farming

$0.75

112310

Chicken Egg Production

50

112320

Broilers and Other Meat Type Chicken Production

$0.75

112330

Turkey Production

$0.75

112340

Poultry Hatcheries

$0.75

112390

Other Poultry Production

$0.75

112410

Sheep Farming

$0.75

112420

Goat Farming

$0.75

112511

Finfish Farming and Fish Hatcheries

$0.75

112512

Shellfish Farming

$0.75

112519

Other Animal Aquaculture

$0.75

112910

Apiculture

$0.75

112920

Horse and Other Equine Production

$0.75

112930

Fur-Bearing Animal and Rabbit Production

$0.75

112990

All Other Animal Production

$0.75

Subsector 113—Forestry and Logging

113110

Timber Tract Operations

50

113210

Forest Nurseries and Gathering of Forest Products

50

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, Planting, and Cultivating

50

115113

Crop Harvesting, Primarily by Machine

50

115114

Postharvest Crop Activities (except Cotton Ginning)

50

115115

Farm Labor Contractors and Crew Leaders

50

115116

Farm Management Services

50

115210

Support Activities for Animal Production

50

115310

Support Activities for Forestry

50

Except,

Forest Fire Suppression

1

1

400

1

$20.0

Except,

Fuels Management Services

1

1

400

1

$20.0

Sector 21—Mining

Subsector 211—Oil and Gas Extraction

211111

Crude Petroleum and Natural Gas Extraction

500

211112

Natural Gas Liquid Extraction

500

Subsector 212—Mining (except Oil and Gas)

212111

Bituminous Coal and Lignite Surface Mining

500

212112

Bituminous Coal Underground Mining

500

212113

Anthracite Mining

500

212210

Iron Ore Mining

500

212221

Gold Ore Mining

500

212222

Silver Ore Mining

500

212231

Lead Ore and Zinc Ore Mining

500

212234

Copper Ore and Nickel Ore Mining

500

212291

Uranium-Radium-Vanadium Ore Mining

500

212299

All Other Metal Ore Mining

500

212311

Dimension Stone Mining and Quarrying

500

212312

Crushed and Broken Limestone Mining and Quarrying

500

212313

Crushed and Broken Granite Mining and Quarrying

500

212319

Other Crushed and Broken Stone Mining and Quarrying

500

212321

Construction Sand and Gravel Mining

500

212322

Industrial Sand Mining

500

212324

Kaolin and Ball Clay Mining

500

212325

Clay and Ceramic and Refractory Minerals Mining

500

212391

Potash, Soda, and Borate Mineral Mining

500

212392

Phosphate Rock Mining

500

212393

Other Chemical and Fertilizer Mineral Mining

500

212399

All Other Nonmetallic Mineral Mining

500

Subsector 213—Support Activities for Mining

213111

Drilling Oil and Gas Wells

500

213112

Support Activities for Oil and Gas Operations

50

213113

Support Activities for Coal Mining

50

213114

Support Activities for Metal Mining

50

213115

Support Activities for Nonmetallic Minerals (except Fuels)

50

Sector 22—Utilities

Subsector 221—Utilities

221111

Hydroelectric Power Generation

1,000

221112

Fossil Fuel Electric Power Generation

1,000

221113

Nuclear Electric Power Generation

1,000

221119

Other Electric Power Generation

1,000

221121

Electric Bulk Power Transmission and Control

1,000

221122

Electric Power Distribution

1,000

221210

Natural Gas Distribution

500

221310

Water Supply and Irrigation Systems

50

221320

Sewage Treatment Facilities

50

221330

Steam and Air-Conditioning Supply

50

Sector 23—Construction

Subsector 236—Construction of Buildings

236115

New Single-Family Housing Construction (except Operative Builders)

150

$35.0

236116

New Multifamily Housing Construction (except Operative Builders)

150

$35.0

236117

New Housing Operative Builders

150

$35.0

236118

Residential Remodelers

150

$35.0

236210

Industrial Building Construction

150

$35.0

236220

Commercial and Institutional Building Construction

150

$35.0

Subsector 237—Heavy and Civil Engineering Construction

237110

Water and Sewer Line and Related Structures Construction

200

$35.0

237120

Oil and Gas Pipeline and Related Structures Construction

200

$35.0

237130

Power and Communication Line and Related Structures Construction

200

$35.0

237210

Land Subdivision

200

$35.0

237310

Highway, Street, and Bridge Construction

200

$35.0

237990

Other Heavy and Civil Engineering Construction

200

$35.0

Except,

Dredging and Surface Cleanup Activities

2

2

150

2

$22.0

Subsector 238—Specialty Trade Contractors

238110

Poured Concrete Foundation and Structure Contractors

100

238120

Structural Steel and Precast Concrete Contractors

100

238130

Framing Contractors

100

238140

Masonry Contractors

100

238150

Glass and Glazing Contractors

100

238160

Roofing Contractors

100

238170

Siding Contractors

100

238190

Other Foundation, Structure, and Building Exterior Contractors

100

238210

Electrical Contractors

100

238220

Plumbing, Heating, and Air-Conditioning Contractors

100

238290

Other Building Equipment Contractors

100

238310

Drywall and Insulation Contractors

100

238320

Painting and Wall Covering Contractors

100

238330

Flooring Contractors

100

238340

Tile and Terrazzo Contractors

100

238350

Finish Carpentry Contractors

100

238390

Other Building Finishing Contractors

100

238910

Site Preparation Contractors

100

238990

All Other Specialty Trade Contractors

100

Except,

Building and Property Specialty Trade Services

3

3

100

Sectors 31—33—Manufacturing

Subsector 311—Food Manufacturing

311111

Dog and Cat Food Manufacturing

500

311119

Other Animal Food Manufacturing

500

311211

Flour Milling

500

311212

Rice Milling

500

311213

Malt Manufacturing

500

311221

Wet Corn Milling

750

311222

Soybean Processing

500

311223

Other Oilseed Processing

1,000

311225

Fats and Oils Refining and Blending

1,000

311230

Breakfast Cereal Manufacturing

1,000

311311

Sugarcane Mills

500

311312

Cane Sugar Refining

750

311313

Beet Sugar Manufacturing

750

311320

Chocolate and Confectionery Manufacturing from Cacao Beans

500

311330

Confectionery Manufacturing from Purchased Chocolate

500

311340

Non-Chocolate Confectionery Manufacturing

500

311411

Frozen Fruit, Juice and Vegetable Manufacturing

500

311412

Frozen Specialty Food Manufacturing

500

311421

Fruit and Vegetable Canning

4

4

500

311422

Specialty Canning

1,000

311423

Dried and Dehydrated Food Manufacturing

500

311511

Fluid Milk Manufacturing

500

311512

Creamery Butter Manufacturing

500

311513

Cheese Manufacturing

500

311514

Dry, Condensed, and Evaporated Dairy Product Manufacturing

500

311520

Ice Cream and Frozen Dessert Manufacturing

500

311611

Animal (except Poultry) Slaughtering

500

311612

Meat Processed from Carcasses

500

311613

Rendering and Meat By-product Processing

500

311615

Poultry Processing

500

311711

Seafood Canning

500

311712

Fresh and Frozen Seafood Processing

500

311811

Retail Bakeries

500

311812

Commercial Bakeries

500

311813

Frozen Cakes, Pies, and Other Pastries Manufacturing

500

311821

Cookie and Cracker Manufacturing

750

311822

Flour Mixes and Dough Manufacturing from Purchased Flour

500

311823

Dry Pasta Manufacturing

500

311830

Tortilla Manufacturing

500

311911

Roasted Nuts and Peanut Butter Manufacturing

500

311919

Other Snack Food Manufacturing

500

311920

Coffee and Tea Manufacturing

500

311930

Flavoring Syrup and Concentrate Manufacturing

500

311941

Mayonnaise, Dressing and Other Prepared Sauce Manufacturing

500

311942

Spice and Extract Manufacturing

500

311991

Perishable Prepared Food Manufacturing

500

311999

All Other Miscellaneous Food Manufacturing

500

Subsector 312—Beverage and Tobacco Product Manufacturing

312111

Soft Drink Manufacturing

500

312112

Bottled Water Manufacturing

500

312113

Ice Manufacturing

500

312120

Breweries

500

312130

Wineries

500

312140

Distilleries

750

312210

Tobacco Stemming and Redrying

500

312221

Cigarette Manufacturing

1,000

312229

Other Tobacco Product Manufacturing

500

Subsector 313—Textile Mills

313111

Yarn Spinning Mills

500

313112

Yarn Texturizing, Throwing and Twisting Mills

500

313113

Thread Mills

500

313210

Broadwoven Fabric Mills

1,000

313221

Narrow Fabric Mills

500

313222

Schiffli Machine Embroidery

500

313230

Nonwoven Fabric Mills

500

313241

Weft Knit Fabric Mills

500

313249

Other Knit Fabric and Lace Mills

500

313311

Broadwoven Fabric Finishing Mills

1,000

313312

Textile and Fabric Finishing (except Broadwoven Fabric) Mills

500

313320

Fabric Coating Mills

1,000

Subsector 314—Textile Product Mills

314110

Carpet and Rug Mills

500

314121

Curtain and Drapery Mills

500

314129

Other Household Textile Product Mills

500

314911

Textile Bag Mills

500

314912

Canvas and Related Product Mills

500

314991

Rope, Cordage and Twine Mills

500

314992

Tire Cord and Tire Fabric Mills

1,000

314999

All Other Miscellaneous Textile Product Mills

500

Subsector 315—Apparel Manufacturing

315111

Sheer Hosiery Mills

500

315119

Other Hosiery and Sock Mills

500

315191

Outerwear Knitting Mills

500

315192

Underwear and Nightwear Knitting Mills

500

315211

Men's and Boys' Cut and Sew Apparel Contractors

500

315212

Women's, Girls', and Infants' Cut and Sew Apparel Contractors

500

315221

Men's and Boys' Cut and Sew Underwear and Nightwear Manufacturing

500

315222

Men's and Boys' Cut and Sew Suit, Coat and Overcoat Manufacturing

500

315223

Men's and Boys' Cut and Sew Shirt (except Work Shirt) Manufacturing

500

315224

Men's and Boys' Cut and Sew Trouser, Slack and Jean Manufacturing

500

315225

Men's and Boys' Cut and Sew Work Clothing Manufacturing

500

315228

Men's and Boys' Cut and Sew Other Outerwear Manufacturing

500

315231

Women's and Girls' Cut and Sew Lingerie, Loungewear and Nightwear Manufacturing

500

315232

Women's and Girls' Cut and Sew Blouse and Shirt Manufacturing

500

315233

Women's and Girls' Cut and Sew Dress Manufacturing

500

315234

Women's and Girls' Cut and Sew Suit, Coat, Tailored Jacket and Skirt Manufacturing

500

315239

Women's and Girls' Cut and Sew Other Outerwear Manufacturing

500

315291

Infants' Cut and Sew Apparel Manufacturing

500

315292

Fur and Leather Apparel Manufacturing

500

315299

All Other Cut and Sew Apparel Manufacturing

500

315991

Hat, Cap and Millinery Manufacturing

500

315992

Glove and Mitten Manufacturing

500

315993

Men's and Boys' Neckwear Manufacturing

500

315999

Other Apparel Accessories and Other Apparel Manufacturing

500

Subsector 316—Leather and Allied Product Manufacturing

316110

Leather and Hide Tanning and Finishing

500

316211

Rubber and Plastics Footwear Manufacturing

1,000

316212

House Slipper Manufacturing

500

316213

Men's Footwear (except Athletic) Manufacturing

500

316214

Women's Footwear (except Athletic) Manufacturing

500

316219

Other Footwear Manufacturing

500

316991

Luggage Manufacturing

500

316992

Women's Handbag and Purse Manufacturing

500

316993

Personal Leather Good (except Women's Handbag and Purse) Manufacturing

500

316999

All Other Leather Good Manufacturing

500

Subsector 321—Wood Product Manufacturing

321113

Sawmills

500

321114

Wood Preservation

500

321211

Hardwood Veneer and Plywood Manufacturing

500

321212

Softwood Veneer and Plywood Manufacturing

500

321213

Engineered Wood Member (except Truss) Manufacturing

500

321214

Truss Manufacturing

500

321219

Reconstituted Wood Product Manufacturing

500

321911

Wood Window and Door Manufacturing

500

321912

Cut Stock, Resawing Lumber, and Planing

500

321918

Other Millwork (including Flooring)

500

321920

Wood Container and Pallet Manufacturing

500

321991

Manufactured Home (Mobile Home) Manufacturing

500

321992

Prefabricated Wood Building Manufacturing

500

321999

All Other Miscellaneous Wood Product Manufacturing

500

Subsector 322—Paper Manufacturing

322110

Pulp Mills

750

322121

Paper (except Newsprint) Mills

750

322122

Newsprint Mills

750

322130

Paperboard Mills

750

322211

Corrugated and Solid Fiber Box Manufacturing

500

322212

Folding Paperboard Box Manufacturing

750

322213

Setup Paperboard Box Manufacturing

500

322214

Fiber Can, Tube, Drum, and Similar Products Manufacturing

500

322215

Non-Folding Sanitary Food Container Manufacturing

750

322221

Coated and Laminated Packaging Paper and Plastics Film Manufacturing

500

322222

Coated and Laminated Paper Manufacturing

500

322223

Plastics, Foil, and Coated Paper Bag Manufacturing

500

322224

Uncoated Paper and Multiwall Bag Manufacturing

500

322225

Laminated Aluminum Foil Manufacturing for Flexible Packaging Uses

500

322226

Surface-Coated Paperboard Manufacturing

500

322231

Die-Cut Paper and Paperboard Office Supplies Manufacturing

500

322232

Envelope Manufacturing

500

322233

Stationery, Tablet, and Related Product Manufacturing

500

322291

Sanitary Paper Product Manufacturing

500

322299

All Other Converted Paper Product Manufacturing

500

Subsector 323—Printing and Related Support Activities

323110

Commercial Lithographic Printing

500

323111

Commercial Gravure Printing

500

323112

Commercial Flexographic Printing

500

323113

Commercial Screen Printing

500

323114

Quick Printing

500

323115

Digital Printing

500

323116

Manifold Business Forms Printing

500

323117

Books Printing

500

323118

Blankbook, Loose-leaf Binder and Device Manufacturing

500

323119

Other Commercial Printing

500

323121

Tradebinding and Related Work

500

323122

Prepress Services

500

Subsector 324—Petroleum and Coal Products Manufacturing

324110

Petroleum Refineries

5

5

1,500

324121

Asphalt Paving Mixture and Block Manufacturing

500

324122

Asphalt Shingle and Coating Materials Manufacturing

750

324191

Petroleum Lubricating Oil and Grease Manufacturing

500

324199

All Other Petroleum and Coal Products Manufacturing

500

Subsector 325—Chemical Manufacturing

325110

Petrochemical Manufacturing

1,000

325120

Industrial Gas Manufacturing

1,000

325131

Inorganic Dye and Pigment Manufacturing

1,000

325132

Synthetic Organic Dye and Pigment Manufacturing

750

325181

Alkalies and Chlorine Manufacturing

1,000

325182

Carbon Black Manufacturing

500

325188

All Other Basic Inorganic Chemical Manufacturing

1,000

325191

Gum and Wood Chemical Manufacturing

500

325192

Cyclic Crude and Intermediate Manufacturing

750

325193

Ethyl Alcohol Manufacturing

1,000

325199

All Other Basic Organic Chemical Manufacturing

1,000

325211

Plastics Material and Resin Manufacturing

750

325212

Synthetic Rubber Manufacturing

1,000

325221

Cellulosic Organic Fiber Manufacturing

1,000

325222

Noncellulosic Organic Fiber Manufacturing

1,000

325311

Nitrogenous Fertilizer Manufacturing

1,000

325312

Phosphatic Fertilizer Manufacturing

500

325314

Fertilizer (Mixing Only) Manufacturing

500

325320

Pesticide and Other Agricultural Chemical Manufacturing

500

325411

Medicinal and Botanical Manufacturing

750

325412

Pharmaceutical Preparation Manufacturing

750

325413

In-Vitro Diagnostic Substance Manufacturing

500

325414

Biological Product (except Diagnostic) Manufacturing

500

325510

Paint and Coating Manufacturing

500

325520

Adhesive Manufacturing

500

325611

Soap and Other Detergent Manufacturing

750

325612

Polish and Other Sanitation Good Manufacturing

500

325613

Surface Active Agent Manufacturing

500

325620

Toilet Preparation Manufacturing

500

325910

Printing Ink Manufacturing

500

325920

Explosives Manufacturing

750

325991

Custom Compounding of Purchased Resins

500

325992

Photographic Film, Paper, Plate and Chemical Manufacturing

500

325998

All Other Miscellaneous Chemical Product and Preparation Manufacturing

500

Subsector 326—Plastics and Rubber Products Manufacturing

326111

Unsupported Plastics Bag Manufacturing

500

326112

Unsupported Plastics Packaging Film and Sheet Manufacturing

500

326113

Unsupported Plastics Film and Sheet (except Packaging) Manufacturing

500

326121

Unsupported Plastics Profile Shapes Manufacturing

500

326122

Plastics Pipe and Pipe Fitting Manufacturing

500

326130

Laminated Plastics Plate, Sheet and Shape Manufacturing

500

326140

Polystyrene Foam Product Manufacturing

500

326150

Urethane and Other Foam Product (except Polystyrene) Manufacturing

500

326160

Plastics Bottle Manufacturing

500

326191

Plastics Plumbing Fixture Manufacturing

500

326192

Resilient Floor Covering Manufacturing

750

326199

All Other Plastics Product Manufacturing

500

326211

Tire Manufacturing (except Retreading)

1,000

326212

Tire Retreading

500

326220

Rubber and Plastics Hoses and Belting Manufacturing

500

326291

Rubber Product Manufacturing for Mechanical Use

500

326299

All Other Rubber Product Manufacturing

500

Subsector 327—Nonmetallic Mineral Product Manufacturing

327111

Vitreous China Plumbing Fixture and China and Earthenware Bathroom Accessories Manufacturing

750

327112

Vitreous China, Fine Earthenware and Other Pottery Product Manufacturing

500

327113

Porcelain Electrical Supply Manufacturing

500

327121

Brick and Structural Clay Tile Manufacturing

500

327122

Ceramic Wall and Floor Tile Manufacturing

500

327123

Other Structural Clay Product Manufacturing

500

327124

Clay Refractory Manufacturing

500

327125

Nonclay Refractory Manufacturing

750

327211

Flat Glass Manufacturing

1,000

327212

Other Pressed and Blown Glass and Glassware Manufacturing

750

327213

Glass Container Manufacturing

750

327215

Glass Product Manufacturing Made of Purchased Glass

500

327310

Cement Manufacturing

750

327320

Ready-Mix Concrete Manufacturing

500

327331

Concrete Block and Brick Manufacturing

500

327332

Concrete Pipe Manufacturing

500

327390

Other Concrete Product Manufacturing

500

327410

Lime Manufacturing

500

327420

Gypsum Product Manufacturing

1,000

327910

Abrasive Product Manufacturing

500

327991

Cut Stone and Stone Product Manufacturing

500

327992

Ground or Treated Mineral and Earth Manufacturing

500

327993

Mineral Wool Manufacturing

750

327999

All Other Miscellaneous Nonmetallic Mineral Product Manufacturing

500

Subsector 331—Primary Metal Manufacturing

331111

Iron and Steel Mills

1,000

331112

Electrometallurgical Ferroalloy Product Manufacturing

750

331210

Iron and Steel Pipe and Tube Manufacturing from Purchased Steel

1,000

331221

Cold-Rolled Steel Shape Manufacturing

1,000

331222

Steel Wire Drawing

1,000

331311

Alumina Refining

1,000

331312

Primary Aluminum Production

1,000

331314

Secondary Smelting and Alloying of Aluminum

750

331315

Aluminum Sheet, Plate and Foil Manufacturing

750

331316

Aluminum Extruded Product Manufacturing

750

331319

Other Aluminum Rolling and Drawing

750

331411

Primary Smelting and Refining of Copper

1,000

331419

Primary Smelting and Refining of Nonferrous Metal (except Copper and Aluminum)

750

331421

Copper Rolling, Drawing and Extruding

750

331422

Copper Wire (except Mechanical) Drawing

1,000

331423

Secondary Smelting, Refining, and Alloying of Copper

750

331491

Nonferrous Metal (except Copper and Aluminum) Rolling, Drawing and Extruding

750

331492

Secondary Smelting, Refining, and Alloying of Nonferrous Metal (except Copper and Aluminum)

750

331511

Iron Foundries

500

331512

Steel Investment Foundries

500

331513

Steel Foundries (except Investment)

500

331521

Aluminum Die-Casting Foundries

500

331522

Nonferrous (except Aluminum) Die-Casting Foundries

500

331524

Aluminum Foundries (except Die-Casting)

500

331525

Copper Foundries (except Die-Casting)

500

331528

Other Nonferrous Foundries (except Die-Casting)

500

Subsector 332—Fabricated Metal Product Manufacturing

332111

Iron and Steel Forging

500

332112

Nonferrous Forging

500

332114

Custom Roll Forming

500

332115

Crown and Closure Manufacturing

500

332116

Metal Stamping

500

332117

Powder Metallurgy Part Manufacturing

500

332211

Cutlery and Flatware (except Precious) Manufacturing

500

332212

Hand and Edge Tool Manufacturing

500

332213

Saw Blade and Handsaw Manufacturing

500

332214

Kitchen Utensil, Pot and Pan Manufacturing

500

332311

Prefabricated Metal Building and Component Manufacturing

500

332312

Fabricated Structural Metal Manufacturing

500

332313

Plate Work Manufacturing

500

332321

Metal Window and Door Manufacturing

500

332322

Sheet Metal Work Manufacturing

500

332323

Ornamental and Architectural Metal Work Manufacturing

500

332410

Power Boiler and Heat Exchanger Manufacturing

500

332420

Metal Tank (Heavy Gauge) Manufacturing

500

332431

Metal Can Manufacturing

1,000

332439

Other Metal Container Manufacturing

500

332510

Hardware Manufacturing

500

332611

Spring (Heavy Gauge) Manufacturing

500

332612

Spring (Light Gauge) Manufacturing

500

332618

Other Fabricated Wire Product Manufacturing

500

332710

Machine Shops

500

332721

Precision Turned Product Manufacturing

500

332722

Bolt, Nut, Screw, Rivet and Washer Manufacturing

500

332811

Metal Heat Treating

750

332812

Metal Coating, Engraving (except Jewelry and Silverware), and Allied Services to Manufacturers

500

332813

Electroplating, Plating, Polishing, Anodizing and Coloring

500

332911

Industrial Valve Manufacturing

500

332912

Fluid Power Valve and Hose Fitting Manufacturing

500

332913

Plumbing Fixture Fitting and Trim Manufacturing

500

332919

Other Metal Valve and Pipe Fitting Manufacturing

500

332991

Ball and Roller Bearing Manufacturing

750

332992

Small Arms Ammunition Manufacturing

1,000

332993

Ammunition (except Small Arms) Manufacturing

1,500

332994

Small Arms Manufacturing

1,000

332995

Other Ordnance and Accessories Manufacturing

500

332996

Fabricated Pipe and Pipe Fitting Manufacturing

500

332997

Industrial Pattern Manufacturing

500

332998

Enameled Iron and Metal Sanitary Ware Manufacturing

750

332999

All Other Miscellaneous Fabricated Metal Product Manufacturing

500

Subsector 333—Machinery Manufacturing

6

333111

Farm Machinery and Equipment Manufacturing

500

333112

Lawn and Garden Tractor and Home Lawn and Garden Equipment Manufacturing

500

333120

Construction Machinery Manufacturing

750

333131

Mining Machinery and Equipment Manufacturing

500

333132

Oil and Gas Field Machinery and Equipment Manufacturing

500

333210

Sawmill and Woodworking Machinery Manufacturing

500

333220

Plastics and Rubber Industry Machinery Manufacturing

500

333291

Paper Industry Machinery Manufacturing

500

333292

Textile Machinery Manufacturing

500

333293

Printing Machinery and Equipment Manufacturing

500

333294

Food Product Machinery Manufacturing

500

333295

Semiconductor Machinery Manufacturing

500

333298

All Other Industrial Machinery Manufacturing

500

333311

Automatic Vending Machine Manufacturing

500

333312

Commercial Laundry, Drycleaning and Pressing Machine Manufacturing

500

333313

Office Machinery Manufacturing

1,000

333314

Optical Instrument and Lens Manufacturing

500

333315

Photographic and Photocopying Equipment Manufacturing

500

333319

Other Commercial and Service Industry Machinery Manufacturing

500

333411

Air Purification Equipment Manufacturing

500

333412

Industrial and Commercial Fan and Blower Manufacturing

500

333414

Heating Equipment (except Warm Air Furnaces) Manufacturing

500

333415

Air-Conditioning and Warm Air Heating Equipment and Commercial and Industrial Refrigeration Equipment Manufacturing

750

333511

Industrial Mold Manufacturing

500

333512

Machine Tool (Metal Cutting Types) Manufacturing

500

333513

Machine Tool (Metal Forming Types) Manufacturing

500

333514

Special Die and Tool, Die Set, Jig and Fixture Manufacturing

500

333515

Cutting Tool and Machine Tool Accessory Manufacturing

500

333516

Rolling Mill Machinery and Equipment Manufacturing

500

333518

Other Metalworking Machinery Manufacturing

500

333611

Turbine and Turbine Generator Set Unit Manufacturing

1,000

333612

Speed Changer, Industrial High-Speed Drive and Gear Manufacturing

500

333613

Mechanical Power Transmission Equipment Manufacturing

500

333618

Other Engine Equipment Manufacturing

1,000

333911

Pump and Pumping Equipment Manufacturing

500

333912

Air and Gas Compressor Manufacturing

500

333913

Measuring and Dispensing Pump Manufacturing

500

333921

Elevator and Moving Stairway Manufacturing

500

333922

Conveyor and Conveying Equipment Manufacturing

500

333923

Overhead Traveling Crane, Hoist and Monorail System Manufacturing

500

333924

Industrial Truck, Tractor, Trailer and Stacker Machinery Manufacturing

750

333991

Power-Driven Hand Tool Manufacturing

500

333992

Welding and Soldering Equipment Manufacturing

500

333993

Packaging Machinery Manufacturing

500

333994

Industrial Process Furnace and Oven Manufacturing

500

333995

Fluid Power Cylinder and Actuator Manufacturing

500

333996

Fluid Power Pump and Motor Manufacturing

500

333997

Scale and Balance (except Laboratory) Manufacturing

500

333999

All Other Miscellaneous General Purpose Machinery Manufacturing

500

Subsector 334—Computer and Electronic Product Manufacturing

6

334111

Electronic Computer Manufacturing

1,000

334112

Computer Storage Device Manufacturing

1,000

334113

Computer Terminal Manufacturing

1,000

334119

Other Computer Peripheral Equipment Manufacturing

1,000

334210

Telephone Apparatus Manufacturing

1,000

334220

Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing

750

334290

Other Communications Equipment Manufacturing

750

334310

Audio and Video Equipment Manufacturing

750

334411

Electron Tube Manufacturing

750

334412

Bare Printed Circuit Board Manufacturing

500

334413

Semiconductor and Related Device Manufacturing

500

334414

Electronic Capacitor Manufacturing

500

334415

Electronic Resistor Manufacturing

500

334416

Electronic Coil, Transformer, and Other Inductor Manufacturing

500

334417

Electronic Connector Manufacturing

500

334418

Printed Circuit Assembly (Electronic Assembly) Manufacturing

500

334419

Other Electronic Component Manufacturing

500

334510

Electromedical and Electrotherapeutic Apparatus Manufacturing

500

334511

Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing

750

334512

Automatic Environmental Control Manufacturing for Residential, Commercial and Appliance Use

500

334513

Instruments and Related Products Manufacturing for Measuring, Displaying, and Controlling Industrial Process Variables

500

334514

Totalizing Fluid Meter and Counting Device Manufacturing

500

334515

Instrument Manufacturing for Measuring and Testing Electricity and Electrical Signals

500

334516

Analytical Laboratory Instrument Manufacturing

500

334517

Irradiation Apparatus Manufacturing

500

334518

Watch, Clock, and Part Manufacturing

500

334519

Other Measuring and Controlling Device Manufacturing

500

334611

Software Reproducing

500

334612

Prerecorded Compact Disc (except Software), Tape, and Record Reproducing

750

334613

Magnetic and Optical Recording Media Manufacturing

1,000

Subsector 335—Electrical Equipment, Appliance and Component Manufacturing

6

335110

Electric Lamp Bulb and Part Manufacturing

1,000

335121

Residential Electric Lighting Fixture Manufacturing

500

335122

Commercial, Industrial and Institutional Electric Lighting Fixture Manufacturing

500

335129

Other Lighting Equipment Manufacturing

500

335211

Electric Housewares and Household Fan Manufacturing

750

335212

Household Vacuum Cleaner Manufacturing

750

335221

Household Cooking Appliance Manufacturing

750

335222

Household Refrigerator and Home Freezer Manufacturing

1,000

335224

Household Laundry Equipment Manufacturing

1,000

335228

Other Major Household Appliance Manufacturing

500

335311

Power, Distribution and Specialty Transformer Manufacturing

750

335312

Motor and Generator Manufacturing

1,000

335313

Switchgear and Switchboard Apparatus Manufacturing

750

335314

Relay and Industrial Control Manufacturing

750

335911

Storage Battery Manufacturing

500

335912

Primary Battery Manufacturing

1,000

335921

Fiber Optic Cable Manufacturing

1,000

335929

Other Communication and Energy Wire Manufacturing

1,000

335931

Current-Carrying Wiring Device Manufacturing

500

335932

Noncurrent-Carrying Wiring Device Manufacturing

500

335991

Carbon and Graphite Product Manufacturing

750

335999

All Other Miscellaneous Electrical Equipment and Component Manufacturing

500

Subsector 336—Transportation Equipment Manufacturing

7

336111

Automobile Manufacturing

1,000

336112

Light Truck and Utility Vehicle Manufacturing

1,000

336120

Heavy Duty Truck Manufacturing

1,000

336211

Motor Vehicle Body Manufacturing

1,000

336212

Truck Trailer Manufacturing

500

336213

Motor Home Manufacturing

1,000

336214

Travel Trailer and Camper Manufacturing

500

336311

Carburetor, Piston, Piston Ring and Valve Manufacturing

500

336312

Gasoline Engine and Engine Parts Manufacturing

750

336321

Vehicular Lighting Equipment Manufacturing

500

336322

Other Motor Vehicle Electrical and Electronic Equipment Manufacturing

750

336330

Motor Vehicle Steering and Suspension Components (except Spring) Manufacturing

750

336340

Motor Vehicle Brake System Manufacturing

750

336350

Motor Vehicle Transmission and Power Train Parts Manufacturing

750

336360

Motor Vehicle Seating and Interior Trim Manufacturing

500

336370

Motor Vehicle Metal Stamping

500

336391

Motor Vehicle Air-Conditioning Manufacturing

750

336399

All Other Motor Vehicle Parts Manufacturing

750

336411

Aircraft Manufacturing

1,500

336412

Aircraft Engine and Engine Parts Manufacturing

1,000

336413

Other Aircraft Part and Auxiliary Equipment Manufacturing

7

7

1,000

336414

Guided Missile and Space Vehicle Manufacturing

1,000

336415

Guided Missile and Space Vehicle Propulsion Unit and Propulsion Unit Parts Manufacturing

1,000

336419

Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing

1,000

336510

Railroad Rolling Stock Manufacturing

1,000

336611

Ship Building and Repairing

1,000

336612

Boat Building

500

336991

Motorcycle, Bicycle and Parts Manufacturing

500

336992

Military Armored Vehicle, Tank and Tank Component Manufacturing

1,000

336999

All Other Transportation Equipment Manufacturing

500

Subsector 337—Furniture and Related Product Manufacturing

337110

Wood Kitchen Cabinet and Counter Top Manufacturing

500

337121

Upholstered Household Furniture Manufacturing

500

337122

Nonupholstered Wood Household Furniture Manufacturing

500

337124

Metal Household Furniture Manufacturing

500

337125

Household Furniture (except Wood and Metal) Manufacturing

500

337127

Institutional Furniture Manufacturing

500

337129

Wood Television, Radio, and Sewing Machine Cabinet Manufacturing

500

337211

Wood Office Furniture Manufacturing

500

337212

Custom Architectural Woodwork and Millwork Manufacturing

500

337214

Office Furniture (except Wood) Manufacturing

500

337215

Showcase, Partition, Shelving, and Locker Manufacturing

500

337910

Mattress Manufacturing

500

337920

Blind and Shade Manufacturing

500

Subsector 339—Miscellaneous Manufacturing

339111

Laboratory Apparatus and Furniture Manufacturing

500

339112

Surgical and Medical Instrument Manufacturing

500

339113

Surgical Appliance and Supplies Manufacturing

500

339114

Dental Equipment and Supplies Manufacturing

500

339115

Ophthalmic Goods Manufacturing

500

339116

Dental Laboratories

500

339911

Jewelry (except Costume) Manufacturing

500

339912

Silverware and Hollowware Manufacturing

500

339913

Jewelers' Material and Lapidary Work Manufacturing

500

339914

Costume Jewelry and Novelty Manufacturing

500

339920

Sporting and Athletic Goods Manufacturing

500

339931

Doll and Stuffed Toy Manufacturing

500

339932

Game, Toy, and Children's Vehicle Manufacturing

500

339941

Pen and Mechanical Pencil Manufacturing

500

339942

Lead Pencil and Art Good Manufacturing

500

339943

Marking Device Manufacturing

500

339944

Carbon Paper and Inked Ribbon Manufacturing

500

339950

Sign Manufacturing

500

339991

Gasket, Packing, and Sealing Device Manufacturing

500

339992

Musical Instrument Manufacturing

500

339993

Fastener, Button, Needle and Pin Manufacturing

500

339994

Broom, Brush and Mop Manufacturing

500

339995

Burial Casket Manufacturing

500

339999

All Other Miscellaneous Manufacturing

500

Sector 42—Wholesale Trade

Subsector 423—Merchant Wholesalers, Durable Goods

423110

Automobile and Other Motor Vehicle Merchant Wholesalers

100

423120

Motor Vehicle Supplies and New Parts Merchant Wholesalers

100

423130

Tire and Tube Merchant Wholesalers

100

423140

Motor Vehicle Parts (Used) Merchant Wholesalers

100

423210

Furniture Merchant Wholesalers

100

423220

Home Furnishing Merchant Wholesalers

100

423310

Lumber, Plywood, Millwork, and Wood Panel Merchant Wholesalers

100

423320

Brick, Stone, and Related Construction Material Merchant Wholesalers

100

423330

Roofing, Siding, and Insulation Material Merchant Wholesalers

100

423390

Other Construction Material Merchant Wholesalers

100

423410

Photographic Equipment and Supplies Merchant Wholesalers

100

423420

Office Equipment Merchant Wholesalers

100

423430

Computer and Computer Peripheral Equipment and Software Merchant Wholesalers

100

423440

Other Commercial Equipment Merchant Wholesalers

100

423450

Medical, Dental, and Hospital Equipment and Supplies Merchant Wholesalers

100

423460

Ophthalmic Goods Merchant Wholesalers

100

423490

Other Professional Equipment and Supplies Merchant Wholesalers

100

423510

Metal Service Centers and Other Metal Merchant Wholesalers

100

423520

Coal and Other Mineral and Ore Merchant Wholesalers

100

423610

Electrical Apparatus and Equipment, Wiring Supplies, and Related Equipment Merchant Wholesalers

100

423620

Electrical and Electronic Appliance, Television, and Radio Set Merchant Wholesalers

100

423690

Other Electronic Parts and Equipment Merchant Wholesalers

100

423710

Hardware Merchant Wholesalers

100

423720

Plumbing and Heating Equipment and Supplies (Hydronics) Merchant Wholesalers

100

423730

Warm Air Heating and Air-Conditioning Equipment and Supplies Merchant Wholesalers

100

423740

Refrigeration Equipment and Supplies Merchant Wholesalers

100

423810

Construction and Mining (except Oil Well) Machinery and Equipment Merchant Wholesalers

100

423820

Farm and Garden Machinery and Equipment Merchant Wholesalers

100

423830

Industrial Machinery and Equipment Merchant Wholesalers

100

423840

Industrial Supplies Merchant Wholesalers

100

423850

Service Establishment Equipment and Supplies Merchant Wholesalers

100

423860

Transportation Equipment and Supplies (except Motor Vehicle) Merchant Wholesalers

100

423910

Sporting and Recreational Goods and Supplies Merchant Wholesalers

100

423920

Toy and Hobby Goods and Supplies Merchant Wholesalers

100

423930

Recyclable Material Merchant Wholesalers

100

423940

Jewelry, Watch, Precious Stone, and Precious Metal Merchant Wholesalers

100

423990

Other Miscellaneous Durable Goods Merchant Wholesalers

100

Subsector 424—Merchant Wholesalers, Nondurable Goods

424110

Printing and Writing Paper Merchant Wholesalers

100

424120

Stationary and Office Supplies Merchant Wholesalers

100

424130

Industrial and Personal Service Paper Merchant Wholesalers

100

424210

Drugs and Druggists' Sundries Merchant Wholesalers

100

424310

Piece Goods, Notions, and Other Dry Goods Merchant Wholesalers

100

424320

Men's and Boys' Clothing and Furnishings Merchant Wholesalers

100

424330

Women's, Children's, and Infants' Clothing and Accessories Merchant Wholesalers

100

424340

Footwear Merchant Wholesalers

100

424410

General Line Grocery Merchant Wholesalers

100

424420

Packaged Frozen Food Merchant Wholesalers

100

424430

Dairy Product (except Dried or Canned) Merchant Wholesalers

100

424440

Poultry and Poultry Product Merchant Wholesalers

100

424450

Confectionery Merchant Wholesalers

100

424460

Fish and Seafood Merchant Wholesalers

100

424470

Meat and Meat Product Merchant Wholesalers

100

424480

Fresh Fruit and Vegetable Merchant Wholesalers

100

424490

Other Grocery and Related Products Merchant Wholesalers

100

424510

Grain and Field Bean Merchant Wholesalers

100

424520

Livestock Merchant Wholesalers

100

424590

Other Farm Product Raw Material Merchant Wholesalers

100

424610

Plastics Materials and Basic Forms and Shapes Merchant Wholesalers

100

424690

Other Chemical and Allied Products Merchant Wholesalers

100

424710

Petroleum Bulk Stations and Terminals

100

424720

Petroleum and Petroleum Products Merchant Wholesalers (except Bulk Stations and Terminals)

100

424810

Beer and Ale Merchant Wholesalers

100

424820

Wine and Distilled Alcoholic Beverage Merchant Wholesalers

100

424910

Farm Supplies Merchant Wholesalers

100

424920

Book, Periodical, and Newspaper Merchant Wholesalers

100

424930

Flower, Nursery Stock, and Florists' Supplies Merchant Wholesalers

100

424940

Tobacco and Tobacco Product Merchant Wholesalers

100

424950

Paint, Varnish, and Supplies Merchant Wholesalers

100

424990

Other Miscellaneous Nondurable Goods Merchant Wholesalers

100

Subsector 425—Wholesale Electronic Markets and Agents and Brokers

425110

Business to Business Electronic Markets

100

425120

Wholesale Trade Agents and Brokers

100

Sectors 44-45—Retail Trade

Subsector 441—Motor Vehicle and Parts Dealers

441110

New Car Dealers

50

441120

Used Car Dealers

50

441210

Recreational Vehicle Dealers

50

441221

Motorcycle Dealers

50

441222

Boat Dealers

50

441229

All Other Motor Vehicle Dealers

50

441310

Automotive Parts and Accessories Stores

50

441320

Tire Dealers

50

Subsector 442—Furniture and Home Furnishings Stores

442110

Furniture Stores

50

442210

Floor Covering Stores

50

442291

Window Treatment Stores

50

442299

All Other Home Furnishings Stores

50

Subsector 443—Electronics and Appliance Stores

443111

Household Appliance Stores

50

443112

Radio, Television and Other Electronics Stores

50

443120

Computer and Software Stores

50

443130

Camera and Photographic Supplies Stores

50

Subsector 444—Building Material and Garden Equipment and Supplies Dealers

444110

Home Centers

50

444120

Paint and Wallpaper Stores

50

444130

Hardware Stores

50

444190

Other Building Material Dealers

50

444210

Outdoor Power Equipment Stores

50

444220

Nursery and Garden Centers

50

Subsector 445—Food and Beverage Stores

445110

Supermarkets and Other Grocery (except Convenience) Stores

150

445120

Convenience Stores

150

445210

Meat Markets

50

445220

Fish and Seafood Markets

50

445230

Fruit and Vegetable Markets

50

445291

Baked Goods Stores

50

445292

Confectionery and Nut Stores

50

445299

All Other Specialty Food Stores

50

445310

Beer, Wine and Liquor Stores

50

Subsector 446—Health and Personal Care Stores

446110

Pharmacies and Drug Stores

50

446120

Cosmetics, Beauty Supplies and Perfume Stores

50

446130

Optical Goods Stores

50

446191

Food (Health) Supplement Stores

50

446199

All Other Health and Personal Care Stores

50

Subsector 447—Gasoline Stations

447110

Gasoline Stations with Convenience Stores

100

447190

Other Gasoline Stations

50

Subsector 448—Clothing and Clothing Accessories Stores

448110

Men's Clothing Stores

50

448120

Women's Clothing Stores

50

448130

Children's and Infants' Clothing Stores

50

448140

Family Clothing Stores

50

448150

Clothing Accessories Stores

50

448190

Other Clothing Stores

50

448210

Shoe Stores

50

448310

Jewelry Stores

50

448320

Luggage and Leather Goods Stores

50

Subsector 451—Sporting Good, Hobby, Book and Music Stores

451110

Sporting Goods Stores

50

451120

Hobby, Toy and Game Stores

50

451130

Sewing, Needlework and Piece Goods Stores

50

451140

Musical Instrument and Supplies Stores

50

451211

Book Stores

50

451212

News Dealers and Newsstands

50

451220

Prerecorded Tape, Compact Disc and Record Stores

50

Subsector 452—General Merchandise Stores

452111

Department Stores (except Discount Department Stores)

150

452112

Discount Department Stores

150

452910

Warehouse Clubs and Superstores

150

452990

All Other General Merchandise Stores

100

Subsector 453—Miscellaneous Store Retailers

453110

Florists

50

453210

Office Supplies and Stationery Stores

50

453220

Gift, Novelty and Souvenir Stores

50

453310

Used Merchandise Stores

50

453910

Pet and Pet Supplies Stores

50

453920

Art Dealers

50

453930

Manufactured (Mobile) Home Dealers

50

453991

Tobacco Stores

50

453998

All Other Miscellaneous Store Retailers (except Tobacco Stores)

50

Subsector 454—Nonstore Retailers

454111

Electronic Shopping

50

454112

Electronic Auctions

50

454113

Mail-Order Houses

50

454210

Vending Machine Operators

50

454311

Heating Oil Dealers

50

454312

Liquefied Petroleum Gas (Bottled Gas) Dealers

50

454319

Other Fuel Dealers

50

454390

Other Direct Selling Establishments

50

Sectors 48-49—Transportation

Subsector 481—Air Transportation

481111

Scheduled Passenger Air Transportation

1,500

481112

Scheduled Freight Air Transportation

1,500

481211

Nonscheduled Chartered Passenger Air Transportation

1,500

Except,

Offshore Marine Air Transportation Services

150

481212

Nonscheduled Chartered Freight Air Transportation

1,500

Except,

Offshore Marine Air Transportation Services

150

481219

Other Nonscheduled Air Transportation

50

Subsector 482—Rail Transportation

482111

Line-Haul Railroads

1,500

482112

Short Line Railroads

500

Subsector 483—Water Transportation

8

483111

Deep Sea Freight Transportation

500

483112

Deep Sea Passenger Transportation

500

483113

Coastal and Great Lakes Freight Transportation

500

483114

Coastal and Great Lakes Passenger Transportation

500

483211

Inland Water Freight Transportation

500

483212

Inland Water Passenger Transportation

500

Subsector 484—Truck Transportation

484110

General Freight Trucking, Local

200

484121

General Freight Trucking, Long-Distance, Truckload

200

484122

General Freight Trucking, Long-Distance, Less Than Truckload

200

484210

Used Household and Office Goods Moving

200

484220

Specialized Freight (except Used Goods) Trucking, Local

200

484230

Specialized Freight (except Used Goods) Trucking, Long-Distance

200

Subsector 485—Transit and Ground Passenger Transportation

485111

Mixed Mode Transit Systems

100

485112

Commuter Rail Systems

100

485113

Bus and Motor Vehicle Transit Systems

100

485119

Other Urban Transit Systems

100

485210

Interurban and Rural Bus Transportation

100

485310

Taxi Service

50

485320

Limousine Service

50

485410

School and Employee Bus Transportation

100

485510

Charter Bus Industry

100

485991

Special Needs Transportation

50

485999

All Other Transit and Ground Passenger Transportation

50

Subsector 486—Pipeline Transportation

486110

Pipeline Transportation of Crude Oil

1,500

486210

Pipeline Transportation of Natural Gas

100

486910

Pipeline Transportation of Refined Petroleum Products

1,500

486990

All Other Pipeline Transportation

100

Subsector 487—Scenic and Sightseeing Transportation

487110

Scenic and Sightseeing Transportation, Land

50

487210

Scenic and Sightseeing Transportation, Water

50

487990

Scenic and Sightseeing Transportation, Other

50

Subsector 488—Support Activities for Transportation

488111

Air Traffic Control

50

488119

Other Airport Operations

100

488190

Other Support Activities for Air Transportation

100

488210

Support Activities for Rail Transportation

50

488310

Port and Harbor Operations

200

488320

Marine Cargo Handling

200

488330

Navigational Services to Shipping

50

488390

Other Support Activities for Water Transportation

50

488410

Motor Vehicle Towing

50

488490

Other Support Activities for Road Transportation

50

488510

Freight Transportation Arrangement

50

488991

Packing and Crating

100

488999

All Other Support Activities for Transportation

50

Subsector 491—Postal Service

491110

Postal Service

50

Subsector 492—Couriers and Messengers

492110

Couriers

1,500

492210

Local Messengers and Local Delivery

200

Subsector 493—Warehousing and Storage

493110

General Warehousing and Storage

200

493120

Refrigerated Warehousing and Storage

200

493130

Farm Product Warehousing and Storage

200

493190

Other Warehousing and Storage

200

Sector 51—Information

Subsector 511—Publishing Industries (except Internet)

511110

Newspaper Publishers

500

511120

Periodical Publishers

500

511130

Book Publishers

500

511140

Directory and Mailing List Publishers

500

511191

Greeting Card Publishers

500

511199

All Other Publishers

500

511210

Software Publishers

150

Subsector 512—Motion Picture and Sound Recording Industries

512110

Motion Picture and Video Production

100

512120

Motion Picture and Video Distribution

100

512131

Motion Picture Theaters (except Drive-Ins)

100

512132

Drive-In Motion Picture Theaters

50

512191

Teleproduction and Other Postproduction Services

100

512199

Other Motion Picture and Video Industries

50

512210

Record Production

50

512220

Integrated Record Production/Distribution

750

512230

Music Publishers

500

512240

Sound Recording Studios

50

512290

Other Sound Recording Industries

50

Subsector 515—Broadcasting (except Internet)

515111

Radio Networks

50

515112

Radio Stations

50

515120

Television Broadcasting

100

515210

Cable and Other Subscription Programming

100

Subsector 516—Internet Publishing and Broadcasting

516110

Internet Publishing and Broadcasting

500

Subsector 517—Telecommunications

517110

Wired Telecommunications Carriers

1,500

517211

Paging

1,500

517212

Cellular and Other Wireless Telecommunications

1,500

517310

Telecommunications Resellers

1,500

517410

Satellite Telecommunications

100

517510

Cable and Other Program Distribution

100

517910

Other Telecommunications

100

Subsector 518—Internet Service Providers, Web Search Portals, and Data Processing Services

518111

Internet Service Providers

150

518112

Web Search Portals

150

518210

Data Processing, Hosting, and Related Services

150

$30.0

Subsector 519—Other Information Services

519110

News Syndicates

50

519120

Libraries and Archives

50

519190

All Other Information Services

50

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 Credit Intermediation

50

522210

Credit Card Issuing

50

522220

Sales Financing

50

522291

Consumer Lending

50

522292

Real Estate Credit

50

522293

International Trade Financing

50

522294

Secondary Market Financing

50

522298

All Other Non-Depository Credit Intermediation

50

522310

Mortgage and Nonmortgage Loan Brokers

50

522320

Financial Transactions Processing, Reserve, and Clearing House Activities

50

522390

Other Activities Related to Credit Intermediation

50

Subsector 523—Financial Investments and Related Activities

523110

Investment Banking and Securities Dealing

50

523120

Securities Brokerage

50

523130

Commodity Contracts Dealing

50

523140

Commodity Contracts Brokerage

50

523210

Securities and Commodity Exchanges

50

523910

Miscellaneous Intermediation

50

523920

Portfolio Management

50

523930

Investment Advice

50

523991

Trust, Fiduciary and Custody Activities

50

523999

Miscellaneous Financial Investment Activities

50

Subsector 524—Insurance Carriers and Related Activities

524113

Direct Life Insurance Carriers

50

524114

Direct Health and Medical Insurance Carriers

50

524126

Direct Property and Casualty Insurance Carriers

1,500

524127

Direct Title Insurance Carriers

50

524128

Other Direct Insurance (except Life, Health and Medical) Carriers

50

524130

Reinsurance Carriers

50

524210

Insurance Agencies and Brokerages

50

524291

Claims Adjusting

50

524292

Third Party Administration of Insurance and Pension Funds

50

524298

All Other Insurance Related Activities

50

Subsector 525—Funds, Trusts and Other Financial Vehicles

525110

Pension Funds

50

525120

Health and Welfare Funds

50

525190

Other Insurance Funds

50

525910

Open-End Investment Funds

50

525920

Trusts, Estates, and Agency Accounts

50

525930

Real Estate Investment Trusts

50

525990

Other Financial Vehicles

50

Sector 53—Real Estate and Rental and Leasing

Subsector 531—Real Estate

531110

Lessors of Residential Buildings and Dwellings

50

531120

Lessors of Nonresidential Buildings (except Miniwarehouses)

50

531130

Lessors of Miniwarehouses and Self Storage Units

150

531190

Lessors of Other Real Estate Property

50

Except,

Leasing of Building Space to Federal Government by Owners

9

9

150

531210

Offices of Real Estate Agents and Brokers

50

531311

Residential Property Managers

50

531312

Nonresidential Property Managers

50

531320

Offices of Real Estate Appraisers

50

531390

Other Activities Related to Real Estate

50

Subsector 532—Rental and Leasing Services

532111

Passenger Car Rental

150

532112

Passenger Car Leasing

150

532120

Truck, Utility Trailer, and RV (Recreational Vehicle) Rental and Leasing

150

532210

Consumer Electronics and Appliances Rental

50

532220

Formal Wear and Costume Rental

50

532230

Video Tape and Disc Rental

50

532291

Home Health Equipment Rental

50

532292

Recreational Goods Rental

50

532299

All Other Consumer Goods Rental

50

532310

General Rental Centers

50

532411

Commercial Air, Rail, and Water Transportation Equipment Rental and Leasing

50

532412

Construction, Mining and Forestry Machinery and Equipment Rental and Leasing

50

532420

Office Machinery and Equipment Rental and Leasing

50

532490

Other Commercial and Industrial Machinery and Equipment Rental and Leasing

50

Subsector 533—Lessors of Nonfinancial Intangible Assets (except Copyrighted Works)

533110

Lessors of Nonfinancial Intangible Assets (except Copyrighted Works)

50

Sector 54—Professional, Scientific and Technical Services

Subsector 541— Professional, Scientific and Technical Services

541110

Offices of Lawyers

50

541191

Title Abstract and Settlement Offices

50

541199

All Other Legal Services

50

541211

Offices of Certified Public Accountants

100

541213

Tax Preparation Services

50

541214

Payroll Services

100

541219

Other Accounting Services

100

541310

Architectural Services

50

$7.0

541320

Landscape Architectural Services

50

541330

Engineering Services

50

$7.0

Except,

Military and Aerospace Equipment and Military Weapons

200

$30.0

Except,

Contracts and Subcontracts for Engineering Services Awarded Under the National Energy Policy Act of 1992

200

$30.0

Except,

Marine Engineering and Naval Architecture

150

$30.0

541340

Drafting Services

50

541350

Building Inspection Services

50

541360

Geophysical Surveying and Mapping Services

50

541370

Surveying and Mapping (except Geophysical) Services

50

541380

Testing Laboratories

100

541410

Interior Design Services

50

541420

Industrial Design Services

50

541430

Graphic Design Services

50

541490

Other Specialized Design Services

50

541511

Custom Computer Programming Services

150

$30.0

541512

Computer Systems Design Services

150

$30.0

541513

Computer Facilities Management Services

150

$30.0

541519

Other Computer Related Services

150

$30.0

Except,

Information Technology Value Added Resellers

15

15

150

541611

Administrative Management and General Management Consulting Services

50

$10.0

541612

Human Resources and Executive Search Consulting Services

50

$10.0

541613

Marketing Consulting Services

50

$10.0

541614

Process, Physical Distribution and Logistics Consulting Services

50

$10.0

541618

Other Management Consulting Services

50

$10.0

541620

Environmental Consulting Services

50

$10.0

541690

Other Scientific and Technical Consulting Services

50

$10.0

541710

Research and Development in the Physical, Engineering, and Life Sciences

10

10

500

Except,

Aircraft

1,500

Except,

Aircraft Parts, and Auxiliary Equipment, and Aircraft Engine Parts

1,000

Except,

Space Vehicles and Guided Missiles, their Propulsion Units, their Propulsion Units Parts, and their Auxiliary Equipment and Parts

1,000

541720

Research and Development in the Social Sciences and Humanities

50

541810

Advertising Agencies

50

541820

Public Relations Agencies

50

541830

Media Buying Agencies

50

541840

Media Representatives

50

541850

Display Advertising

50

541860

Direct Mail Advertising

50

541870

Advertising Material Distribution Services

50

541890

Other Services Related to Advertising

50

541910

Marketing Research and Public Opinion Polling

50

541921

Photography Studios, Portrait

50

541922

Commercial Photography

50

541930

Translation and Interpretation Services

50

541940

Veterinary Services

50

541990

All Other Professional, Scientific and Technical Services

50

$10.0

Sector 55—Management of Companies and Enterprises

Subsector 551—Management of Companies and Enterprises

551111

Offices of Bank Holding Companies

50

551112

Offices of Other Holding Companies

50

Sector 56—Administrative and Support, Waste Management and Remediation Services

Subsector 561—Administrative and Support Services

561110

Office Administrative Services

50

$10.0

561210

Facilities Support Services

11

11

400

11

$40.0

561310

Employment Placement Agencies

50

561320

Temporary Help Services

500

561330

Employee Leasing Services

500

561410

Document Preparation Services

50

561421

Telephone Answering Services

50

561422

Telemarketing Bureaus

150

561431

Private Mail Centers

50

561439

Other Business Service Centers (including Copy Shops)

50

561440

Collection Agencies

50

561450

Credit Bureaus

50

561491

Repossession Services

50

561492

Court Reporting and Stenotype Services

50

561499

All Other Business Support Services

50

561510

Travel Agencies

50

561520

Tour Operators

50

561591

Convention and Visitors Bureaus

50

561599

All Other Travel Arrangement and Reservation Services

50

561611

Investigation Services

200

561612

Security Guards and Patrol Services

500

561613

Armored Car Services

200

561621

Security Systems Services (except Locksmiths)

200

561622

Locksmiths

50

561710

Exterminating and Pest Control Services

50

561720

Janitorial Services

500

561730

Landscaping Services

50

561740

Carpet and Upholstery Cleaning Services

50

561790

Other Services to Buildings and Dwellings

50

561910

Packaging and Labeling Services

50

561920

Convention and Trade Show Organizers

50

561990

All Other Support Services

50

Subsector 562—Waste Management and Remediation Services

562111

Solid Waste Collection

100

562112

Hazardous Waste Collection

100

562119

Other Waste Collection

100

562211

Hazardous Waste Treatment and Disposal

100

562212

Solid Waste Landfill

100

562213

Solid Waste Combustors and Incinerators

100

562219

Other Nonhazardous Waste Treatment and Disposal

100

562910

Remediation Services

100

Except,

Environmental Remediation Services

12

12

500

562920

Materials Recovery Facilities

100

562991

Septic Tank and Related Services

50

562998

All Other Miscellaneous Waste Management Services

50

Sector 61—Educational Services

Subsector 611—Educational Services

611110

Elementary and Secondary Schools

50

611210

Junior Colleges

50

611310

Colleges, Universities and Professional Schools

50

611410

Business and Secretarial Schools

50

611420

Computer Training

50

611430

Professional and Management Development Training

50

611511

Cosmetology and Barber Schools

50

611512

Flight Training

200

611513

Apprenticeship Training

50

611519

Other Technical and Trade Schools

50

Except,

Job Corps Centers

13

13

400

13

$30.0

611610

Fine Arts Schools

50

611620

Sports and Recreation Instruction

50

611630

Language Schools

50

611691

Exam Preparation and Tutoring

50

611692

Automobile Driving Schools

50

611699

All Other Miscellaneous Schools and Instruction

50

611710

Educational Support Services

50

Sector 62—Health Care and Social Assistance

Subsector 621—Ambulatory Health Care Services

621111

Offices of Physicians (except Mental Health Specialists)

100

621112

Offices of Physicians, Mental Health Specialists

100

621210

Offices of Dentists

50

621310

Offices of Chiropractors

50

621320

Offices of Optometrists

50

621330

Offices of Mental Health Practitioners (except Physicians)

50

621340

Offices of Physical, Occupational and Speech Therapists and Audiologists

50

621391

Offices of Podiatrists

50

621399

Offices of All Other Miscellaneous Health Practitioners

50

621410

Family Planning Centers

100

621420

Outpatient Mental Health and Substance Abuse Centers

100

621491

HMO Medical Centers

100

621492

Kidney Dialysis Centers

200

621493

Freestanding Ambulatory Surgical and Emergency Centers

100

621498

All Other Outpatient Care Centers

100

621511

Medical Laboratories

100

621512

Diagnostic Imaging Centers

100

621610

Home Health Care Services

300

621910

Ambulance Services

100

621991

Blood and Organ Banks

100

621999

All Other Miscellaneous Ambulatory Health Care Services

100

Subsector 622—Hospitals

622110

General Medical and Surgical Hospitals

400

622210

Psychiatric and Substance Abuse Hospitals

400

622310

Specialty (except Psychiatric and Substance Abuse) Hospitals

400

Subsector 623—Nursing and Residential Care Facilities

623110

Nursing Care Facilities

300

623210

Residential Mental Retardation Facilities

300

623220

Residential Mental Health and Substance Abuse Facilities

50

623311

Continuing Care Retirement Communities

300

623312

Homes for the Elderly

50

623990

Other Residential Care Facilities

50

Subsector 624—Social Assistance

624110

Child and Youth Services

50

624120

Services for the Elderly and Persons with Disabilities

50

624190

Other Individual and Family Services

50

624210

Community Food Services

50

624221

Temporary Shelters

50

624229

Other Community Housing Services

50

624230

Emergency and Other Relief Services

50

624310

Vocational Rehabilitation Services

50

624410

Child Day Care Services

50

Sector 71—Arts, Entertainment and Recreation

Subsector 711—Performing Arts, Spectator Sports and Related Industries

711110

Theater Companies and Dinner Theaters

50

711120

Dance Companies

50

711130

Musical Groups and Artists

50

711190

Other Performing Arts Companies

50

711211

Sports Teams and Clubs

50

711212

Race Tracks

50

711219

Other Spectator Sports

50

711310

Promoters of Performing Arts, Sports and Similar Events with Facilities

100

711320

Promoters of Performing Arts, Sports and Similar Events without Facilities

50

711410

Agents and Managers for Artists, Athletes, Entertainers and Other Public Figures

50

711510

Independent Artists, Writers, and Performers

50

Subsector 712—Museums, Historical Sites and Similar Institutions

712110

Museums

50

712120

Historical Sites

50

712130

Zoos and Botanical Gardens

50

712190

Nature Parks and Other Similar Institutions

50

Subsector 713—Amusement, Gambling and Recreation Industries

713110

Amusement and Theme Parks

100

713120

Amusement Arcades

50

713210

Casinos (except Casino Hotels)

50

713290

Other Gambling Industries

50

713910

Golf Courses and Country Clubs

50

713920

Skiing Facilities

200

713930

Marinas

50

713940

Fitness and Recreational Sports Centers

50

713950

Bowling Centers

50

713990

All Other Amusement and Recreation Industries

50

Sector 72—Accommodation and Food Services

Subsector 721—Accommodation

721110

Hotels (except Casino Hotels) and Motels

100

721120

Casino Hotels

100

721191

Bed and Breakfast Inns

50

721199

All Other Traveler Accommodation

50

721211

RV (Recreational Vehicle) Parks and Campgrounds

50

721214

Recreational and Vacation Camps (except Campgrounds)

50

721310

Rooming and Boarding Houses

50

Subsector 722—Food Services and Drinking Places

722110

Full-Service Restaurants

50

722211

Limited-Service Restaurants

50

722212

Cafeterias

50

722213

Snack and Nonalcoholic Beverage Bars

50

722310

Food Service Contractors

400

722320

Caterers

50

722330

Mobile Food Services

50

722410

Drinking Places (Alcoholic Beverages)

50

Sector 81—Other Services

Subsector 811—Repair and Maintenance

811111

General Automotive Repair

50

811112

Automotive Exhaust System Repair

50

811113

Automotive Transmission Repair

50

811118

Other Automotive Mechanical and Electrical Repair and Maintenance

50

811121

Automotive Body, Paint and Interior Repair and Maintenance

50

811122

Automotive Glass Replacement Shops

50

811191

Automotive Oil Change and Lubrication Shops

50

811192

Car Washes

50

811198

All Other Automotive Repair and Maintenance

50

811211

Consumer Electronics Repair and Maintenance

50

811212

Computer and Office Machine Repair and Maintenance

150

811213

Communication Equipment Repair and Maintenance

50

811219

Other Electronic and Precision Equipment Repair and Maintenance

50

811310

Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance

50

811411

Home and Garden Equipment Repair and Maintenance

50

811412

Appliance Repair and Maintenance

50

811420

Reupholstery and Furniture Repair

50

811430

Footwear and Leather Goods Repair

50

811490

Other Personal and Household Goods Repair and Maintenance

50

Subsector 812—Personal and Laundry Services

812111

Barber Shops

50

812112

Beauty Salons

50

812113

Nail Salons

50

812191

Diet and Weight Reducing Centers

50

812199

Other Personal Care Services

50

812210

Funeral Homes and Funeral Services

50

812220

Cemeteries and Crematories

50

812310

Coin-Operated Laundries and Drycleaners

50

812320

Drycleaning and Laundry Services (except Coin-Operated)

50

812331

Linen Supply

200

812332

Industrial Launderers

200

812910

Pet Care (except Veterinary) Services

50

812921

Photo Finishing Laboratories (except One-Hour)

50

812922

One-Hour Photo Finishing

50

812930

Parking Lots and Garages

100

812990

All Other Personal Services

50

Subsector 813—Religious, Grantmaking, Civic, Professional and Similar Organizations

813110

Religious Organizations

50

813211

Grantmaking Foundations

50

813212

Voluntary Health Organizations

50

813219

Other Grantmaking and Giving Services

50

813311

Human Rights Organizations

50

813312

Environment, Conservation and Wildlife Organizations

50

813319

Other Social Advocacy Organizations

50

813410

Civic and Social Organizations

50

813910

Business Associations

50

813920

Professional Organizations

50

813930

Labor Unions and Similar Labor Organizations

50

813940

Political Organizations

50

813990

Other Similar Organizations (except Business, Professional, Labor, and Political Organizations)

50

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.

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 5

This text is long and has been trimmed here. Open the source document for the complete record.