Small Business Size Standards; Inflation Adjusted Size Standards

SMALL BUSINESS ADMINISTRATION

13 CFR Part 121

Small Business Size Standards; Inflation Adjusted Size Standards

AGENCY: Small Business Administration.

ACTION: Final rule.

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SUMMARY: On September 2, 1993, the Small Business Administration (SBA)

published a proposed rule in the Federal Register, 58 FR 46573, re-

proposing to streamline its size standards by reducing the current

number of fixed size standard levels from thirty to nine (retaining the

five existing employee-based levels and establishing four new receipts-

based levels). As a part of the proposed rule, an inflation adjustment

percentage of 45.8% was applied to most of SBA's receipts-based size

standard levels and then rounded to the nearest newly established four

receipts-based levels. The SBA has decided to further review the

effectiveness of reducing the current number of fixed size standard

levels in order to simplify the size standards program. However, the

SBA continues to believe that the application of an inflationary

adjustment, to account for the effects of inflation since the third

quarter of 1982, to its receipts-based size standards is still

warranted. This final rule reflects the SBA's finding that the

application of an inflation adjustment percentage of 48.2% (based upon

the latest inflation information) to the receipts-based size standard

of each and every industry, not otherwise prohibited for change by

statute, is necessary.

EFFECTIVE DATE: April 22, 1994.

FOR FURTHER INFORMATION CONTACT:Ajoy K. Sinha, Program Analyst, Size

Standards Staff (202) 205-6618.

SUPPLEMENTARY INFORMATION: On December 21, 1992, SBA published a

proposed rule in the Federal Register, 57 FR 62515, that sought to

achieve the twin goals of adjusting SBA's receipt-based size standards

for inflation and streamlining the SBA size standards system. Following

a withdrawal of that proposed rule on February 19, 1993 (58 FR 9131)

and further review of the proposal by the Agency, SBA again published a

proposed rule in the Federal Register on September 2, 1993, 58 FR

46573, to accomplish those same dual purposes.

Pursuant to the September 2, 1993 proposed rule, SBA's current

system of approximately thirty size standards would first have been

simplified by reducing the number of different size standards to nine.

More specifically, SBA's twenty-one different receipts-based size

standards would have been reduced to only the four most common

receipts-based size standards--$3.5 million in average annual receipts,

$7.0 million, $12.5 million, and $17.0 million. In addition, SBA

proposed to increase the receipts-based size standards for inflation.

The inflation rate to be applied was then calculated at 45.8 percent.

This rate covered the period between the third quarter of 1982 (the

last date for which size standards were adjusted for inflation) and the

first quarter of 1993 (the most recent data available at the time of

the publication of the proposed rule).

The 45.8 percent inflation rate would then have been applied to the

four remaining receipts-based size standards. This application would

have in turn generated the four most common receipts-based size

standards with an inflation adjustment--$5 million, $10 million, $18

million and $25 million. The inflation adjustment then would have been

calculated for each of the existing receipts-based size standards,

except where the Agency is legally prohibited from doing so. Each of

these standards, preliminarily adjusted for the full inflation rate,

would have then been modified by reducing or increasing them to the

closest of the four inflation-adjusted simplified size standards. As a

result, many industries would have received a net inflation adjustment

that would have been significantly larger or smaller than the 45.8

percent inflator.

After further considering the proposed rule in light of comments

received, the SBA has concluded that further study is needed on the

issue of how best to simplify its size standards. In addition, SBA

feels that the manner in which size standards would have been increased

for inflation (that is, adjusting upward or downward from a full

inflation increase to one of the four newly created simplified size

standards) may not have adequately taken into account the effects of

inflation on a significant number of industries. Indeed, it believes

that the need to adjust current size standards for inflation is an

urgent one. Small business owners have requested quick action. In SBA's

view, updating such standards as soon as possible is necessary to make

them more appropriate. Several commenters to the proposed rule

maintained that the proposed rule was inequitable in that certain

industries would not have received a full inflationary adjustment.

These commenters recommended that SBA modify every size standard upward

to the next highest of the four inflation-adjusted simplified size

standards, but never downward to give certain industries less than a

full increase for inflation. While SBA is not convinced that increasing

each of these size standards upward to the next highest level is the

appropriate solution, SBA does believe that the concerns raised

regarding the unequal inflation adjustments are valid.

Accordingly, the SBA has decided to finalize only that portion of

the proposed rule that called for an increase in the receipts-based

size standards due to inflation. In other words, this final rule will

adjust each of the current twenty-one receipts-based size standards for

inflation.

The SBA firmly believes that all possible alternatives should

continue to be studied and analyzed to determine the most effective

means by which a true simplification of the numerical size standards,

related size standard definitional provisions, and the size

determination process can be achieved. After this review has been

completed, a new proposal to simplify the size standards may be

forthcoming with an opportunity for the public to express its views

regarding such a proposal.

In the interim, however, the SBA continues to believe in the

necessity of adjusting the receipts-based size standards to account for

the effects of inflation since the Agency's last inflationary

adjustment in 1984. This final rule adopts increases to the receipts-

based size standards to reflect the effects of inflation. As discussed

in the proposed rule, March 12, 1984 was the last time a general

inflationary adjustment was applied to the receipts-based size

standards. The proposed rule took into account available data through

the first quarter of 1993.

In an effort to establish receipts-based size standard levels

reflective of current market conditions, the SBA, based on the

availability of the U.S. Department of Commerce's most recent inflation

data, has re-calculated the inflation adjustment percentage to be

applied to the receipts-based size standards. Thus, taking into account

available data through the fourth quarter of 1993, SBA calculates the

inflation adjustment to be 48.2 percent (as opposed to the 45.8 percent

adjustment calculated in the proposed rule based on the most current

data available at that time, the first quarter of 1993). As in the

proposed rule, in determining the rate of inflation, SBA has utilized

the U.S. Department of Commerce's published Gross Domestic Product

(GDP) Implicit Price Deflator.

The methodology used in determining the appropriate inflation

adjustment is as follows:

1. Determine the base period used to establish the current size

standard;

2. Determine the GDP deflator at the base period and at the most

recent point in time for which the GDP deflator has been published; and

3. Apply the calculated inflation adjustment percentage to the

receipts-based size standard of each and every industry, not otherwise

prohibited from change by statute.

The inflation adjustment calculated in this final rule is based on

the last index value used for the 1984 inflation adjustment and the

latest available index value. The 1984 adjustment accounted for

inflation up to the third quarter of 1982. For purposes of this rule,

the third quarter of 1982 is, therefore, the base period for which SBA

calculated the amount of inflation that has occurred since the last

adjustment. The U.S. Department of Commerce's latest data show index

values of 84.3 for the third quarter of 1982 and 124.9 for the fourth

quarter of 1993. This change records inflation of 48.2 percent for the

time between these two periods. Thus, each and every industry having a

receipts-based size standard, not otherwise prohibited from change by

statute, first receives an inflationary calculation percentage of 48.2

percent in this final rule. Finally, where necessary, the inflated size

standards are rounded to the nearest half million dollar increment.

This rounding method produces net increases to most industry size

standards that are slightly above or below the calculated inflation

rate of 48.2 percent. This methods is selected because it results in an

increase to each size standard that is as close as possible to the

calculated 48.2 percent inflationary increase, and is consistent with

the settled practice of establishing size standards at $0.5 million

increments. Past inflationary increases in SBA's receipt-based size

standards have similarly been rounded to the nearest $0.5 million

increment. See, e.g., 49 FR 5024 (February 9, 1984). The SBA believes

that this rounding methodology most closely reflects the calculated

inflation increase. The inflation adjustment adopted by this final rule

is not intended to and can not be a precise calculation of inflation

experienced within each and every industry. This is because inflation

will vary from industry to industry, and measures of these cost and

price increases are not generally calculated for specific industries,

as represented by individual Standard Industrial Classification (SIC)

code designations. SBA feels that the rounding methodology is,

therefore, the most reasonable application of an inflationary

adjustment since the inflation measure used for this final rule

measures only the general rise of prices in the whole economy over an

extended period of time.

Three industry categories which SBA has revised since the 1984

inflation adjustment are being adjusted differently in this final rule

to correctly increase those industries for inflation through 1993.

These are the chicken egg production industry, SIC coded 0252; motor

vehicles dealers (new and used), SIC code 5511; and the industries of

computer services, SIC codes 7371 through 7379. In developing the

existing size standards for these industries, SBA used data on industry

revenues later than the third quarter of 1982. Thus, the existing

standards take into account the effects of inflation beyond the third

quarter of 1982. To avoid double-counting for the effects of inflation

on these size standards, the size standards will be adjusted for

inflation occurring from the year of the industry data (the base

period) to the fourth quarter of 1993. The data bases the SBA relied

upon to establish the size standards for these three categories reflect

revenues generated during an entire calendar year. Accordingly, the

average price deflator for the applicable calendar year is used as the

base period's deflator value for purposes of this inflation

calculation.

The size standard for the Chicken Egg industry, SIC code 0252, was

primarily based on industry data contained in the SBA's 1986 Small

Business Data Base (56 FR 55617) and became effective on November 29,

1991. Accordingly, the inflation adjustment for this industry is

calculated in this final rule based on the inflation between calendar

year 1986 (the base period) and the fourth quarter of 1993. Using the

same methodology discussed above, the Implicit Price Deflator for GDP

increased 28.9 percent during this period based on deflators of 96.9

for calendar year 1986 and 124.9 for the fourth quarter of 1993. The

$7.0 million size standard for this industry will, therefore, increase

to $9.0 million.

The 1987 Census of Service Industries and 1987 Census of Retail

Trade Industries, published by the U.S. Department of Commerce's Bureau

of the Census, were primarily used to establish the size standards for

Computer Services, SIC codes 7371 through 7379 (57 FR 27907), and for

Motor Vehicle Dealers (New and Used), SIC code 5511 (57 FR 4837). Their

size standards became effective on July 23, 1992 and March 11, 1992,

respectively. Accordingly, the inflation adjustment for these two

industries will be calculated based on inflation between calendar year

1987 (the base period) and the end of 1993 in this final rule. Using

the same methodology discussed above, the Implicit Price Deflator for

GDP increased 24.9 percent during this period based on deflators for

calendar year 1987 (the base period) of 100.0 and for the fourth

quarter of 1993 of 124.9. Based on these calculations, the $14.5

million size standard for Computer Services will increase to $18

million and the $17 million size standard for Motor Vehicle Dealers

(New and Used) will increase to $21 million.

Two other industries had their size standards further changed after

the general 1984 inflation adjustment, but these changes were based on

industry specific data for 1982 and 1984. These are the industries of

Travel Agencies, SIC code 4724 (53 FR 18820) (1982 data), and Real

Estate and Managers, SIC code 6531 (50 FR 27418) (1984 data). The SBA

believes no adjustment is needed to the real estate industry size

standard to correct for the double-counting of inflation since the

increment of change in inflation between 1982 and 1984 is insufficient

to cause a different size standard than the one established in this

rule.

An additional issue which is addressed in this final rule is the

resolution of an employee or revenue-based size standard for industries

in the computer services industries (SIC codes 7371-7379). On June 23,

1992, the SBA published an interim final rule in the Federal Register,

53 FR 27907, establishing a $14.5 million size standard for all nine

industries in the computer service industries. However, in that rule

the SBA continued to seek information on the adoption of an employee-

based size standard for some or all of the computer service industries.

After consideration of the comments received on that issue, the Agency

believes that it lacks sufficient information regarding procurement

patterns among this group of industries to justify such a significant

change as shifting to an employee-based measure of size.

As discussed above, the SBA is now establishing these industries'

size standards at $18.0 million in this final rule. In effect, the much

larger issue of adjusting SBA's size standards for inflation has at

least partially superseded the issue of whether to use a revenue or

employee-based size standard for this group of industries. Thus, the

Agency has decided to first implement an inflation adjusted revenue-

based size standard for these industries and then review its program

results with these higher size standards in place. At that time, SBA

may propose an appropriate rule change. SBA believes that the higher

revenue-based size standards for the computer services industries

established in this final rule may substantially meet many of the

concerns of those seeking a employee-based size standard.

As indicated in the proposed rule, four footnotes (footnotes 8, 12,

15 and 16) are adjusted to be consistent with the inflationary

adjustments. Size standards for Offshore Marine Services (part of SIC

Major Groups 44 and 45), Retail Sale of Aircraft (part of SIC code

5599), Leasing of Building Space to the Federal Government by Owners

(part of SIC Major Group 65) and industries without a specific size

standard listed in SIC Division I-Services, are being established at

$20.5 million, $7.5 million, $15.0 million, and $5.0 million,

respectively.

The SBA notes that the size standards for certain industries have

either been established by statute or prohibited by statute from change

until after September 30, 1996. Thus, the size standards for these

industries will remain at their current levels and will not be

increased for inflation in this final rule. Title VII of Public Law

100-656, 102 Stat. 3853, 3889, established the Small Business

Competitiveness Demonstration Program to test the competitiveness of

small business on Federal procurements. That program generally

prohibits a change in size standards before September 30, 1996 for the

Construction industries (SIC codes 1521-1799); the Engineering,

Architecture, Surveying and Mapmaking industries (SIC codes 8711, 8712,

8713, and part of SIC code 7389); and the Refuse Systems and Related

Services industries (SIC code 4953). A footnote is being added to the

size standard for SIC code 7389, Business Services, Not Elsewhere

Classified, to comply with this statutory mandate to retain the $3.5

million size standard for any surveying and mapping activities which

may be included in this industry. The description of this industry in

the Standard Industrial Classification Manual, 1987 includes some

surveying and mapping activities not included in SIC code 8713,

Surveying Services. This footnote was not part of the proposed rule due

to an oversight as to the full impact of this statutory requirement.

However, the SBA is bound by statutory direction to retain the existing

$3.5 million size standard for surveying and mapping services whether

included in SIC code 8713 or SIC code 7389.

While the Small Business Competitiveness Demonstration Program

generally requires the size standards of certain industries to remain

unchanged until 1996, the size standards relating to two of the three

industries in the engineering category may now be revised as a result

of recent legislation. Section 850 of Public Law 103-160, the National

Defense Authorization Act for fiscal year 1994, 107 Stat. 1547, 1726,

signed into law on November 30, 1993, modified the application of the

Small Business Competitiveness Demonstration Program as to SIC code

8711, Engineering Services, to make clear that the subdivisions of

Standard Industrial Classification code 8711 for (A) engineering

services-military and aerospace equipment and military weapons; and (B)

engineering services-marine engineering and naval architecture are not

part of the Program and modifications to those size standards could be

made by the SBA.

In recognition of this statutory change, this final rule gives an

inflationary adjustment to the size standards for engineering services

for Military and Aerospace Equipment and Military Weapons, raising it

from $13.5 million to $20.0 million in average annual receipts, and to

the size standard for engineering services related to Marine

Engineering and Naval Architecture, raising it from $9.0 million to

$13.5 million in average annual receipts. Although the proposed rule

did not contain a similar proposal, it clearly stated that SBA intended

to increase all receipt-based size standards by inflation except where

SBA was constrained from doing so by law. At the time of the

publication of the proposed rule on September 2, 1993, SBA interpreted

the requirements relating to the Small Business Competitiveness

Demonstration Program as prohibiting size standard increases in these

two subdivisions of SIC code 8711. The size standards that are adopted

in this final rule reflect the release of these size standards from

statutory constraints and adjustments for inflation which, over time,

has eroded the real value of these industries' size standards similar

to other industries' size standards.

The other statutory provision which constrains SBA from making

inflationary adjustments for certain industries is Section 18016 of the

Comprehensive Omnibus Reconciliation Act of 1986, Public Law 99-272,

100 Stat. 82, 371, which amended SBA's authority regarding the setting

of size standards contained in section 3(a) of the Small Business Act,

15 U.S.C. 632(a). Specifically, pursuant to section 3(a) of the Small

Business Act, as amended by Public Law 99-272, an agricultural

enterprise shall be deemed to be a small business concern if, including

its affiliates, it has annual receipts not in excess of $500,000. SBA

has complied with that requirement by retaining the size standard for

both Agricultural Production-Crops (SIC codes 0111-0191), and Livestock

and Animal Specialties (SIC codes 0212-0291, except SIC code 0211 and

0252) at $500,000.

Comments to Proposed Rule

In response to the September 2, 1993 proposed rule, SBA received a

total of one-hundred and thirty-five comments. A thorough review of

these comments revealed that out of the one-hundred and thirty-five

comments received, ninety seven were supportive (71.9%), with over

fifty commenters citing the inflation adjustment of size standards as a

reason for supporting the proposal. In addition, about forty commenters

generally supported the simplification of size standards, but did not

specifically agree or disagree with the SBA's proposed system for

simplification. This general support for simplification was not,

however, the primary focus of any comment. A general supporting

statement was usually followed or preceded by a comment regarding some

other specific aspect of the proposal.

The remaining thirty-eight comments included twenty-five which were

non-supportive (18.5%) of the proposal, mainly opposing the proposed

size standard for the travel agencies industry. Thirteen comments

discussed only issues not included within the proposed rule. SBA's

evaluation of the public comments yielded the following noteworthy

issues:

Although the proposed rule discussed a revision to the size

standards for over three hundred industries, the SBA received thirty-

three comments (nearly 25 percent of all comments received)

specifically on the size standard relating to Travel Agencies (SIC code

4724). The proposed rule would have increased the size standard for

this industry from $500,000 to $5.0 million in commission-based income,

or a 900 percent increase. The $5.0 million size standard was proposed

because it was the lowest of the four receipts-based size standards

under the proposed simplification of size standards. The majority of

the comments received on the travel agencies size standard, nineteen or

nearly 60 percent of the thirty-three comments, opposed increasing the

size standard by 900 percent. However, twenty-seven of the commenters

(82 percent) favored increasing the existing size standard by at least

100 percent.

The SBA believes that the fourteen comments that agreed with the

proposed revision of the Travel Agencies size standard, coupled with

the alternatives recommended in the nineteen opposing comments,

demonstrate an overwhelming consensus that the existing size standard

is too low. Most of the comments received opposing the $5 million

proposed size standard suggested an alternative size standard level

that would qualify companies as small whose commission-based receipts

were between $1.0 and $2.0 million. SBA notes that none of those

submitting opposing comments suggested that the size standard should be

increased beyond $2.5 million in commission-based income.

The commenters emphasized that since under the $5.0 million

proposal all but 100 of the 35,000 travel companies would be considered

small, the result of increasing the size standard to the proposed level

would virtually eliminate the benefits provided to smaller companies

because they would be unable to compete with companies that were from

10 to 50 times their size. The largest trade association of

professional travel agents indicated that doubling the standard to $1.0

million in receipts (commission plus other revenues) would sufficiently

accommodate the growth in the size of agencies and the need for some

room to grow by travel agencies that are successful in their initial

bids for government procurement.

The SBA fully agrees with the prevailing views of the commenters

that the current size standard for the travel agency industry is too

low and that it does not reflect current market conditions within the

industry. Data from the Louis Harris & Associates 1992 U.S. Travel

Agency Survey of market conditions indicate that the existing size

standard includes 89 percent of travel agencies and that the proposed

size standard would result in the inclusion of 99.8 percent of travel

agencies. In consideration of the comments reviewed on this specific

size standard, the SBA believes that an inflationary adjustment of 48.2

percent coupled with a rounding upwards to the next $0.5 million

increment establishes the appropriate size standard for this industry.

Therefore, this final rule establishes a $1.0 million commission-based

income size standard for the travel agencies industry, SIC code 4724.

A total of nineteen comments, two from firms involved in the

construction industry, nine from firms involved in the architectural

and engineering industries, and eight from firms involved in various

other industries, were received concerning the SBA's decision not to

increase the size standards of the construction and engineering

industries. As specifically stated in the proposed rule, the SBA is

constrained by statute from increasing the size standards in these

industries.

Seventeen commenters requested the SBA to further adjust the size

standard levels of their respective industries. The most often cited

industries were: Management Services & Consulting (SIC codes 7341 and

8742); Testing Laboratories (SIC code 8734); Building Maintenance (SIC

code 7349); Computer Services (SIC codes 7371-7379); and Security Guard

Services (SIC code 7381). Many of the reasons cited in support of an

additional increase to one of these industries' size standards raised

issues not considered or evaluated by the SBA in proposing the fixed

size standard levels for purposes of simplification or in adjusting the

current receipts-based size standards for inflation. The SBA's size

standards are generally established based on structural characteristics

of an industry. In reviewing the appropriateness of a size standard of

a particular industry, the SBA utilizes five primary factors: Industry

competition, average firm size, start-up costs, distribution of firms

by size and the impact on the SBA's programs. The SBA does not believe

that it has the discretion to make changes to size standards based on

these considerations without first proposing such changes and affording

the public an opportunity to comment on the basis of such proposals.

The SBA's proposed rule discussed adjustments to size standards based

on inflation in the economy as a whole and based on a further

adjustment to achieve simplicity overall. Neither component of the

proposed rule discussed characteristics of specific industries.

For purposes of this rule, a straight inflationary adjustment of

48.2 percent has been applied to all industries, with a small further

adjustment for rounding purposes. With the elimination of the

simplification component of the proposed rule (whereby size standards

would have been further adjusted to one of the four receipts-based size

standards) the size standards for the Building Maintenance industry,

SIC code 7349, becomes $12 million rather than $10 million. The size

standards of the other industries cited by these commenters either

remain at the same level as established in the proposed rule or are

adjusted slightly to achieve the rounding to the nearest $0.5 million.

The SBA intends to conduct a separate industry study on these

industries on a priority basis, which may or may not lead to further

changes in their respective size standards.

Three commenters specifically expressed concern with the

disproportionate changes within the size standards resulting from the

rounding methodology stipulated in the proposed rule to adjust the

industry size standards to one of the four newly established size

standard levels. As indicated above, the SBA has decided to give

further study to the best way to simplify its size standards, and this

rule does not reduce the number of receipts-based size standards to the

four proposed standards with their accompanying ``disproportionate''

changes as feared by these commenters.

Eight commenters specifically suggested that the SBA should

establish a policy to review and adjust the receipts-based size

standards on a regular and recurring basis. Of the eight commenters,

these recommended that the size standards be reviewed and adjusted

every four to six years, one recommended that they be reviewed and

adjusted biennially, and four suggested annual reviews and adjustments.

The SBA is continuing its evaluation of a policy to review the impact

of inflation on a regular and recurring basis. This will be part of

SBA's further review of the simplification of the size standards.

As part of its proposal to simplify the size standards, SBA

attempted to contact all 8(a) Program Participants in the program at

the time of the proposed rule and requested them to specifically

address the potential impact of the proposed size standards on smaller-

sized 8(a) firms. Sixteen commenters addressed this issue. Eleven of

the sixteen commenters maintained that the proposed increase in the

size standards would be beneficial to smaller-sized firms. Five of the

sixteen commenters believed that such increases would be adverse to

smaller-sized firms in that the number of 8(a) firms would increase,

thus taxing available Federal procurement opportunities and the level

of SBA assistance. Overall, the prevailing view of all commenting 8(a)

firms is that the increases in the size standards are necessary and

beneficial and should be adopted. The SBA believes that any possible

adverse impact on the smaller-sized 8(a) firms is out weighed by the

desirability of recognizing the effects of inflation.

Four commenters suggested that the SBA adopt employee-based

standards in lieu of receipts-based standards for all industries.

However, only two commenters provided a rationale for the adoption of

employee-based standards for all industries. One of these commenters

indicated that utilizing employee-based standards would eliminate the

need for periodic inflationary adjustments. The other commenter stated

that equipment and material purchases required by Federal agencies on

certain contracts distorted the actual size of a concern by raising a

concern's receipts without an accompanying increase in actual business

activity. The decision to use receipts or employees as the size

standard measure is based on which measure is viewed as the best

measure of size for firms involved in that particular industry. The

SBA's policy is to evaluate the size standard measure of an industry on

a case-by-case basis as part of the SBA's continuing efforts to review

industry size standards. However, the issue of whether all industries

should be measured by number of employees will be further explored

along with other issues on simplifying size standards.

In response to several comments, this rule publishes the entire set

of size standards by SIC code designation and their accompanying

footnotes. The complete size standards table provides the public with

one convenient set of size standards and eliminates the need to have

two tables of size standards, one for those size standards revised in

this final rule and one for those unaffected by this rule.

Compliance with Executive Orders 12612, 12778, and 12866, the

Regulatory Flexibility Act (5 U.S.C. 601, et seq.) and the Paperwork

Reduction Act (44 U.S.C. Ch. 35).

General

SBA considers that this final rule will have a significant economic

impact on a substantial number of small entities for purposes of the

Regulatory Flexibility Act (5 U.S.C. section 601, et seq.). In

addition, SBA believes that this final rule constitutes a significant

rule for the purpose of Executive Order 12866. Immediately below, the

SBA has set forth a summary regulatory impact analysis and a final

regulatory flexibility analysis of this final rule.

(1) Description of Entities to Which the Rule Applies

SBA estimates that approximately 20,000 additional firms will be

considered small as a result of this rule. These firms will be eligible

to seek available SBA assistance, provided they meet other program

requirements. Many of these concerns probably had small business status

in 1984, when the last comprehensive revision of size standards was

issued by SBA, but have since lost eligibility because of general price

increases. The current changes, in fact, operate roughly as adjustments

for price changes (i.e., inflation) since that data. Approximately

11,000 of the firms gaining eligibility operate in retail trade while

approximately 9,000 operate in the services industries (Divisions G and

I, respectively, of the SIC systems of classifying industries). Other

firms affected by this rule include service firms within the

agricultural or mining sectors, or firms in those transportation

industries with receipt-based size standards. Firms becoming eligible

for SBA assistance as a result of this rule, cumulatively generate $95

billion in annual sales. This figure is less than 5 percent of the

total sales in those industries with higher size standards. The new

size standards would not impose a regulatory burden because they do not

regulator or control business behavior.

(2) Description of Potential Benefits of the Rule

The most significant areas of benefits to business obtaining small

business status as a result of this final rule are in the Federal

government's procurement arena and the SBA's business loan program. The

SBA estimates that businesses gaining small business status could

potentially obtain Federal contracts worth approximately $200 million

under the small business set-aside program or the 8(a) program. The

additional competition for many of these procurements may also result

in a lower price to the government for its procurements which have been

set aside, but the SBA is not able to quantify this benefit. In the

SBA's 7(a) Loan Program, it is estimated that 250 loans amounting to

$100 million could be made to the newly defined small businesses. The

rule will also make various SBA programs available to business concerns

who would otherwise be eligible for such programs but for an increase

in their revenues due to inflation. In other words, the rule reinstates

business concerns as small that lost their small business status due

solely to inflation. As such, those firms which would again be eligible

for SBA assistance and for small business procurement preference

programs will benefit greatly from this rule.

(3) Description of Potential Costs of the Rule

The changes in size standards as they impact on government

procurement should not add any element of cost to the government and,

in fact, as described above, may reduce the cost to a procuring Federal

agency. Similarly, the rule should not result in any extra costs with

respect to the 7(a) loan program. The amount of lending authority SBA

can make or guarantee is established by appropriation. The competitive

effects of size standards revisions differ from those normally

associated with regulations affecting key economic factors such as the

price of goods and services, costs, profits, growth, innovation,

mergers, and foreign trade. The change to size standards is not

anticipated to have any appreciable effect on any of these factors,

although smaller-sized small businesses or 8(a) firms may be

unsuccessful in competing for some Federal procurement opportunities

due to the presence of larger, newly defined small businesses, some of

which may well be more competitive in winning Federal procurements.

(4) Description of the Potential Net Benefits from the Rule

From the above discussion, SBA believes that, because the potential

costs of this rule are minimal, the potential net benefits would

approach fairly closely the total potential benefits. The impact of the

new size standard will appear predominantly in the Federal procurement

area.

(5) Description of Reasons Why This Action is Being Taken and

Objectives of Rule

SBA has provided above a statement of the reasons why the new size

standards are established and a statement of the reasons for and

objectives of this rule.

(6) Legal Basis for Rule

The legal basis for this rule is sections 3(a) and 5(b)(6) of the

Small Business Act, 15 U.S.C. 632(a) and 634(b)(6).

(7) Federal Rules

There are no Federal rules which duplicate, overlap or conflict

with this rule. SBA has statutorily been given exclusive jurisdiction

in establishing size standards.

(8) Significant Alternatives to the Rules

This final rule establishes the most appropriate individual size

standard by which to define those small businesses that are eligible

for SBA's assistance programs. There are no significant alternatives to

defining a small business.

The SBA certifies that this final rule will not have federalism

implications warranting the preparation of a Federal Assessment in

accordance with Executive Order 12612.

The SBA further certifies that this final rule will not add any new

reporting or record keeping requirements under the Paperwork Reduction

Act of 1980, 44 U.S.C., Chapter 35. For purposes of Executive Order

12778, the SBA certifies that this final rule is drafted, to the extent

practicable, in accordance with the standards set forth in section 2 of

that order.

List of Subjects in 13 CFR Part 121

Government procurement, Government property, Grant programs--

business, Loan programs--business, Small business.

Accordingly, part 121 of 13 CFR is amended as follows:

PART 121--[AMENDED]

1. The authority citation of part 121 continues to read as follows:

Authority: 15 U.S.C. 632(a), 634(b)(6), 637(a), and 644(c).

Sec. 121.601 [Amended]

2. Section 121.601 is amended by revising the table of ``Size

Standards by SIC Industry'' to read as follows:

Size Standards by SIC Industry

------------------------------------------------------------------------

Size

standards

SIC (*=New SIC in number

Code in 1987, Description (N.E.C.=Not elsewhere of

not used in classified) employees

1972) or millions

of dollars

------------------------------------------------------------------------

For all industries not specifically listed in this table, except for

Division A--Agriculture

------------------------------------------------------------------------

Major Group 01--Agricultural Production--Crops

------------------------------------------------------------------------

0111............ Wheat.................................... \1\$0.5

0112............ Rice..................................... .5

0115............ Corn..................................... .5

0116............ Soybeans................................. .5

0119............ Cash Grains, N.E.C....................... .5

0131............ Cotton................................... .5

0132............ Tobacco.................................. .5

0133............ Sugarcane and Sugar Beets................ .5

0134............ Irish Potatoes........................... .5

0139............ Field Crops, Except Cash Grains, N.E.C... .5

0161............ Vegetables and Melons.................... .5

0171............ Berry Crops.............................. .5

0172............ Grapes................................... .5

0173............ Tree Nuts................................ .5

0174............ Citrus Fruits............................ .5

0175............ Deciduous Tree Fruits.................... .5

0179............ Fruits and Trees Nuts, N.E.C............. .5

0181............ Ornamental Floriculture Nursery Products. .5

0182............ Food Crops Grown Under Cover............. .5

0191............ General Farms, Primarily Crop............ .5

------------------------------------------------------------------------

3Major Group 02--Livestock and Animal Specialties

------------------------------------------------------------------------

0211............ Beef Cattle Feedlots (Custom)............ $1.5

0212............ Beef Cattle, Except Feedlots............. .5

0213............ Hogs..................................... .5

0214............ Sheep and Goats.......................... .5

0219............ General Livestock, Except Dairy and .5

Poultry.

0241............ Dairy Farms.............................. .5

0251............ Broiler, Fryer, and Roaster Chickens..... .5

0252............ Chicken Eggs............................. 9.0

0253............ Turkeys and Turkey Eggs.................. .5

0254............ Poultry Hatcheries....................... .5

0259............ Poultry and Eggs, N.E.C.................. .5

0271............ Fur-Bearing Animals and Rabbits.......... .5

0272............ Horses and Other Equines................. .5

0273............ Animal Aquaculture....................... .5

0279............ Animal Specialties, N.E.C................ .5

0291............ General Farms, Primarily Livestock and .5

Animal Specialties.

------------------------------------------------------------------------

Major Group 07--Agricultural Services

------------------------------------------------------------------------

0711............ Soil Preparation Services................ $5.0

0721............ Crop Planting, Cultivating, and 5.0

Protecting.

0722............ Crop Harvesting, Primarily by Machine.... 5.0

0723............ Crop Preparation Service for Market, 5.0

Except Cotton Ginning.

0724............ Cotton Ginning........................... 5.0

0741............ Veterinary Services for Livestock........ 5.0

0742............ Veterinary Services for Animal 5.0

Specialties.

0751............ Livestock Services, Except Veterinary.... 5.0

0752............ Animal Specialty Services, Except 5.0

Veterinary.

0761............ Farm Labor Contractors and Crew Leaders.. 5.0

0762............ Farm Management Services................. 5.0

0781............ Landscape Counseling and Planning........ 5.0

0782............ Lawn and Garden Services................. 5.0

0783............ Ornamental Shrub and Tree Services....... 5.0

------------------------------------------------------------------------

Major Group 08--Forestry

------------------------------------------------------------------------

0811............ Timber Tracts............................ $5.0

0831............ Forest Nurseries and Gathering of Forest 5.0

Products.

0851............ Forestry Services........................ 5.0

------------------------------------------------------------------------

Major Group 09--Fishing, Hunting, and Trapping

------------------------------------------------------------------------

0912............ Finfish.................................. $3.0

0913............ Shellfish................................ 3.0

0919............ Miscellaneous Marine Products............ 3.0

0921............ Fish Hatcheries and Preserves............ 3.0

0971............ Hunting and Trapping, and Game 3.0

Propagation.

------------------------------------------------------------------------

Division B--Mining

------------------------------------------------------------------------

Major Group 10--Metal Mining

------------------------------------------------------------------------

1011............ Iron Ores................................ 500

1021............ Copper Ores.............................. 500

1031............ Lead and Zinc Ores....................... 500

1041............ Gold Ores................................ 500

1044............ Silver Ores.............................. 500

1061............ Ferroalloy Ores, Except Vanadium......... 500

1081............ Metal Mining Services.................... $5.0

1094............ Uranium-Radium-Vanadium Ores............. 500

1099............ Miscellaneous Metal Ores, N.E.C.......... 500

------------------------------------------------------------------------

Major Group 12--Coal Mining

------------------------------------------------------------------------

1221*........... Bituminous Coal and Lignite Surface 500

Mining.

1222*........... Bituminous Coal Underground Mining....... 500

1231*........... Anthracite Mining........................ 500

1241*........... Coal Mining Services..................... $5.0

------------------------------------------------------------------------

Major Group 13--Oil and Gas Extraction

------------------------------------------------------------------------

1311............ Crude Petroleum and Natural Gas.......... 500

1321............ Natural Gas Liquids...................... 500

1381............ Drilling Oil and Gas Wells............... 500

1382............ Oil and Gas Field Exploration Services... $5.0

1389............ Oil and Gas Field Services, N.E.C........ $5.0

------------------------------------------------------------------------

Major Group 14--Mining and Quarrying of Nonmetallic Minerals, Except

Fuels

------------------------------------------------------------------------

1411............ Dimension Stone.......................... 500

1422............ Crushed and Broken Limestone............. 500

1423............ Crushed and Broken Granite............... 500

1429............ Crushed and Broken Stone, N.E.C.......... 500

1442............ Construction Sand and Gravel............. 500

1446............ Industrial Sand.......................... 500

1455............ Kaolin and Ball Clay..................... 500

1459............ Clay, Ceramic, and Refractory Minerals, 500

N.E.C.

1474............ Potash, Soda, and Borate Minerals........ 500

1475............ Phosphate Rock........................... 500

1479............ Chemical and Fertilizer Mineral Mining, 500

N.E.C.

1481............ Nonmetallic Minerals Services, Except $5.0

Fuels.

1499............ Miscellaneous Nonmetallic Minerals, 500

Except Fuels.

------------------------------------------------------------------------

Division C--Construction

------------------------------------------------------------------------

Major Group 15--Building Construction--General Contractors and Operative

Builders

------------------------------------------------------------------------

,1521........... General Contractors--Single Family Houses $17.0

1522............ General Contractors--Residential 17.0

Buildings, Other Than Single-Family.

1531............ Operative Builders....................... 17.0

1541............ General Contractors--Industrial Buildings 17.0

and Warehouses.

1542............ General Contractors--Nonresidential 17.0

Buildings, Other Than Industrial

Buildings and Warehouses.

------------------------------------------------------------------------

Major 16--Heavy Construction Other Than Building Construction--

Contractors

------------------------------------------------------------------------

1611............ Highway and Street Construction, Except $17.0

Elevated Highways.

1622............ Bridge, Tunnel, and Elevated Highway 17.0

Construction.

1623............ Water, Sewer, Pipeline, and 17.0

Communications and Power Line

Construction.

1629............ Heavy Construction, Except Dredging, 17.0

N.E.C.

1629............ Dredging and Surface Cleanup Activities.. \2\13.5

------------------------------------------------------------------------

Major Group 17--Construction--Special Trade Contractors

------------------------------------------------------------------------

1711............ Plumbing, Heating, and Air-Conditioning.. $7.0

1721............ Painting and Paper Hanging............... 7.0

1731............ Electrical Work.......................... 7.0

1741............ Masonry, Stone Setting, and Other Stone 7.0

Work.

1742............ Plastering, Drywall, Acoustical and 7.0

Insulation Work.

1743............ Terrazzo, Tile, Marble, and Mosiac Work.. 7.0

1751............ Carpentry Work........................... 7.0

1752............ Floor Laying and Other Floor Work, N.E.C. 7.0

1761............ Roofing, Siding, and Sheet Metal Work.... 7.0

1771............ Concrete Work............................ 7.0

1781............ Water Well Drilling...................... 7.0

1791............ Structural Steel Erection................ 7.0

1793............ Glass and Glazing Work................... 7.0

1794............ Excavation Work.......................... 7.0

1795............ Wrecking and Demolition Work............. 7.0

1796............ Installation or Erection of Building 7.0

Equipment, N.E.C.

1799............ Special Trade Contractors, N.E.C......... 7.0

Base Housing Maintenance\20\............. 7.0

------------------------------------------------------------------------

Division D--Manufacturing\3\

------------------------------------------------------------------------

Major Group 20--Food and Kindred Products

------------------------------------------------------------------------

2011............ Meat Packing Plants...................... 500

2013............ Sausages and Other Prepared Meat Products 500

2015*........... Poultry Slaughtering and Processing...... 500

2021............ Creamery Butter.......................... 500

2022............ Natural, Processed, and Imitation Cheese. 500

2023............ Dry, Condensed, and Evaporated Dairy 500

Products.

2024............ Ice Cream and Frozen Desserts............ 500

2026............ Fluid Milk............................... 500

2032............ Canned Specialties....................... 1,000

2033............ Canned Fruits, Vegetables, Preserves, \4\500

Jams, and Jellies.

2034............ Dried and Dehydrated Fruits, Vegetables, 500

and Soup Mixes.

2035............ Pickled Fruits and Vegetables, Vegetable 500

Sauces and Seasonings, and Salad

Dressings.

2037............ Frozen Fruits, Fruit Juices, and 500

Vegetables.

2038............ Frozen Specialties, N.E.C................ 500

2041............ Flour and Other Grain Mill Products...... 500

2043............ Cereal Breakfast Foods................... 1,000

2044............ Rice Milling............................. 500

2045............ Prepared Flour Mixes and Doughs.......... 500

2046............ Wet Corn Milling......................... 750

2047............ Dog and Cat Food......................... 500

2048............ Prepared Feeds and Feed Ingredients for 500

Animals and Fowls, Except Dogs and Cats.

2051............ Bread and Other Bakery Products, Except 500

Cookies and Crackers.

2052............ Cookies and Crackers..................... 750

2053*........... Frozen Bakery Products, Except Bread..... 500

2061............ Cane Sugar, Except Refining.............. 500

2062............ Cane Sugar Refining...................... 750

2063............ Beet Sugar............................... 750

2064*........... Candy and Other Confectionery Products... 500

2066............ Chocolate and Cocoa Products............. 500

2067............ Chewing Gum.............................. 500

2068*........... Salted and Roasted Nuts and Seeds........ 500

2074............ Cottonseed Oil Mills..................... 500

2075............ Soybean Oil Mills........................ 500

2076............ Vegetable Oil Mills, Except Corn, 1,000

Cottonseed, and Soybean.

2077............ Animal and Marine Fats and Oils.......... 500

2079............ Shortening, Table Oils, Margarine, and 750

Other Edible Fats and Oils, N.E.C.

2082............ Malt Beverages........................... 500

2083............ Malt..................................... 500

2084............ Wines, Brandy, and Brandy Spirits........ 500

2085............ Distilled and Blended Liquors............ 750

2086............ Bottled and Canned Soft Drinks and 500

Carbonated Waters.

2087............ Flavoring Extracts and Flavoring Syrups, 500

N.E.C.

2091............ Canned and Cured Fish and Seafoods....... 500

2092............ Prepared Fresh or Frozen Fish and 500

Seafoods.

2095............ Roasted Coffee........................... 500

2096*........... Potato Chips, Corn Chips, and Similar 500

Snacks.

2097............ Manufactured Ice......................... 500

2098............ Macaroni, Spaghetti, Vermicelli, and 500

Noodles.

2099............ Food Preparations, N.E.C................. 500

------------------------------------------------------------------------

Major Group 21--Tobacco Products

------------------------------------------------------------------------

2111............ Cigarettes............................... 1,000

2121............ Cigars................................... 500

2131............ Chewing and Smoking Tobacco and Snuff.... 500

2141............ Tobacco Stemming and Redrying............ 500

------------------------------------------------------------------------

Major Group 22--Textile Mill Products

------------------------------------------------------------------------

2211............ Broadwoven Fabric Mills, Cotton.......... 1,000

2221............ Broadwoven Fabric Mills, Manmade Fiber 500

and Silk.

2231............ Broadwoven Fabric Mills, Wool (Including 500

Dyeing and Finishing).

2241............ Narrow Fabric and Other Smallwares Mills: 500

Cotton, Wool, Silk and Manmade Fiber.

2251............ Women's Full-Length and Knee-Length 500

Hosiery, Except Socks.

2252............ Hosiery, N.E.C........................... 500

2253............ Knit Outerwear Mills..................... 500

2254............ Knit Underwear and Nightwear Mills....... 500

2257............ Weft Knit Fabric Mills................... 500

2258............ Lace and Warp Knit Fabric Mills.......... 500

2259............ Knitting Mills, N.E.C.................... 500

2261............ Finishers of Broadwoven Fabrics of Cotton 1,000

2262............ Finishers of Broadwoven Fabrics of 500

Manmade Fiber and Silk.

2269............ Finishers of Textiles, N.E.C............. 500

2273*........... Carpets and Rugs......................... 500

2281............ Yarn Spinning Mills...................... 500

2282............ Yarn Texturizing, Throwing, Twisting, and 500

Winding Mills.

2284............ Thread Mills............................. 500

2295............ Coated Fabrics, Not Rubberized........... 1,000

2296............ Tire Cord and Fabrics.................... 1,000

2297............ Nonwoven Fabrics......................... 500

2298............ Cordage and Twine........................ 500

2299............ Textile Goods, N.E.C..................... 500

------------------------------------------------------------------------

Major Group 23--Apparel and Other Finished Products Made From Fabrics

and Similar Materials

------------------------------------------------------------------------

2311............ Men's and Boys' Suits, Coats and 500

Overcoats.

2321............ Men's and Boys' Shirts, Except Work 500

Shirts.

2322............ Men's and Boys' Underwear and Nightwear.. 500

2323............ Men's and Boys' Neckwear................. 500

2325*........... Men's and Boys' Separate Trousers and 500

Slacks.

2326*........... Men's and Boys' Work Clothing............ 500

2329............ Men's and Boys' Clothing, N.E.C.......... 500

2331............ Women's, Misses', and Juniors' Blouses 500

and Shirts.

2335............ Women's, Misses', and Juniors' Dresses... 500

2337............ Women's, Misses', and Juniors' Suits, 500

Skirts, and Coats.

2339............ Women's, Misses', and Juniors' Outerwear, 500

N.E.C.

2341............ Women's, Misses', Children's, and 500

Infants' Underwear and Nightwear.

2342............ Brassieres, Girdles, and Allied Garments. 500

2353*........... Hats, Caps, and Millinery................ 500

2361............ Girls', Children's, and Infants' Dresses, 500

Blouses, and Shirts.

2369............ Girls', Children's, and Infants' 500

Outerwear, N.E.C.

2371............ Fur Goods................................ 500

2381............ Dress and Work Gloves, Except Knit and 500

All-Leather.

2384............ Robes and Dressing Gowns................. 500

2385............ Waterproof Outerwear..................... 500

2386............ Leather and Sheep-Lined Clothing......... 500

2387............ Apparel Belts............................ 500

2389............ Apparel and Accessories, N.E.C........... 500

2391............ Curtains and Draperies................... 500

2392............ Housefurnishings, Except Curtains and 500

Draperies.

2393............ Textile Bags............................. 500

2394............ Canvas and Related Products.............. 500

2395............ Pleating, Decorative and Novelty 500

Stitching, and Tucking for the Trade.

2396............ Automotive Trimmings, Apparel Findings, 500

and Related Products.

2397............ Schiffli Machine Embroideries............ 500

2399............ Fabricated Textile Products, N.E.C....... 500

------------------------------------------------------------------------

Major Group 24--Lumber and Wood Products, Except Furniture

------------------------------------------------------------------------

2411............ Logging.................................. 500

2421............ Sawmills and Planing Mills, General...... 500

2426............ Hardwood Dimension and Flooring Mills.... 500

2429............ Special Product Sawmills, N.E.C.......... 500

2431............ Millwork................................. 500

2434............ Wood Kitchen Cabinets.................... 500

2435............ Hardwood Veneer and Plywood.............. 500

2436............ Softwood Veneer and Plywood.............. 500

2439............ Structural Wood Members, N.E.C........... 500

2441............ Nailed and Lock Corner Wood Boxes and 500

Shook.

2448............ Wood Pallets and Skids................... 500

2449............ Wood Containers, N.E.C................... 500

2451............ Mobile Homes............................. 500

2452............ Prefabricated Wood Buildings and 500

Components.

2491............ Wood Preserving.......................... 500

2493*........... Reconstituted Wood Products.............. 500

2499............ Wood Products, N.E.C..................... 500

------------------------------------------------------------------------

Major Group 25--Furniture and Fixtures

------------------------------------------------------------------------

2511............ Wood Household Furniture, Except 500

Upholstered.

2512............ Wood Household Furniture, Upholstered.... 500

2514............ Metal Household Furniture................ 500

2515............ Mattresses, Foundations, and Convertible 500

Beds.

2517............ Wood Television, Radio, Phonograph, and 500

Sewing Machine Cabinets.

2519............ Household Furniture, N.E.C............... 500

2521............ Wood Office Furniture.................... 500

2522............ Office Furniture, Except Wood............ 500

2531............ Public Building and Related Furniture.... 500

2541............ Wood Office and Store Fixtures, 500

Partitions, Shelving, and Lockers.

2542............ Office and Store Fixtures, Partitions, 500

Shelving, and Lockers, Except Wood.

2591............ Drapery Hardware and Window Blinds and 500

Shades.

2599............ Furniture and Fixtures, N.E.C............ 500

------------------------------------------------------------------------

Major Group 26--Paper and Allied Products

------------------------------------------------------------------------

2611............ Pulp Mills............................... 750

2621............ Paper Mills.............................. 750

2631............ Paperboard Mills......................... 750

2652............ Setup Paperboard Boxes................... 500

2653............ Corrugated and Solid Fiber Boxes......... 500

2655............ Fiber Cans, Tubes, Drums, and Similar 500

Products.

2656*........... Sanitary Food Containers, Except Folding. 750

2657*........... Folding Paperboard Boxes, Including 750

Sanitary.

2671*........... Packaging Paper and Plastics Film, Coated 500

and Laminated.

2672*........... Coated and Laminated Paper, N.E.C........ 500

2673*........... Plastics, Foil, and Coated Paper Bags.... 500

2674*........... Uncoated Paper and Multiwall Bags........ 500

2675*........... Die-Cut Paper and Paperboard and 500

Cardboard.

2676*........... Sanitary Paper Products.................. 500

2677*........... Envelopes................................ 500

2678*........... Stationery, Tablets, and Related Products 500

2679*........... Converted Paper and Paperboard Products, 500

N.E.C.

------------------------------------------------------------------------

Major Group 27--Printing, Publishing, and Allied Industries

------------------------------------------------------------------------

2711............ Newspapers: Publishing, or Publishing and 500

Printing.

2721............ Periodical: Publishing, or Publishing and 500

Printing.

2731............ Books: Publishing, or Publishing and 500

Printing.

2732............ Book Printing............................ 500

2741............ Miscellaneous Publishing................. 500

2752............ Commercial Printing, Lithographic........ 500

2754............ Commercial Printing, Gravure............. 500

2759*........... Commercial Printing, N.E.C............... 500

2761............ Manifold Business Forms.................. 500

2771............ Greeting Cards........................... 500

2782............ Blankbooks, Looseleaf Binders and Devices 500

2789............ Bookbinding and Related Work............. 500

2791............ Typesetting.............................. 500

2796*........... Platemaking and Related Services......... 500

------------------------------------------------------------------------

Major Group 28--Chemicals and Allied Products

------------------------------------------------------------------------

2812............ Alkalies and Chlorine.................... 1,000

2813............ Industrial Gases......................... 1,000

2816............ Inorganic Pigments....................... 1,000

2819............ Industrial Inorganic Chemicals, N.E.C.... 1,000

2821............ Plastics Materials, Synthetic Resins, and 750

Nonvulcanizable Elastomers.

2822............ Synthetic Rubber (Vulcanizable 1,000

Elastomers).

2823............ Cellulosic Manmade Fibers................ 1,000

2824............ Manmade Organic Fibers, Except Cellulosic 1,000

2833............ Medicinal Chemicals and Botanical 750

Products.

2834............ Pharmaceutical Preparations.............. 750

2835*........... In Vitro and In Vivo Diagnostic 500

Substances.

2836*........... Biological Products, Except Diagnostic 500

Substances.

2841............ Soap and Other Detergents, Except 750

Specialty Cleaners.

2842............ Specialty Cleaning, Polishing, and 500

Sanitation Preparations.

2843............ Surface Active Agents, Finishing Agents, 500

Sulfonated Oils, and Assistants.

2844............ Perfumes, Cosmetics, and Other Toilet 500

Preparations.

2851............ Paints, Varnishes, Lacquers, Enamels, and 500

Allied Products.

2861............ Gum and Wood Chemicals................... 500

2865............ Cyclic Organic Crudes and Intermediates, 750

and Organic Dyes and Pigments.

2869............ Industrial Organic Chemicals, N.E.C...... 1,000

2873............ Nitrogenous Fertilizers.................. 1,000

2874............ Phosphatic Fertilizers................... 500

2875............ Fertilizers, Mixing Only................. 500

2879............ Pesticides and Agricultural Chemicals, 500

N.E.C.

2891............ Adhesives and Sealants................... 500

2892............ Explosives............................... 750

2893............ Printing Ink............................. 500

2895............ Carbon Black............................. 500

2899............ Chemicals and Chemical Preparations, 500

N.E.C..

------------------------------------------------------------------------

Major Group 29--Petroleum Refining and Related Industries

------------------------------------------------------------------------

2911............ Petroleum Refining....................... \5\1,500

2951............ Asphalt Paving Mixtures and Blocks....... 500

2952............ Asphalt Felts and Coatings............... 750

2992............ Lubricating Oils and Greases............. 500

2999............ Products of Petroleum and Coal, N.E.C.... 500

------------------------------------------------------------------------

Major Group 30--Rubber and Miscellaneous Plastics Products

------------------------------------------------------------------------

3011............ Tires and Inner Tubes.................... \6\1,000

3021............ Rubber and Plastics Footwear............. 1,000

3052*........... Rubber and Plastics Hose and Belting..... 500

3053*........... Gaskets, Packing, and Sealing Devices.... 500

3061*........... Molded, Extruded, and Lathe-Cut 500

Mechanical Rubber Goods.

3069............ Fabricated Rubber Products, N.E.C........ 500

3081*........... Unsupported Plastics Film and Sheet...... 500

3082*........... Unsupported Plastics Profile Shapes...... 500

3083*........... Laminated Plastics Plate, Sheet, and 500

Profile Shapes.

3084*........... Plastics Pipe............................ 500

3085*........... Plastics Bottles......................... 500

3086*........... Plastics Foam Products................... 500

3087*........... Custom Compounding of Purchased Plastics 500

Resins.

3088*........... Plastics Plumbing Fixtures............... 500

3089*........... Plastics Products, N.E.C................. 500

------------------------------------------------------------------------

Major Group 31--Leather and Leather Products

------------------------------------------------------------------------

3111............ Leather Tanning and Finishing............ 500

3131............ Boot and Shoe Cut Stock and Findings..... 500

3142............ House Slippers........................... 500

3143............ Men's Footwear, Except Athletic.......... 500

3144............ Women's Footwear, Except Athletic........ 500

3149............ Footwear, Except Rubber, N.E.C........... 500

3151............ Leather Gloves and Mittens............... 500

3161............ Luggage.................................. 500

3171............ Women's Handbags and Purses.............. 500

3172............ Personal Leather Goods, Except Women's 500

Handbags and Purses.

3199............ Leather Goods, N.E.C..................... 500

------------------------------------------------------------------------

Major Group 32--Stone, Clay, Glass, and Concrete Products

------------------------------------------------------------------------

3211............ Flat Glass............................... 1,000

3221............ Glass Containers......................... 750

3229............ Pressed and Blown Glass and Glassware, 750

N.E.C.

3231............ Glass Products, Made of Purchased Glass.. 500

3241............ Cement, Hydraulic........................ 750

3251............ Brick and Structural Clay Tile........... 500

3253............ Ceramic Wall and Floor Tile.............. 500

3255............ Clay Refractories........................ 500

3259............ Structural Clay Products, N.E.C.......... 500

3261............ Vitreous China Plumbing Fixtures and 750

China and Earthenware Fittings and

Bathroom Accessories.

3262............ Vitreous China Table and Kitchen Articles 500

3263............ Fine Earthenware (Whiteware) Table and 500

Kitchen Articles.

3264............ Porcelain Electrical Supplies............ 500

3269............ Pottery Products, N.E.C.................. 500

3271............ Concrete Block and Brick................. 500

3272............ Concrete Products, Except Block and Brick 500

3273............ Ready Mixed Concrete..................... 500

3274............ Lime..................................... 500

3275............ Gypsum Products.......................... 1,000

3281............ Cut Stone and Stone Products............. 500

3291............ Abrasive Products........................ 500

3292............ Asbestos Products........................ 750

3295............ Minerals and Earths, Ground or Otherwise 500

Treated.

3296............ Mineral Wool............................. 750

3297............ Nonclay Refractories..................... 750

3299............ Nonmetallic Mineral Products, N.E.C...... 500

------------------------------------------------------------------------

Major Group 33--Primary Metal Industries

------------------------------------------------------------------------

3312............ Steel Works, Blast Furnaces (Including 1,000

Coke Ovens), and Rolling Mills.

3313............ Electrometallurgical Products, Except 750

Steel.

3315............ Steel Wiredrawing and Steel Nails and 1,000

Spikes.

3316............ Cold-Rolled Steel Sheet, Strip, and Bars. 1,000

3317............ Steel Pipe and Tubes..................... 1,000

3321............ Gray and Ductile Iron Foundries.......... 500

3322............ Malleable Iron Foundries................. 500

3324............ Steel Investment Foundries............... 500

3325............ Steel Foundries, N.E.C................... 500

3331............ Primary Smelting and Refining of Copper.. 1,000

3334............ Primary Production of Aluminum........... 1,000

3339............ Primary Smelting and Refining of 750

Nonferrous Metals, Except Copper and

Aluminum.

3341............ Secondary Smelting and Refining of 500

Nonferrous Metals.

3351............ Rolling, Drawing, and Extruding of Copper 750

3353............ Aluminum Sheet, Plate, and Foil.......... 750

3354............ Aluminum Extruded Products............... 750

3355............ Aluminum Rolling and Drawing, N.E.C...... 750

3356............ Rolling, Drawing, and Extruding of 750

Nonferrous Metals, Except Copper and

Aluminum.

3357............ Drawing and Insulating of Nonferrous Wire 1,000

3363*........... Aluminum Die-Castings.................... 500

3364*........... Nonferrous Die-Castings, Except Aluminum. 500

3365*........... Aluminum Foundries....................... 500

3366*........... Copper Foundries......................... 500

3369............ Nonferrous Foundries, Except Aluminum and 500

Copper.

3398............ Metal Heat Treating...................... 750

3399............ Primary Metal Products, N.E.C............ 750

------------------------------------------------------------------------

Major Group 34--Fabricated Metal Products, Except Machinery and

Transportation Equipment

------------------------------------------------------------------------

3411............ Metal Cans............................... 1,000

3412............ Metal Shipping Barrels, Drums, Kegs, and 500

Pails.

3421............ Cutlery.................................. 500

3423............ Hand and Edge Tools, Except Machine Tools 500

and Handsaws.

3425............ Saw Blades and Handsaws.................. 500

3429............ Hardware, N.E.C.......................... 500

3431............ Enameled Iron and Metal Sanitary Ware.... 750

3432............ Plumbing Fixture Fittings and Trim....... 500

3433............ Heating Equipment, Except Electric and 500

Warm Air Furnaces.

3441............ Fabricated Structural Metal.............. 500

3442............ Metal Doors, Sash, Frames, Molding, and 500

Trim.

3443............ Fabricated Plate Work (Boiler Shops)..... 500

3444............ Sheet Metal Work......................... 500

3446............ Architectural and Ornamental Metal Work.. 500

3448............ Prefabricated Metal Buildings and 500

Components.

3449............ Miscellaneous Structural Metal Work...... 500

3451............ Screw Machine Products................... 500

3452............ Bolts, Nuts, Screws, Rivets, and Washers. 500

3462............ Iron and Steel Forgings.................. 500

3463............ Nonferrous Forgings...................... 500

3465............ Automotive Stampings..................... 500

3466............ Crowns and Closures...................... 500

3469............ Metal Stampings, N.E.C................... 500

3471............ Electroplating, Plating, Polishing, 500

Anodizing, and Coloring.

3479............ Coating, Engraving, and Allied Services, 500

N.E.C.

3482............ Small Arms Ammunition.................... 1,000

3483............ Ammunition, Except for Small Arms........ 1,500

3484............ Small Arms............................... 1,000

3489............ Ordnance and Accessories, N.E.C.......... 500

3491*........... Industrial Valves........................ 500

3492*........... Fluid Power Valves and Hose Fittings..... 500

3493............ Steel Springs, Except Wire............... 500

3494............ Valves and Pipe Fittings, N.E.C.......... 500

3495............ Wire Springs............................. 500

3496............ Miscellaneous Fabricated Wire Products... 500

3497............ Metal Foil and Leaf...................... 500

3498............ Fabricated Pipe and Pipe Fittings........ 500

3499............ Fabricated Metal Products, N.E.C......... 500

------------------------------------------------------------------------

Major Group 35--Industrial and Commercial Machinery and Computer

Equipment

------------------------------------------------------------------------

3511............ Steam, Gas, and Hydraulic Turbines, and 1,000

Turbine Generator Set Units.

3519............ Internal Combustion Engines, N.E.C....... 1,000

3523............ Farm Machinery and Equipment............. 500

3524............ Lawn and Garden Tractors and Home Lawn 500

and Garden Equipment.

3531............ Construction Machinery and Equipment..... 750

3532............ Mining Machinery and Equipment, Except 500

Oil and Gas Field Machinery and

Equipment.

3533............ Oil and Gas Field Machinery and Equipment 500

3534............ Elevators and Moving Stairways........... 500

3535............ Conveyors and Conveying Equipment........ 500

3536............ Overhead Traveling Cranes, Hoists, and 500

Monorail Systems.

3537............ Industrial Trucks, Tractors, Trailers, 750

and Stackers.

3541............ Machine Tools, Metal Cutting Types....... 500

3542............ Machine Tools, Metal Forming Types....... 500

3543*........... Industrial Patterns...................... 500

3544............ Special Dies and Tools, Die Sets, Jigs 500

and Fixtures, and Industrial Molds.

3545............ Cutting Tools, Machine Tool Accessories, 500

and Machinists' Precision Measuring

Devices.

3546............ Power-Driven Handtools................... 500

3547............ Rolling Mill Machinery and Equipment..... 500

3548*........... Electric and Gas Welding and Soldering 500

Equipment.

3549............ Metalworking Machinery, N.E.C............ 500

3552............ Textile Machinery........................ 500

3553............ Woodworking Machinery.................... 500

3554............ Paper Industries Machinery............... 500

3555............ Printing Trades Machinery and Equipment.. 500

3556*........... Food Products Machinery.................. 500

3559............ Special Industry Machinery, N.E.C........ 500

3561............ Pumps and Pumping Equipment.............. 500

3562............ Ball and Roller Bearings................. 750

3563............ Air and Gas Compressors.................. 500

3564............ Industrial and Commercial Fans and 500

Blowers and Air Purification Equipment.

3565*........... Packaging Machinery...................... 500

3566............ Speed Changers, Industrial High-Speed 500

Drives, and Gears.

3567............ Industrial Process Furnaces and Ovens.... 500

3568............ Mechanical Power Transmission Equipment, 500

N.E.C.

3569............ General Industrial Machinery and 500

Equipment, N.E.C.

3571*........... Electronic Computers..................... 1,000

3572*........... Computer Storage Devices................. 1,000

3575*........... Computer Terminals....................... 1,000

3577*........... Computer Peripheral Equipment, N.E.C..... 1,000

3578*........... Calculating and Accounting Machines, 1,000

Except Electronic Computers.

3579............ Office Machines, N.E.C................... 500

3581............ Automatic Vending Machines............... 500

3582............ Commercial Laundry, Drycleaning, and 500

Pressing Machines.

3585............ Air-Conditioning and Warm Air Heating 750

Equipment and Commercial and Industrial

Refrigeration Equipment.

3586............ Measuring and Dispensing Pumps........... 500

3589............ Service Industry Machinery, N.E.C........ 500

3592............ Carburetors, Pistons, Piston Rings, and 500

Valves.

3593*........... Fluid Power Cylinders and Actuators...... 500

3594*........... Fluid Power Pumps and Motors............. 500

3596*........... Scales and Balances, Except Laboratory... 500

3599............ Industrial and Commercial Machinery and 500

Equipment, N.E.C.

------------------------------------------------------------------------

Major Group 36--Electronic and Other Electrical Equipment and

Components, Except Computer Equipment

------------------------------------------------------------------------

3612............ Power, Distribution, and Specialty 750

Transformers.

3613............ Switchgear and Switchboard Apparatus..... 750

3621............ Motors and Generators.................... 1,000

3624............ Carbon and Graphite Products............. 750

3625*........... Relays and Industrial Controls........... 750

3629............ Electrical Industrial Apparatus, N.E.C... 500

3631............ Household Cooking Equipment.............. 750

3632............ Household Refrigerators and Home and Farm 1,000

Freezers.

3633............ Household Laundry Equipment.............. 1,000

3634............ Electric Housewares and Fans............. 750

3635............ Household Vacuum Cleaners................ 750

3639............ Household Appliances, N.E.C.............. 500

3641............ Electric Lamp Bulbs and Tubes............ 1,000

3643............ Current-Carrying Wiring Devices.......... 500

3644............ Noncurrent-Carrying Wiring Devices....... 500

3645............ Residential Electric Lighting Fixtures... 500

3646............ Commercial, Industrial, and Institutional 500

Electric Lighting Fixtures.

3647............ Vehicular Lighting Equipment............. 500

3648............ Lighting Equipment, N.E.C................ 500

3651............ Household Audio and Video Equipment...... 750

3652............ Phonograph Records and Prerecorded Audio 750

Tapes and Disks.

3661............ Telephone and Telegraph Apparatus........ 1,000

3663*........... Radio and Television Broadcasting and 750

Communications Equipment.

3669*........... Communications Equipment, N.E.C.......... 750

3671............ Electron Tubes........................... 750

3672*........... Printed Circuit Boards................... 500

3674............ Semiconductors and Related Devices....... 500

3675............ Electronic Capacitors.................... 500

3676............ Electronic Resistors..................... 500

3677............ Electronic Coils, Transformers, and Other 500

Inductors.

3678............ Electronic Connectors.................... 500

3679............ Electronic Components, N.E.C............. 500

3691............ Storage Batteries........................ 500

3692............ Primary Batteries, Dry and Wet........... 1,000

3694............ Electrical Equipment for Internal 750

Combustion Engines.

3695*........... Magnetic and Optical Recording Media..... 1,000

3699............ Electrical Machinery, Equipment, and 750

Supplies, N.E.C.

------------------------------------------------------------------------

Major Group 37--Transportation Equipment

------------------------------------------------------------------------

3711............ Motor Vehicles and Passenger Car Bodies.. 1,000

3713............ Truck and Bus Bodies..................... 500

3714............ Motor Vehicle Parts and Accessories...... 750

3715............ Truck Trailers........................... 500

3716............ Motor Homes.............................. 1,000

3721............ Aircraft................................. 1,500

3724............ Aircraft Engines and Engine Parts........ 1,000

3728............ Aircraft Parts and Auxiliary Equipment, \17\1,000

N.E.C.

3731............ Shipbuilding and Repair of Nuclear 1,000

Propelled Ships.

Shipbuilding of Nonnuclear Propelled 1,000

Ships and Nonpropelled Ships.

Ship Repair (Including Overhauls and 1,000

Conversions) Performed on Nonnuclear

Propelled and Nonpropelled Ships East of

the 108 Meridian.

Ship Repair (Including Overhauls and 1,000

Conversions) Performed on Nonnuclear

Propelled and Nonpropelled Ships West of

the 108 Meridian.

3732............ Boat Building and Repairing.............. 500

3743............ Railroad Equipment....................... 1,000

3751............ Motorcycles, Bicycles, and Parts......... 500

3761............ Guided Missiles and Space Vehicles....... 1,000

3764............ Guided Missile and Space Vehicle 1,000

Propulsion Units and Propulsion Unit

Parts.

3769............ Guided Missile and Space Vehicle Parts 1,000

and Auxiliary Equipment, N.E.C.

3792............ Travel Trailers and Campers.............. 500

3795............ Tanks and Tank Components................ 1,000

3799............ Transportation Equipment, N.E.C.......... 500

------------------------------------------------------------------------

Major Group 38--Measuring, Analyzing, and Controlling Instruments;

Photographic, Medical, and Optical Goods; Watches and Clocks

------------------------------------------------------------------------

3812*........... Search, Detection, Navigation, Guidance, 750

Aeronautical, and Nautical Systems and

Instruments.

3821*........... Laboratory Apparatus and Furniture....... 500

3822............ Automatic Controls for Regulating 500

Residential and Commercial Environments

and Appliances.

3823............ Industrial Instruments for Measurement, 500

Display, and Control of Process

Variables; and Related Products.

3824............ Totalizing Fluid Meters and Counting 500

Devices.

3825............ Instruments for Measuring and Testing of 500

Electricity and Electrical Signals.

3826*........... Laboratory Analytical Instruments........ 500

3827*........... Optical Instruments and Lenses........... 500

3829............ Measuring and Controlling Devices, N.E.C. 500

3841............ Surgical and Medical Instruments and 500

Apparatus.

3842............ Orthopedic, Prosthetic, and Surgical 500

Appliances and Supplies.

3843............ Dental Equipment and Supplies............ 500

3844*........... X-Ray Apparatus and Tubes and Related 500

Irradiation Apparatus.

3845*........... Electromedical and Electrotherapeutic 500

Apparatus.

3851............ Ophthalmic Goods......................... 500

3861............ Photographic Equipment and Supplies...... 500

3873............ Watches, Clocks, Clockwork Operated 500

Devices, and Parts.

------------------------------------------------------------------------

Major Group 39--Miscellaneous Manufacturing Industries

------------------------------------------------------------------------

3911............ Jewelry, Precious Metal.................. 500

3914............ Silverware, Plated Ware, and Stainless 500

Steel Ware.

3915............ Jewelers' Findings and Materials, and 500

Lapidary Work.

3931............ Musical Instruments...................... 500

3942............ Dolls and Stuffed Toys................... 500

3944............ Games, Toys, and Children's Vehicles, 500

Except Dolls and Bicycles.

3949............ Sporting and Athletic Goods, N.E.C....... 500

3951............ Pens, Mechanical Pencils, and Parts...... 500

3952............ Lead Pencils, Crayons, and Artists' 500

Materials.

3953............ Marking Devices.......................... 500

3955............ Carbon Paper and Inked Ribbons........... 500

3961............ Costume Jewelry and Costume Novelties, 500

Except Precious Metal.

3965*........... Fasteners, Buttons, Needles, and Pins.... 500

3991............ Brooms and Brushes....................... 500

3993............ Signs and Advertising Specialties........ 500

3995............ Burial Caskets........................... 500

3996............ Linoleum, Asphalted-Felt-Base, and Other 750

Hard Surface Floor Coverings, N.E.C.

3999............ Manufacturing Industries, N.E.C.......... 500

------------------------------------------------------------------------

Division E--Transportation, Communications, Electric, Gas, and Sanitary

Services

------------------------------------------------------------------------

Major Group 40--Railroad Transportation

------------------------------------------------------------------------

4011............ Railroads, Line-Haul Operating........... 1,500

4013............ Railroad Switching and Terminal 500

Establishments.

------------------------------------------------------------------------

Major Group 41--Local and Suburban Transit and Interurban Highway

Passenger Transportation

------------------------------------------------------------------------

4111............ Local and Suburban Transit............... $5.0

4119............ Local Passenger Transportation, N.E.C.... 5.0

4121............ Taxicabs................................. 5.0

4131............ Intercity and Rural Bus Transportation... 5.0

4141............ Local Bus Charter Service................ 5.0

4142............ Bus Charter Service, Except Local........ 5.0

4151............ School Buses............................. 5.0

4173*........... Terminal and Service Facilities for Motor 5.0

Vehicle Passenger Transportation.

------------------------------------------------------------------------

Major Group 42--Motor Freight Transportation and Warehousing

------------------------------------------------------------------------

4212............ Local Trucking Without Storage........... \7\$18.5

4213............ Trucking, Except Local................... 18.5

4214............ Local Trucking With Storage.............. 18.5

4215*........... Courier Services, Except by Air.......... 18.5

4221............ Farm Product Warehousing and Storage..... 18.5

4222............ Refrigerated Warehousing and Storage..... 18.5

4225............ General Warehousing and Storage.......... 18.5

4226............ Special Warehousing and Storage, N.E.C... 18.5

4231............ Terminal and Joint Terminal Maintenance 5.0

Facilities for Motor Freight

Transportation.

------------------------------------------------------------------------

Major Group 44--Water Transportation\8\

------------------------------------------------------------------------

4412............ Deep Sea Foreign Transportation of 500

Freight.

4424*........... Deep Sea Domestic Transportation of 500

Freight.

4432*........... Freight Transportation on the Great 500

Lakes--St. Lawrence Seaway.

4449*........... Water Transportation of Freight, N.E.C... 500

4481*........... Deep Sea Transportation of Passengers, 500

Except by Ferry.

4482*........... Ferries.................................. 500

4489*........... Water Transportation of Passengers, N.E.C 500

4491*........... Marine Cargo Handling.................... $18.5

4492*........... Towing and Tugboat Services.............. $5.0

4493*........... Marinas.................................. $5.0

4499*........... Water Transportation Services, N.E.C..... $5.0

------------------------------------------------------------------------

Major Group 45--Transportation by Air\8\

------------------------------------------------------------------------

4512*........... Air Transportation, Scheduled............ \9\1,500

4513*........... Air Courier Services..................... \9\1,500

4522*........... Air Transportation, Nonscheduled......... \9\1,500

4581*........... Airports Flying Fields, and Airport $5.0

Terminal Services.

------------------------------------------------------------------------

Major Group 46--Pipelines, Except Natural Gas

------------------------------------------------------------------------

4612............ Crude Petroleum Pipelines................ 1,500

4613............ Refined Petroleum Pipelines.............. 1,500

4619............ Pipelines N.E.C.......................... $25.0

------------------------------------------------------------------------

Major Group 47--Transportation Services

------------------------------------------------------------------------

4724*........... Travel Agencies.......................... \10\$1.0

4725*........... Tour Operators........................... 5.0

4729*........... Arrangement of Passenger Transportation, 5.0

N.E.C.

4731*........... Arrangement of Transportation of Freight 18.5

and Cargo.

4741*........... Rental of Railroad Cars.................. 5.0

4783*........... Packing and Crating...................... 18.5

4785*........... Fixed Facilities and Inspection and 5.0

Weighing Services for Motor Vehicle

Transportation.

4789............ Transportation Services, N.E.C........... 5.0

------------------------------------------------------------------------

Major Group 48--Communications

------------------------------------------------------------------------

4812*........... Radiotelephone Communications............ 1,500

4813*........... Telephone Communications, Except 1,500

Radiotelephone.

4822............ Telegraph and Other Message $5.0

Communications.

4832............ Radio Broadcasting Stations.............. $5.0

4833............ Television Broadcasting Stations......... $10.5

4841*........... Cable and Other Pay Television Services.. $11.0

4899............ Communications Services, N.E.C........... $11.0

------------------------------------------------------------------------

Major Group 49--Electric, Gas, and Sanitary Services

------------------------------------------------------------------------

4911............ Electric Services........................ \22\4

4922............ Natural Gas Transmission................. $5.0

4923............ Gas Transmission and Distribution........ $5.0

4924............ Natural Gas Distribution................. 500

4925............ Mixed, Manufactured, or Liquefied $5.0

Petroleum Gas Production and/or

Distribution.

4931............ Electric and Other Services Combined..... $5.0

4932............ Gas and Other Services Combined.......... $5.0

4939............ Combination Utilities, N.E.C............. $5.0

4941............ Water Supply............................. $5.0

4952............ Sewerage Systems......................... $5.0

4953............ Refuse Systems........................... \11\$6.0

4959............ Sanitary Services, N.E.C................. $5.0

4961............ Steam and Air-Conditioning Supply........ $9.0

4971............ Irrigation Systems....................... $5.0

------------------------------------------------------------------------

Division F--Wholesale Trade

(Not Applicable to Government procurement of supplies. The

nonmanufacturer size standard of 500 employees shall be used for

purposes of Government procurement of supplies)

------------------------------------------------------------------------

Major Group 50--Wholesale Trade--Durable Goods

------------------------------------------------------------------------

5012............ Automobiles and Other Motor Vehicles..... 100

5013............ Motor Vehicle Supplies and New Parts..... 100

5014............ Tires and Tubes.......................... 100

5015*........... Motor Vehicle Parts, Used................ 100

5021............ Furniture................................ 100

5023............ Homefurnishings.......................... 100

5031............ Lumber, Plywood, Millwork, and Wood 100

Panels.

5032*........... Brick, Stone, and Related Construction 100

Materials.

5033*........... Roofing, Siding, and Insulation Materials 100

5039............ Construction Materials, N.E.C............ 100

5043............ Photographic Equipment and Supplies...... 100

5044*........... Office Equipment......................... 100

5045*........... Computers and Computer Peripheral 100

Equipment and Software.

5046*........... Commercial Equipment, N.E.C.............. 100

5047*........... Medical, Dental, and Hospital Equipment 100

and Supplies.

5048*........... Ophthalmic Goods......................... 100

5049*........... Professional Equipment and Supplies, 100

N.E.C.

5051............ Metals Service Centers and Offices....... 100

5052............ Coal and Other Minerals and Ores......... 100

5063............ Electrical Apparatus and Equipment, 100

Wiring Supplies, and Construction

Materials.

5064............ Electrical Appliances, Television and 100

Radio Sets.

5065............ Electronic Parts and Equipment, N.E.C.... 100

5072............ Hardware................................. 100

5074............ Plumbing and Heating Equipment and 100

Supplies (Hydronics).

5075............ Warm Air Heating and Air-Conditioning 100

Equipment and Supplies.

5078............ Refrigeration Equipment and Supplies..... 100

5082............ Construction and mining (Except 100

Petroleum) Machinery and Equipment.

5083............ Farm and Garden Machinery and Equipment.. 100

5084............ Industrial Machinery and Equipment....... 100

5085............ Industrial Supplies...................... 100

5087............ Service Establishment Equipment and 100

Supplies.

5088............ Transportation Equipment and Supplies, 100

Except Motor Vehicles.

5091*........... Sporting and Recreational Goods and 100

Supplies.

5092*........... Toys and Hobby Goods and Supplies........ 100

5093............ Scrap and Waste Materials................ 100

5094............ Jewelry, Watches, Precious Stones, and 100

Precious Metals.

5099............ Durable Goods, N.E.C..................... 100

------------------------------------------------------------------------

Major Group 51--Wholesale Trade--Nondurable Goods

------------------------------------------------------------------------

5111............ Printing and Writing Paper............... 100

5112............ Stationery and Office Supplies........... 100

5113............ Industrial and Personal Service Paper.... 100

5122............ Drugs, Drug Proprietaries, and Druggists' 100

Sundries.

5131*........... Piece Goods, Notions, and Other Dry Goods 100

5136............ Men's and Boys' Clothing and Furnishings. 100

5137............ Women's, Children's, and Infants' 100

Clothing and Accessories.

5139............ Footwear................................. 100

5141............ Groceries, General Line.................. 100

5142............ Packaged Frozen Foods.................... 100

5143............ Dairy Products, Except Dried or Canned... 100

5144............ Poultry and Poultry Products............. 100

5145............ Confectionery............................ 100

5146............ Fish and Seafood......................... 100

5147............ Meats and Meat Products.................. 100

5148............ Fresh Fruits and Vegetables.............. 100

5149............ Groceries and Related Products, N.E.C.... 100

5153............ Grain and Field Beans.................... 100

5154............ Livestock................................ 100

5159............ Farm-Product Raw Materials, N.E.C........ 100

5162*........... Plastics Materials and Basic Forms and 100

Shapes.

5169*........... Chemical and Allied Products, N.E.C...... 100

5171............ Petroleum Bulk Stations and Terminals.... 100

5172............ Petroleum and Petroleum Products 100

Wholesalers, Except Bulk Stations and

Terminals.

5181............ Beer and Ale............................. 100

5182............ Wine and Distilled Alcoholic Beverages... 100

5191............ Farm Supplies............................ 100

5192*........... Books, Periodicals, and Newspapers....... 100

5193*........... Flowers, Nursery Stock, and Florists' 100

Supplies.

5194............ Tobacco and Tobacco Products............. 100

5198............ Paints, Varnishes, and Supplies.......... 100

5199............ Nondurable Goods, N.E.C.................. 100

------------------------------------------------------------------------

Division G--Retail Trade

(Not Applicable to Government procurement of supplies. The

nonmanufacturer size standard of 500 employees shall be used for

purposes of Government procurement of supplies)

------------------------------------------------------------------------

Major Group 52--Building Materials, Hardware, Garden Supply, and Mobile

Home Dealers

------------------------------------------------------------------------

5211............ Lumber and Other Building Materials $5.0

Dealers.

5231............ Paint, Glass, and Wallpaper Stores....... 5.0

5251............ Hardware Stores.......................... 5.0

5261............ Retail Nurseries, Lawn and Garden Supply 5.0

Stores.

5271............ Mobile Home Dealers...................... 9.5

------------------------------------------------------------------------

Major Group 53--General Merchandise Stores

------------------------------------------------------------------------

5311............ Department Stores........................ $20.0

5331............ Variety Stores........................... 8.0

5399............ Miscellaneous General Merchandise Stores. 5.0

------------------------------------------------------------------------

Major Group 54--Food Stores

------------------------------------------------------------------------

5411............ Grocery Stores........................... $20.0

5421*........... Meat and Fish (Seafood) Markets, 5.0

Including Freezer Provisioners.

5431............ Fruit and Vegetable Markets.............. 5.0

5441............ Candy, Nut, and Confectionery Stores..... 5.0

5451............ Dairy Products Stores.................... 5.0

5461*........... Retail Bakeries.......................... 5.0

5499............ Miscellaneous Food Stores................ 5.0

------------------------------------------------------------------------

Major Group 55--Automotive Dealers and Gasoline Service Stations

------------------------------------------------------------------------

5511............ Motor Vehicle Dealers (New and Used)..... $21.0

5521............ Motor Vehicle Dealers (Used Only)........ 17.0

5531............ Auto and Home Supply Stores.............. 5.0

5541............ Gasoline Service Stations................ 6.5

5551............ Boat Dealers............................. 5.0

5561............ Recreational Vehicle Dealers............. 5.0

5571............ Motorcycle Dealers....................... 5.0

5599............ Automotive Dealers, N.E.C.\12\........... 5.0

------------------------------------------------------------------------

Major Group 56--Apparel and Accessory Stores

------------------------------------------------------------------------

5611............ Men's and Boys' Clothing and Accessory $6.5

Stores.

5621............ Women's Clothing Stores.................. 6.5

5632*........... Women's Accessory and Specialty Stores... 5.0

5641............ Children's and Infants' Wear Stores...... 5.0

5651............ Family Clothing Stores................... 6.5

5661............ Shoe Stores.............................. 6.5

5699............ Miscellaneous Apparel and Accessory 5.0

Stores.

------------------------------------------------------------------------

Major Group 57--Home Furniture, Furnishings, and Equipment Stores

------------------------------------------------------------------------

5712............ Furniture Stores......................... $5.0

5713............ Floor Covering Stores.................... 5.0

5714............ Drapery, Curtain, and Upholstery Stores.. 5.0

5719............ Miscellaneous Homefurnishings Stores..... 5.0

5722............ Household Appliance Stores............... 6.5

5731*........... Radio, Television, and Consumer 6.5

Electronics Stores.

5734*........... Computer and Computer Software Stores.... 6.5

5735*........... Record and Prerecorded Tape Stores....... 5.0

5736*........... Musical Instrument Stores................ 5.0

------------------------------------------------------------------------

Major Group 58--Eating and Drinking Places

------------------------------------------------------------------------

5812............ Eating Places, Except Food Service, $5.0

Institutional.

5812............ Food Service, Institutional.............. 15.0

5813............ Drinking Places (Alcoholic Beverages).... 5.0

------------------------------------------------------------------------

Major Group 59--Miscellaneous Retail

------------------------------------------------------------------------

5912............ Drug Stores and Proprietary Stores....... $5.0

5921............ Liquor Stores............................ 5.0

5932*........... Used Merchandise Stores.................. 5.0

5941............ Sporting Goods Stores and Bicycle Shops.. 5.0

5942............ Book Stores.............................. 5.0

5943............ Stationery Stores........................ 5.0

5944............ Jewelry Stores........................... 5.0

5945............ Hobby, Toy, and Game Shops............... 5.0

5946............ Camera and Photographic Supply Stores.... 5.0

5947............ Gift, Novelty, and Souvenir Shops........ 5.0

5948............ Luggage and Leather Goods Stores......... 5.0

5949............ Sewing, Needlework, and Piece Goods 5.0

Stores.

5961............ Catalog and Mail-Order Houses............ 18.5

5962............ Automatic Merchandising Machine Operators 5.0

5963............ Direct Selling Establishments............ 5.0

5983............ Fuel Oil Dealers......................... 9.0

5984............ Liquefied Petroleum gas (Bottled Gas) 5.0

Dealers.

5989*........... Fuel Dealers, N.E.C...................... 5.0

5992............ Florists................................. 5.0

5993............ Tobacco Stores and Stands................ 5.0

5994............ News Dealers and Newsstands.............. 5.0

5995*........... Optical Goods Stores..................... 5.0

5999............ Miscellaneous Retail Stores, N.E.C....... 5.0

------------------------------------------------------------------------

Division H--Finance, Insurance, and Real Estate\13\

------------------------------------------------------------------------

Major 60--Depository Institutions

------------------------------------------------------------------------

(million)

6021*........... National Commercial Banks................ \14\$100

6022............ State Commercial Banks................... \14\100

6029*........... Commercial Banks, N.E.C.................. \14\100

6035*........... Savings Institutions, Federally Chartered \14\100

6036*........... Savings Institutions, Not Federally \14\100

Chartered.

6061............ Credit Unions, Federally Chartered....... \14\100

6062............ Credit Unions, Not Federally Chartered... \14\100

6081............ Branches and Agencies of Foreign Banks... \14\100

6082............ Foreign Trade and International Banks.... \14\100

6091............ Nondeposit Trust Facilities.............. 5.0

6099............ Functions Related to Depositor Banking, 5.0

N.E.C.

------------------------------------------------------------------------

Major Group 61--Nondepository Institution

------------------------------------------------------------------------

6141............ Personal Credit Institutions............. $5.0

6153............ Short-Term Business Credit Institutions, 5.0

Except Agriculture.

6159............ Miscellaneous Business Credit 5.0

Institutions.

6162............ Mortgage Bankers and Loan Correspondents. 5.0

6163............ Loan Brokers............................. 5.0

------------------------------------------------------------------------

Major Group 62--Security and Commodity Brokers, Dealers, Exchanges and

Services

------------------------------------------------------------------------

6211............ Security Brokers, Dealers and Flotation $5.0

Companies.

6221............ Commodity Contracts Brokers and Dealers.. 5.0

6231............ Security and Commodity Exchanges......... 5.0

6282............ Investment Advice........................ 5.0

6289............ Services Allied With the Exchange of 5.0

Securities or Commodities, N.E.C.

------------------------------------------------------------------------

Major Group 63--Insurance Carriers

------------------------------------------------------------------------

6311............ Life Insurance........................... $5.0

6321............ Accident and Health Insurance............ $5.0

6324............ Hospital and Medical Service Plans....... $5.0

6331............ Fire, Marine, and Casualty Insurance..... 1,500

6351............ Surety Insurance......................... $5.0

6361............ Title Insurance.......................... $5.0

6371............ Pension, Health and Welfare Funds........ $5.0

6399............ Insurance Carriers, N.E.C................ $5.0

------------------------------------------------------------------------

Major Group 64--Insurance Agents, Brokers, and Service

------------------------------------------------------------------------

6411............ Insurance Agents, Brokers, and Service... $5.0

------------------------------------------------------------------------

Major Group 65--Real Estate

------------------------------------------------------------------------

6512............ Operators of Nonresidential Buildings.... $5.0

6513............ Operators of Apartment Buildings......... 5.0

6514............ Operators of Dwellings Other Than 5.0

Apartment Buildings.

6515............ Operators of Residential Mobile Home 5.0

Sites.

.............. Leasing of Building Space to Federal \15\15.0

Government by Owners.

6517............ Lessors of Railroad Property............. 5.0

6519............ Lessors of Real Property, N.E.C.......... 5.0

6531............ Real Estate Agents and Managers.......... \10\1.5

6541............ Title Abstract Offices................... 5.0

6552............ Land Subdividers and Developers, Except 5.0

Cemeteries.

6553............ Cemetery Subdividers and Developers...... 5.0

------------------------------------------------------------------------

Major Group 67--Holding and Other Investment Offices

------------------------------------------------------------------------

6712............ Offices of Bank Holding Companies........ $5.0

6719............ Offices of Holding Companies, N.E.C...... 5.0

6722............ Management Investment Offices, Open-End.. 5.0

6726............ Unit Investment Trusts, Face-Amount 5.0

Certificate Offices, and Closed-End

Management Investment Offices.

6732............ Educational, Religious, and Charitable 5.0

Trusts.

6733............ Trusts, Except Educational, Religious, 5.0

and Charitable.

6792............ Oil Royalty Traders...................... 5.0

6794............ Patent Owners and Lessors................ 5.0

6798............ Real Estate Investment Trusts............ 5.0

6799............ Investors, N.E.C......................... 5.0

------------------------------------------------------------------------

Division I--Services\16\

------------------------------------------------------------------------

Major Group 70--Hotels, Rooming Houses, Camps, and Other Lodging Places

------------------------------------------------------------------------

7011............ Hotels and Motels........................ $5.0

7021............ Rooming and Boarding Houses.............. 5.0

7032............ Sporting and Recreational Camps.......... 5.0

7033............ Recreational Vehicle Parks and Campsites. 5.0

7041............ Organization Hotels and Lodging Houses, 5.0

on Membership Basis.

------------------------------------------------------------------------

Major Group 72--Personal Services

------------------------------------------------------------------------

7211............ Power Laundries, Family and Commercial... $10.5

7212............ Garment Pressing, and Agents for 5.0

Laundries and Drycleaners.

7213............ Linen Supply............................. 10.5

7215............ Coin-Operated Laundries and Drycleaning.. 5.0

7216............ Drycleaning Plants, Except Rug Cleaning.. 3.5

7217............ Carpet and Upholstery Cleaning........... 3.5

7218............ Industrial Launderers.................... 10.5

7219............ Laundry and Garment Services, N.E.C...... 5.0

7221............ Photographic Studios, Portrait........... 5.0

7231............ Beauty Shops............................. 5.0

7241............ Barber Shops............................. 5.0

7251............ Shoe Repair Shops and Shoeshine Parlors.. 5.0

7261............ Funeral Service and Crematories.......... 5.0

7291*........... Tax Return Preparation Services.......... 5.0

7299............ Miscellaneous Personal Services, N.E.C... 5.0

------------------------------------------------------------------------

Major Group 73--Business Services

------------------------------------------------------------------------

7311............ Advertising Agencies..................... $5.0

7312............ Outdoor Advertising Services............. 5.0

7313............ Radio, Television, and Publishers' 5.0

Advertising Representatives.

7319............ Advertising, N.E.C....................... 5.0

7322*........... Adjustment and Collection Services....... 5.0

7323*........... Credit Reporting Services................ 5.0

7331............ Direct Mail Advertising Services......... 5.0

7334*........... Photocopying and Duplicating Services.... 5.0

7335*........... Commercial Photography................... 5.0

7336*........... Commercial Art and Graphic Design........ 5.0

7338*........... Secretarial and Court Reporting Services. 5.0

7342............ Disinfecting and Pest Control Services... 5.0

7349............ Building Cleaning and Maintenance 12.0

Services, N.E.C.

7352*........... Medical Equipment Rental and Leasing..... 5.0

7353*........... Heavy Construction Equipment Rental and 5.0

Leasing.

7359*........... Equipment Rental and Leasing, N.E.C...... 5.0

7361............ Employment Agencies...................... 5.0

7363*........... Help Supply Services..................... 5.0

7371*........... Computer Programming Services............ 18.0

7372............ Prepackaged Software..................... 18.0

7373*........... Computer Integrated Systems Design....... 18.0

7374............ Computer Processing and Data Preparation 18.0

and Processing Services.

7375*........... Information Retrieval Services........... 18.0

7376*........... Computer Facilities Management Services.. 18.0

7377*........... Computer Rental and Leasing.............. 18.0

7378*........... Computer Maintenance and Repair.......... 18.0

7379............ Computer Related Services, N.E.C......... 18.0

7381*........... Detective, Guard, and Armored Car 9.0

Services.

7382*........... Security Systems Services................ 9.0

7383*........... News Syndicates.......................... 5.0

7384*........... Photofinishing Laboratories.............. 5.0

7389*........... Business Services, N.E.C.\21\............ 5.0

------------------------------------------------------------------------

Major Group 75--Automotive Repair, Services, and Parking

------------------------------------------------------------------------

7513............ Truck Rental and Leasing, Without Drivers $18.5

7514*........... Passenger Car Rental..................... 18.5

7515*........... Passenger Car Leasing.................... 18.5

7519............ Utility Trailer and Recreational Vehicle 5.0

Rental.

7521*........... Automobile Parking....................... 5.0

7532*........... Top, Body, and Upholstery Repair Shops 5.0

and Paint Shops.

7533*........... Automotive Exhaust System Repair Shops... 5.0

7534............ Tire Retreading and Repair Shops......... 10.5

7536*........... Automotive Glass Replacement Shops....... 5.0

7537*........... Automotive Transmission Repair Shops..... 5.0

7538............ General Automotive Repair Shops.......... 5.0

7539............ Automotive Repair Shops, N.E.C........... 5.0

7542............ Carwashes................................ 5.0

7549............ Automotive Services, Except Repair and 5.0

Carwashes.

------------------------------------------------------------------------

Major Group 76--Miscellaneous Repair Services

------------------------------------------------------------------------

7622............ Radio and Television Repair Shops........ $5.0

7623............ Refrigeration and Air-Conditioning 5.0

Service and Repair Shops.

7629............ Electrical and Electronic Repair Shops, 5.0

N.E.C.

7631............ Watch, Clock, and Jewelry Repair......... 5.0

7641............ Reupholstery and Furniture Repair........ 5.0

7692............ Welding Repair........................... 5.0

7694............ Armature Rewinding Shops................. 5.0

7699............ Repair Shops and Related Services, N.E.C. \17\5.0

------------------------------------------------------------------------

Major Group 78--Motion Pictures

------------------------------------------------------------------------

7812*........... Motion Picture and Video Tape Production. $21.5

7819............ Services Allied to Motion Picture 21.5

Production.

7822*........... Motion Picture and Video Tape 21.5

Distribution.

7829............ Services Allied to Motion Picture 5.0

Distribution.

7832............ Motion Picture Theaters, Except Drive-In. 5.0

7833............ Drive-In Motion Picture Theaters......... 5.0

7841*........... Video Tape Rental........................ 5.0

------------------------------------------------------------------------

Major Group 79--Amusement and Recreation Services

------------------------------------------------------------------------

7911............ Dance Studios, Schools, and Halls........ $5.0

7922............ Theatrical Producers (Except Motion 5.0

Picture) and Miscellaneous Theatrical

Services.

7929............ Bands, Orchestras, Actors, and Other 5.0

Entertainers and Entertainment Groups.

7933............ Bowling Centers.......................... 5.0

7941............ Professional Sports Clubs and Promoters.. 5.0

7991*........... Physical Fitness Facilities.............. 5.0

7993............ Coin-Operated Amusement Devices.......... 5.0

7996............ Amusement Parks.......................... 5.0

7997............ Membership Sports and Recreation Clubs... 5.0

7999............ Amusement and Recreation Services, N.E.C. 5.0

------------------------------------------------------------------------

Major Group 80--Health Services

------------------------------------------------------------------------

8011............ Offices and Clinics of Doctors of $5.0

Medicine.

8021............ Offices and Clinics of Dentists.......... 5.0

8031............ Offices and Clinics of Doctors of 5.0

Osteopathy.

8041............ Offices and Clinics of Chiropractors..... 5.0

8042............ Offices and Clinics of Optometrists...... 5.0

8043*........... Offices and Clinics of Podiatrists....... 5.0

8049............ Offices and Clinics of Health 5.0

Practitioners, N.E.C.

8051............ Skilled Nursing Care Facilities.......... 5.0

8052*........... Intermediate Care Facilities............. 5.0

8059............ Nursing and Personal Care Facilities, 5.0

N.E.C.

8062............ General Medical and Surgical Hospitals... 5.0

8063............ Psychiatric Hospitals.................... 5.0

8069............ Specialty Hospitals, Except Psychiatric.. 5.0

8071............ Medical Laboratories..................... 5.0

8072............ Dental Laboratories...................... 5.0

8082*........... Home Health Care Services................ 5.0

8092*........... Kidney Dialysis Centers.................. 5.0

8093*........... Specialty Outpatient Facilities, N.E.C... 5.0

8099*........... Health and Allied Services, N.E.C........ 5.0

------------------------------------------------------------------------

Major Group 81--Legal Services

------------------------------------------------------------------------

8111............ Legal Services........................... $5.0

------------------------------------------------------------------------

Major Group 82--Educational Services

------------------------------------------------------------------------

8211............ Elementary and Secondary Schools......... $5.0

8221............ Colleges, Universities, and Professional 5.0

Schools.

8222............ Junior Colleges and Technical Institutes. 5.0

8231............ Libraries................................ 5.0

8243............ Data Processing Schools.................. 5.0

8244............ Business and Secretarial Schools......... 5.0

8249............ Vocational Schools, N.E.C................ 5.0

8299............ Schools and Educational Services, N.E.C.. 5.0

8299............ Flight Training Services................. 18.5

------------------------------------------------------------------------

Major Group 83--Social Services

------------------------------------------------------------------------

8322*........... Individual and Family Social Services.... $5.0

8331............ Job Training and Vocational 5.0

Rehabilitation Services.

8351............ Child Day Care Services.................. 5.0

8361............ Residential Care......................... 5.0

8399............ Social Services, N.E.C................... 5.0

------------------------------------------------------------------------

Major Group 84--Museums, Art Galleries, and Botanical and Zoological

Gardens

------------------------------------------------------------------------

8412*........... Museums and Art Galleries................ $5.0

8422*........... Arboreta and Botanical or Zoological 5.0

Gardens.

------------------------------------------------------------------------

Major Group 86--Membership Organizations

------------------------------------------------------------------------

8611............ Business Associations.................... $5.0

8621............ Professional Membership Organizations.... 5.0

8631............ Labor Unions and Similar Labor 5.0

Organizations.

8641............ Civic, Social, and Fraternal Associations 5.0

8651............ Political Organizations.................. 5.0

8661............ Religious Organizations.................. 5.0

8699............ Membership Organizations, N.E.C.......... 5.0

------------------------------------------------------------------------

Major Group 87--Engineering, Accounting, Research, Management, and

Related Services

------------------------------------------------------------------------

8711*........... Engineering Services:

Military and Aerospace Equipment and $20.0

Military Weapons.

Contracts and Subcontracts for 20.0

Engineering Services Awarded Under the

National Energy Policy Act of 1992.

Marine Engineering and Naval Architecture 13.5

Other Engineering Services............... 2.5

8712*........... Architectural Services (Other Than Naval) 2.5

8713*........... Surveying Services....................... 2.5

8721*........... Accounting, Auditing, and Bookkeeping 6.0

Services.

8731*........... Commercial Physical and Biological

Research:\18\.

Aircraft................................. 1,500

Aircraft Parts, and Auxiliary Equipment, 1,000

and Aircraft Engines and Engine Parts.

Space Vehicles and Guided Missiles, their 1,000

Propulsion Units, their Propulsion Units

Parts, and their Auxiliary Equipment and

Parts.

Other Commercial Physical and Biological 500

Research.

8732*........... Commercial Economic, Sociological, and 5.0

Educational Research.

8733*........... Noncommercial Research Organizations..... 5.0

8734*........... Testing Laboratories..................... 5.0

8741*........... Management Services...................... 5.0

8742*........... Management Consulting Services........... 5.0

8743*........... Public Relations Services................ 5.0

8744*........... Facilities Support Management 5.0

Services\19\.

Base Maintenance\20\..................... 20.0

8748*........... Business Consulting Services, N.E.C...... 5.0

------------------------------------------------------------------------

Major Group 89--Services, Not Elsewhere Classified

------------------------------------------------------------------------

8999............ Services, N.E.C.......................... $5.0

------------------------------------------------------------------------

Footnotes

1Size standards preceded by a dollar sign ($) are in millions of dollars

of annual receipts. All others are in number of employees unless

specified otherwise.

2SIC code 1629--Dredging: To be considered small, a firm must perform

the dredging of at least 40 percent of the yardage with its own

dredging equipment or equipment owned by another small dredging

concern.

3SIC Division D--Manufacturing: ``Rebuilding on a factory basis or

equivalent.'' For rebuilding machinery or equipment on a factory

basis, use SIC code applicable for new manufactured product. The

appropriate size standard is not limited to manufacturers. Ordinary

repair services or preservation operations, however, are not

considered rebuilding activities.

4SIC code 2033: For purposes of Government procurement for food canning

and preserving under SIC code 2033, the standard of 500 employees

shall be exclusive of agricultural labor as defined in section (k) of

the Federal Unemployment Tax Act, 68A Stat. 454, 26 U.S.C. (I.R.C.

1954) 3306.

5SIC code 2911: For purposes of Government procurement, the firm may not

have more than 1,500 employees, nor may it have more than 75,000

barrels per day capacity. This capacity may be measured in terms of

either crude oil or bona fide feedstocks or both, but the sum total of

the various petroleum-based inputs into the process may not exceed

75,000 barrels. In addition to the direct-owned capacity of the

concern in question, counted capacity will include any leased

facilities or any facilities made available to the concern under an

arrangement such as (but not limited to) an exchange agreement or a

throughput, or other form, or processing agreement (whereby another

party processes the concern's own crude or feedstocks). Such an

arrangement would have the same effect as though such facilities had

been leased, and this would have to be included in the concern's own

capacity. The total product to be delivered in the performance of the

contract must be at least 90 percent refined by the successful bidder

from either crude oil or bona fide feedstocks.

6SIC code 3011: For purposes of Government procurement, a firm is small

for bidding on a contract for pneumatic tires within Census

Classification codes 30111 and 30112, provided that:

(1) The value of tires within Census Classification codes 30111 and

30112 which it manufactured in the United States during the previous

calendar year is more than 50 percent of the value of its total

worldwide manufacture, (2) the value of pneumatic tires within Census

Classification codes 30111 and 30112 which it manufactured worldwide

during the preceding calendar year was less than 5 percent of the

value of all such tires manufactured in the United States during said

period, and (3) the value of the principal product which it

manufactured or otherwise produced, or sold worldwide during the

preceding calendar year is less than 10 percent of the total value of

such products manufactured or otherwise produced or sold in the United

States during said period.

7SIC code 4212: The component ``Garbage and Refuse, Collecting and

Transporting, Without Disposal'' shall have a size standard of $6.0

million. This is the same size standard as SIC code 4953, Refuse

Systems.

8Offshore Marine Services: The applicable size standard shall be $20.5

million for firms furnishing specific transportation services to

concerns engaged in offshore oil and/or natural gas exploration,

drilling production, or marine research; such services encompass

passenger and freight transportation, anchor handling, and related

logistical services to and from the work site or at sea.

9SIC codes 4512, 4513, and 4522: Includes passenger or cargo

transportation requiring the use of one or more helicopters or fixed-

wing aircraft. This does not include offshore marine transportation

services as defined in footnote 8.

10SIC codes 4724 and 6531: As measured by total revenues, but excluding

funds received in trust for an unaffiliated third party, such as

bookings or sales subject to commissions. The commissions received

would be included as revenue.

\11\SIC code 4953: ``Garbage and Refuse, Collecting and Transporting,

Without Disposal,'' a component of SIC code 4212, has the same size

standard as SIC code 4953.

\12\SIC code 5599: For retail firms whose principal line of business is

the retail sale of aircraft, a $7.5 million size standard shall apply.

\13\Most in Division H: Finance, Insurance and Real Estate--are excluded

from SBA assistance.

\14\Major Group 60: As measured by total assets.

\15\Major Group 65--Leasing of building space to the Federal Government

by Owners: For the purpose of Government procurement, a size standard

of $15.0 million in gross receipts is established for owners of

building space that is leased to the Federal Government. The standard

for these procurements shall apply to the owner of the property and

not to those acting as an agent for the owner. There is no size

standard concerning the agent in a leasing arrangement.

\16\Division J--Services: For all industries not specifically listed in

this division, the size standard is $5.0 million.

\17\SIC codes 7699 and 3728: Contracts for the rebuilding or overhaul of

aircraft ground support equipment on a contract basis will be

classified under SIC code 3728.

\18\SIC code 8731: For research and development contracts requiring the

delivery of a manufactured product, the appropriate size standard to

use is that of the manufacturing industry in which the specific

products is classified.

Research and Development, as defined in the SIC Manual, means laboratory

or other physical research and development on a contractor fee basis.

Research and development for purposes of size determinations does not

include the following: economic, educational, engineering, operations,

systems, or other nonphysical research; or computer programming, data

processing, commercial and/or medical laboratory testing.

For purposes of the Small Business Innovation Research (SBIR) program

only, a different definition has been established by law. See Sec.

121.7 of these regulations.

Research and development for guided missiles and space vehicles includes

evaluation and simulation, and other services requiring thorough

knowledge of complete missiles and spacecraft.

\19\Facilities Management, a component of SIC code 8744, has the

following definition: Establishments, not elsewhere classified, which

provide overall management and the personnel to perform a variety of

related support services in operating a complete facility in or around

a specific building, or within another business or Government

establishment. Facilities management means furnishing three or more

personnel supply services which may include, but are not limited to,

secretarial services, typists, telephone answering, reproduction or

mimeograph service, mailing service, financial or business management,

public relations, conference planning, travel arrangements, word

processing, maintaining files and/or libraries, switchboard operation,

writers, bookkeeping, minor office equipment maintenance and repair,

use of information systems (not programming), etc.

\20\SIC code 8744: If one of the activities of base maintenance, as

defined below, can be identified with a separate industry, and that

activity (or industry) accounts for 50 percent or more of the value of

an entire contract, then the proper size standard shall be that for

the particular industry, and not the base maintenance size standard.

``Base Maintenance'' constitutes three or more separate activities. The

activities may be either service or special trade construction related

activities. As services, these activities must each be in a separate

industry. These activities may include, but are not limited to, such

separate maintenance activities as Janitorial and Custodial Service,

Protective Guard Service, Commissary Service, Fire Prevention Service,

Safety Engineering Service, Messenger Service, and Grounds Maintenance

and Landscaping Service. If the contract involves the use of special

trade contractors (plumbing, painting, plastering, carpentering, etc.)

all such specialized special trade construction activities will be

considered a single activity, which is Base Housing Maintenance. This

is only one activity of base maintenance and two additional activities

must be present for the contract to be considered base maintenance.

The size standard for Base Housing Maintenance is $7 million, the same

size standard as for Special Trade Contractors.

\21\The size standard for map drafting services, mapmaking (including

aerial), and photogrammetric mapping services, part of SIC code 7389,

is $3.5 million.

\22\Million megawatt hours.

Dated: March 30, 1994.

Cassandra M. Pulley,

Acting Administrator.

[FR Doc. 94-8274 Filed 4-6-94; 8:45 am]

BILLING CODE 8025-01-M