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Size standard

Also called: SBA size standard, small business size, receipts size standard, employee size standard

A size standard is the SBA's limit, stated in average annual receipts or in number of employees, below which a business counts as small for a given NAICS code and so may compete for set-asides.

The standards are in 13 CFR 121.201, one per NAICS code, and the calculation rules are in 13 CFR 121.104 (receipts, averaged over the look-back period set by SBA) and 121.106 (employees). Affiliation under 13 CFR 121.103 matters: the receipts and employees of affiliated companies are added to yours, which is how a firm that looks small on its own can be other than small.

What to check: the size standard printed on the solicitation, your own numbers under SBA's averaging rule, affiliation through ownership or common management, and the certification you make in SAM.gov. A size protest after award (13 CFR 121.1001) can cost you the contract, and a false size representation carries penalties under 13 CFR 121.108.

What it is not: the same for every code, and not a one-time status. You re-represent size in SAM every year and at certain contract events under FAR 19.301-2.

See also: NAICS code, Set-aside, Joint venture (JV), SAM.gov

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