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How does the SBA calculate annual receipts for size standards, especially for new businesses?

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Hey everyone,

I'm trying to figure out the size standards for federal contracts, specifically for the 561730 Landscaping Services NAICS code. My company is pretty new, only been operating for a couple of years. I know the SBA sets these standards, but I'm confused about how they actually calculate annual receipts, especially for a business that hasn't been around for five full fiscal years yet.

I've looked at the SBA's size standards page, and it mentions averaging receipts over five years. What happens if you don't have five years of data? Do they just take what you have and average it, or is there a different calculation? Also, do they include receipts from any affiliated businesses, even if they're not directly in landscaping? I want to make sure I understand this correctly before I respond to any more solicitations.

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asked Jordan P. First-year bidder, landscaping and grounds · Jacksonville, FL · 398 rep

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The Small Business Administration (SBA) calculates annual receipts for size standards by averaging a business's latest five complete fiscal years. If a business has not been in existence for five complete fiscal years, the SBA averages the receipts for the periods the business has been in business. The receipts of affiliated businesses are included in the calculation (sba.gov, size standards page).

SBA size standards are set by NAICS code and are expressed either in number of employees or in annual receipts in millions of dollars, as outlined in 13 CFR 121.101 and 121.201. For federal contracting, these receipts and employees of affiliates are always included. For state or local contracts, you will need to check the specific state or local procurement rules, as they may have different methods for calculating receipts or different size standards.

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answered govcon.forum team RFPFinder staffModerators, RFPFinder staff · United States · 398 rep

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Sign up to answerCite the FAR clause or procurement code where you can.

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