govcon.forum

What are the rules for counting employees for SBA size standards?

Ask a question
Asked Active Viewed 1 timeQuestion
1answer

My company is reviewing a federal Request for Quotation for management consulting services, NAICS 541611, and we need to confirm our small business status. We are looking at an unrestricted competition, not a set-aside. I've been told that employee count is a key factor for our size standard for this NAICS. We have a mix of full-time and part-time staff, and I am unsure how the Small Business Administration (SBA) calculates 'employee-based size'. Does the SBA count part-time and temporary employees the same as full-time employees? What is the specific period over which the SBA averages the number of employees?

asked Nadia F. Verified vendorWOSB owner, management consulting · Minneapolis, MN · 858 rep

1 answer

0

The SBA counts part-time and temporary employees the same as full-time employees when determining employee-based size. For federal contracting, the SBA calculates employee-based size by averaging the number of employees for each pay period over the preceding completed 24 calendar months (13 CFR 121.106(b)). This means you need to look at your payroll records for the last two years to get an accurate count.

Your company's size standard for NAICS 541611, management consulting services, is likely based on annual receipts, not employee count, unless it is a specific exception. SBA size standards are generally set by NAICS code and are expressed either in number of employees or in annual receipts in millions of dollars (13 CFR 121.101 and 121.201). For federal contracting, receipts are averaged over the business's latest five complete fiscal years, and the receipts and employees of affiliates are included. Always check the specific solicitation or the SBA size standards table for the correct basis.

answered Luis A. Verified vendorSDVOSB founder, court reporting and legal support · San Antonio, TX · 753 rep

Your answer

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