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How is 'employee-based size' calculated for SBA size standards?

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My firm is looking at a county janitorial contract, a Request for Quotation (RFQ) for a local school district. It's a set-aside for small businesses under our NAICS code 561720, janitorial services. We are right on the edge of the employee-based size standard for this code. I know the SBA counts employees to determine size, but I'm not clear on how they do it. Does it include part-time staff? Do they average it over a year, or look at a specific point in time? I want to make sure I get this right before we submit our quote next month and find out we're not actually a small business. How exactly is 'employee-based size' calculated for SBA size standards?

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asked Marcus T. Verified vendorOwner, janitorial and facilities firm · Columbus, OH · 1444 rep

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The SBA calculates employee-based size by averaging the number of employees for each pay period over the preceding completed 24 calendar months. Part-time and temporary employees count the same as full-time employees in this calculation (13 CFR 121.106(b)).

This method ensures that a business's size isn't based on a single snapshot in time, which can fluctuate. The SBA also includes the employees of any affiliates when determining a firm's size (sba.gov, size standards page).

It is important to note that while federal contracts use these SBA size standards, a county janitorial contract for a local school district will follow its own state or local procurement rules. You should check the specific guidance in the Request for Quotation (RFQ) or the county's vendor guide for how they determine small business status. Some state and local entities may have different methods or thresholds for their small business programs than the federal government.

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answered Grace L. Verified vendorGSA Schedule contract holder, office products and services · Chicago, IL · 771 rep

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

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