SBA “Revved Up” For Size Standard Changes SBA plans to propose the first in a series of size standard changes within a few weeks. “We are going to make a full review of all of our size standards,” Administrator Steven Preston said. “The engine is already revved up.” Set-Aside Alert first reported the review in July. (SAA,7/27/2007) Deputy Administrator Jovita Carranza said the agency hopes to publish proposed changes in the first three industry sectors by March 31. SBA did not specify which industries will be affected. Preston said the agency has divided the 19 industry sectors (the first two digits of the NAICS codes) into “chunks,” and is reviewing a few of them at a time. “Every quarter we are going through a process where we are taking a group of size standards, researching them, and entering the federal rulemaking process to adjust them to the right size for the industry,” he told reporters Jan. 22. He said the review may not be completed for more than a year, after the Bush administration leaves office. There is widespread industry and government support for increasing the standard for NAICS sector 54, covering IT and most other services. A year ago SBA officials said they were close to a decision on that sector, but Carranza now says it is not likely to be among the first group. “We want to make sure we get it right,” she told Set-Aside Alert. The current standard for IT services is $23 million in annual revenue; most other services in the sector are capped at $6.5 million. The Defense Department has been pushing for an increase. The Information Technology Association of America has urged that the $23 million standard be raised to $50 million. Some industry groups want a separate set of size standards for procurement, larger than those for SBA loans and other programs. They argue that the growing size of federal contracts means “small has got to be larger than it used to be,” in the words of Hank Wilfong, president of the National Association of Small Disadvantaged Businesses. SBA proposed a complete overhaul of size standards in 2004, but opposition from industry and key Congress members scuttled that proposal. Officials said the issue was revived last year after discussions with the Office of Federal Procurement Policy. (SAA, 7/27/2007)