Coming Soon: Bigger Size Standard for IT, Other Services The Small Business Administration will soon propose a significant increase in size standards for IT services and many other categories of services. Anthony Martoccia, associate administrator for government contracting and business development, told Set-Aside Alert the standards will be changed for NAICS sector 54, covering professional, scientific and technical services. The current standard for IT services is $23 million in annual revenue; most other services in the sector are capped at $6.5 million. Martoccia called the proposed rule a “significant change.” He declined to be specific because Administrator Steven Preston had not given final approval. He said the proposal will be published by the end of the month. Martoccia said the changes are designed to help mid-sized businesses. Several studies have shown that those companies are losing market share in federal contracting after they outgrow small business status. Executives of several industry groups said they did not know what the new standards would be. The Information Technology Association of America has urged SBA to set the IT services standard at $50 million or 500 employees. Alan Chvotkin, senior vice president of the Professional Services Council, said industry would welcome an increase. “It’s a good step, but it’s a band-aid,” he said. “It fixes the symptoms rather than the root cause of the problem.” The Council and other industry groups have urged SBA to establish separate size standards for federal procurement, larger than the standards for its loan programs. At a Washington news conference Feb. 1, SBA Administrator Steven Preston said the agency has dropped plans for a comprehensive overhaul of size standards. SBA proposed a revision of all the standards in 2004, but withdrew the proposal in the face of industry opposition.