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SBA Reviewing New Size Standards for Services

Changes in the size standards for NAICS sector 54, an important industry sector for federal service contractors, are still months away, but Congress has ordered SBA to step up its review of all standards.

SBA spokeswoman Tiffani Shea Clements said a draft of proposed changes in sector 54—covering professional, scientific and technical services—is undergoing clearance within the agency, but it will not be sent to the Office of Management and Budget for final review for at least another month. After that, OMB has up to three months before the proposed rule is published for comment. The final changes would not be adopted until months later. “We cannot predict when we will publish it in the Federal Register,” Clements said.

The Small Business Jobs Act, signed by President Obama on Sept. 27, directs SBA to review at least one-third of its standards every 18 months. There are 19 NAICS sectors (the sector is the first two digits of the NAICS code) and 44 different size standards covering 1,100 industries.

SBA announced a similar timetable in 2007 when it launched the first comprehensive review of the standards in more than 25 years, but it fell far behind schedule.

The first changes are just now being adopted, three years later. Those changes take effect Nov. 5 for sectors 44 and 45, retailers; 72, accommodations and food services; and 81, other services, a catchall category covering most types of repairs and personal services such as barber shops and dry cleaning. SBA ordered huge increases in many of the size standards for those industries. The agency estimated more than 17,000 new companies would become eligible for small business contracting and loan programs under the larger standards. (SAA, 10/8)

The new standards for sectors 44-45 can be found at http://edocket.access.gpo.gov/2010/2010-24855.htm.

For sector 72: http://edocket.access.gpo.gov/2010/2010-24857.htm.

For Sector 81: http://edocket.access.gpo.gov/2010/2010-24860.htm.

NAICS sector 54 is next in line. Current standards in the sector range from $7 million to $27 million in annual revenue. Industry groups and the Defense Department have long urged broad increases in those standards to meet the present-day realities of federal contracting.


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