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Barry McVay's FEDERAL CONTRACTS DISPATCH

DATE: October 11, 2000

FROM: Barry McVay, CPCM

SUBJECT: Small Business Administration (SBA); Small Business Size Standards for Arrangement of Freight and Cargo Transportation

SOURCE: Federal Register, October 11, 2000, Vol. 65, No. 197, page 60342

AGENCIES: Small Business Administration (SBA)

ACTION: Clarification

SYNOPSIS: On May 15, 2000, SBA established a new set of small business size standards based on the North American Industry Classification System (NAICS), which replaced the Standard Industrial Classification (SIC) code-based small business size standards effective October 1, 2000. However, on August 9, 2000, before the NAICS size standards went into effect, SBA revised the size standards for SIC 4731, Arrangement of Transportation of Freight and Cargo, and the method for calculating revenues. This clarification updates the NAICS size standards table to reflect the changes to the Freight Transportation Arrangement industry.

In addition, this action adds to the NAICS table "Subsector 213 -- Support Activities for Mining", which was inadvertently excluded from the May 15, 2000 publication

EDITOR'S NOTE: The SBA's regulations are in Title 13 of the Code of Federal Regulations. The SBA small business size regulations are in Chapter 1, Small Business Administration; Part 121, Small Business Size Regulations; Subpart A, Size Eligibility Provisions and Standards; Section 121.201, What size standards has SBA identified by Standards Industrial Classification codes?

For more on SBA's conversion of its Standard Industrial Classification (SIC)-based small business size standards to a North American Industry Classification System (NAICS)-based system, see the May 15, 2000, FEDERAL CONTRACTS DISPATCH "Small Business Administration -- North American Industry Classification System (NAICS) Small Business Size Standards."

For more on the change in the small business size standards for the arrangement of freight and cargo transportation industry, see the August 9, 2000, FEDERAL CONTRACTS DISPATCH "Small Business Administration (SBA); Small Business Size Standards for Arrangement of Freight and Cargo Transportation."

EFFECTIVE DATE: October 1, 2000.

FOR FURTHER INFORMATION CONTACT: Diane Heal, Office of Size Standards, 202-205-6618.

SUPPLEMENTAL INFORMATION: In the August 9, 2000, change to the SIC 4731 size standards, SBA mentioned that this change would affect the NAICS size standards. It said that the industries covered under SIC Code 4731 correlated to the industries covered under NAICS Code 488510, Freight Transportation Arrangement ($5 million, except for non-vessel owning common carriers and household goods forwarders, which would have an $18.5 million size standard), and NAICS Code 541614, Process, Physical Distribution, and Logistics Consulting Services ($5 million).

This clarification revises the table "Small Business Size Standards by NAICS Industry" in Section 121.201, What size standards has SBA identified by North American Industry Classification System codes?, to reflect these changes, and to revise Footnote 10 to apply to the $5 million portion of NAICS 488510. Footnote 10 states that the $5 million is "as measured by total revenues, but excluding funds received in trust for an unaffiliated third party, such as bookings or sales subject to commissions. The commissions received are included as revenue."

In addition, the NAICS table in the May 15, 2000, final rule inadvertently left out Subsector 213, Support Activities for Mining, though all the Subsector 213 industries were included. This clarification adds the Subsector 213 heading to the table.

EDITOR'S NOTE: The SBA maintains its NAICS-based small business size standards at the web site http://www.sba.gov/size/.

The Bureau of the Census maintains an NAICS web site at http://www.census.gov/epcd/www/naics.html. Available on the web site are tables cross-referencing SIC codes to the comparable NAICS codes (http://www.census.gov/epcd/naics/naicstb2.txt) and NAICS codes to the comparable SIC codes (http://www.census.gov/epcd/naics/naicstb1.txt).

FOR FURTHER INFORMATION CONTACT: Barry McVay at 703-451-5953 or by e-mail to BarryMcVay@FedGovContracts.com.

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