DATE: August 13, 2002
SUBJECT: Small Business Administration; Small Business Size Standards by 2002 North American Industry Classification System (NAICS)
SOURCE: Federal Register, August 13, 2002, Vol. 67, No. 156, pages 52597 and 52633
AGENCIES: Small Business Administration (SBA)
ACTION: Direct Final Rule and Proposed Rule
SYNOPSIS: The SBA is amending its small business size standards regulations by incorporating the Office of Management and Budget's (OMB) 2002 modifications of the North American Industry Classification System (NAICS) into its table of small business size standards.
EDITOR'S NOTE: The SBA's regulations are in Title 13 of the Code of Federal Regulations (CFR). 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 North American Industry Classification System codes?
The NAICS was adopted in 1997 by OMB to replace the Standard Industrial Classification (SIC), which was originally developed in the 1930's, to better reflect the economy's changing industry composition and organization.
For more on OMB's 2002 modifications of NAICS, see the January 16, 2001, FEDERAL CONTRACTS DISPATCH "Office of Management and Budget; North American Industry Classification System -- Revision for 2002."
For complete information on the relationship between NAICS 1997 and NAICS 2002, see the U.S. Bureau of the Census web site at http://www.census.gov/epcd/naics02/.
SBA is modifying its small business size standards through use of a "direct final rule," which SBA reserves for rules it believes are noncontroversial. Normally, if SBA receives any adverse comments on a direct final rule, it withdraws the rule, considers the comments, then decides whether to publish a proposed rule for comments. However, to shorten the process should adverse comments are submitted, SBA is publishing concurrently a proposed rule that is an exact duplicate of the direct final rule. Those who submit adverse comments on the direct final rule are invited to submit those comments under the proposed rule. SBA will withdraw the direct final rule, consider the comments submitted under the proposed rule, and decide on the contents of a final rule.
DATES: This rule is effective October 1, 2002, without further action, unless adverse comment is received by September 12, 2002. Comments on the proposed rule must be received by September 12, 2002.
ADDRESSES: Send comments concerning this rule to Gary M. Jackson, Assistant Administrator for Size Standards, Office of Size Standards, 409 Third Street, SW, Washington, DC 20416, or by e-mail to email@example.com, or by fax to 202-205-6390. Those submitting comments should address whether they think SBA should adopt NAICS 2002 and what they believe the impact on small businesses will be.
FOR FURTHER INFORMATION CONTACT: Carl Jordan, Office of Size Standards, at 202-205-6618 or e-mail: firstname.lastname@example.org.
SUPPLEMENTAL INFORMATION: SBA adopted NAICS industry definitions as a basis for its small business size standards effective October 1, 2000 (see the May 15, 2000, FEDERAL CONTRACTS DISPATCH "Small Business Administration -- North American Industry Classification System (NAICS) Small Business Size Standards"). OMB restructured and modified parts of NAICS on January 16, 2001, effective January 1, 2002. This direct final rule incorporates OMB's restructuring and modifications into SBA's small business size standards.
NAICS 2002 is the same as NAICS 1997 for 16 of the 20 industry sectors. Two sectors, Construction and Wholesale Trade, are substantially changed. Also, OMB modified a number of classifications in the Retail Trades sector, and reorganized the Information sector.
The small business size standards for 12 NAICS 1997 industries and economic activities have been changed. The 12 activities with a size standard change moved to seven NAICS 2002 industries. The following is a list of the NAICS 1997 industries and corresponding size standards and the revised NAICS 2002 industries and corresponding size standards:
|NAICS 1997||NAICS 2002|
except as indicated)
|213112||$6.0||Construction of Field Gathering Lines (support of oil and gas operations)||237120||$28.5||Oil and Gas Pipeline and Related Structures Construction|
|213112||$6.0||Site Preparation and Related Construction Activities (support of oil and gas operations)||238910||$12.0||Site Preparation Contractors|
|213113||$6.0||Site Preparation and Related Construction Activities (support of coal mining industry)||238910||$12.0||Site Preparation Contractors|
|213114||$6.0||Site Preparation and Related Construction Activities (support of metal mining industry)||238910||$12.0||Site Preparation ContractorS|
|213115||$6.0||Site Preparation and Related Construction Activities (support of nonmetallic minerals industry)||238910||$12.0||Site Preparation Contractors|
|234990||$28.5||Right-of-Way Clearing and Line Slashing, Blasting, Trenching, and Equipment Rental||238910||$12.0||Site Preparation Contractors|
|234990||$28.5||Rental of Cranes with Operator||238990||$12.0||All Other Specialty Trade Contractors|
|235810||$12.0||Water Well Drilling Contractors||237110||$28.5||Water and Sewer Line and Related Structures Construction|
|235990||$12.0||Indoor Swimming Pools||236220||$28.5||Commercial and Institutional Building Construction|
|235990||$12.0||Anchored Earth Retention Contractors||237990||$28.5||Other Heavy and Civil Engineering Construction|
|514199||$6.0||Internet Broadcasting||516110||500 employees||Internet Publishing and Broadcasting|
|561720||$14.0||Cleaning Buildings During and Immediately After Construction||238990||$12.0||All Other Specialty Trade Contractors|
EDITOR'S NOTE: To be on the safe side, small businesses ought to check SBA's small business size standards to make sure their size standards have not changed, possibly making them ineligible for small business set-aside awards, awards under the 8(a) program, and other SBA assistance.
FOR FURTHER INFORMATION CONTACT: Panoptic Enterprises at 703-451-5953 or by e-mail to Panoptic@FedGovContracts.com.
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