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Panoptic Enterprises' FEDERAL CONTRACTS DISPATCH

DATE: February 3, 2003

SUBJECT: Small Business Administration; Small Business Size Standard for Job Corps Centers

SOURCE: Federal Register, March 21, 2003, Vol. 68, No. 55, page 13807

AGENCIES: Small Business Administration (SBA)

ACTION: Final Rule

SYNOPSIS: SBA is establishing a $30,000,000 small business size standard in average annual receipts for Job Corps Centers activities classified within the "Other Technical and Trade Schools" industry (North American Industry Classification System (NAICS) code 611519). The current size standard for all activities within NAICS 611519 is $6,000,000 in average annual receipts.

EDITOR'S NOTE: For more on the proposed change, see the November 22, 2002, FEDERAL CONTRACTS DISPATCH "Small Business Administration; Small Business Size Standard for Job Corps Centers."

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?

A complete listing of current size standards is available at SBA's Size Standards website at http://www.sba.gov/size/sizetable2002.html, or by calling 202-205-6618 and requesting a copy of the table of size standards.

EFFECTIVE DATE: April 21, 2003.

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

SUPPLEMENTAL INFORMATION: The Department of Labor (DOL) operates most Job Corps Centers though private companies. DOL had classified its Job Corps Centers contracts under the Facilities Support Services industry, NAICS 561210, and applied the Base Maintenance size standard of $23,000,000 in average annual receipts. A potential offeror on a recent solicitation appealed this NAICS designation to SBA's Office of Hearings and Appeals (OHA). OHA decided that the Job Corps Center contract was not properly classified under the Base Maintenance subcategory of Facilities Support Services (see NAICS Appeal of Global Solutions Network, Inc., SBA No. NAICS-4478, dated March 5, 2002). For the appealed requirement, OHA determined that the proper classification for an activity that trains individuals in life skills and readies them for the job market through academic studies and/or technical training is Other Technical and Trade Schools, NAICS 611519. The effect of this decision was to change the size standard for Job Corps Center contracts from $23,000,000 to $6,000,000. DOL requested that SBA review the size standard used for Federal Job Corps Center contracts, and based on the review, SBA proposed on November 22, 2002, to establish $30,000,000 as the small business size standard specifically for DOL Job Corp Center contracts as an exception within NAICS 611519, and proposed the following footnote 16 to the table in 13 CFR 121.201:

"Job Corps Centers. For classifying a federal procurement, the purpose of the solicitation must be for the management and operation of a U.S. Department of Labor Job Corps Center. The activities involved include admissions activities, life skills training, educational activities, comprehensive career preparation activities, career development activities, career transition activities, as well as the management and support functions and services needed to operate and maintain the facility. For SBA assistance as a small business concern, other than for federal government procurements, a concern must be primarily engaged in providing the services to operate and maintain Federal Job Corps Centers."

SBA received comments from eight respondents on the proposed size standard. Six of these respondents supported the proposed size standard of $30,000,000, one respondent recommended a size standard between $12,000,000 and $15,000,000, and one respondent opposed the SBA's proposal to change the $6,000,000 size standard. Based on the comments received, SBA has decided to adopt the proposed size standard and footnote 16 as final.

FOR FURTHER INFORMATION CONTACT: Panoptic Enterprises at 703-451-5953 or by e-mail to Panoptic@FedGovContracts.com.

Copyright 2003 by Panoptic Enterprises. All Rights Reserved.

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