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Proposed Rule

Small Business Size Standards for Manufacturing

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Start Preamble Start Printed Page 54146

AGENCY:

U.S. Small Business Administration.

ACTION:

Proposed rule.

SUMMARY:

The U.S. Small Business Administration (SBA) proposes to increase small business size standards for 209 industries in North American Industry Classification System (NAICS) Sector 31-33, Manufacturing. SBA also proposes to increase the refining capacity component of the Petroleum Refiners (NAICS 324110) size standard to 200,000 barrels per calendar day total capacity for businesses that are primarily engaged in petroleum refining. In addition, SBA proposes to eliminate the requirement that 90 percent of output being delivered is refined by the bidder. As part of its ongoing comprehensive size standards review, SBA evaluated employee based size standards for all 364 industries in NAICS Sector 31-33 to determine whether they should be retained or revised. This proposed rule is one of a series of proposed rules that will review size standards of industries grouped by NAICS Sector.

DATES:

SBA must receive comments to this proposed rule on or before November 10, 2014.

ADDRESSES:

Identify your comments by RIN 3245-AG50 and submit them by one of the following methods:

(1) Federal eRulemaking Portal: www.regulations.gov, following the instructions for submitting comments; or

(2) Mail/Hand Delivery/Courier: Khem R. Sharma, Ph.D., Chief, Size Standards Division, 409 Third Street SW., Mail Code 6530, Washington, DC 20416. SBA will not accept comments to this proposed rule submitted by email.

SBA will post all comments to this proposed rule on www.regulations.gov. If you wish to submit confidential business information (CBI) as defined in the User Notice at www.regulations.gov, you must submit such information to U.S. Small Business Administration, Khem R. Sharma, Ph.D., Chief, Size Standards Division, 409 Third Street SW., Mail Code 6530, Washington, DC 20416, or send an email to sizestandards@sba.gov. Highlight the information that you consider to be CBI and explain why you believe SBA should hold this information as confidential. SBA will review your information and determine whether it will make the information public.

Start Further Info

FOR FURTHER INFORMATION CONTACT:

Jorge Laboy-Bruno, Ph.D., Economist, Size Standards Division, (202) 205-6618 or sizestandards@sba.gov.

End Further Info End Preamble Start Supplemental Information

SUPPLEMENTARY INFORMATION:

To determine eligibility for Federal small business assistance, SBA establishes small business size definitions (referred to as size standards) for private sector industries in the United States. SBA uses two primary measures of business size—average annual receipts and average number of employees. SBA uses financial assets, electric output, and refining capacity to measure the size of a few specialized industries. In addition, SBA's Small Business Investment Company (SBIC), Certified Development Company (504), and 7(a) Loan Programs use either the industry based size standards, or net worth and net income based alternative size standards to determine eligibility for those programs. At the start of the SBA's current comprehensive size standards review when the size standards were based on NAICS 2007, there were 41 different size standards covering 1,141 NAICS industries and 18 sub-industry activities (“exceptions” in SBA's table of size standards). Thirty-one of these size levels were based on average annual receipts, seven were based on average number of employees, and three were based on other measures. Presently, under NAICS 2012, there are 28 different size standards covering 1,031 industries and 16 “exceptions”. Of these, 533 are based on average annual receipts, 509 on number of employees (one of which also contains barrels per day total capacity), and five on average assets.

Over the years, SBA has received comments that its size standards have not kept up with changes in the economy, in particular the changes in the Federal contracting marketplace and industry structure. The last time SBA conducted a comprehensive size standards review was during the late 1970s and early 1980s. Since then, most reviews of size standards were limited to a few specific industries, mostly with receipts based size standards, in response to requests from the public and Federal agencies. SBA reviews all monetary based size standards (except for statutorily set size standards in NAICS Sector 11) for inflation at least once every five years. SBA's latest inflation adjustment to size standards was published in the Federal Register on June 12, 2014 (79 FR 33647). However, the vast majority of manufacturing size standards have not been reviewed since they were first established.

Because of changes in the Federal marketplace and industry structure since the last comprehensive size standards review, SBA recognizes that current data may no longer support some of its existing size standards. Accordingly, in 2007, SBA began a comprehensive size standards review to determine if they are consistent with current data, and to adjust them when necessary. In addition, on September 27, 2010, the President of the United States signed the Small Business Jobs Act of 2010 (Jobs Act). The Jobs Act directs SBA to conduct a detailed review of all size standards and to make appropriate adjustments to reflect market conditions. Specifically, the Jobs Act requires SBA to conduct a detailed review of at least one-third of all size standards during every 18-month period from the date of its enactment. In addition, the Jobs Act requires that SBA review all size standards not less frequently than once every five years thereafter. Reviewing existing small business size standards and making appropriate adjustments based on the latest available data are also consistent with Executive Order 13563 on improving regulation and regulatory review.

Rather than review all size standards at one time, SBA is reviewing size standards on a Sector by Sector basis. A NAICS Sector generally includes 25 to 75 industries, except for NAICS Sector 31-33, Manufacturing, which has more than 350 industries. As stated above, this proposed rule covers all industries in NAICS Sector 31-33. Once SBA completes its review of size standards for industries in a NAICS Sector, it issues a proposed rule to revise size standards for those industries based on latest industry and program data available and other relevant factors, such as current economic climate and SBA's and other government's programs and policies to help small businesses.

Below is a discussion of SBA's size standards methodology for establishing employee based size standards that the Agency applied to this proposed rule, including analyses of industry structure, Federal contracting factor, the impact of the proposed revisions to size standards on SBA's financial assistance to small businesses, and the evaluation of whether a revised size standard would exclude dominant firms from being considered small.

Size Standards Methodology

In conjunction with the current comprehensive size standards review, Start Printed Page 54147SBA developed a “Size Standards Methodology” for developing, reviewing, and modifying size standards when necessary. SBA published the document on its Web site at www.sba.gov/​size for public review and comments, and has included it as a supporting document in the electronic docket of this proposed rule at www.regulations.gov. It should be noted that SBA does not apply all features of its “Size Standards Methodology” to all industries because not all features are appropriate for every industry. For example, since all industries in Sector 31-33 have employee based size standards, the methodology described in this proposed rule relates only to establishing employee based size standards. However, the methodology is available in its entirety for parties who have an interest in SBA's overall approach to establishing, evaluating, and modifying small business size standards. SBA always explains its methodology and analysis in individual proposed and final rules relating to size standards for specific industries.

SBA welcomes comments from the public on a number of issues concerning its “Size Standards Methodology,” that the Agency has applied in this proposed rule, such as whether there are other approaches to establishing and modifying size standards; whether there are alternative or additional factors that SBA should consider; whether SBA's approach to small business size standards makes sense in the current economic environment; whether SBA's use of anchor size standards is appropriate; whether there are gaps in SBA's methodology because the data it uses are not current or sufficiently comprehensive; and whether there are other data, facts, and/or issues that SBA should consider. Comments on SBA's size standards methodology should be submitted via: (1) The Federal eRulemaking Portal: www.regulations.gov, following the instructions for submitting comments; the docket number is SBA-2009-0008, or (2) Mail/Hand Delivery/Courier: Khem R. Sharma, Ph.D., Chief, Size Standards Division, 409 Third Street SW., Mail Code 6530, Washington, DC 20416. As it will do with comments to this and other proposed rules, SBA will post all comments on its methodology on www.regulations.gov. As of June 12, 2014, SBA has received 18 comments to its “Size Standards Methodology.” The comments are available to the public at www.regulations.gov. SBA continues to welcome comments on its methodology from interested parties. SBA will not accept comments to its “Size Standards Methodology” submitted by email.

Congress granted the SBA's Administrator discretion to establish detailed small business size standards. 15 U.S.C. 632(a)(2). Specifically, Section 3(a)(3) of the Small Business Act (15 U.S.C. 632(a)(3)) requires that “. . . the [SBA] Administrator shall ensure that the size standard varies from industry to industry to the extent necessary to reflect the differing characteristics of the various industries and consider other factors deemed to be relevant by the Administrator.” Accordingly, the economic structure of an industry is the basis for developing and modifying small business size standards. SBA identifies the small business segment of an industry by examining data on the economic characteristics defining the industry structure (as described below). In addition, SBA considers current economic conditions, its mission and program objectives, the Administration's current policies, suggestions from industry groups and Federal agencies, and public comments on the proposed rule. SBA also examines whether a size standard based on industry and other relevant data successfully excludes businesses that are dominant in the industry.

This proposed rule includes information regarding the factors SBA evaluated and the criteria it used to propose adjustments, where necessary, to size standards for industries covered by this rule. This proposed rule affords the public an opportunity to review and to comment on SBA's proposal to revise size standards for certain industries, as well as on the data and methodology it used to evaluate and revise the size standards.

Industry Analysis

For the current comprehensive size standards review, SBA has established three “base” or “anchor” size standards—$7.0 million in average annual receipts for industries that have receipts based size standards, 500 employees for Manufacturing and industries that have employee based size standards in non-manufacturing Sectors (except for Wholesale Trade and Retail Trade), and 100 employees for industries in the Wholesale and Retail Trade Sectors that have employee based size standards. SBA established 500 employees as the anchor size standard for manufacturing industries at its inception in 1953. Shortly thereafter, SBA established $1 million in average annual receipts as the anchor size standard for nonmanufacturing industries. SBA has periodically increased the receipts based anchor size standard for inflation, and today it is $7 million. Since 1986, the size standard for all industries in the Wholesale Trade Sector for SBA's financial assistance and for most Federal programs has been 100 employees. Presently, SBA also has employee based size standards for two industries in Retail Trade, namely NAICS 441110, New Car Dealers (200 employees) and NAICS 454310, Fuel Dealers (50 employees). However, NAICS codes for the Wholesale and Retail Trade Sectors and their size standards do not apply to Federal procurement programs. Rather, for Federal procurement the size standard for all industries in Wholesale Trade (NAICS Sector 42) and for all industries in Retail Trade (NAICS Sector 44-45) is 500 employees under the SBA's nonmanufacturer rule (13 CFR 121.406(b)).

These long-standing anchor size standards have stood the test of time and gained legitimacy through practice and general public acceptance. An anchor is neither a minimum nor a maximum size standard. It is a common size standard for a large number of industries that have similar economic characteristics and serves as a reference point in evaluating size standards for individual industries. SBA uses the anchor in lieu of trying to establish precise small business size standards for each industry. Otherwise, theoretically, the number of size standards might be as high as the number of industries for which SBA establishes size standards (i.e., more than 1,000). Furthermore, the data SBA analyzes are static, while the U.S. economy is not. Hence, absolute precision is impossible. Similarly, because of the disclosure problem in getting the distribution of firms by more granular size classes, the 2007 Economic Census tabulation (the latest available when this proposed rule was prepared) that SBA received from the U.S. Census Bureau for current size standards review would not allow an accurate regulatory impact analysis of size standards changes if precise, separate size standards were established for each industry. SBA presumes an anchor size standard is appropriate for a particular industry unless that industry displays economic characteristics that are considerably different from other industries with the same anchor size standard.

When evaluating a size standard, SBA compares the economic characteristics of the industry under review to the average characteristics of industries with one of the three anchor size standards (referred to as the “anchor comparison group”). This allows SBA to assess the industry structure and to Start Printed Page 54148determine whether the industry is appreciably different from the other industries in the anchor comparison group. If the characteristics of a specific industry under review are similar to the average characteristics of the anchor comparison group, the anchor size standard is generally appropriate for that industry. SBA may consider adopting a size standard below the anchor when: (1) All or most of the industry characteristics are significantly smaller than the average characteristics of the anchor comparison group; or (2) other industry considerations strongly suggest that the anchor size standard would be an unreasonably high size standard for the industry.

If the specific industry's characteristics are significantly higher than those of the anchor comparison group, then a size standard higher than the anchor size standard may be appropriate. The larger the differences are between the characteristics of the industry under review and those in the anchor comparison group, the larger will be the difference between the appropriate industry size standard and the anchor size standard. To determine a size standard above the anchor size standard, SBA analyzes the characteristics of a second comparison group.

For industries with employee based size standards in manufacturing and industries not in Sector 42 (Wholesale Trade) or Sector 44-45 (Retail Trade), SBA has developed a second comparison group consisting of industries that have the highest of employee based size standards. To determine a size standard above the 500-employee anchor size standard, SBA analyzes the characteristics of this second comparison group. The industries in this group have size standards of either 1,000 employees or 1,500 employees; the weighted average size standard for the group is 1,323 employees. SBA refers to this comparison group as the “higher level employee based size standard group.”

To examine industry structure, SBA evaluates average firm size, startup costs and entry barriers, industry competition, and distribution of firms by size. SBA also evaluates the level and small business share of total Federal contracting dollars. These are, generally, the five primary factors SBA examines when establishing or revising a size standard for an industry. However, SBA will also consider and evaluate other information that it believes is relevant to a particular industry (such as technological changes, growth trends, SBA financial assistance, other program factors, etc.). SBA also considers possible impacts of size standard revisions on eligibility for Federal small business assistance, current economic conditions, the Administration's policies, and suggestions from industry groups and Federal agencies. Public comments on a proposed rule also provide important additional information. SBA thoroughly reviews all public comments before making a final decision on its proposed size standards. Below are brief descriptions of each of the five primary factors that SBA has evaluated for each industry and sub-industry covered by this proposed rule. A more detailed description of these factors is provided in SBA's “Size Standards Methodology,” available at http://www.sba.gov/​size.

1. Average firm size. SBA computes two measures of average firm size: Simple average and weighted average. For industries with employee based size standards, the simple average firm size is the total number of employees in an industry divided by the total number of firms in that industry. The weighted average firm size is the sum of weighted simple average firm sizes in different employee size classes, where weights are the shares of total industry employees for respective employee size classes. The simple average firm size weighs all firms within an industry equally regardless of their size. The weighted average firm size overcomes that limitation by giving more weight to larger firms.

If the average firm size of an industry is significantly higher than the average firm size of industries in the anchor comparison industry group, this will generally support a size standard higher than the anchor size standard. Conversely, if the industry's average firm size is similar to or significantly lower than that of the anchor comparison industry group, it will be a basis to adopt the anchor size standard, or, in rare cases, a standard lower than the anchor.

2. Startup costs and entry barriers. Startup costs reflect a firm's initial size in an industry. New entrants to an industry must have sufficient capital and other assets to start and maintain a viable business. If new firms entering a particular industry have greater capital requirements than firms in industries in the anchor comparison group, this can be a basis for establishing a size standard higher than the anchor size standard. In lieu of actual startup cost data, SBA uses average assets as a proxy to measure the capital requirements for new entrants to an industry.

To calculate average assets, SBA begins with the sales to total assets ratio for an industry from the Risk Management Association's Annual eStatement Studies. SBA then applies these ratios to the average receipts of firms in that industry. An industry with average assets that are significantly higher than those of the anchor comparison group is likely to have higher startup costs; this in turn will support a size standard higher than the anchor. Conversely, an industry with average assets that are similar to or lower than those of the anchor comparison group is likely to have lower startup costs; this will support the anchor standard or one lower than the anchor.

3. Industry competition. Industry competition is generally measured by the share of total industry receipts generated by the largest firms in an industry. SBA generally evaluates the share of industry receipts generated by the four largest firms in each industry. This is referred to as the “four-firm concentration ratio,” a commonly used economic measure of market competition. If a significant share of economic activity within the industry is concentrated among a few relatively large companies, all else being equal, SBA will establish a size standard higher than the anchor size standard. SBA does not consider the four-firm concentration ratio as an important factor in assessing a size standard if its share of economic activity of the largest four firms within the industry is less than 40 percent. For an industry with a four-firm concentration ratio of 40 percent or more, SBA compares the average employee size of the four largest firms in the industry with the average employee size of the four largest firms in the anchor and higher level size comparison groups to determine an employee size standard for that industry.

4. Distribution of firms by size. For employee based size standards, SBA examines the shares of industry total receipts accounted for by firms of various employment size classes in an industry. This is an additional factor SBA examines in assessing industry competition. If most of an industry's economic activity is attributable to smaller firms, this generally indicates that small businesses are competitive in that industry. This can, generally, support adopting the anchor size standard. If most of an industry's economic activity is attributable to larger firms, this indicates that small businesses are not competitive in that industry. This can support adopting a size standard above the anchor.

Concentration is a measure of inequality of distribution. To determine the degree of inequality of distribution Start Printed Page 54149in an industry, SBA computes the Gini coefficient by constructing the Lorenz curve. The Lorenz curve presents the cumulative percentages of units (firms) in various employee size classes along the horizontal axis and the cumulative percentages of receipts (or other measures of size) in the same employee size classes along the vertical axis. (For further detail, please refer to SBA's “Size Standards Methodology” on its Web site at www.sba.gov/​size.) Gini coefficient values vary from zero to one. If receipts are distributed equally among all the firms in an industry, the value of the Gini coefficient will equal zero. If an industry's total receipts are attributed to a single firm, the Gini coefficient will equal one.

SBA compares the Gini coefficient value for an industry with that for industries in the anchor comparison group. If the Gini coefficient value for an industry is higher than it is for industries in the anchor comparison industry group this may, all else being equal, warrant a size standard higher than the anchor. Conversely, if an industry's Gini coefficient is similar to or lower than that for the anchor group, the anchor standard, or in some cases a standard lower than the anchor, may be adopted.

5. Impact on Federal contracting and SBA loan programs. SBA examines the possible impact a size standard change may have on Federal small business assistance. This most often focuses on the level and small business share of total Federal contracting dollars in the industry in question. In general, if the small business share of total Federal contracting dollars in an industry with significant Federal contracting is appreciably less than the small business share of the industry's total receipts, this could justify considering a size standard higher than the existing size standard. If the small business share of an industry's total Federal contracting dollars is similar to or higher than the small business share of its total receipts, this would support the existing size standard for that industry. By comparing the small business share in the Federal market with the small business share in the industry-wide market, SBA accounts for conditions in the Federal market in its size standards analysis. The disparity between the small business Federal market share and small business industry-wide share may be due to various factors, such as extensive administrative and compliance requirements associated with Federal contracts, the different skill set required for Federal contracts as compared to typical commercial contracting work, and the size of Federal contracts. Data permitting, SBA will also examine these, as well as other factors that are likely to influence the type of firms within an industry that compete for Federal contracts.

SBA considers the Federal contracting factor in an industry's size standards analysis only if the industry's total Federal contracting dollars average $100 million or more annually during the latest three fiscal years. SBA believes that this threshold reflects a significant level of contracting where a revision to a size standard may have an impact on contracting opportunities to small businesses. For industries where total contracting dollars average $100 million or more annually, SBA establishes a size standard higher than the existing size standard if the small business share of total industry receipts is 10 percent or higher than the small business share of total industry receipts. If this difference is less than 10 percent, this would support the existing size standard.

Besides the impact on small business Federal contracting, SBA also evaluates the impact of a proposed size standard revision on SBA's loan programs. For this, SBA examines the data on volume and number of its guaranteed loans within an industry and the size of firms obtaining those loans. This allows SBA to assess whether the existing, proposed, or revised size standard for a particular industry may restrict the level of financial assistance to small firms. If existing size standards are found to have impeded financial assistance to small businesses, higher size standards may be justified. However, if small businesses under existing size standards have been receiving significant amounts of financial assistance through SBA's loan programs, or if the financial assistance has been provided mainly to businesses that are much smaller than the existing size standards, SBA does not consider this factor when determining the size standard.

Sources of Industry and Program Data

SBA's primary source of industry data used in this proposed rule is a special tabulation of the 2007 Economic Census (see www.census.gov/​econ/​census07/​) prepared by the U.S. Bureau of the Census (Census Bureau) for SBA. The 2007 Economic Census data are the latest Economic Census data available at the time of drafting this proposed rule. SBA expects to receive the special tabulation from the 2012 Economic Census in 2016 for the next round of comprehensive size standards review. The special tabulation provides SBA with data on the number of firms, number of establishments, number of employees, annual payroll, and annual receipts of companies by Industry (6-digit level), Industry Group (4-digit level), Subsector (3-digit level), and Sector (2-digit level). These data are arrayed by various classes of firms' size based on the overall number of employees and receipts of the entire enterprise (all establishments and affiliated firms) from all industries. The special tabulation enables SBA to evaluate average firm size, the four-firm concentration ratio, and distribution of firms by various receipts and employment size classes. It should be noted that the Economic Census tabulation data on the number of firms, number of establishments, number of employees, annual payroll, and annual receipts for a particular NAICS Industry category relate to establishments and firms that are primarily engaged in that Industry. To mitigate this limitation of the Economic Census tabulation data, SBA also examines the data from the System of Award Management (SAM) (formerly Central Contractor Registration (CCR)) and FPDS-NG which provides more recent data on Federal contract awards by NAICS code and the actual size of the concerns receiving the contract awards.

In some cases, where data were not available at the 6-digit industry level due to disclosure prohibitions in the Census Bureau's tabulation, SBA either estimates missing values using available relevant data or examines data at a higher level of industry aggregation, such as at the NAICS 2-digit (Sector), 3-digit (Subsector), or 4-digit (Industry Group) level. In some instances, SBA's analysis is based only on those factors for which data are available or estimates of missing values are possible.

To evaluate the refining capacity component of the size standard for NAICS 324110, Petroleum Refiners, SBA evaluated a special tabulation of refinery production data obtained from Energy Information Administration (EIA). SBA obtained the data on number of employees for petroleum refining companies in the EIA tabulation from Duns and Bradstreet (www.dnb.com) and those companies' SAM (CCR) profiles.

To calculate average assets, SBA used sales to total assets ratios from the Risk Management Association's Annual eStatement Studies, 2009-2011, available at www.statementstudies.org.

To evaluate the Federal contracting factor, SBA examined the data from FPDS-NG for fiscal years 2009-2011, available at https://www.fpds.gov and 2007 Economic Census tabulation, which is the latest available as stated elsewhere in the rule.Start Printed Page 54150

To assess the impact on financial assistance to small businesses, SBA examined its internal data on 7(a) and 504 loan programs for fiscal years 2010-2012.

Data sources and estimation procedures SBA uses in its size standards analysis are documented in detail in SBA's “Size Standards Methodology” White Paper, which is available at www.sba.gov/​size.

Dominance in Field of Operation

Section 3(a) of the Small Business Act (15 U.S.C. 632(a)) defines a small business concern as one that: (1) Is independently owned and operated; (2) is not dominant in its field of operation; and (3) meets a specific small business definition or size standard established by SBA's Administrator. SBA considers as part of its evaluation whether a business concern at a proposed or revised size standard would be dominant in its field of operation. For this, SBA generally examines the industry's market share of firms at the proposed or revised standard. SBA also examines distribution of firms by size to ensure that a contemplated size standard derived from its size standards analysis excludes the largest firms within an industry. Market share, the size distribution and other factors may indicate whether a firm can exercise a major controlling influence on a national basis in an industry where a significant number of business concerns are engaged. If a contemplated size standard includes dominant or the largest firms in an industry, SBA will consider a lower size standard than the one suggested by the analytical results to exclude the dominant and largest firms from being defined as small.

Selection of Size Standards

In NAICS Sector 31-33 (Manufacturing), currently there are four levels of employee based size standards: 500 employees (minimum), 750 employees, 1,000 employees, and 1,500 employees (maximum). In this proposed rule, SBA has applied its “Size Standards Methodology” for employee based size standards with two modifications. First, to be consistent with its policy of not lowering any size standards in all recent proposed and final rules on receipts based size standards, SBA is retaining the current 500-employee minimum and 1,500-employee maximum size standards for all industries in the Manufacturing Sector. In its “Size Standards Methodology,” SBA had proposed setting the minimum size standard for manufacturing industries at 250 employees and the maximum size standard at 1,000 employees. However, doing so would mean lowering existing size standards, thereby making currently small businesses ineligible to continue their participation in Federal small business programs. This would run counter to what SBA and the Administration are doing to help small businesses to create jobs and boost economic growth. Further, lowering a manufacturing size standard below 500 employees would conflict with the existing 500-employee size standard for non-manufacturers under the SBA's non-manufacturer's rule. Second, SBA is proposing a new 1,250-employee size standard between 1,000 employees and 1,500 employees. This new size standard level maintains the same 250-employee increment between the two successive levels that SBA has below 1,000 employees (500, 750, 1,000). SBA proposes, therefore, to apply one of these five employee based size standards to the analysis of size standards for industries in the Manufacturing Sector: 500 employees, 750 employees, 1,000 employees, 1,250 employees, and 1,500 employees.

To simplify size standards and for other reasons, SBA may propose a common size standard for closely related industries. Although the size standard analysis may support a separate size standard for each industry, SBA believes that establishing different size standards for closely related industries may not always be appropriate. For example, in cases where many of the same businesses operate in the same multiple industries, a common size standard for those industries might better reflect the Federal marketplace. This might also make size standards among related industries more consistent than separate size standards for each of those industries. Whenever SBA proposes a common size standard for closely related industries it will provide its justification.

Evaluation of Industry Structure

In this proposed rule, SBA evaluated 364 industries in NAICS Sectors 31-33 to assess the appropriateness of their current size standards. As described above, SBA compared data on the economic characteristics of each of those industries to the average characteristics of industries in two comparison groups. The first comparison group consists of all industries in Manufacturing and industries not in Wholesale Trade or Retail Trade with 500-employee size standards. SBA refers this group of industries to as the “employee based anchor comparison group.” Because the goal of SBA's review is to assess whether a specific industry's size standard should be the same as or different from the anchor size standard, this is the most logical group of industries to analyze. In addition, this group includes a sufficient number of firms to provide a meaningful assessment and comparison of industry characteristics.

As stated previously, if the characteristics of an industry are similar to the average characteristics of industries in the anchor comparison group, the anchor size standard is generally appropriate for that industry. If an industry's structure is significantly different from industries in the anchor group, a size standard lower or higher than the anchor size standard might be appropriate. The proposed new size standard is based on the difference between the characteristics of the anchor comparison group and a second industry comparison group. As described above, the second comparison group for employee based standards consists of industries with either 1,000-employee or 1,500-employee size standards. The weighted average size standard for this group is 1,323 employees. SBA refers this group of industries to as the “higher level employee based size standard comparison group.” SBA determines differences in industry structure between an industry under review and the industries in the two comparison groups by comparing data on each of the industry factors, including average firm size, average assets size, the four-firm concentration ratio, and the Gini coefficient of distribution of firms by size. Table 1, Average Characteristics of Employee Based Comparison Groups, shows the average firm size (both simple and weighted), average assets size, four-firm concentration ratio, average employees of the four largest firms, and the Gini coefficient for both anchor level and higher level comparison groups for employee based size standards.Start Printed Page 54151

Table 1—Average Characteristics of Employee Based Comparison Groups

Employee based comparison groupAverage firm size (number of employees)Average assets size ($ million)Four-firm concentration ratio (%)Average employees of four largest firms *Gini coefficient
Simple averageWeighted average
Anchor Level51322$6.435.91,2670.765
Higher Level13660237.064.32,0330.808
* To be used for industries with a four-firm concentration ratio of 40% or greater.

Derivation of Size Standards Based on Industry Factors

For each industry factor in Table 1, Average Characteristics of Employee Based Comparison Groups, SBA derives a separate size standard based on the differences between the values for an industry under review and the values for the two comparison groups. If the industry value for a particular factor is near the corresponding factor for the anchor comparison group, the 500-employee anchor size standard is appropriate for that factor.

An industry factor significantly above or below the anchor comparison group will generally imply a size standard for that industry above or below the 500-employee anchor. The new size standard in these cases is based on the proportional difference between the industry value and the values for the two comparison groups.

For example, an industry's simple average firm size of 75 employees will support a 750-employee size standard. The 75-employee level is 28.2 percent between 51 employees for the anchor comparison group and 136 employees for the higher level comparison group ((75 employees − 51 employees) ÷ (136 employees − 51 employees) = 0.282 or 28.2%). This proportional difference is applied to the difference between the size standard of 500 employees for the anchor level size standard group and average size standard of 1,323 employees for the higher level size standard group and then added to 500 employees to estimate a size standard of 733 employees ([{1,323 employees − 500 employees} * 0.282] + 500 employees = 733 employees). The final step is to round the estimated 733-employee size standard to the nearest size standard level, which in this example is 750 employees.

SBA applies the above calculation to derive a size standard for each industry factor. Detailed formulas involved in these calculations are presented in SBA's “Size Standards Methodology” which is available on its Web site at www.sba.gov/​size. As stated above, SBA has also included its “Size Standards Methodology” as a supporting document in the electronic docket of this proposed rule at www.regulations.gov. (However, it should be noted that figures in the “Size Standards Methodology” White Paper are based on 2002 Economic Census data and are different from those presented in this proposed rule. That is because when SBA prepared its “Size Standards Methodology,” the 2007 Economic Census data were not yet available). Table 2, Values of Industry Factors and Supported Size Standards, below, shows ranges of values for each industry factor and the levels of size standards supported by those values.

Table 2—Values of Industry Factors and Supported Size Standards

If simple average firm size (number of employees)Or if weighted average firm size (number of employees)Or if average assets size ($ million)Or if average number employees of largest four firmsOr if Gini coefficientThen implied size standard is (number of employees)
< 63.9< 364.5< 11.1< 1,383.3< 0.772500
63.9 to < 89.7364.5 to < 449.611.1 to < 20.31,383.3 to < 1,616.00.772 to < 0.785750
89.7 to < 115.6449.6 to < 534.620.3 to < 29.61,616.0 to < 1,848.70.785 to < 0.7981,000
115.6 to < 141.4534.6 to < 619.729.6 to < 38.91,848.7 to < 2,081.40.798 to < 0.8111,250
≥ 141.4≥ 619.7≥ 38.9≥ 2,081.4≥ 0.8111,500

Derivation of Size Standard Based on Federal Contracting Factor

Besides industry structure, SBA also evaluates Federal contracting data to assess the success of small businesses in getting Federal contracts under the existing size standards. For industries where Federal contract dollars average $100 million or more annually and the small business share of total Federal contracting dollars is 10 to 30 percent lower than the small business share of total industry receipts, SBA has designated a size standard one level higher than their current size standard. For industries where the small business share of total Federal contracting dollars is more than 30 percent lower than the small business share of total industry receipts, SBA has designated a size standard two levels higher than the current size standard. For industries, where this difference is less than 10 percent, SBA applies the existing size standard for the Federal contracting factor.

Because of the complex relationships among several variables affecting small business participation in the Federal marketplace, SBA has chosen not to designate a size standard for the Federal contracting factor alone that is more than two levels above the current size standard. SBA believes that a larger adjustment to size standards based on Federal contracting activity should be based on a more detailed analysis of the impact of any subsequent revision to the current size standard. In limited situations, however, SBA may conduct a more extensive examination of Federal contracting experience. This may support a different size standard than indicated by this general rule and take into consideration significant and unique aspects of small business competitiveness in the Federal contract market. SBA welcomes comments on its methodology for incorporating the Federal contracting factor in its size standard analysis and suggestions for Start Printed Page 54152alternative methods and other relevant information on small business experience in the Federal contract market that SBA should consider.

When SBA adopted NAICS 2012 for its size standards, a number of industries under NAICS 2007 were merged to form new industries or combined with other existing industries. SBA adopted the highest size standard among the merged or combined industries under NAICS 2007 as the size standard for the new industry or modified industry under NAICS 2012. As a result, the size standard increased, effective October 1, 2012, for a number of industries in NAICS Sector 31-33. However, FPDS-NG data for fiscal years 2009-2011 that SBA analyzed to derive the Federal contracting factor were based on older size standards under NAICS 2007. Thus, for industries for which the size standard increased due to the adoption of NAICS 2012, the Federal contracting factor was based on the size standard that was on effect prior to October 1, 2012. Similarly, where multiple industries were merged to a new, single industry, the size standard for Federal contract factor for the new industry was the weighted average size standard of the merged industries prior to October 1, 2012, rounded to the nearest size level. The shares of contract dollars of individual merged industries served as the weights in computing the weighted average size standard.

Of the 364 industries reviewed in this proposed rule, 119 averaged $100 million or more annually in Federal contracting during fiscal years 2009-2011 and thus, the Federal contracting factor was significant for those industries. Of the 119 industries, the difference between the small business share of total industry receipts and small business share of Federal contracting dollars was less than 10 percent for 78 industries and in this proposed rule, SBA applied the existing size standard to each. This difference was between 10 and 30 percent for 29 industries for which a size standard one level higher than the existing size standard was applied. Finally, in 12 industries, this difference was more than 30 percent and a size standard that was two levels higher than the existing size standard was applied.

New Size Standards Based on Industry and Federal Contracting Factors

Table 3, Size Standards Supported by Each Factor for Each Industry (No. of Employees), below, shows the results of analyses of industry and Federal contracting factors for each industry covered by this proposed rule. Many NAICS industries in columns 2, 3, 4, 6, and 7 show two numbers. The upper number is the value for the industry factor shown on the top of the column and the lower number is the size standard supported by that factor. For the four-firm concentration ratio, SBA estimates a size standard only if its value is 40 percent or more. If the four-firm concentration ratio for an industry is less than 40 percent, SBA does not estimate a size standard for that factor. If the four-firm concentration ratio is 40 percent or more, SBA indicates in column 6 the average size of the industry's four largest firms together with a size standard based on that average. Column 9 shows a calculated new size standard for each industry. This is the average of the size standards supported by each factor, rounded to the nearest fixed size level. However, the size standards for the simple average and weighted average firm size are averaged together, and therefore receive a single weight. Analytical details involved in the averaging procedure are described in SBA's “Size Standard Methodology.” For comparison with the new standards, the current size standards are in column 10 of Table 3.

Table 3—Size Standards Supported by Each Factor for Each Industry (Number of Employees)

[Upper Value = Calculated Factor, Lower Value = Size Standard Supported]

NAICS code NAICS industry titleSimple average firm size (number of employees)Weighted average firm size (number of employees)Average assets size ($ million)Four-firm ratio %Four-firm average size (number of employees)Gini coefficientFederal contract factor (%)Calculated size standard (number of employees)Current size standard (number of employees)
(1)(2)(3)(4)(5)(6)(7)(8)(9)(10)
311111 Dog and Cat Food Manufacturing85 750551 1,25071.01,591 7500.884 1,5001,000500
311119 Other Animal Food Manufacturing29 500146 500$8.3 50030.10.784 750500500
311211 Flour Milling60 500427 75025.9 1,00054.5957 5000.821 1,500−14.9 7501,000500
311212 Rice Milling66 750256 50045.6419 5000.693 500500500
311213 Malt Manufacturing68 750123 50073.2145 5000.559 500500500
311221 Wet Corn Milling248 1,5001,101 1,50083.81,384 7500.823 1,5001,250750
311224 Soybean and Other Oilseed Processing76 750347 5000.824 1,5008.8 5001,0001,000
311225 Fats and Oils Refining and Blending116 1,000337 50054.4855 5000.725 50062.3 1,0007501,000
311230 Breakfast Cereal Manufacturing392 1,5001,214 1,50080.41,817 1,0000.754 5001,0001,000
311313 Beet Sugar Manufacturing550 1,500796 1,50081.51,233 5000.325 500750750
311314 Cane Sugar Manufacturing227 1,500430 7500.567 5001,000750
311340 Nonchocolate Confectionery Manufacturing44 500329 50038.20.840 1,5001,000500
311351 Chocolate and Confectionery Manufacturing from Cacao Beans50 500464 1,0000.895 1,5001,250500
311352 Confectionery Manufacturing from Purchased Chocolate29 500485 1,0004.0 5000.913 1,5001,000500
311411 Frozen Fruit, Juice, and Vegetable Manufacturing231 1,500911 1,50045.3 1,50041.13,213 1,5000.737 50022.3 5001,000500
Start Printed Page 54153
311412 Frozen Specialty Food Manufacturing150 1,500879 1,50016.6 75029.40.819 1,5001,250500
311421 Fruit and Vegetable Canning102 1,000656 1,50020.6 1,00024.40.831 1,5006.8 5001,000500
311422 Specialty Canning139 1,250970 1,50075.91,664 1,0000.876 1,5001,2501,000
311423 Dried and Dehydrated Food Manufacturing101 1,000388 75020.6 1,00035.90.720 500750500
311511 Fluid Milk Manufacturing196 1,500896 1,50035.2 1,25046.06,316 1,5000.774 75029.6 5001,000500
311512 Creamery Butter Manufacturing67 750145 50030.1 1,25078.9225 5000.589 500750500
311513 Cheese Manufacturing121 1,250729 1,50034.7 1,25031.50.818 1,500−0.7 5001,250500
311514 Dry, Condensed, and Evaporated Dairy Product Manufacturing108 1,000403 75041.91,195 5000.726 500750500
311520 Ice Cream and Frozen Dessert Manufacturing53 500445 75012.1 75052.71,818 1,0000.863 1,5001,000500
311611 Animal (except Poultry) Slaughtering96 1,0007,661 1,50012.2 75059.420,844 1,5000.953 1,50018.3 5001,000500
311612 Meat Processed from Carcasses85 750936 1,5009.1 50027.90.848 1,5001,000500
311613 Rendering and Meat Byproduct Processing78 750517 1,00010.3 50042.8974 5000.691 500750500
311615 Poultry Processing749 1,5007,247 1,50057.4 1,50045.726,713 1,5000.875 1,500−3.6 5001,250500
311710 Seafood Product Preparation and Packaging69 750547 1,2507.9 5000.786 1,000750500
311811 Retail Bakeries9 50027 5000.2 5003.70.396 500500500
311812 Commercial Bakeries61 5001,180 1,5004.5 50037.30.886 1,500−12.6 7501,000500
311813 Frozen Cakes, Pies, and Other Pastries Manufacturing96 1,000322 50032.40.753 500750500
311821 Cookie and Cracker Manufacturing100 1,0001,267 1,50014.8 75069.33,372 1,5000.918 1,5001,250750
311824 Dry Pasta, Dough, and Flour Mixes Manufacturing from Purchased Flour50 500242 5000.781 750750500
311830 Tortilla Manufacturing48 500932 1,50057.41,726 1,0000.850 1,5001,250500
311911 Roasted Nuts and Peanut Butter Manufacturing74 750346 50013.9 75033.50.727 500750500
311919 Other Snack Food Manufacturing113 1,000986 1,50024.5 1,00071.13,695 1,5000.905 1,5001,250500
311920 Coffee and Tea Manufacturing38 500270 5009.3 50043.3677 5000.867 1,500750500
311930 Flavoring Syrup and Concentrate Manufacturing45 500222 50029.1 1,00080.3583 5000.896 1,5001,000500
311941 Mayonnaise, Dressing, and Other Prepared Sauce Manufacturing53 500304 5009.7 50036.20.801 1,250750500
311942 Spice and Extract Manufacturing58 500222 50012.7 75029.60.743 500500500
311991 Perishable Prepared Food Manufacturing56 500280 5005.4 50027.80.775 750500500
311999 All Other Miscellaneous Food Manufacturing43 500262 5005.7 50018.70.761 500−29.0 750500500
312111 Soft Drink Manufacturing207 1,5001,599 1,50076.6 1,50058.15,557 1,5000.861 1,5006.0 5001,250500
312112 Bottled Water Manufacturing43 500552 1,25012.4 75071.91,528 7500.891 1,50057.1 5001,000500
312113 Ice Manufacturing16 500555 1,25063.6703 5000.720 500750500
312120 Breweries60 5004,594 1,50033.4 1,25089.53,929 1,5000.942 1,5001,250500
312130 Wineries18 500357 5009.6 50042.31,753 1,0000.845 1,5001,000500
312140 Distilleries110 1,000690 1,50069.51,225 5000.867 1,5001,000750
312230 Tobacco Manufacturing245 1,500978 1,500195.8 1,5000.840 1,500−5.0 1,0001,5001,000
313110 Fiber, Yarn, and Thread Mills133 1,2501,041 1,50015.1 7500.832 1,5001,250500
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313210 Broadwoven Fabric Mills79 750482 1,0008.5 50022.20.806 1,2501,0001,000
313220 Narrow Fabric Mills and Schiffli Machine Embroidery36 500146 5002.1 5000.720 500500500
313230 Nonwoven Fabric Mills94 1,000352 50045.31,443 7500.774 750750500
313240 Knit Fabric Mills45 500227 5000.724 500500500
313310 Textile and Fabric Finishing Mills33 500211 5003.0 5000.758 5005001,000
313320 Fabric Coating Mills49 500120 5007.1 50021.60.599 5005001,000
314110 Carpet and Rug Mills137 1,2501,779 1,50024.9 1,00063.64,751 1,5000.905 1,5001,500500
314120 Curtain and Linen Mills18 500194 5001.2 5000.802 1,250750500
314910 Textile Bag and Canvas Mills15 50096 5000.9 5000.658 500−13.7 750500500
314994 Rope, Cordage, Twine, Tire Cord, and Tire Fabric Mills49 500286 5000.821 1,5001,0001,000
314999 All Other Miscellaneous Textile Product Mills17 500152 5001.0 50020.70.765 500−23.6 750500500
315110 Hosiery and Sock Mills75 750415 7505.3 5000.795 1,000750500
315190 Other Apparel Knitting Mills28 500138 5002.8 5000.791 1,000750500
315210 Cut and Sew Apparel Contractors13 50073 5000.4 5000.488 500−64.0 1,000750500
315220 Men's and Boys' Cut and Sew Apparel Manufacturing50 500416 7502.7 5000.817 1,500−5.1 500750500
315240 Women's, Girls', and Infants' Cut and Sew Apparel Manufacturing26 500225 5002.9 5000.794 1,000750500
315280 Other Cut and Sew Apparel Manufacturing25 500129 5001.3 5000.747 500−41.2 1,000750500
315990 Apparel Accessories and Other Apparel Manufacturing19 500205 5000.9 5000.773 750−8.3 500500500
316110 Leather and Hide Tanning and Finishing19 500110 5002.6 50038.50.751 500500500
316210 Footwear Manufacturing55 500550 1,2500.827 1,5007.8 5001,0001,000
316992 Women's Handbag and Purse Manufacturing18 500173 50085.9251 5000.886 1,500750500
316998 All Other Leather Good and Allied Product Manufacturing21 500184 5000.739 500500500
321113 Sawmills27 500272 5004.2 50014.60.765 500500500
321114 Wood Preservation32 500211 5006.4 50031.10.722 500500500
321211 Hardwood Veneer and Plywood Manufacturing66 750408 7506.3 50030.40.683 500500500
321212 Softwood Veneer and Plywood Manufacturing244 1,5001,313 1,50055.72,684 1,5000.747 5001,250500
321213 Engineered Wood Member (except Truss) Manufacturing58 500383 75064.0892 5000.802 1,250750500
321214 Truss Manufacturing45 500214 5002.6 50014.30.643 500500500
321219 Reconstituted Wood Product Manufacturing115 1,000384 75027.70.682 500750500
321911 Wood Window and Door Manufacturing59 500776 1,5004.4 50032.60.837 1,5001,000500
321912 Cut Stock, Resawing Lumber, and Planning30 500139 5003.5 50016.30.681 500500500
321918 Other Millwork (including Flooring)21 500156 5001.6 50018.60.725 500500500
321920 Wood Container and Pallet Manufacturing22 500196 5001.0 50011.30.590 500500500
321991 Manufactured Home (Mobile Home) Manufacturing179 1,5001,995 1,50014.8 75047.74,539 1,5000.824 1,50064.6 5001,250500
321992 Prefabricated Wood Building Manufacturing35 500228 5003.0 50021.90.736 500500500
321999 All Other Miscellaneous Wood Product Manufacturing19 500107 5001.5 5000.706 500500500
322110 Pulp Mills242 1,500652 1,50053.9874 5000.534 500750750
Start Printed Page 54155
322121 Paper (except Newsprint) Mills559 1,5002,866 1,500155.0 1,50049.87,418 1,5000.824 1,500−1.6 7501,250750
322122 Newsprint Mills307 1,500517 1,00058.1651 5000.393 500750750
322130 Paperboard Mills476 1,5001,367 1,500193.7 1,50045.83,598 1,5000.685 5001,250750
322211 Corrugated and Solid Fiber Box Manufacturing118 1,2502,033 1,50015.5 75040.78,642 1,5000.852 1,5001,250500
322212 Folding Paperboard Box Manufacturing115 1,000587 1,25016.0 75033.50.732 500750750
322219 Other Paperboard Container Manufacturing87 750485 1,00011.1 7500.813 1,5001,000750
322220 Paper Bag and Coated and Treated Paper Manufacturing83 750269 50013.6 7500.723 50011.4 500750500
322230 Stationery Product Manufacturing68 750438 7506.8 5000.801 1,250750500
322291 Sanitary Paper Product Manufacturing151 1,500716 1,50043.7 1,50062.21,838 1,0000.812 1,5001,500500
322299 All Other Converted Paper Product Manufacturing40 500138 5005.0 50020.50.697 500500500
323111 Commercial Printing (except Screen and Books)20 500266 5001.6 5000.780 750500500
323113 Commercial Screen Printing15 500106 5000.8 50012.20.695 500500500
323117 Books Printing59 500851 1,5005.1 50042.53,177 1,5000.832 1,5001,250500
323120 Support Activities for Printing20 500146 5001.1 5000.718 500500500
324110 Petroleum Refineries662 1,5002,356 1,5001,849.6 1,50047.56,459 1,5000.746 5000.1 1,5001,2501,500
324121 Asphalt Paving Mixture and Block Manufacturing34 500109 50011.9 75021.80.662 500500500
324122 Asphalt Shingle and Coating Materials Manufacturing92 1,000480 1,00067.01,755 1,0000.769 500750750
324191 Petroleum Lubricating Oil and Grease Manufacturing29 50096 50012.6 75042.5348 5000.814 1,500750500
324199 All Other Petroleum and Coal Products Manufacturing34 500129 50015.7 75045.5173 5000.596 500500500
325110 Petrochemical Manufacturing243 1,500577 1,25079.61,362 5000.696 5007501,000
325120 Industrial Gas Manufacturing115 1,000599 1,25067.61,335 5000.832 1,5007.9 1,0001,0001,000
325130 Synthetic Dye and Pigment Manufacturing81 750324 5000.742 5007501,000
325180 Other Basic Inorganic Chemical Manufacturing91 1,000298 50037.0 1,2500.734 50011.5 1,0001,0001,000
325193 Ethyl Alcohol Manufacturing45 500156 50072.7 1,50025.30.485 5007501,000
325194 Cyclic Crude, Intermediate, and Gum and Wood Chemical Manufacturing77 750323 50086.9 1,5000.803 1,2501,250750
325199 All Other Basic Organic Chemical Manufacturing125 1,250474 1,00098.1 1,50032.00.773 7501,2501,000
325211 Plastics Material and Resin Manufacturing88 750356 50052.8 1,50031.80.834 1,5001,250750
325212 Synthetic Rubber Manufacturing73 750239 50043.0763 5000.703 5005001,000
325220 Artificial and Synthetic Fibers and Filaments Manufacturing161 1,500612 1,2500.739 5001,0001,000
325311 Nitrogenous Fertilizer Manufacturing29 500151 50021.4 1,00061.4364 5000.785 1,0007501,000
325312 Phosphatic Fertilizer Manufacturing123 1,250643 1,50082.91,093 5000.725 500750500
325314 Fertilizer (Mixing Only) Manufacturing24 50085 5006.6 50029.60.687 500500500
325320 Pesticide and Other Agricultural Chemical Manufacturing53 500254 50033.6 1,25058.2805 5000.835 1,5001,000500
325411 Medicinal and Botanical Manufacturing64 750382 75016.3 75053.51,730 1,0000.828 1,500−26.8 1,0001,000750
325412 Pharmaceutical Preparation Manufacturing208 1,5001,611 1,500124.8 1,50034.50.897 1,500−7.4 7501,250750
325413 In-Vitro Diagnostic Substance Manufacturing144 1,500876 1,50048.61,784 1,0000.857 1,5009.3 5001,250500
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Table 3—Size Standards Supported by Each Factor for Each Industry (Number of Employees)

[Upper Value = Calculated Factor, Lower Value = Size Standard Supported]

NAICS code NAICS industry titleSimple average firm size (number of employees)Weighted average firm size (number of employees)Average assets size ($ million)Four-firm ratio %Four-firm average size (number of employees)Gini coefficientFederal contract factor (%)Calculated size standard (number of employees)Current size standard (number of employees)
(1)(2)(3)(4)(5)(6)(7)(8)(9)(10)
325414 Biological Product (except Diagnostic) Manufacturing147 1,500746 1,50051.92,461 1,5000.830 1,5000.8 5001,250500
325510 Paint and Coating Manufacturing37 500395 7509.9 50038.90.868 1,5001,000500
325520 Adhesive Manufacturing50 500161 50011.0 50023.20.742 500500500
325611 Soap and Other Detergent Manufacturing35 500465 1,00018.9 75067.11,619 1,0000.859 1,500−13.1 1,0001,000750
325612 Polish and Other Sanitation Good Manufacturing36 500231 5008.7 50060.21,235 5000.850 1,500750500
325613 Surface Active Agent Manufacturing48 500192 50060.5510 5000.812 1,500750500
325620 Toilet Preparation Manufacturing74 750576 1,25026.9 1,00049.92,568 1,5000.879 1,5001,250500
325910 Printing Ink Manufacturing51 500296 5008.9 50049.91,045 5000.765 500500500
325920 Explosives Manufacturing117 1,250402 75052.2757 5000.650 500−20.2 1,000750750
325991 Custom Compounding of Purchased Resins43 500178 5009.5 50027.60.749 500500500
325992 Photographic Film, Paper, Plate, and Chemical Manufacturing67 7501,623 1,50067.64,055 1,5000.942 1,5001,500500
325998 All Other Miscellaneous Chemical Product and Preparation Manufacturing34 500147 5007.2 50018.90.761 500−17.9 750500500
326111 Plastics Bag and Pouch Manufacturing93 1,000404 75012.6 75026.50.762 500750500
326112 Plastics Packaging Film and Sheet (including Laminated) Manufacturing92 1,000347 50017.0 75048.52,364 1,5000.733 5001,000500
326113 Unlaminated Plastics Film and Sheet (except Packaging) Manufacturing73 750267 50012.2 75019.30.746 500750500
326121 Unlaminated Plastics Profile Shape Manufacturing49 500167 5006.5 50029.20.739 500500500
326122 Plastics Pipe and Pipe Fitting Manufacturing83 750243 50016.1 75030.80.679 500750500
326130 Laminated Plastics Plate, Sheet (except Packaging), and Shape Manufacturing53 500241 5007.6 50034.50.760 500500500
326140 Polystyrene Foam Product Manufacturing81 750571 1,25010.5 50045.92,624 1,5000.803 1,2501,000500
326150 Urethane and Other Foam Product (except Polystyrene) Manufacturing74 750395 75028.00.774 750750500
326160 Plastics Bottle Manufacturing186 1,500883 1,50033.4 1,25046.33,257 1,5000.796 1,0001,250500
326191 Plastics Plumbing Fixture Manufacturing53 500399 7504.2 50032.20.796 1,000750500
326199 All Other Plastics Product Manufacturing67 750366 7506.7 5000.780 750750750
326211 Tire Manufacturing (except Retreading)552 1,5006,344 1,50077.69,879 1,5000.895 1,5007.4 1,0001,5001,000
326212 Tire Retreading21 500137 5001.6 50028.20.641 500500500
326220 Rubber and Plastics Hoses and Belting Manufacturing100 1,000471 1,00012.4 75038.60.738 500750500
326291 Rubber Product Manufacturing for Mechanical Use86 750412 7508.9 50025.50.777 750750500
326299 All Other Rubber Product Manufacturing52 500160 5006.4 50026.90.744 500500500
327110 Pottery, Ceramics, and Plumbing Fixture Manufacturing22 500263 5000.846 1,5001,000750
327120 Clay Building Material and Refractories Manufacturing59 500314 50010.0 5000.769 500500750
327211 Flat Glass Manufacturing519 1,5001,086 1,50078.3 1,50068.91,586 7500.571 5001,0001,000
327212 Other Pressed and Blown Glass and Glassware Manufacturing48 500656 1,50034.40.895 1,5001,250750
327213 Glass Container Manufacturing641 1,5002,038 1,50087.13,040 1,5000.709 5001,250750
327215 Glass Product Manufacturing Made of Purchased Glass41 500584 1,2504.1 50029.80.870 1,5001,000500
327310 Cement Manufacturing120 1,250626 1,50040.81,721 1,0000.770 5001,000750
327320 Ready-Mix Concrete Manufacturing44 500368 7508.9 50022.60.764 500500500
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327331 Concrete Block and Brick Manufacturing42 500236 5009.2 50032.30.694 500500500
327332 Concrete Pipe Manufacturing69 750460 1,00013.2 75054.01,328 5000.745 500750500
327390 Other Concrete Product Manufacturing35 500213 5003.6 50019.20.760 500500500
327410 Lime Manufacturing108 1,000507 1,00069.0673 5000.624 500750500
327420 Gypsum Product Manufacturing68 7501,272 1,50073.62,108 1,5000.901 1,5001,5001,000
327910 Abrasive Product Manufacturing49 500424 7508.7 50058.41,348 5000.824 1,500750500
327991 Cut Stone and Stone Product Manufacturing16 50057 5001.1 5006.90.525 500500500
327992 Ground or Treated Mineral and Earth Manufacturing41 500101 50043.7374 5000.698 500500500
327993 Mineral Wool Manufacturing96 1,000889 1,50055.32,210 1,5000.841 1,5001,500750
327999 All Other Miscellaneous Nonmetallic Mineral Product Manufacturing29 500271 5006.2 50040.8898 5000.743 500500500
331110 Iron and Steel Mills and Ferroalloy Manufacturing425 1,5002,108 1,500199.2 1,5000.798 1,2501,5001,000
331210 Iron and Steel Pipe and Tube Manufacturing from Purchased Steel162 1,500299 50036.5 1,25034.20.536 5001,0001,000
331221 Rolled Steel Shape Manufacturing87 750165 50026.5 1,00030.80.545 5007501,000
331222 Steel Wire Drawing70 750246 50011.4 75025.20.710 5007501,000
331313 Alumina Refining and Primary Aluminum Production234 1,500656 1,5000.686 5001,0001,000
331314 Secondary Smelting and Alloying of Aluminum69 750306 50024.1 1,00054.8776 5000.716 500750750
331315 Aluminum Sheet, Plate, and Foil Manufacturing197 1,5001,462 1,50070.52,445 1,5000.866 1,5003.6 7501,250750
331318 Other Aluminum Rolling, Drawing, and Extruding120 1,250378 75018.7 7500.700 500750750
331410 Nonferrous Metal (except Aluminum) Smelting and Refining61 500259 5000.823 1,5001,0001,000
331420 Copper Rolling, Drawing, Extruding, and Alloying132 1,250408 75055.1 1,5000.751 500−16.6 1,0001,0001,000
331491 Nonferrous Metal (except Copper and Aluminum) Rolling, Drawing, and Extruding65 750281 50017.8 75048.51,545 7500.784 750−11.0 1,000750750
331492 Secondary Smelting, Refining, and Alloying of Nonferrous Metal (except Copper and Aluminum)54 500153 50014.0 75028.20.617 500500750
331511 Iron Foundries128 1,250675 1,50016.3 75029.40.768 5001,000500
331512 Steel Investment Foundries145 1,500631 1,50061.92,055 1,2500.752 5001,000500
331513 Steel Foundries (except Investment)86 750343 5009.0 50030.50.742 500500500
331523 Nonferrous Metal Die-Casting Foundries84 750335 5009.9 5000.744 500500500
331524 Aluminum Foundries (except Die-Casting)47 500242 5004.2 50027.50.778 750500500
331529 Other Nonferrous Metal Foundries (except Die-Casting)35 500137 5003.5 5000.688 500500500
332111 Iron and Steel Forging64 750230 50011.3 75020.80.719 500750500
332112 Nonferrous Forging128 1,250421 75051.5687 5000.672 500750500
332114 Custom Roll Forming51 500152 50036.90.732 500500500
332117 Powder Metallurgy Part Manufacturing76 750204 5008.4 50037.50.656 500500500
332119 Metal Crown, Closure, and Other Metal Stamping (except Automotive)41 500131 5004.3 5000.676 500500500
332215 Metal Kitchen Cookware, Utensil, Cutlery, and Flatware (except Precious) Manufacturing44 500221 5009.0 5000.806 1,250750500
332216 Saw Blade and Handtool Manufacturing35 500240 5004.2 5000.791 1,00014.3 500750500
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332311 Prefabricated Metal Building and Component Manufacturing42 500386 7504.5 50027.60.787 1,0003.5 500750500
332312 Fabricated Structural Metal Manufacturing34 500196 5004.5 50010.40.726 500−21.9 750500500
332313 Plate Work Manufacturing28 50092 5002.8 5008.60.640 500−68.5 1,000750500
332321 Metal Window and Door Manufacturing65 750385 7505.3 50012.70.788 1,000750500
332322 Sheet Metal Work Manufacturing29 500135 5002.4 5007.40.693 500500500
332323 Ornamental and Architectural Metal Work Manufacturing17 500127 5001.5 50015.90.707 500500500
332410 Power Boiler and Heat Exchanger Manufacturing84 750296 50027.20.665 500−43.5 1,000750500
332420 Metal Tank (Heavy Gauge) Manufacturing60 500228 50017.40.700 500−42.8 1,000750500
332431 Metal Can Manufacturing281 1,5001,425 1,50076.53,349 1,5000.824 1,5001,5001,000
332439 Other Metal Container Manufacturing40 500177 5005.2 50028.80.717 500−10.4 750500500
332510 Hardware Manufacturing56 500400 7507.6 50024.10.813 1,50014.0 500750500
332613 Spring Manufacturing49 500271 5005.6 5000.749 500500500
332618 Other Fabricated Wire Product Manufacturing30 500119 5002.9 5009.60.700 500500500
332710 Machine Shops13 50050 5000.9 5001.70.590 500500500
332721 Precision Turned Product Manufacturing30 50085 5002.5 5004.30.601 500500500
332722 Bolt, Nut, Screw, Rivet, and Washer Manufacturing54 500302 5007.0 50021.10.732 500−20.8 750500500
332811 Metal Heat Treating36 500149 5004.2 50026.20.692 500500750
332812 Metal Coating, Engraving (except Jewelry and Silverware), and Allied Services to Manufacturers24 500102 5003.0 50022.00.768 500500500
332813 Electroplating, Plating, Polishing, Anodizing, and Coloring23 50070 5001.4 50010.50.624 500500500
332911 Industrial Valve Manufacturing100 1,000462 1,00014.2 75027.10.781 750750500
332912 Fluid Power Valve and Hose Fitting Manufacturing111 1,000654 1,50016.1 75038.90.798 1,2501,000500
332913 Plumbing Fixture Fitting and Trim Manufacturing92 1,000627 1,50019.1 75058.11,171 5000.820 1,5001,000500
332919 Other Metal Valve and Pipe Fitting Manufacturing71 750211 50011.5 75017.90.668 500750500
332991 Ball and Roller Bearing Manufacturing234 1,500994 1,50040.7 1,50058.93,423 1,5000.800 1,25030.8 7501,250750
332992 Small Arms Ammunition Manufacturing93 1,000935 1,50079.31,886 1,2500.878 1,500−11.6 1,2501,2501,000
332993 Ammunition (except Small Arms) Manufacturing151 1,500585 1,25080.2795 5000.808 1,250−17.6 1,5001,2501,500
332994 Small Arms, Ordnance, and Ordnance Accessories Manufacturing54 500518 1,0000.855 1,500−17.7 1,0001,0001,000
332996 Fabricated Pipe and Pipe Fitting Manufacturing44 500164 5004.9 50024.10.715 500500500
332999 All Other Miscellaneous Fabricated Metal Product Manufacturing22 50088 5002.3 5000.674 500−34.1 1,000750750
333111 Farm Machinery and Equipment Manufacturing50 500681 1,50011.1 75059.04,290 1,5000.899 1,5001,250500
333112 Lawn and Garden Tractor and Home Lawn and Garden Equipment Manufacturing142 1,5001,010 1,50033.5 1,25071.13,059 1,5000.860 1,5001,500500
333120 Construction Machinery Manufacturing99 1,0001,086 1,50036.6 1,25053.65,741 1,5000.890 1,500−9.5 7501,250750
333131 Mining Machinery and Equipment Manufacturing51 500310 5009.1 50038.00.747 500500500
333132 Oil and Gas Field Machinery and Equipment Manufacturing86 750709 1,50021.2 1,00032.40.837 1,5001,250500
333241 Food Product Machinery Manufacturing36 500127 5005.1 5000.681 500500500
333242 Semiconductor Machinery Manufacturing122 1,250871 1,5000.861 1,5001,500500
Start Printed Page 54159
333243 Sawmill, Woodworking, and Paper Machinery Manufacturing31 500204 5004.3 5000.721 500500500
333244 Printing Machinery and Equipment Manufacturing32 500177 5004.0 5000.708 500−55.6 1,000750500
333249 Other Industrial Machinery Manufacturing30 500115 5003.9 5000.704 500−20.7 750500500
333314 Optical Instrument and Lens Manufacturing42 500204 5005.5 50026.90.761 500−11.4 750500500
333316 Photographic and Photocopying Equipment Manufacturing43 500300 5007.9 50029.90.820 1,500−5.8 1,0001,0001,000
333318 Other Commercial and Service Industry Machinery Manufacturing46 500274 5000.781 750−22.2 7507501,000
333413 Industrial and Commercial Fan and Blower and Air Purification Equipment Manufacturing61 500244 5005.9 5000.714 500500500
333414 Heating Equipment (except Warm Air Furnaces) Manufacturing49 500202 5006.4 50021.10.732 500500500
333415 Air-Conditioning and Warm Air Heating Equipment and Commercial and Industrial Refrigeration Equipment Manufacturing139 1,2501,352 1,50018.7 75039.30.868 1,50028.5 7501,250750
333511 Industrial Mold Manufacturing21 50063 5001.6 5004.60.586 500500500
333514 Special Die and Tool, Die Set, Jig, and Fixture Manufacturing17 50067 5001.5 50011.90.647 500500500
333515 Cutting Tool and Machine Tool Accessory Manufacturing20 500143 5001.9 50019.20.696 500500500
333517 Machine Tool Manufacturing52 500230 5007.2 5000.695 50024.9 500500500
333519 Rolling Mill and Other Metalworking Machinery Manufacturing32 500101 5004.4 5000.638 500500500
333611 Turbine and Turbine Generator Set Units Manufacturing159 1,500920 1,50068.43,126 1,5000.823 1,500−6.9 1,0001,5001,000
333612 Speed Changer, Industrial High-Speed Drive, and Gear Manufacturing68 750273 5009.6 50029.50.725 500−30.7 1,000750500
333613 Mechanical Power Transmission Equipment Manufacturing79 750330 50012.0 75026.90.716 50022.8 500750500
333618 Other Engine Equipment Manufacturing169 1,5001,217 1,50055.94,909 1,5000.869 1,50033.1 1,0001,5001,000
333911 Pump and Pumping Equipment Manufacturing76 750382 75014.2 75030.50.797 1,00014.7 500750500
333912 Air and Gas Compressor Manufacturing84 750419 75019.5 75026.80.808 1,2501,000500
333913 Measuring and Dispensing Pump Manufacturing121 1,250404 75072.7653 5000.745 500750500
333921 Elevator and Moving Stairway Manufacturing55 500440 75056.11,028 5000.813 1,5001,000500
333922 Conveyor and Conveying Equipment Manufacturing44 500167 5005.1 50017.00.672 500500500
333923 Overhead Traveling Crane, Hoist, and Monorail System Manufacturing81 750768 1,50013.0 75062.52,738 1,5000.852 1,5001,250500
333924 Industrial Truck, Tractor, Trailer, and Stacker Machinery Manufacturing70 750411 75012.1 75040.21,743 1,0000.789 1,000−9.3 750750750
333991 Power-Driven Handtool Manufacturing56 500431 75045.2674 5000.771 500500500
333992 Welding and Soldering Equipment Manufacturing55 5001,042 1,50011.4 75055.71,897 1,2500.855 1,5001,250500
333993 Packaging Machinery Manufacturing36 500135 5004.4 50024.00.696 500500500
333994 Industrial Process Furnace and Oven Manufacturing36 500179 5003.9 50021.80.659 500500500
333995 Fluid Power Cylinder and Actuator Manufacturing74 750341 50043.31,582 7500.788 1,000750500
333996 Fluid Power Pump and Motor Manufacturing101 1,000715 1,50069.12,002 1,2500.825 1,5001,250500
333997 Scale and Balance Manufacturing41 500264 50051.9408 5000.735 500500500
333999 All Other Miscellaneous General Purpose Machinery Manufacturing29 500144 5003.7 50015.90.723 500−11.9 750500500
334111 Electronic Computer Manufacturing88 7501,322 1,50046.4 1,50086.96,047 1,5000.946 1,50021.7 1,0001,2501,000
334112 Computer Storage Device Manufacturing143 1,5001,450 1,50075.62,068 1,2500.883 1,500−3.4 1,0001,2501,000
Start Printed Page 54160
334118 Computer Terminal and Other Computer Peripheral Equipment Manufacturing52 500376 7509.2 50031.00.818 1,500−6.4 1,0001,0001,000
334210 Telephone Apparatus Manufacturing95 1,000462 1,00029.9 1,25060.52,244 1,5000.853 1,5008.3 1,0001,2501,000
334220 Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing113 1,0001,170 1,50030.2 1,25045.27,609 1,5000.889 1,500−5.5 7501,250750
334290 Other Communications Equipment Manufacturing41 500273 5006.0 50043.61,339 5000.806 1,250−26.2 1,000750750
334310 Audio and Video Equipment Manufacturing34 500377 7507.5 50040.5953 5000.763 50030.9 750500750
334412 Bare Printed Circuit Board Manufacturing57 500385 7504.5 50036.70.777 750−34.6 1,000750500
334413 Semiconductor and Related Device Manufacturing168 1,5001,372 1,50055.4 1,50055.711,153 1,5000.899 1,50045.9 5001,250500
334416 Capacitor, Resistor, Coil, Transformer, and Other Inductor Manufacturing55 500244 5004.0 5000.710 500500500
334417 Electronic Connector Manufacturing119 1,250485 1,00013.0 75048.82,190 1,5000.764 500−13.3 7501,000500
334418 Printed Circuit Assembly (Electronic Assembly) Manufacturing84 750436 75033.30.801 1,250−7.7 500750500
334419 Other Electronic Component Manufacturing46 500211 5004.4 5000.744 500−47.4 1,250750750
334510 Electromedical and Electrotherapeutic Apparatus Manufacturing119 1,250909 1,50026.6 1,00035.00.863 1,500−3.7 5001,250500
334511 Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing300 1,5005,370 1,50061.6 1,50047.018,216 1,5000.919 1,500−1.5 7501,250750
334512 Automatic Environmental Control Manufacturing for Residential, Commercial, and Appliance Use46 500288 5004.4 50038.60.779 750500500
334513 Instruments and Related Products Manufacturing for Measuring, Displaying, and Controlling Industrial Process Variables46 500287 5006.8 50030.40.807 1,2507.9 500750500
334514 Totalizing Fluid Meter and Counting Device Manufacturing67 750324 50014.2 75044.11,006 5000.801 1,250750500
334515 Instrument Manufacturing for Measuring and Testing Electricity and Electrical Signals53 500312 5009.0 50037.90.820 1,50015.1 500750500
334516 Analytical Laboratory Instrument Manufacturing66 750396 75013.8 75032.30.835 1,5006.0 5001,000500
334517 Irradiation Apparatus Manufacturing76 750588 1,25058.21,398 7500.845 1,5005.9 5001,000500
334519 Other Measuring and Controlling Device Manufacturing37 500183 5006.4 5000.766 500−1.5 500500500
334613 Blank Magnetic and Optical Recording Media Manufacturing54 5001,092 1,50084.71,121 5000.889 1,5001,0001,000
334614 Software and Other Prerecorded Compact Disc, Tape, and Record Reproducing34 500519 1,0000.819 1,5001,250750
335110 Electric Lamp Bulb and Part Manufacturing136 1,2501,057 1,50075.41,497 7500.848 1,5001,2501,000
335121 Residential Electric Lighting Fixture Manufacturing30 500320 5003.5 50046.1847 5000.814 1,500750500
335122 Commercial, Industrial, and Institutional Electric Lighting Fixture Manufacturing56 500373 7505.9 50032.00.763 500500500
335129 Other Lighting Equipment Manufacturing54 500243 5007.1 50021.60.749 500500500
335210 Small Electrical Appliance Manufacturing104 1,000579 1,2500.816 1,5001,500750
335221 Household Cooking Appliance Manufacturing145 1,5001,611 1,50072.32,734 1,5000.870 1,5001,500750
335222 Household Refrigerator and Home Freezer Manufacturing735 1,5002,956 1,50091.63,010 1,5000.764 5001,2501,000
335224 Household Laundry Equipment Manufacturing746 1,5003,165 1,50098.32,549 1,5000.768 5001,2501,000
335228 Other Major Household Appliance Manufacturing310 1,5001,116 1,50063.61,614 7500.744 5001,000500
Start Printed Page 54161
335311 Power, Distribution, and Specialty Transformer Manufacturing88 750493 1,00013.7 75039.90.771 50022.0 750750750
335312 Motor and Generator Manufacturing98 1,000587 1,25015.0 75034.30.837 1,500−7.3 1,0001,2501,000
335313 Switchgear and Switchboard Apparatus Manufacturing87 750840 1,50011.6 75047.03,373 1,5000.862 1,50012.4 7501,250750
335314 Relay and Industrial Control Manufacturing41 500267 5005.5 50031.10.805 1,250750750
335911 Storage Battery Manufacturing240 1,5001,819 1,50065.73,305 1,5000.850 1,50025.7 5001,250500
335912 Primary Battery Manufacturing134 1,250572 1,25088.0837 5000.773 7507501,000
335921 Fiber Optic Cable Manufacturing65 750294 50064.3569 5000.710 5005001,000
335929 Other Communication and Energy Wire Manufacturing109 1,000398 75036.60.749 500−19.8 1,2501,0001,000
335931 Current-Carrying Wiring Device Manufacturing79 750303 5007.5 50020.40.742 500500500
335932 Noncurrent-Carrying Wiring Device Manufacturing119 1,250537 1,25037.60.783 7501,000500
335991 Carbon and Graphite Product Manufacturing71 750335 50041.2660 5000.782 750750750
335999 All Other Miscellaneous Electrical Equipment and Component Manufacturing45 500188 5005.5 50019.60.763 500−18.6 750500500
336111 Automobile Manufacturing376 1,5006,539 1,500286.4 1,50067.69,705 1,5000.945 1,5002.2 1,0001,5001,000
336112 Light Truck and Utility Vehicle Manufacturing1,285 1,5008,271 1,50084.316,270 1,5000.857 1,5004.7 1,0001,5001,000
336120 Heavy Duty Truck Manufacturing360 1,5002,029 1,50065.54,526 1,5000.822 1,50014.0 1,0001,5001,000
336211 Motor Vehicle Body Manufacturing66 750411 7507.5 50023.60.787 1,000−14.9 1,2501,0001,000
336212 Truck Trailer Manufacturing78 750688 1,5007.8 50042.42,364 1,5000.806 1,250−32.9 1,0001,000500
336213 Motor Home Manufacturing247 1,5001,226 1,50052.71,958 1,2500.804 1,2501,2501,000
336214 Travel Trailer and Camper Manufacturing65 750650 1,5004.5 50040.43,444 1,5000.810 1,250−37.4 1,0001,000500
336310 Motor Vehicle Gasoline Engine and Engine Parts Manufacturing67 750809 1,5000.914 1,50045.5 5001,000750
336320 Motor Vehicle Electrical and Electronic Equipment Manufacturing97 1,000707 1,50013.0 7500.852 1,50011.3 7501,000750
336330 Motor Vehicle Steering and Suspension Components (except Spring) Manufacturing162 1,500641 1,50032.70.771 5001,000750
336340 Motor Vehicle Brake System Manufacturing167 1,500671 1,50042.21,994 1,2500.786 1,0001,250750
336350 Motor Vehicle Transmission and Power Train Parts Manufacturing172 1,5001,572 1,50036.70.892 1,5001,500750
336360 Motor Vehicle Seating and Interior Trim Manufacturing170 1,5001,367 1,50026.7 1,00056.95,459 1,5000.860 1,5001,500500
336370 Motor Vehicle Metal Stamping148 1,500718 1,50024.3 1,00033.20.756 5001,000500
336390 Other Motor Vehicle Parts Manufacturing111 1,000542 1,25018.8 7500.798 1,2503.2 7501,000750
336411 Aircraft Manufacturing815 1,5007,782 1,50081.333,731 1,5000.901 1,5000.1 1,5001,5001,500
336412 Aircraft Engine and Engine Parts Manufacturing230 1,5001,861 1,50073.5 1,50074.310,158 1,5000.888 1,500−7.3 1,0001,5001,000
336413 Other Aircraft Parts and Auxiliary Equipment Manufacturing146 1,5001,768 1,50026.1 1,00047.39,325 1,5000.884 1,500−6.3 1,0001,2501,000
336414 Guided Missile and Space Vehicle Manufacturing3,525 1,5007,103 1,50094.811,710 1,5000.522 500−0.8 1,0001,2501,000
336415 Guided Missile and Space Vehicle Propulsion Unit and Propulsion Unit Parts Manufacturing938 1,5002,829 1,50097.13,871 1,5000.682 5000.5 1,0001,2501,000
336419 Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing158 1,500602 1,25066.51,250 5000.718 500−19.7 1,2501,0001,000
336510 Railroad Rolling Stock Manufacturing164 1,500935 1,50053.0 1,50049.42,757 1,5000.814 1,5001,5001,000
336611 Ship Building and Repairing162 1,5004,868 1,50016.5 75060.514,610 1,5000.899 1,500−17.1 1,2501,2501,000
Start Printed Page 54162
336612 Boat Building51 5001,271 1,5006.2 50035.00.857 1,50022.3 5001,000500
336991 Motorcycle, Bicycle, and Parts Manufacturing30 5001,380 1,5006.9 50072.01,705 1,0000.879 1,5001,000500
336992 Military Armored Vehicle, Tank, and Tank Component Manufacturing264 1,5001,538 1,50081.82,674 1,5000.857 1,500−5.5 1,0001,5001,000
336999 All Other Transportation Equipment Manufacturing39 500730 1,5007.7 50057.21,657 1,0000.904 1,50051.2 5001,000500
337110 Wood Kitchen Cabinet and Countertop Manufacturing15 500899 1,5000.8 50030.40.752 500750500
337121 Upholstered Household Furniture Manufacturing52 5001,121 1,5002.7 50034.00.856 1,5001,000500
337122 Nonupholstered Wood Household Furniture Manufacturing18 500420 7501.1 50030.10.783 75014.2 500750500
337124 Metal Household Furniture Manufacturing37 500349 50044.41,047 5000.812 1,500750500
337125 Household Furniture (except Wood and Metal) Manufacturing21 500439 7502.6 50067.0455 5000.867 1,500750500
337127 Institutional Furniture Manufacturing46 500168 5003.5 50013.10.697 500500500
337211 Wood Office Furniture Manufacturing44 500445 7502.8 50039.80.813 1,5001,000500
337212 Custom Architectural Woodwork and Millwork Manufacturing22 50061 5001.1 5005.10.575 500500500
337214 Office Furniture (except Wood) Manufacturing111 1,0001,302 1,50014.1 75064.73,581 1,5000.898 1,5008.5 5001,000500
337215 Showcase, Partition, Shelving, and Locker Manufacturing34 500183 5002.6 50015.70.756 50020.8 500500500
337910 Mattress Manufacturing50 500636 1,5005.7 50051.32,026 1,2500.847 1,5001,000500
337920 Blind and Shade Manufacturing43 500666 1,5002.2 50038.50.815 1,5001,000500
339112 Surgical and Medical Instrument Manufacturing92 1,000787 1,50015.7 75024.70.867 1,50014.8 5001,000500
339113 Surgical Appliance and Supplies Manufacturing58 500529 1,0008.7 50030.30.877 1,50014.6 500750500
339114 Dental Equipment and Supplies Manufacturing22 500341 5003.3 50034.60.853 1,500750500
339115 Ophthalmic Goods Manufacturing46 500594 1,2506.0 50042.51,595 7500.882 1,5001,000500
339116 Dental Laboratories8 500160 5000.2 50018.00.553 500500500
339910 Jewelry and Silverware Manufacturing15 500185 5001.9 5000.784 750500500
339920 Sporting and Athletic Goods Manufacturing27 500305 5003.8 50027.00.838 1,50027.0 500750500
339930 Doll, Toy, and Game Manufacturing17 500266 5002.1 5000.778 750500500
339940 Office Supplies (except Paper) Manufacturing25 500176 5000.828 1,50037.7 500750500
339950 Sign Manufacturing14 500105 5000.9 5006.70.693 500500500
339991 Gasket, Packing, and Sealing Device Manufacturing61 500335 5006.3 50026.90.774 750500500
339992 Musical Instrument Manufacturing23 500424 7501.9 50032.20.819 1,5001,000500
339993 Fastener, Button, Needle, and Pin Manufacturing31 500526 1,00049.1533 5000.783 750750500
339994 Broom, Brush, and Mop Manufacturing53 500223 5005.4 50029.30.765 500500500
339995 Burial Casket Manufacturing36 500873 1,50073.5673 5000.896 1,5001,000500
339999 All Other Miscellaneous Manufacturing13 500135 5001.4 50026.20.764 500−20.8 750500500

Special Considerations: NAICS Code 324110 (Petroleum Refiners)

Footnote 4 of SBA's table of size standards (13 CFR 121.201) states that to qualify as a small business concern for purposes of Government procurement, the petroleum refiner must be a concern that has no more than 1,500 employees and no more than 125,000 barrels per calendar day total Operable Atmospheric Crude Oil Distillation capacity. In addition, the total product to be delivered under the small business contract must be at least 90 percent Start Printed Page 54163refined by the successful bidder from either crude oil or bona fide feedstocks.

To determine if the current Petroleum Refiners size standard is appropriate, SBA analyzed current data on both total and aviation fuel capacity, as well as the number of employees of all refiners operating in the U.S. SBA also examined industry trends, and the Federal government's petroleum procurement needs. Based on this analysis, SBA proposes to increase the refining capacity component of the Petroleum Refiners (NAICS 324110) size standard from 125,000 barrels per calendar day (BPCD) total Operable Atmospheric Crude Oil Distillation capacity to 200,000 BPCD, and maintain the employee component at the current 1,500-employee level. Under the proposed size standard, for proposes of Federal procurement, a petroleum refiner can qualify as small under the 1,500-employee size standard or under the 200,000 BPCD capacity size standard. To qualify under the capacity size standard, the firm, together with its affiliates, must be primarily engaged in refining crude petroleum into refined petroleum products. The proposed increase to the capacity size standard would expand the pool of small refiners that produce aviation fuel.

Since the current regulation (limitations on subcontracting) already requires that a concern must perform at least 50 percent of the cost of contracts for the supplies or products (not including the costs of materials) (see 13 CFR 125.6), SBA is also proposing to remove the requirement that total product to be delivered under the small business contract must be at least 90 percent refined by the successful bidder from either crude oil or bona fide feedstocks. SBA has found this 90 percent requirement to be overly restrictive for small refiners to compete for government contracts. The removal of this requirement will make the limitations on subcontracting consistent across all contracts for manufactured products or supplies.

Given these changes, SBA also proposes to revise Footnote 4 of the SBA's table of size standards to read as follows:

“To qualify as small for purposes of Government procurement, the petroleum refiner, including its affiliates, must be a concern that has no more than 1,500 employees OR no more than 200,000 barrels per calendar day total Operable Atmospheric Crude Oil Distillation capacity. Capacity includes all domestic and foreign affiliates, owned or leased facilities, and facilities under a processing agreement or an arrangement such as an exchange agreement or a throughput. To qualify under the capacity size standard, the firm, together with its affiliates, must be primarily engaged in refining crude petroleum into refined petroleum products. A firm's “primary industry” is determined in accordance with 13 CFR 121.107.”

NAICS 326211, Tire Manufacturing (Except Retreading)

Footnote 5 to SBA size standards table currently includes Census Bureau's Product Classifications codes based on Standard Industry Classification (SIC) system: Namely 30111 (Passenger car pneumatic tires) and 30112 (Truck/bus tires, including off highway, pneumatic tires). To make them consistent with industry size standards that are based on NAICS, in this proposed rule, SBA amends Footnote 5 by replacing them with the Census Bureau's corresponding NAICS Product Classification codes 3262111 and 3262113, respectively. The amended Footnote 5 will read as follows:

5. NAICS code 326211—For Government procurement, a firm is small for bidding on a contract for pneumatic tires within Census NAICS Product Classification codes 3262111 and 3262113, provided that:

(a) The value of tires within Census NAICS Product Classification codes 3262113 which it manufactured in the United States during the previous calendar year is more than 50 percent of the value of its total worldwide manufacture,

(b) The value of pneumatic tires within Census NAICS Product Classification codes 3262113 comprising its total worldwide manufacture during the preceding calendar year was less than 5 percent of the value of all such tires manufactured in the United States during that period, and

(c) The value of the principal product which it manufactured or otherwise produced, or sold worldwide during the preceding calendar year is less than 10 percent of the total value of such products manufactured or otherwise produced or sold in the United States during that period.

Proposed Changes to Size Standards

As can be seen from Table 3, Size Standards Supported by Each Factor for Each Industry (No. of employees), the results might support increases in size standards for 209 industries, decreases for 19 industries and no changes for 136 industries.

However, SBA believes that lowering small business size standards is not in the best interest of small businesses in the current economic environment. The U.S. economy was in recession from December 2007 to June 2009, the longest and deepest of any recessions since before World War II. The economy lost more than eight million non-farm jobs during 2008-2009. In response, Congress passed and the President signed into law the American Recovery and Reinvestment Act of 2009 (Recovery Act) to promote economic recovery and to preserve and create jobs. Although the recession officially ended in June 2009, the unemployment rate is still high at 6.2 percent in July 2014 (www.bls.gov) and is forecast to remain around this level at least through the end of 2014 (http://www.federalreserve.gov/​monetarypolicy/​mpr_​20140211_​part3.htm).

In 2010, Congress passed and the President signed the Jobs Act to promote small business job creation. The Jobs Act puts more capital into the hands of entrepreneurs and small business owners; strengthens small businesses' ability to compete for contracts; includes recommendations from the President's Task Force on Federal Contracting Opportunities for Small Business; creates a better playing field for small businesses; promotes small business exporting, building on the President's National Export Initiative; expands training and counseling; and provides $12 billion in tax relief to help small businesses invest in their firms and create jobs. A proposal to reduce size standards will have an immediate impact on jobs, and it would be contrary to the expressed will of the President and the Congress.

Lowering size standards would decrease the number of firms that participate in Federal financial and procurement assistance programs for small businesses. It would also affect small businesses that are now exempt or receive some form of relief from other Federal regulations that use SBA's size standards. That impact could take the form of increased fees, paperwork, or other compliance requirements for small businesses. Furthermore, size standards based solely on analytical results without any other considerations can cut off currently eligible small firms from those programs and benefits. In the 19 industries for which analytical results might have supported lowering their size standards, about 60 businesses would lose their small business eligibility if their size standards were lowered. That would run counter to what SBA and the Federal government are doing to help small businesses and create jobs. Reducing size eligibility for Federal procurement opportunities, especially under current economic Start Printed Page 54164conditions, would not preserve or create more jobs; rather, it would have the opposite effect. Therefore, in this proposed rule, SBA does not intend to reduce size standards for any industries. Accordingly, for industries where analyses might seem to support lowering size standards, SBA proposes to retain the current size standards.

Furthermore, as stated previously, the Small Business Act requires the SBA's Administrator to “. . . consider other factors deemed to be relevant . . .” to establishing small business size standards. The current economic conditions and the impact on job creation are quite relevant factors when establishing small business size standards. SBA nevertheless invites comments and suggestions on whether it should lower size standards as suggested by analyses of industry and program data or retain the current standards for those industries in view of current economic conditions.

As discussed above, lowering small business size standards is inconsistent with what the Federal government is doing to stimulate the economy and would discourage job growth for which Congress established the Recovery Act and Jobs Act. In addition, it would be inconsistent with the Small Business Act requiring the Administrator to establish size standards based on industry analysis and other relevant factors such as current economic conditions. Thus, of the 364 manufacturing industries reviewed in this rule, SBA proposes to increase size standards for 209 industries and retain the current size standards for 155 industries, including 19 for which the results might support lowering their size standards. The proposed size standards are in Table 4, Summary of Proposed Size Standards Revisions, below.

Table 4—Summary of Proposed Size Standards Revisions

NAICS codeNAICS U.S. industry titleCurrent size standard (number of employees)Proposed size standard (number of employees)
311111Dog and Cat Food Manufacturing5001,000
311211Flour Milling5001,000
311221Wet Corn Milling7501,250
311314Cane Sugar Manufacturing7501,000
311340Nonchocolate Confectionery Manufacturing5001,000
311351Chocolate and Confectionery Manufacturing from Cacao Beans5001,250
311352Confectionery Manufacturing from Purchased Chocolate5001,000
311411Frozen Fruit, Juice, and Vegetable Manufacturing5001,000
311412Frozen Specialty Food Manufacturing5001,250
311421Fruit and Vegetable Canning5001,000
311422Specialty Canning1,0001,250
311423Dried and Dehydrated Food Manufacturing500750
311511Fluid Milk Manufacturing5001,000
311512Creamery Butter Manufacturing500750
311513Cheese Manufacturing5001,250
311514Dry, Condensed, and Evaporated Dairy Product Manufacturing500750
311520Ice Cream and Frozen Dessert Manufacturing5001,000
311611Animal (except Poultry) Slaughtering5001,000
311612Meat Processed from Carcasses5001,000
311613Rendering and Meat Byproduct Processing500750
311615Poultry Processing5001,250
311710Seafood Product Preparation and Packaging500750
311812Commercial Bakeries5001,000
311813Frozen Cakes, Pies, and Other Pastries Manufacturing500750
311821Cookie and Cracker Manufacturing7501,250
311824Dry Pasta, Dough, and Flour Mixes Manufacturing from Purchased Flour500750
311830Tortilla Manufacturing5001,250
311911Roasted Nuts and Peanut Butter Manufacturing500750
311919Other Snack Food Manufacturing5001,250
311920Coffee and Tea Manufacturing500750
311930Flavoring Syrup and Concentrate Manufacturing5001,000
311941Mayonnaise, Dressing, and Other Prepared Sauce Manufacturing500750
312111Soft Drink Manufacturing5001,250
312112Bottled Water Manufacturing5001,000
312113Ice Manufacturing500750
312120Breweries5001,250
312130Wineries5001,000
312140Distilleries7501,000
312230Tobacco Manufacturing1,0001,500
313110Fiber, Yarn, and Thread Mills5001,250
313230Nonwoven Fabric Mills500750
314110Carpet and Rug Mills5001,500
314120Curtain and Linen Mills500750
315110Hosiery and Sock Mills500750
315190Other Apparel Knitting Mills500750
315210Cut and Sew Apparel Contractors500750
315220Men's and Boys' Cut and Sew Apparel Manufacturing500750
315240Women's, Girls', and Infants' Cut and Sew Apparel Manufacturing500750
315280Other Cut and Sew Apparel Manufacturing500750
316992Women's Handbag and Purse Manufacturing500750
321212Softwood Veneer and Plywood Manufacturing5001,250
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321213Engineered Wood Member (except Truss) Manufacturing500750
321219Reconstituted Wood Product Manufacturing500750
321911Wood Window and Door Manufacturing5001,000
321991Manufactured Home (Mobile Home) Manufacturing5001,250
322121Paper (except Newsprint) Mills7501,250
322130Paperboard Mills7501,250
322211Corrugated and Solid Fiber Box Manufacturing5001,250
322219Other Paperboard Container Manufacturing7501,000
322220Paper Bag and Coated and Treated Paper Manufacturing500750
322230Stationery Product Manufacturing500750
322291Sanitary Paper Product Manufacturing5001,500
323117Books Printing5001,250
324191Petroleum Lubricating Oil and Grease Manufacturing500750
325194Cyclic Crude, Intermediate, and Gum and Wood Chemical Manufacturing7501,250
325199All Other Basic Organic Chemical Manufacturing1,0001,250
325211Plastics Material and Resin Manufacturing7501,250
325312Phosphatic Fertilizer Manufacturing500750
325320Pesticide and Other Agricultural Chemical Manufacturing5001,000
325411Medicinal and Botanical Manufacturing7501,000
325412Pharmaceutical Preparation Manufacturing7501,250
325413In-Vitro Diagnostic Substance Manufacturing5001,250
325414Biological Product (except Diagnostic) Manufacturing5001,250
325510Paint and Coating Manufacturing5001,000
325611Soap and Other Detergent Manufacturing7501,000
325612Polish and Other Sanitation Good Manufacturing500750
325613Surface Active Agent Manufacturing500750
325620Toilet Preparation Manufacturing5001,250
325992Photographic Film, Paper, Plate, and Chemical Manufacturing5001,500
326111Plastics Bag and Pouch Manufacturing500750
326112Plastics Packaging Film and Sheet (including Laminated) Manufacturing5001,000
326113Unlaminated Plastics Film and Sheet (except Packaging) Manufacturing500750
326122Plastics Pipe and Pipe Fitting Manufacturing500750
326140Polystyrene Foam Product Manufacturing5001,000
326150Urethane and Other Foam Product (except Polystyrene) Manufacturing500750
326160Plastics Bottle Manufacturing5001,250
326191Plastics Plumbing Fixture Manufacturing500750
326211Tire Manufacturing (except Retreading)1,0001,500
326220Rubber and Plastics Hoses and Belting Manufacturing500750
326291Rubber Product Manufacturing for Mechanical Use500750
327110Pottery, Ceramics, and Plumbing Fixture Manufacturing7501,000
327212Other Pressed and Blown Glass and Glassware Manufacturing7501,250
327213Glass Container Manufacturing7501,250
327215Glass Product Manufacturing Made of Purchased Glass5001,000
327310Cement Manufacturing7501,000
327332Concrete Pipe Manufacturing500750
327410Lime Manufacturing500750
327420Gypsum Product Manufacturing1,0001,500
327910Abrasive Product Manufacturing500750
327993Mineral Wool Manufacturing7501,500
331110Iron and Steel Mills and Ferroalloy Manufacturing1,0001,500
331315Aluminum Sheet, Plate, and Foil Manufacturing7501,250
331511Iron Foundries5001,000
331512Steel Investment Foundries5001,000
332111Iron and Steel Forging500750
332112Nonferrous Forging500750
332215Metal Kitchen Cookware, Utensil, Cutlery, and Flatware (except Precious) Manufacturing500750
332216Saw Blade and Handtool Manufacturing500750
332311Prefabricated Metal Building and Component Manufacturing500750
332313Plate Work Manufacturing500750
332321Metal Window and Door Manufacturing500750
332410Power Boiler and Heat Exchanger Manufacturing500750
332420Metal Tank (Heavy Gauge) Manufacturing500750
332431Metal Can Manufacturing1,0001,500
332510Hardware Manufacturing500750
332911Industrial Valve Manufacturing500750
332912Fluid Power Valve and Hose Fitting Manufacturing5001,000
332913Plumbing Fixture Fitting and Trim Manufacturing5001,000
332919Other Metal Valve and Pipe Fitting Manufacturing500750
332991Ball and Roller Bearing Manufacturing7501,250
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332992Small Arms Ammunition Manufacturing1,0001,250
333111Farm Machinery and Equipment Manufacturing5001,250
333112Lawn and Garden Tractor and Home Lawn and Garden Equipment Manufacturing5001,500
333120Construction Machinery Manufacturing7501,250
333132Oil and Gas Field Machinery and Equipment Manufacturing5001,250
333242Semiconductor Machinery Manufacturing5001,500
333244Printing Machinery and Equipment Manufacturing500750
333415Air-Conditioning and Warm Air Heating Equipment and Commercial and Industrial Refrigeration Equipment Manufacturing7501,250
333611Turbine and Turbine Generator Set Units Manufacturing1,0001,500
333612Speed Changer, Industrial High-Speed Drive, and Gear Manufacturing500750
333613Mechanical Power Transmission Equipment Manufacturing500750
333618Other Engine Equipment Manufacturing1,0001,500
333911Pump and Pumping Equipment Manufacturing500750
333912Air and Gas Compressor Manufacturing5001,000
333913Measuring and Dispensing Pump Manufacturing500750
333921Elevator and Moving Stairway Manufacturing5001,000
333923Overhead Traveling Crane, Hoist, and Monorail System Manufacturing5001,250
333992Welding and Soldering Equipment Manufacturing5001,250
333995Fluid Power Cylinder and Actuator Manufacturing500750
333996Fluid Power Pump and Motor Manufacturing5001,250
334111Electronic Computer Manufacturing1,0001,250
334112Computer Storage Device Manufacturing1,0001,250
334210Telephone Apparatus Manufacturing1,0001,250
334220Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing7501,250
334412Bare Printed Circuit Board Manufacturing500750
334413Semiconductor and Related Device Manufacturing5001,250
334417Electronic Connector Manufacturing5001,000
334418Printed Circuit Assembly (Electronic Assembly) Manufacturing500750
334510Electromedical and Electrotherapeutic Apparatus Manufacturing5001,250
334511Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing7501,250
334513Instruments and Related Products Manufacturing for Measuring, Displaying, and Controlling Industrial Process Variables500750
334514Totalizing Fluid Meter and Counting Device Manufacturing500750
334515Instrument Manufacturing for Measuring and Testing Electricity and Electrical Signals500750
334516Analytical Laboratory Instrument Manufacturing5001,000
334517Irradiation Apparatus Manufacturing5001,000
334614Software and Other Prerecorded Compact Disc, Tape, and Record Reproducing7501,250
335110Electric Lamp Bulb and Part Manufacturing1,0001,250
335121Residential Electric Lighting Fixture Manufacturing500750
335210Small Electrical Appliance Manufacturing7501,500
335221Household Cooking Appliance Manufacturing7501,500
335222Household Refrigerator and Home Freezer Manufacturing1,0001,250
335224Household Laundry Equipment Manufacturing1,0001,250
335228Other Major Household Appliance Manufacturing5001,000
335312Motor and Generator Manufacturing1,0001,250
335313Switchgear and Switchboard Apparatus Manufacturing7501,250
335911Storage Battery Manufacturing5001,250
335932Noncurrent-Carrying Wiring Device Manufacturing5001,000
336111Automobile Manufacturing1,0001,500
336112Light Truck and Utility Vehicle Manufacturing1,0001,500
336120Heavy Duty Truck Manufacturing1,0001,500
336212Truck Trailer Manufacturing5001,000
336213Motor Home Manufacturing1,0001,250
336214Travel Trailer and Camper Manufacturing5001,000
336310Motor Vehicle Gasoline Engine and Engine Parts Manufacturing7501,000
336320Motor Vehicle Electrical and Electronic Equipment Manufacturing7501,000
336330Motor Vehicle Steering and Suspension Components (except Spring) Manufacturing7501,000
336340Motor Vehicle Brake System Manufacturing7501,250
336350Motor Vehicle Transmission and Power Train Parts Manufacturing7501,500
336360Motor Vehicle Seating and Interior Trim Manufacturing5001,500
336370Motor Vehicle Metal Stamping5001,000
336390Other Motor Vehicle Parts Manufacturing7501,000
336412Aircraft Engine and Engine Parts Manufacturing1,0001,500
336413Other Aircraft Parts and Auxiliary Equipment Manufacturing1,0001,250
336414Guided Missile and Space Vehicle Manufacturing1,0001,250
336415Guided Missile and Space Vehicle Propulsion Unit and Propulsion Unit Parts Manufacturing1,0001,250
336510Railroad Rolling Stock Manufacturing1,0001,500
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336611Ship Building and Repairing1,0001,250
336612Boat Building5001,000
336991Motorcycle, Bicycle, and Parts Manufacturing5001,000
336992Military Armored Vehicle, Tank, and Tank Component Manufacturing1,0001,500
336999All Other Transportation Equipment Manufacturing5001,000
337110Wood Kitchen Cabinet and Countertop Manufacturing500750
337121Upholstered Household Furniture Manufacturing5001,000
337122Nonupholstered Wood Household Furniture Manufacturing500750
337124Metal Household Furniture Manufacturing500750
337125Household Furniture (except Wood and Metal) Manufacturing500750
337211Wood Office Furniture Manufacturing5001,000
337214Office Furniture (except Wood) Manufacturing5001,000
337910Mattress Manufacturing5001,000
337920Blind and Shade Manufacturing5001,000
339112Surgical and Medical Instrument Manufacturing5001,000
339113Surgical Appliance and Supplies Manufacturing500750
339114Dental Equipment and Supplies Manufacturing500750
339115Ophthalmic Goods Manufacturing5001,000
339920Sporting and Athletic Goods Manufacturing500750
339940Office Supplies (except Paper) Manufacturing500750
339992Musical Instrument Manufacturing5001,000
339993Fastener, Button, Needle, and Pin Manufacturing500750
339995Burial Casket Manufacturing5001,000

Maintaining current size standards when the analytical results suggested lowering them is consistent with SBA's recent final rules on NAICS Sector 44-45, Retail Trade (75 FR 61597 (October 6, 2010)); NAICS Sector 72, Accommodation and Food Services (75 FR 61604 (October 6, 2010)); NAICS Sector 81, Other Services (75 FR 61591 (October 6, 2010)); NAICS Sector 54, Professional, Scientific and Technical Services (77 FR 7490 (February 10, 2012)); NAICS Sector 48 49, Transportation and Warehousing (77 FR 10943 (February 24, 2012)); NAICS Sector 51, Information (77 FR 72702 (December 6, 2012)); NAICS Sector 53, Real Estate and Rental and Leasing (77 FR 88747 (September 24, 2012)); NAICS Sector 56, Administrative and Support, Waste Management and Remediation Services (77 FR 72691 (December 6, 2012)); NAICS Sector 61, Educational Services (77 FR 58739 (September 24, 2012)); and NAICS Sector 62, Health Care and Social Assistance (77 FR 58755 (September 24, 2012)); NAICS Sector 11, Agriculture, Forestry, Fishing and Hunting (78 FR 37398 (June 20, 2013)); NAICS Subsector 213, Support Activities for Mining (78 FR 37404 (June 20, 2013)); NAICS Sector 52, Finance and Insurance and Sector 55, Management of Companies and Enterprises (78 FR 37409 (June 20, 2013)); NAICS Sector 71, Arts, Entertainment and Recreation (78 FR 37417 (June 20, 2013)); and NAICS Sector 23, Construction (78 FR 77334 (December 23, 2013)). In each of those final rules, SBA retained the existing size standards for those that it could have reduced.

Evaluation of Dominance in Field of Operation

SBA has determined that for the industries for which it has proposed to increase size standards in this proposed rule, no individual firm at or below the proposed size standard will be large enough to dominate its field of operation. At the proposed size standards, if adopted, the small business share of total industry receipts among those industries for which SBA has proposed to increase their size standards is, on average, 1.7 percent, varying from a minimum of 0.02 percent to a maximum of 18.9 percent. These market shares effectively preclude a firm at or below the proposed size standards from exerting control on any of the industries.

Request for Comments

SBA invites public comments on this proposed rule, especially on the following issues:

1. SBA proposes five levels of employee based size standards for industries in Manufacturing and industries in other Sectors except for Wholesale Trade and Retail Trade that have employee based size standards: 500 employees, 750 employees, 1,000 employees, 1,250 employees, and 1,500 employees. SBA invites comments on whether these proposed size levels are appropriate and suggestions on alternative levels, if they would be more appropriate.

2. To be consistent with its policy of not lowering any size standards in all recent proposed and final rules on receipts based size standards in view of current economic conditions, SBA is retaining the current 500-employee minimum and 1,500-employee maximum size standards for all industries in the Manufacturing Sector and other industries not in the Wholesale and Retail Trade Sectors that have employee based size standards. In its “Size Standards Methodology,” available at www.sba.gov/​size, SBA had proposed setting the minimum size standard for these industries at 250 employees and the maximum size standard at 1,000 employees. This would have resulted in lowering the existing employee based size standards for some industries. SBA invites comments on whether it should maintain the 500-employee minimum and the 1,500-employee maximum size standards or it lower them to 250 employees and 1,000 employees, respectively, as the Agency proposed in its “Size Standards Methodology.” SBA requests suggestions on alternative minimum and maximum levels, if they would be more appropriate.

3. SBA seeks feedback on whether it should adjust employee based size standards for labor productivity growth. SBA periodically increases receipts Start Printed Page 54168based size standards for inflation. Should SBA take labor productivity growth and technological change into consideration when it reviews employee based standards? If so, what data are available to assist SBA in evaluating such factors? What if such an evaluation leads to lower size standards for some industries? How should SBA apply the results to its size standards decision?

4. SBA seeks feedback on whether its proposal to increase size standards for 209 industries and retain current size standards for 155 industries is appropriate, given the economic characteristics of each industry reviewed in this proposed rule. SBA also seeks feedback and suggestions on alternative size standards, if they would be more appropriate.

5. SBA has proposed to retain the current size standards for 19 industries for which the analytical results would support lowering them. SBA seeks comments on whether SBA should lower them solely based on its analysis or retain them at their current levels in view of current economic conditions.

6. SBA invites comments on its proposal to increase the capacity component of the Petroleum Refiners (NAICS 324110) size standard from 125,000 barrels per calendar day (BPCD) total Operable Atmospheric Crude Oil Distillation capacity to 200,000 BPCD and retain the employee component at the current 1,500-employee level. SBA also welcomes comments on its proposal to allow business concerns to qualify either under the 1,500-employee size standard or under the 200,000 BPCD capacity size standard, if they, together with affiliates, are primarily engaged in petroleum refining. Finally, SBA also seeks feedback on its proposal to eliminate the requirement that “[t]he total product to be delivered under the contract must be at least 90 percent refined by the successful bidder from either crude oil or bona fide feedstocks.”

7. SBA's proposed size standards are based on five primary factors—average firm size, average assets size (as a proxy of startup costs and entry barriers), four-firm concentration ratio, distribution of firms by size and, the level and small business share of Federal contracting dollars of the evaluated industries and sub-industries. SBA welcomes comments on these factors and/or suggestions on other factors that it should consider when evaluating or revising employee based size standards. SBA also seeks information on relevant data sources, other than what it uses, if available.

8. SBA gives equal weight to each of the five primary factors in all industries. SBA seeks feedback on whether it should continue giving equal weight to each factor or whether it should give more weight to one or more factors for certain industries. Recommendations to weigh some factors more than others should include suggested weights for each factor along with supporting information.

9. For analytical simplicity and efficiency, in this proposed rule, SBA has refined its size standard methodology to obtain a single value as a proposed size standard instead of a range of values, as in its past size regulations. SBA welcomes any comments on this procedure and suggestions on alternative methods.

Public comments on the above issues are very valuable to SBA for validating its size standard methodology and its proposed size standards revisions in this proposed rule. This will help SBA to ensure that size standards reflect industry structure and Federal market conditions. Commenters addressing SBA's proposed size standard revisions for a specific industry or a group of industries should include relevant data and/or other information supporting their comments. If comments relate to using size standards for Federal procurement programs, SBA suggests that commenters provide information on the size of contracts in their industries, the size of businesses that can undertake the contracts, startup costs, equipment and other asset requirements, the amount of subcontracting, other direct and indirect costs associated with the contracts, the use of mandatory sources of supply for products and services, and the degree to which contractors can mark up those costs.

Compliance With Executive Orders 12866, 13563, 12988 and 13132, the Paperwork Reduction Act (44 U.S.C. Ch. 35) and the Regulatory Flexibility Act (5 U.S.C. 601-612)

Executive Order 12866

The Office of Management and Budget (OMB) has determined that this proposed rule is a significant regulatory action for purposes of Executive Order 12866. Accordingly, in the next section SBA provides a Regulatory Impact Analysis of this proposed rule. However, this rule is not a “major rule” under the Congressional Review Act, 5 U.S.C. 800.

Regulatory Impact Analysis

1. Is there a need for the regulatory action?

SBA believes that the proposed size standards revisions in this proposed rule will better reflect the economic characteristics of small businesses and the Federal government marketplace in the affected industries and. SBA's mission is to aid and assist small businesses through a variety of financial, procurement, business development, and advocacy programs. To determine the intended beneficiaries of these programs, SBA establishes distinct definitions of which businesses are deemed small businesses. The Small Business Act (15 U.S.C. 632(a)) delegates to SBA's Administrator the responsibility for establishing small business definitions. The Act also requires that small business definitions vary to reflect industry differences. The Jobs Act also requires SBA to review all size standards and make necessary adjustments to reflect market conditions. The supplementary information section of this proposed rule explains SBA's methodology for analyzing a size standard for a particular industry.

2. What are the potential benefits and costs of this regulatory action?

The most significant benefit to businesses obtaining small business status because of this proposed rule is gaining or retaining eligibility for Federal small business assistance programs. These include SBA's financial assistance programs, economic injury disaster loans, and Federal procurement programs intended for small businesses. Federal procurement programs provide targeted opportunities for small businesses under SBA's business development programs, such as 8(a), Small Disadvantaged Businesses (SDB), small businesses located in Historically Underutilized Business Zones (HUBZone), women-owned small businesses (WOSB), economically disadvantaged women-owned small businesses (EDWOSB), and service-disabled veteran-owned small businesses (SDVOSB). Federal agencies may also use SBA's size standards for a variety of other regulatory and program purposes. These programs assist small businesses to become more knowledgeable, stable, and competitive. SBA estimates that in 209 industries for which it has proposed to increase size standards about 1,250 firms, not small under the existing size standards, will become small under the proposed size standards and therefore become eligible for these programs. That is about 0.4 percent of all firms classified as small under the current size standards in all industries reviewed in this proposed rule. If adopted as proposed, this will increase the small business share of total receipts in those industries from 26 percent to 29 percent.Start Printed Page 54169

Three groups will benefit from the proposed size standards revisions in this rule, if they are adopted as proposed: (1) Some businesses that are above the current size standards may gain small business status under the higher size standards, thereby enabling them to participate in Federal small business assistance programs; (2) growing small businesses that are close to exceeding the current size standards will be able to retain their small business status under the higher size standards, thereby enabling them to continue their participation in the programs; and (3) Federal agencies will have a larger pool of small businesses from which to draw for their small business procurement programs.

SBA estimates that firms gaining small business status under the proposed size standards could receive Federal contracts totaling $170 million to $175 million annually under SBA's small business, 8(a), SDB, HUBZone, WOSB, EDWOSB, and SDVOSB Programs, and other unrestricted procurements. The added competition for many of these procurements can also result in lower prices to the Government for procurements reserved for small businesses, but SBA cannot quantify this benefit.

Under SBA's 7(a) and 504 Loan Programs, based on the fiscal years 2010-2012 data, SBA estimates up to about 25 SBA loans totaling about $12.0 million could be made to these newly defined small businesses under the proposed size standards. Increasing the size standards will likely result in more small business guaranteed loans to businesses in these industries, but it is be impractical to try to estimate exactly the number and total amount of loans. There are two reasons for this: (1) Under the Jobs Act, SBA can now guarantee substantially larger loans than in the past; and (2) as described above, the Jobs Act established a higher alternative size standard ($15 million in tangible net worth and $5 million in net income after income taxes) for business concerns that do not meet the size standards for their industry. Therefore, SBA finds it difficult to quantify the actual impact of these proposed size standards on its 7(a) and 504 Loan Programs.

Newly defined small businesses will also benefit from SBA's Economic Injury Disaster Loan (EIDL) Program. Since this program is contingent on the occurrence and severity of a disaster in the future, SBA cannot make a meaningful estimate of this impact.

In addition, newly defined small businesses will also benefit through reduced fees, less paperwork, and fewer compliance requirements that are available to small businesses through Federal government.

To the extent that those 1,250 newly defined additional small firms could become active in Federal procurement programs, the proposed changes to size standards, if adopted, may entail some additional administrative costs to the government as a result of more businesses being eligible for Federal small business programs. For example, there will be more firms seeking SBA's guaranteed loans, more firms eligible for enrollment in the System of Award Management (SAM) database, and more firms seeking certification as 8(a) or HUBZone firms or qualifying for small business, WOSB, EDWOSB, SDVOSB, and SDB status. Among those newly defined small businesses seeking SBA's assistance, there could be some additional costs associated with compliance and verification of small business status and protests of small business status. However, SBA believes that these added administrative costs will be minimal because mechanisms are already in place to handle these requirements.

Additionally, Federal government contracts may have higher costs. With a greater number of businesses defined as small, Federal agencies may choose to set aside more contracts for competition among small businesses only rather than using full and open competition. The movement from unrestricted to small business set-aside contracting might result in competition among fewer total bidders, although there will be more small businesses eligible to submit offers. However, the additional costs associated with fewer bidders are expected to be minor since, by law, procurements may be set aside for small businesses or reserved for the 8(a), HUBZone, WOSB, EDWOSB, or SDVOSB Programs only if awards are expected to be made at fair and reasonable prices. In addition, there may be higher costs when more full and open contracts are awarded to HUBZone businesses that receive price evaluation preferences.

The proposed size standards revisions, if adopted, may have some distributional effects among large and small businesses. Although SBA cannot estimate with certainty the actual outcome of the gains and losses among small and large businesses, it can identify several probable impacts. There may be a transfer of some Federal contracts to small businesses from large businesses. Large businesses may have fewer Federal contract opportunities as Federal agencies decide to set aside more contracts for small businesses. In addition, some Federal contracts may be awarded to HUBZone concerns instead of large businesses since these firms may be eligible for a price evaluation preference for contracts when they compete on a full and open basis.

Similarly, some businesses defined small under the current size standards may obtain fewer Federal contracts due to the increased competition from more businesses defined as small under the proposed size standards. This transfer may be offset by a greater number of Federal procurements set aside for all small businesses. The number of newly defined and expanding small businesses that are willing and able to sell to the Federal Government will limit the potential transfer of contracts from large and currently defined small businesses. SBA cannot estimate the potential distributional impacts of these transfers with any degree of precision.

The proposed revisions to the existing size standards for 210 industries in Sector 31-33 are consistent with SBA's statutory mandate to assist small business. This regulatory action promotes the Administration's objectives. One of SBA's goals in support of the Administration's objectives is to help individual small businesses succeed through fair and equitable access to capital and credit, Government contracts, and management and technical assistance. Reviewing and modifying size standards, when appropriate, ensures that intended beneficiaries have access to small business programs designed to assist them.

Executive Order 13563

Descriptions of the need for this regulatory action and benefits and costs associated with this action including possible distributional impacts that relate to Executive Order 13563 are included above in the Regulatory Impact Analysis under Executive Order 12866, above.

In an effort to engage interested parties in this action, SBA has presented its size standards methodology (discussed above under Supplementary Information) to various industry associations and trade groups. SBA also met with a number of industry groups and individual businesses to get their feedback on its methodology and other size standards issues. In addition, SBA presented its size standards methodology to businesses in 13 cities in the U.S. and sought their input as part of Jobs Act tours. The presentation also included information on the latest status of the comprehensive size standards review and on how interested Start Printed Page 54170parties can provide SBA with input and feedback on size standards review.

Additionally, SBA sent letters to the Directors of the Offices of Small and Disadvantaged Business Utilization (OSDBU) at several Federal agencies with considerable procurement responsibilities requesting their feedback on how the agencies use SBA's size standards and whether current size standards meet their programmatic needs (both procurement and non-procurement). SBA gave appropriate consideration to all input, suggestions, recommendations, and relevant information obtained from industry groups, individual businesses, and Federal agencies in preparing this proposed rule.

The review of size standards in industries covered in this proposed rule is consistent with Executive Order 13563, Section 6, calling for retrospective analyses of existing rules. The last comprehensive review of size standards occurred during the late 1970s and early 1980s. Since then, except for periodic adjustments for monetary based size standards, most reviews of size standards were limited to a few specific industries in response to requests from the public and Federal agencies. The majority of employee based size standards, including those in NAICS Sector 31-33, have not been reviewed since they were first established. SBA recognizes that changes in industry structure and the Federal marketplace over time have rendered existing size standards for some industries no longer supportable by current data. Accordingly, in 2007, SBA began a comprehensive review of its size standards to ensure that existing size standards have supportable bases and to revise them when necessary. In addition, the Jobs Act requires SBA to conduct a detailed review of all size standards and to make appropriate adjustments to reflect market conditions. Specifically, the Jobs Act requires SBA to conduct a detailed review of at least one-third of all size standards during every 18-month period from the date of its enactment and do a complete review of all size standards not less frequently than once every 5 years thereafter.

Executive Order 12988

This action meets applicable standards set forth in Sections 3(a) and 3(b)(2) of Executive Order 12988, Civil Justice Reform, to minimize litigation, eliminate ambiguity, and reduce burden. The action does not have retroactive or preemptive effect.

Executive Order 13132

For purposes of Executive Order 13132, SBA has determined that this proposed rule will not have substantial, direct effects on the States, on the relationship between the national government and the States, or on the distribution of power and responsibilities among the various levels of government. Therefore, SBA has determined that this proposed rule has no federalism implications warranting preparation of a federalism assessment.

Paperwork Reduction Act

For the purpose of the Paperwork Reduction Act, 44 U.S.C. Ch. 35, SBA has determined that this proposed rule will not impose any new reporting or record keeping requirements.

Initial Regulatory Flexibility Analysis

Under the Regulatory Flexibility Act (RFA), this proposed rule, if adopted, may have a significant impact on a substantial number of small businesses in the industries and sub-industries covered by this rule. As described above, this rule may affect small businesses seeking Federal contracts, loans under SBA's 7(a), 504 and Economic Injury Disaster Loan Programs, and assistance under other Federal small business programs.

Immediately below, SBA sets forth an initial regulatory flexibility analysis (IRFA) of this proposed rule addressing the following questions: (1) What are the need for and objective of the rule? (2) What are SBA's description and estimate of the number of small businesses to which the rule will apply? (3) What are the projected reporting, record keeping, and other compliance requirements of the rule? (4) What are the relevant Federal rules that may duplicate, overlap, or conflict with the rule? and (5) What alternatives will allow the Agency to accomplish its regulatory objectives while minimizing the impact on small businesses?

1. What are the need for and objective of the rule?

Changes in industry structure, technological changes, productivity growth, mergers and acquisitions, and updated industry definitions have changed the structure of many industries reviewed in this proposed rule. Such changes can be sufficient to support revisions to current size standards for some industries. Based on the analysis of the latest data available, SBA believes that the revised standards in this proposed rule more appropriately reflect the size of businesses that need Federal assistance. The Jobs Act also requires SBA to review all size standards and make necessary adjustments to reflect market conditions.

2. What are SBA's description and estimate of the number of small businesses to which the rule will apply?

If the proposed rule is adopted in its present form, SBA estimates that about 1,250 additional firms will become small because of increased size standards 209 industries in NAICS Sector 31-33. That represents 0.4 percent of total firms that are small under current size standards in all industries in that Sector. This will result in an increase in the small business share of total industry receipts in Sector 31-33 from 26 percent under the current size standards to 29 percent under the proposed size standards. The proposed size standards, if adopted, will enable more small businesses to retain their small business status for a longer period. Many firms may have lost their eligibility and find it difficult to compete at current size standards with companies that are significantly larger than they are. SBA believes the competitive impact will be positive for existing small businesses and for those that exceed the size standards but are on the very low end of those that are not small. They might otherwise be called or referred to as mid-sized businesses, although SBA only defines what is small; other entities are other than small.

3. What are the projected reporting, recordkeeping and other compliance requirements of the rule?

The proposed size standard changes impose no additional reporting or recordkeeping requirements on small businesses. However, qualifying for Federal procurement and a number of other programs requires that businesses register in the SAM database and certify in SAM that they are small at least once annually. Therefore, businesses opting to participate in those programs must comply with SAM requirements. However, there are no costs associated with SAM registration or certification. Changing size standards alters the access to SBA's programs that assist small businesses, but does not impose a regulatory burden because they neither regulate nor control business behavior.

4. What are the relevant Federal rules, which may duplicate, overlap or conflict with the rule?

Under § 3(a)(2)(C) of the Small Business Act, 15 U.S.C. 632(a)(2)(c), Federal agencies must use SBA's size standards to define a small business, Start Printed Page 54171unless specifically authorized by statute to do otherwise. In 1995, SBA published in the Federal Register a list of statutory and regulatory size standards that identified the application of SBA's size standards as well as other size standards used by Federal agencies (60 FR 57988 (November 24, 1995)). SBA is not aware of any Federal rule that would duplicate or conflict with establishing size standards.

However, the Small Business Act and SBA's regulations allow Federal agencies to develop different size standards if they believe that SBA's size standards are not appropriate for their programs, with the approval of SBA's Administrator (13 CFR 121.903). The Regulatory Flexibility Act authorizes an Agency to establish an alternative small business definition, after consultation with the Office of Advocacy of the U.S. Small Business Administration (5 U.S.C. 601(3)).

5. What alternatives will allow the Agency to accomplish its regulatory objectives while minimizing the impact on small entities?

By law, SBA is required to develop numerical size standards for establishing eligibility for Federal small business assistance programs. Other than varying size standards by industry and changing the size measures, no practical alternative exists to the systems of numerical size standards.

Start List of Subjects

List of Subjects in 13 CFR Part 121

  • Administrative practice and procedure
  • Government procurement
  • Government property
  • Grant programs—business
  • Individuals with disabilities
  • Loan programs—business
  • Reporting and recordkeeping requirements
  • Small businesses
End List of Subjects

For the reasons set forth in the preamble, SBA proposes to amend part 13 CFR part 121 as follows:

Start Part

PART 121—SMALL BUSINESS SIZE REGULATIONS

End Part Start Amendment Part

1. The authority citation for part 121 continues to read as follows:

End Amendment Part Start Authority

Authority: 15 U.S.C. 632, 634(b)(6), 662, and 694a(9).

End Authority Start Amendment Part

2. In § 121.201, amend the table “Small Business Size Standards by NAICS Industry” as follows:

End Amendment Part Start Amendment Part

a. Revise the entries for “311111”, “311211”, “311221”, “311314”, “311340”, “311351”, “311352”, “311411”, “311412”, 311421”, “311422”, “311423”, “311511”, “311512”, “311513”, “311514”, “311520”, “311611”, “311612”, “311613”, “311615”, “311710”, “311812”, “311813”, “311821”, “311824”, “311830”, “311911”, “311919”, “311920”, “311930”, “311941”, “312111”, “312112”, “312113”, “312120”, “312130”, “312140”, “312230”, “313110”, “313230”, “314110”, “314120”, “315110”, “315190”, “315210”, “315220”, “315240”, “315280”, “316992”, “321212”, “321213”, “321219”, “321911”, “321991”, “322121”, “322130”, “322211”, “322219”, “322220”, “322230”, “322291”, “323117”, “324110”, “324191”, “325194”, “325199”, “325211”, “325312”, “325320”, “325411”, “325412”, “325413”, “325414”, “325510”, “325611”, “325612”, “325613”, “325620”, “325992”, “326111”, “326112”, “326113”, “326122”, “326140”, “326150”, “326160”, “326191”, “326211”, “326220”, “326291”, “327110”, “327212”, “327213”, “327215”, “327310”, “327332”, “327410”, “327420”, “327910”, “327993”, “331110”, “331315”, “331511”, “331512”, “332111”, “332112”, “332215”, “332216”, “332311”, “332313”, “332321”, “332410”, “332420”, “332431”, “332510”, “332911”, “332912”, “332913”, “332919”, “332991”, “332992”, “333111”, “333112”, “333120”, “333132”, “333242”, “333244”, “333415”, “333611”, “333612”, “333613”, “333618”, “333911”, “333912”, “333913”, “333921”, “333923”, “333992”, “333995”, “333996”, “334111”, “334112”, “334210”, “334220”, “334412”, “334413”, “334417”, “334418”, “334510”, “334511”, “334513”, “334514”, “334515”, “334516”, “334517”, “334614”, “335110”, “335121”, “335210”, “335221”, “335222”, “335224”, “335228”, “335312”, “335313”, “335911”, “335932”, “336111”, “336112”, “336120”, “336212”, “336213”, “336214”, “336310”, “336320”, “336330”, “336340”, “336350”, “336360”, “336370”, “336390”, “336412”, “336413”, “336414”, “336415”, “336510”, “336611”, “336612”, “336991”, “336992”, “336999”, “337110”, “337121”, “337122”, “337124”, “337125”, “337211”, “337214”, “337910”, “337920”, “339112”, “339113”, “339114”, “339115”, “339920”, “339940”, “339992”, “339993”, and “339995”.

End Amendment Part Start Amendment Part

b. Revise footnotes 3, 4, 5, and 7.

End Amendment Part

The revisions read as follows:

What size standards has SBA identified by North American Industry Classification System codes?
* * * * *

Small Business Size Standards by NAICS Industry

NAICS codesNAICS U.S. industry titleSize standards in millions of dollarsSize standards in number of employees
*         *         *         *         *         *         *
311111Dog and Cat Food Manufacturing1,000
*         *         *         *         *         *         *
311211Flour Milling1,000
*         *         *         *         *         *         *
311221Wet Corn Milling1,250
*         *         *         *         *         *         *
311314Cane Sugar Manufacturing1,000
311340Nonchocolate Confectionery Manufacturing1,000
311351Chocolate and Confectionery Manufacturing from Cacao Beans1,250
311352Confectionery Manufacturing from Purchased Chocolate1,000
311411Frozen Fruit, Juice, and Vegetable Manufacturing1,000
311412Frozen Specialty Food Manufacturing1,250
311421Fruit and Vegetable Canning 33 1,000
Start Printed Page 54172
311422Specialty Canning1,250
311423Dried and Dehydrated Food Manufacturing750
311511Fluid Milk Manufacturing1,000
311512Creamery Butter Manufacturing750
311513Cheese Manufacturing1,250
311514Dry, Condensed, and Evaporated Dairy Product Manufacturing750
311520Ice Cream and Frozen Dessert Manufacturing1,000
311611Animal (except Poultry) Slaughtering1,000
311612Meat Processed from Carcasses1,000
311613Rendering and Meat Byproduct Processing750
311615Poultry Processing1,250
311710Seafood Product Preparation and Packaging750
*         *         *         *         *         *         *
311812Commercial Bakeries1,000
311813Frozen Cakes, Pies, and Other Pastries Manufacturing750
311821Cookie and Cracker Manufacturing1,250
311824Dry Pasta, Dough, and Flour Mixes Manufacturing from Purchased Flour750
311830Tortilla Manufacturing1,250
311911Roasted Nuts and Peanut Butter Manufacturing750
311919Other Snack Food Manufacturing1,250
311920Coffee and Tea Manufacturing750
311930Flavoring Syrup and Concentrate Manufacturing1,000
311941Mayonnaise, Dressing, and Other Prepared Sauce Manufacturing750
*         *         *         *         *         *         *
312111Soft Drink Manufacturing1,250
312112Bottled Water Manufacturing1,000
312113Ice Manufacturing750
312120Breweries1,250
312130Wineries1,000
312140Distilleries1,000
312230Tobacco Manufacturing1,500
313110Fiber, Yarn, and Thread Mills1,250
*         *         *         *         *         *         *
313230Nonwoven Fabric Mills750
*         *         *         *         *         *         *
314110Carpet and Rug Mills1,500
314120Curtain and Linen Mills750
*         *         *         *         *         *         *
315110Hosiery and Sock Mills750
315190Other Apparel Knitting Mills750
315210Cut and Sew Apparel Contractors750
315220Men's and Boys' Cut and Sew Apparel Manufacturing750
315240Women's, Girls', and Infants' Cut and Sew Apparel Manufacturing750
315280Other Cut and Sew Apparel Manufacturing750
*         *         *         *         *         *         *
316992Women's Handbag and Purse Manufacturing750
*         *         *         *         *         *         *
321212Softwood Veneer and Plywood Manufacturing1,250
321213Engineered Wood Member (except Truss) Manufacturing750
*         *         *         *         *         *         *
321219Reconstituted Wood Product Manufacturing750
321911Wood Window and Door Manufacturing1,000
*         *         *         *         *         *         *
321991Manufactured Home (Mobile Home) Manufacturing1,250
*         *         *         *         *         *         *
322121Paper (except Newsprint) Mills1,250
*         *         *         *         *         *         *
322130Paperboard Mills1,250
322211Corrugated and Solid Fiber Box Manufacturing1,250
Start Printed Page 54173
*         *         *         *         *         *         *
322219Other Paperboard Container Manufacturing1,000
322220Paper Bag and Coated and Treated Paper Manufacturing750
322230Stationery Product Manufacturing750
322291Sanitary Paper Product Manufacturing1,500
*         *         *         *         *         *         *
323117Books Printing1,250
*         *         *         *         *         *         *
324110Petroleum Refineries 44 1,500
*         *         *         *         *         *         *
324191Petroleum Lubricating Oil and Grease Manufacturing750
*         *         *         *         *         *         *
325194Cyclic Crude, Intermediate, and Gum and Wood Chemical Manufacturing1,250
325199All Other Basic Organic Chemical Manufacturing1,250
325211Plastics Material and Resin Manufacturing1,250
*         *         *         *         *         *         *
325312Phosphatic Fertilizer Manufacturing750
*         *         *         *         *         *         *
325320Pesticide and Other Agricultural Chemical Manufacturing1,000
325411Medicinal and Botanical Manufacturing1,000
325412Pharmaceutical Preparation Manufacturing1,250
325413In-Vitro Diagnostic Substance Manufacturing1,250
325414Biological Product (except Diagnostic) Manufacturing1,250
325510Paint and Coating Manufacturing1,000
*         *         *         *         *         *         *
325611Soap and Other Detergent Manufacturing1,000
325612Polish and Other Sanitation Good Manufacturing750
325613Surface Active Agent Manufacturing750
325620Toilet Preparation Manufacturing1,250
*         *         *         *         *         *         *
325992Photographic Film, Paper, Plate, and Chemical Manufacturing1,500
*         *         *         *         *         *         *
326111Plastics Bag and Pouch Manufacturing750
326112Plastics Packaging Film and Sheet (including Laminated) Manufacturing1,000
326113Unlaminated Plastics Film and Sheet (except Packaging) Manufacturing750
*         *         *         *         *         *         *
326122Plastics Pipe and Pipe Fitting Manufacturing750
*         *         *         *         *         *         *
326140Polystyrene Foam Product Manufacturing1,000
326150Urethane and Other Foam Product (except Polystyrene) Manufacturing750
326160Plastics Bottle Manufacturing1,250
326191Plastics Plumbing Fixture Manufacturing750
*         *         *         *         *         *         *
326211Tire Manufacturing (except Retreading) 55 1,500
*         *         *         *         *         *         *
326220Rubber and Plastics Hoses and Belting Manufacturing750
326291Rubber Product Manufacturing for Mechanical Use750
*         *         *         *         *         *         *
327110Pottery, Ceramics, and Plumbing Fixture Manufacturing1,000
*         *         *         *         *         *         *
327212Other Pressed and Blown Glass and Glassware Manufacturing1,250
327213Glass Container Manufacturing1,250
327215Glass Product Manufacturing Made of Purchased Glass1,000
327310Cement Manufacturing1,000
Start Printed Page 54174
*         *         *         *         *         *         *
327332Concrete Pipe Manufacturing750
*         *         *         *         *         *         *
327410Lime Manufacturing750
327420Gypsum Product Manufacturing1,500
327910Abrasive Product Manufacturing750
*         *         *         *         *         *         *
327993Mineral Wool Manufacturing1,500
*         *         *         *         *         *         *
331110Iron and Steel Mills and Ferroalloy Manufacturing1,500
*         *         *         *         *         *         *
331315Aluminum Sheet, Plate, and Foil Manufacturing1,250
*         *         *         *         *         *         *
331511Iron Foundries1,000
331512Steel Investment Foundries1,000
*         *         *         *         *         *         *
332111Iron and Steel Forging750
332112Nonferrous Forging750
*         *         *         *         *         *         *
332215Metal Kitchen Cookware, Utensil, Cutlery, and Flatware (except Precious) Manufacturing750
332216Saw Blade and Handtool Manufacturing750
332311Prefabricated Metal Building and Component Manufacturing750
*         *         *         *         *         *         *
332313Plate Work Manufacturing750
332321Metal Window and Door Manufacturing750
*         *         *         *         *         *         *
332410Power Boiler and Heat Exchanger Manufacturing750
332420Metal Tank (Heavy Gauge) Manufacturing750
332431Metal Can Manufacturing1,500
*         *         *         *         *         *         *
332510Hardware Manufacturing750
*         *         *         *         *         *         *
332911Industrial Valve Manufacturing750
332912Fluid Power Valve and Hose Fitting Manufacturing1,000
332913Plumbing Fixture Fitting and Trim Manufacturing1,000
332919Other Metal Valve and Pipe Fitting Manufacturing750
332991Ball and Roller Bearing Manufacturing1,250
332992Small Arms Ammunition Manufacturing1,250
*         *         *         *         *         *         *
333111Farm Machinery and Equipment Manufacturing1,250
333112Lawn and Garden Tractor and Home Lawn and Garden Equipment Manufacturing1,500
333120Construction Machinery Manufacturing1,250
*         *         *         *         *         *         *
333132Oil and Gas Field Machinery and Equipment Manufacturing1,250
*         *         *         *         *         *         *
333242Semiconductor Machinery Manufacturing1,500
*         *         *         *         *         *         *
333244Printing Machinery and Equipment Manufacturing750
*         *         *         *         *         *         *
333415Air-Conditioning and Warm Air Heating Equipment and Commercial and Industrial Refrigeration Equipment Manufacturing1,250
*         *         *         *         *         *         *
333611Turbine and Turbine Generator Set Units Manufacturing1,500
Start Printed Page 54175
333612Speed Changer, Industrial High-Speed Drive, and Gear Manufacturing750
333613Mechanical Power Transmission Equipment Manufacturing750
333618Other Engine Equipment Manufacturing1,500
333911Pump and Pumping Equipment Manufacturing750
333912Air and Gas Compressor Manufacturing1,000
333913Measuring and Dispensing Pump Manufacturing750
333921Elevator and Moving Stairway Manufacturing1,000
*         *         *         *         *         *         *
333923Overhead Traveling Crane, Hoist, and Monorail System Manufacturing1,250
*         *         *         *         *         *         *
333992Welding and Soldering Equipment Manufacturing1,250
*         *         *         *         *         *         *
333995Fluid Power Cylinder and Actuator Manufacturing750
333996Fluid Power Pump and Motor Manufacturing1,250
*         *         *         *         *         *         *
334111Electronic Computer Manufacturing1,250
334112Computer Storage Device Manufacturing1,250
*         *         *         *         *         *         *
334210Telephone Apparatus Manufacturing1,250
334220Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing1,250
*         *         *         *         *         *         *
334412Bare Printed Circuit Board Manufacturing750
334413Semiconductor and Related Device Manufacturing1,250
*         *         *         *         *         *         *
334417Electronic Connector Manufacturing1,000
334418Printed Circuit Assembly (Electronic Assembly) Manufacturing750
*         *         *         *         *         *         *
334510Electromedical and Electrotherapeutic Apparatus Manufacturing1,250
334511Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing1,250
*         *         *         *         *         *         *
334513Instruments and Related Products Manufacturing for Measuring, Displaying, and Controlling Industrial Process Variables750
334514Totalizing Fluid Meter and Counting Device Manufacturing750
334515Instrument Manufacturing for Measuring and Testing Electricity and Electrical Signals750
334516Analytical Laboratory Instrument Manufacturing1,000
334517Irradiation Apparatus Manufacturing1,000
*         *         *         *         *         *         *
334614Software and Other Prerecorded Compact Disc, Tape, and Record Reproducing1,250
335110Electric Lamp Bulb and Part Manufacturing1,250
335121Residential Electric Lighting Fixture Manufacturing750
*         *         *         *         *         *         *
335210Small Electrical Appliance Manufacturing1,500
335221Household Cooking Appliance Manufacturing1,500
335222Household Refrigerator and Home Freezer Manufacturing1,250
335224Household Laundry Equipment Manufacturing1,250
335228Other Major Household Appliance Manufacturing1,000
*         *         *         *         *         *         *
335312Motor and Generator Manufacturing1,250
335313Switchgear and Switchboard Apparatus Manufacturing1,250
*         *         *         *         *         *         *
335911Storage Battery Manufacturing1,250
*         *         *         *         *         *         *
335932Noncurrent-Carrying Wiring Device Manufacturing1,000
*         *         *         *         *         *         *
336111Automobile Manufacturing1,500
Start Printed Page 54176
336112Light Truck and Utility Vehicle Manufacturing1,500
336120Heavy Duty Truck Manufacturing1,500
*         *         *         *         *         *         *
336212Truck Trailer Manufacturing1,000
336213Motor Home Manufacturing1,250
336214Travel Trailer and Camper Manufacturing1,000
336310Motor Vehicle Gasoline Engine and Engine Parts Manufacturing1,000
336320Motor Vehicle Electrical and Electronic Equipment Manufacturing1,000
336330Motor Vehicle Steering and Suspension Components (except Spring) Manufacturing1,000
336340Motor Vehicle Brake System Manufacturing1,250
336350Motor Vehicle Transmission and Power Train Parts Manufacturing1,500
336360Motor Vehicle Seating and Interior Trim Manufacturing1,500
336370Motor Vehicle Metal Stamping1,000
336390Other Motor Vehicle Parts Manufacturing1,000
*         *         *         *         *         *         *
336412Aircraft Engine and Engine Parts Manufacturing1,500
336413Other Aircraft Parts and Auxiliary Equipment Manufacturing 77 1,250
336414Guided Missile and Space Vehicle Manufacturing1,250
336415Guided Missile and Space Vehicle Propulsion Unit and Propulsion Unit Parts Manufacturing1,250
*         *         *         *         *         *         *
336510Railroad Rolling Stock Manufacturing1,500
336611Ship Building and Repairing1,250
336612Boat Building1,000
336991Motorcycle, Bicycle, and Parts Manufacturing1,000
336992Military Armored Vehicle, Tank, and Tank Component Manufacturing1,500
336999All Other Transportation Equipment Manufacturing1,000
337110Wood Kitchen Cabinet and Countertop Manufacturing750
337121Upholstered Household Furniture Manufacturing1,000
337122Nonupholstered Wood Household Furniture Manufacturing750
337124Metal Household Furniture Manufacturing750
337125Household Furniture (except Wood and Metal) Manufacturing750
*         *         *         *         *         *         *
337211Wood Office Furniture Manufacturing1,000
*         *         *         *         *         *         *
337214Office Furniture (except Wood) Manufacturing1,000
*         *         *         *         *         *         *
337910Mattress Manufacturing1,000
337920Blind and Shade Manufacturing1,000
*         *         *         *         *         *         *
339112Surgical and Medical Instrument Manufacturing1,000
339113Surgical Appliance and Supplies Manufacturing750
339114Dental Equipment and Supplies Manufacturing750
339115Ophthalmic Goods Manufacturing1,000
*         *         *         *         *         *         *
339920Sporting and Athletic Goods Manufacturing750
*         *         *         *         *         *         *
339940Office Supplies (except Paper) Manufacturing750
*         *         *         *         *         *         *
339992Musical Instrument Manufacturing1,000
339993Fastener, Button, Needle, and Pin Manufacturing750
*         *         *         *         *         *         *
339995Burial Casket Manufacturing1,000
*         *         *         *         *         *         *
Start Printed Page 54177
* * * * *

Footnotes

* * * * *

3. NAICS code 311421—For purposes of Government procurement for food canning and preserving, the standard of 500 employees excludes agricultural labor as defined in 3306(k) of the Internal Revenue Code, 26 U.S.C. 3306(k).

4. NAICS code 324110—To qualify as small for purposes of Government procurement, the petroleum refiner, including its affiliates, must be a concern that has no more than 1,500 employees OR no more than 200,000 barrels per calendar day total Operable Atmospheric Crude Oil Distillation capacity. Capacity includes all domestic and foreign affiliates, owned or leased facilities, and facilities under a processing agreement or an arrangement such as an exchange agreement or a throughput. To qualify under the capacity size standard, the firm, together with its affiliates, must be primarily engaged in refining crude petroleum into refined petroleum products. A firm's “primary industry” is determined in accordance with 13 CFR 121.107.

5. NAICS code 326211—For Government procurement, a firm is small for bidding on a contract for pneumatic tires within Census NAICS Product Classification codes 3262111 and 3262113, provided that:

(a) The value of tires within Census NAICS Product Classification codes 3262113 which it manufactured in the United States during the previous calendar year is more than 50 percent of the value of its total worldwide manufacture,

(b) The value of pneumatic tires within Census NAICS Product Classification codes 3262113 comprising its total worldwide manufacture during the preceding calendar year was less than 5 percent of the value of all such tires manufactured in the United States during that period, and

(c) The value of the principal product which it manufactured or otherwise produced, or sold worldwide during the preceding calendar year is less than 10 percent of the total value of such products manufactured or otherwise produced or sold in the United States during that period.

* * * * *

7. NAICS code 336413—Contracts for the rebuilding or overhaul of aircraft ground support equipment on a contract basis are classified under NAICS code 336413.

* * * * *
Start Signature

Dated: August 25, 2014.

Maria Contreras-Sweet,

Administrator.

End Signature End Supplemental Information

[FR Doc. 2014-20837 Filed 9-9-14; 8:45 am]

BILLING CODE 8025-01-P