DATE: May 15, 2000
FROM: Barry McVay, CPCM
SUBJECT: Small Business Administration (SBA); North American Industry Classification System (NAICS) Small Business Size Standards
SOURCE: Federal Register, May 15, 2000, Vol. 65, No. 94, page 30836
AGENCIES: Small Business Administration (SBA)
ACTION: Final Rule
SYNOPSIS: The SBA is amending its small business size regulations by establishing a new set of small business size standards for industries based on the NAICS. These new size standards are effective for all small business programs on October 1, 2000, and will replace the existing size standards based on the Standard Industrial Classification (SIC) system.
EDITOR'S NOTE: NAICS is a system devised by the United States, Canada, and Mexico for classifying establishments by type of economic activity. Its purposes are: (1) to facilitate the collection, tabulation, presentation, and analysis of data relating to establishments, and (2) to promote uniformity and comparability in the presentation and analysis of statistical data describing the economy. The NAICS was first published in 1997, and it is replacing the Standard Industrial Classification (SIC), which was originally developed in the 1930s and last updated by the Office of Management and Budget (OMB) in 1987. The NAICS reflects the enormous changes in technology and the growth and diversification of services that have marked recent years much better than does the SIC.
The NAICS uses a 6-digit hierarchical structure to classify establishments, as follows:
| Sector | First two digits | Sector 21 -- Mining |
| Subsector | First three digits | Subsector 212, Mining (except Oil and Gas) |
| Industry Group | First four digits | Industry Group 2122 -- Metal Ore Mining |
| NAICS Industry | First five digits | NAICS Industry 21223 -- Copper, Nickel, Lead, and Zinc (in general, this is the lowest level of compatibility among the three countries) |
| National Industry | All six digits | U.S. Industry 212231 -- Lead Ore and Zinc Ore (the sixth digit provides the necessary detail for national economic statistics, and reflects the fact that the economies of the three countries are structured very differently) |
The existing SIC-based small business size standards, which were in Federal Acquisition Regulation (FAR) 19.102, Size Standards, until December 27, 1999, are published by the SBA on the Internet at http://www.sba.gov/regulations/siccodes.
The Bureau of the Census maintains an NAICS web site. Available on the web site are tables cross-referencing SIC codes to the comparable NAICS codes and NAICS codes to the comparable SIC codes.
For more on a proposal to restructure the construction (Sector 23), wholesale trade (Sector 42), and information sectors (Sector 51) of NAICS, see the April 20, 2000, FEDERAL CONTRACTS DISPATCH "Office of Management and Budget; North American Industry Classification System -- Update for 2002."
EFFECTIVE DATE: October 1, 2000.
FOR FURTHER INFORMATION CONTACT: Carl Jordan, Office of Size Standards, 202-205-6618.
SUPPLEMENTAL INFORMATION: On October 22, 1999, the Small Business Administration (SBA) published a proposal to amend its small business size regulations by replacing the SIC-based size standards with NAICS-based size standards. Three comments were submitted, two from industry groups (moving and storage companies; environmental contractors) and one from an SBA office. All supported the proposed rule, so the proposed rule is adopted without change except for a few editorial corrections -- SBA has not made any changes to the NAICS size standards that were proposed on October 22, 1999.
The following are the NAICS sectors (2-digit) and subsectors (3-digit) to aid in locating applicable size standards (see page 30836 of the May 15, 2000, Federal Register):
Sector 11 -- Agriculture, Forestry and Fishing
Subsector 111 -- Crop Production
Subsector 112 -- Animal Production
Subsector 113 -- Forestry and Logging
Subsector 114 -- Fishing, Hunting and Trapping
Subsector 115 -- Support Activities for Agriculture and Forestry
Sector 21 -- Mining
Subsector 211 -- Oil and Gas Extraction
Subsector 212 -- Mining (except Oil and Gas)
Sector 22 -- Utilities
Subsector 221 -- Utilities
Sector 23 -- Construction
Subsector 233 -- Building, Developing and General Contracting
Subsector 234 -- Heavy Construction
Subsector 235 -- Special Trade Contractors
Sectors 31 to 33 -- Manufacturing
Subsector 311 -- Food Manufacturing
Subsector 312 -- Beverage and Tobacco Product Manufacturing
Subsector 313 -- Textile Mills
Subsector 314 -- Textile Product Mills
Subsector 315 -- Apparel Manufacturing
Subsector 316 -- Leather and Allied Product Manufacturing
Subsector 321 -- Wood Product Manufacturing
Subsector 322 -- Paper Manufacturing
Subsector 323 -- Printing and Related Support Activities
Subsector 324 -- Petroleum and Coal Products Manufacturing
Subsector 325 -- Chemical Manufacturing
Subsector 326 -- Plastics and Rubber Products Manufacturing
Subsector 327 -- Nonmetallic Mineral Product Manufacturing
Subsector 331 -- Primary Metal Manufacturing
Subsector 332 -- Fabricated Metal Product Manufacturing
Subsector 333 -- Machinery Manufacturing
Subsector 334 -- Computer and Electronic Product Manufacturing
Subsector 335 -- Electrical Equipment, Appliance and Component Manufacturing
Subsector 336 -- Transportation Equipment Manufacturing
Subsector 337 -- Furniture and Related Product Manufacturing
Subsector 339 -- Miscellaneous Manufacturing
Sector 42 -- Wholesale Trade
Subsector 421 -- Wholesale Trade -- Durable Goods
Subsector 422 -- Wholesale Trade -- Nondurable Goods
Sectors 44 and 45 -- Retail Trade
Subsector 441 -- Motor Vehicle and Parts Dealers
Subsector 442 -- Furniture and Home Furnishings Stores
Subsector 443 -- Electronics and Appliance Stores
Subsector 444 -- Building Material and Garden Equipment and Supplies Dealers
Subsector 445 -- Food and Beverage Stores
Subsector 446 -- Health and Personal Care Stores
Subsector 447 -- Gasoline Stations
Subsector 448 -- Clothing and Clothing Accessories Stores
Subsector 451 -- Sporting Good, Hobby, Book and Music Stores
Subsector 452 -- General Merchandise Stores
Subsector 453 -- Miscellaneous Store Retailers
Sectors 48 and 49 -- Transportation
Subsector 481 -- Air Transportation
Subsector 482 -- Rail Transportation
Subsector 483 -- Water Transportation
Subsector 484 -- Truck Transportation
Subsector 485 -- Transit and Ground Passenger Transportation
Subsector 486 -- Pipeline Transportation
Subsector 487 -- Scenic and Sightseeing Transportation
Subsector 488 -- Support Activities for Transportation
Subsector 491 -- Postal Service
Subsector 492 -- Couriers and Messengers
Subsector 493 -- Warehousing and Storage
Sector 51 -- Information
Subsector 511 -- Publishing Industries
Subsector 512 -- Motion Picture and Sound Recording Industries
Subsector 513 -- Broadcasting and Telecommunications
Subsector 514 -- Information Services and Data Processing Services
Sector 52 -- Finance and Insurance
Subsector 522 -- Credit Intermediation and Related Activities
Subsector 523 -- Financial Investments and Related Activities
Subsector 524 -- Insurance Carriers and Related Activities
Subsector 525 -- Funds, Trusts and Other Financial Vehicles
Sector 53 -- Real Estate and Rental and Leasing
Subsector 531 -- Real Estate
Subsector 532 -- Rental and Leasing Services
Subsector 533 -- Lessors of Nonfinancial Intangible Assets (except Copyrighted Works)
Sector 54 -- Professional, Scientific and Technical Services
Subsector 541 -- Professional, Scientific and Technical Services
Sector 55 -- Management of Companies and Enterprises
Subsector 551 -- Management of Companies and Enterprises
Sector 56 -- Administrative and Support, Waste Management and Remediation Services
Subsector 561 -- Administrative and Support Services
Subsector 562 -- Waste Management and Remediation Services
Sector 61 -- Educational Services
Subsector 611 -- Educational Services
Sector 62 -- Health Care and Social Assistance
Subsector 621 -- Ambulatory Health Care Services
Subsector 622 -- Hospitals
Subsector 623 -- Nursing and Residential Care Facilities
Subsector 624 -- Social Assistance
Sector 71 -- Arts, Entertainment and Recreation
Subsector 711 -- Performing Arts, Spectator Sports and Related Industries
Subsector 712 -- Museums, Historical Sites and Similar Institutions
Subsector 713 -- Amusement, Gambling and Recreation Industries
Sector 72 -- Accommodation and Food Services
Subsector 721 -- Accommodation
Subsector 722 -- Food Services and Drinking Places
Sector 81 -- Other Services
Subsector 811 -- Repair and Maintenance
Subsector 812 -- Personal and Laundry Services
Subsector 813 -- Religious, Grantmaking, Civic, Professional and Similar Organizations
FOR FURTHER INFORMATION CONTACT: Barry McVay at 703-451-5953 or by e-mail to BarryMcVay@FedGovContracts.com.
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