# Presentation: 801054

## Size Standards Affiliation Regulations

***Size Standards Affiliation Regulations***
***NASA Johnson Space Center***
***Houston, Texas***
***March 13, 2006***

**Office of Size Standards**

## Size Standards Topics

**Overview of Size Standards **
**Affiliation Regulations & Issues**
**    **
**Size Protest Process**
**Q & A’s**

- Office of Size Standards

## What Is a Small Business?Statutory Criteria 

**   ****Independently Owned and Operated**
**   ****Not Dominant in its Field of Operation **
**   ****Meets Detailed Definition Established **
**     ****SBA Administrator ... **_**and**_**        **
**    ****Must Vary to Reflect  Industry Differences **
**   **
**Source: Section 3(a) of Small Business Act**

- Office of Size Standards

## Business Concern

**Organized for Profit  **
** ****Place of Business in the United States **
**       **
** ****Makes Significant Contribution to **
**   ****the U.S. Economy **

- Office of Size Standards

## Size Standards by Industry Sector 

**                                                    ****Most Commonly Used **
**             **_**Industry Sector**_**                  **_**Size Standards**_
**             ****Manufacturing                       500 Employees**
** **
**            ****Wholesale Trade                    100 Employees**
**            ****Construction****	****	**
**               ****General & Heavy                 $31.0  Million**
**               ****Special Trades                    $13.0  Million**
**            ****Retail Trade & Services           $6.5  Million**
**            ****Agriculture                               $0.75 Million**

- Office of Size Standards

## Selected  Industry Size Standards 

**         **_**Industry**_**                                 **_**Size Standard**_
**Aircraft Manufacturing                1,500  Employees**
** ****Audio & Video Equipment            750   Employees**
** ****Computer Services****	****            $23.0   Million**
** ****Janitorial Services                       $15.0  Million **
** ****Medical Laboratories                   $12.5  Million**
** ****Guard Services                             $11.5  Million**
** ****A& E Services                                 $4.5  Million**
** ****Travel Agencies                              $3.5  Million**
** **

- Office of Size Standards

## Small Joint Venture

**Combined Size of Parties of JV Must be Small**
**  **
**  **_**Except:**_
**     ****For Certain Procurements Each Party of JV **
**     ****Can be a Small Business **
**      **
**  “****Bundled” Requirement (13 §125.2(d)(1)(i)) **
**  **

- Office of Size Standards

## Small JV (Cont.)

**  ****Exceeds One-Half  of Revenue-Based Size Standard**
**  ****Exceeds $10 Million for Employee-Based Size Standard**
_**NOTE**_**: Other Requirements for 8(a), HUBZone,  **
**           ****SDB, and SDVOSB Procurements**

- Office of Size Standards

##  Affiliation Regulation 

**Size of Business Includes the Firm **
***                        ***_***and***_
** ****Others it **_**Owns**_** or **_**Controls**_** **
**Ensures Benefits to **_**Small**_** Business**
**Assists Development of Small Business**
**   **

- Office of Size Standards

##  Affiliation (Cont.) 

**   ****Power to Control Through: **
**   ****Ownership**
**              ****Majority Ownership**
**              ****Large Block of Ownership**
**                                **

- Office of Size Standards

##  Affiliation (Cont.) 

**   ****Power to Control Through: **
**        ****Common Management**
**                ****Financial Relationships                   **
**                       ****Contractual Relationships**
**                                  ****Other Interrelations**
**                                **

- Office of Size Standards

##  Affiliation (Cont.) 

**Unusually Reliant**
**       ****Economically Dependent**
**       ****Operating in Concert**
**Ostensible Subcontracting**
**       ****Primary & Vital Functions **
**       ****7 Factor Test****  **
**                                **

- Office of Size Standards

##  Affiliation (Cont.) 

**7 Factor Test****  **
**Who will manage the contract?**
**Which party possesses the requisite background and expertise to carryout contract?**
**Who “chased” the contract?**
**                                **

- Office of Size Standards

##  Affiliation (Cont.) 

**What degree of collaboration was there on the bid?**
**Are there discrete tasks to be performed or is there a commingling of personnel and materials?**
**What is the relative amount of work to be performed by each?**
**Which party performs the most complex and costly contract functions**
**                                **

- Office of Size Standards

##  Affiliation (Cont.) 

**Totality of Circumstances****  **
**Specific Facts**
**Assessment of Control  **
**                                **

- Office of Size Standards

##  Guidance 

**Regulations 13 CFR 121**
**Office of Hearings & Appeals Decisions**
**SBA Size Specialists**
**Legal Counsel                                **

- Office of Size Standards

## Size Protest Process

- Office of Size Standards

**13 CFR 121.1001 – 121.1009**
**CO **_**MUST**_** FORWARD SIZE PROTEST TO SBA**
**SBA Government Contracting Area Office**
**Location of Protested Concern**

## Size Protest Process (Cont.)

- Office of Size Standards

**SBA Reviews for:**
**      ****Timeliness**
**      ****Specificity**
**      ****Allegations**
**Timeframes for Decision**
**Appeals of Size Determinations to **
**SBA’s Office of Hearings & Appeals**

## Concluding Comments

- Office of Size Standards

**Understand Regulations & OHA Decisions**
**Common Sense**
**Policy Changes**
**Q & A’s**

## Size Standards Information

**http://www.sba.gov/size**
**“****What’s New” Topic**
**(202) 205-6618**
**sizestandards@sba.gov**

-      Office of Size Standards