Tero Tek International, Inc., No. 3271 (March 22, 1990)
Docket No. SIC-90-3-6-21

                    UNITED STATES OF AMERICA

                  SMALL BUSINESS ADMINISTRATION

                 OFFICE OF HEARINGS AND APPEALS

                     WASHINGTON, D.C. 20416

SIC APPEAL OF:                )
                              )
Tero Tek International, Inc.  )
                              )
     Appellant                )
                              )    Docket No. SIC-90-3-6-21
Solicitation No.              )
DAKF48-90-R-0006              )
Department of the Army        )
Headquarters III Corps        )
Fort Hood, Texas              )

                             DIGEST

A solicitation for aircraft maintenance services not involving
rebuilding on a factory basis is correctly classified under
Standard Industrial Classification (SIC) code 4581 (Airports,
Flying Fields, and Airport Terminal Services).

                            DECISION
                                
                         March 22, 1990

BLAZSIK, Administrative Judge, Presiding:

Jurisdiction

This appeal is decided under the Small Business Act of 1958, 15
U.S.C. sec. 632 et seq., and the regulations codified at 13 CFR
Part 121.

Issue

Whether the correct classification to be assigned to this
solicitation is SIC code 4581.

Facts

On February 2, 1990, the Department of the Army, Headquarters III
Corps, Fort Hood, Texas, issued this solicitation for "Aircraft
Maintenance" and classified it under Standard Industrial
Classification (SIC) code 4581 (Airports, Flying Fields, and
Airport Terminal Services), having a $3.5 million average annual
receipts size standard. 1/ The solicitation was totally set aside
for small business, and bids were due on March 15, 1990.

By letter postmarked March 1, 1990, and received at the Office of
Hearings and Appeals on March 6, 1990, Tero Tek International,
Inc. (Appellant) filed an appeal from the Contracting Officer's
SIC code designation, arguing that the work required under the
solicitation is tantamount to repairing or rebuilding to a
factory basis and that, therefore, SIC code 3721 (Aircraft),
which has a 1,500-employee size standard, is a more appropriate
classification.

On March 14, 1990, the Contracting Officer filed the following in
support of SIC code 4581:

     The work to be accomplished under this solicitation is
     aircraft maintenance, not manufacturing or rebuilding. Some
     tasks are inherently depot-level work, or are classified
     "not reparable this station." In these cases, the craft or
     component is evacuated to the depot. Occasionally, in the
     course of maintaining a craft, a task is identified which is
     classified as depot-level, or beyond the capability of this
     station. Depending upon the task, the depot, when contacted,
     may authorize a one-time repair of the component. This is
     the exception, rather than the rule.

     The decision to use SIC 4581 was based on review of the
     following:

     a. The requirement-maintenance and repair services which do
     not constitute rebuilding on a factory basis.

     b. The industry number definitions provided in the Standard
     Industrial Classification Manual.

The Contracting Officer also asserts that the appeal is untimely
because it was received by this Office on March 6, 1990, seven
business days prior to the date for bid submissions and, thus,
was not received within the 10-day period specified in the
regulation.

The scope of work to be performed under the solicitation is
identified in Section C and requires the successful contractor to
provide all personnel, management, administration, labor, tools,
supplies, and equipment for Aviation Unit Maintenance and r
Aviation Intermediate Maintenance. These services consist of
inspection, installation, repair, alignment, assembly,
disassembly, troubleshooting, replacing, adjusting, and testing
engines, major components, and other related support equipment.
There is no manufacturing or rebuilding of equipment involved.

Discussion

The regulation at 13 CFR 121.1705 provides:

     (b)(l) Except as provided in paragraph (b)(2) of this
     section, an appeal from a SIC code designation must be filed
     with the Office of Hearings and Appeals no later than 10
     days (exclusive of Saturdays, Sundays, and legal holidays)
     before the bid opening day or deadline for submitting
     proposals or quotations as specified in the solicitation. If
     a solicitation is modified to extend the bid opening day or
     deadline for submitting proposals or quotations, the 10 day
     period for filing shall be from the date designated in the
     modification.

     (2) Where the bid opening day or deadline for submitting
     proposals or quotations is less than 30 days after the
     issuance of the invitation for bids or request for proposals
     or quotations, the appeal must be filed with the Office of
     Hearings and Appeals no later than 5 days (exclusive of
     Saturdays, Sundays, and legal holidays) before the bid
     opening day....

The regulation codified at 13 CFR 121.1702(c) defines the word
"file" as

     to deliver personally or to send by U.S. certified mail,
     return receipt requested or by any other mail service that
     provides proof of mailing and receipt. The filing date will
     be determined by reference to the postmark date.

The record shows that more than 30 days exist between the date of
issuance of the solicitation and the bid opening day. The record
also shows that the appeal was postmarked on March 1, 1990. Thus,
in accordance with the above regulations, the appeal was filed
within the 10-day period enumerated by 13 CFR 121.1705(b)(1) and
is, therefore, timely.

SIC code 4581 is described, with examples, in the SIC Manual Zy
as follows:

     Establishments primarily engaged in operating and
     maintaining airports and flying fields; in servicing,
     repairing (except on a factory basis), maintaining, and
     storing aircraft; and in furnishing coordinated handling
     services for airfreight or passengers at airports. This
     industry also includes private establishments primarily
     engaged in air traffic control operations. Government air
     traffic control operations are classified in Public
     Administration, Industry 9621. Aircraft modification centers
     and establishments primarily engaged in factory type
     overhaul of aircraft are classified in Manufacturing, Major
     Group 37, and flying fields maintained by aviation clubs are
     classified in Services, Industry 7997.

Examples shown under SIC code 4581 include aircraft servicing and
repairing, except on a factory basis, aircraft cleaning and
janitorial service, hangar operation, aircraft upholstery repair,
and aircraft storage at airports.

SIC code 3721 advocated by the Appellant is described in the SIC
Manual as follows:

          Establishments primarily engaged in manufacturing or
     assembling complete aircraft. This industry also includes
     establishments owned by aircraft manufacturers and primarily
     engaged in research and development on ircraft whether from
     enterprise funds or on a contract or fee basis. Also
     included are establishments engaged in repairing and
     rebuilding aircraft on a factory basis. Establishments
     primarily engaged in manufacturing engines and other
     aircraft parts and auxiliary equipment are classified in
     Industry 3724 and 3728; and those manufacturing guided
     missiles and space vehicles and parts are classified in
     Industry Group 376. Establishments primarily engaged in the
     repair of aircraft, except on a factory basis, are
     classified in Transportation, Industry 4581; and research
     and development on aircraft by establishments not owned by
     aircraft manufacturers are classified in Services, Industry
     8731.

Examples listed under SIC code 3721 include aircraft, airships,
balloons, and research and development on aircraft by the
manufacturer.

This solicitation is similar to that at issue in SIC Appeal of J
& J Maintenance Co., No. 2940 (1988) in which we made the
following distinction between SIC codes 4581 and 3721:

     The central distinction between the two SIC code
     descriptions is that SIC code 3721 pertains to manufacturing
     or assembling aircraft, whereas SIC code 4581 is service and
     maintenance oriented. A review of the work statement
     demonstrates that the service being procured is for service
     and maintenance of aircraft, not overhauling and
     manufacturing of aircraft to a "factory basis."

The solicitation at issue requires the contractor to provide
Aviation Unit Maintenance and Aviation Intermediate Maintenance.
These services include inspection, installation, repair,
assembly, disassembly, repairing, troubleshooting, adjusting, and
other maintenance repair services. There is no evidence that the
repair services to be supplied under this solicitation constitute
manufacturing or rebuilding on a factory basis. The Contracting
Officer's reply specifically states that the "maintenance and
repair services [under this solicitation] do not constitute
rebuilding to a factory basis." The work to be contracted for
under this solicitation is of a type described under SIC code
4581 and does not rise to the level of overhauling on a factory
basis claimed by the Appellant. See SIC Appeal of Pride
Management & Services Co., No. 3122 (1989).

Conclusion

The proper classification for this solicitation is SIC code 4581.
The Contracting Officer's designation is AFFIRMED, and the appeal
is DENIED.

This constitutes the final decision of the Small Business
Administration. See 13 CFR 121.11(t), (u), and (v).

               ______________________________
               Gloria E. Blazsik (Presiding)
               Administrative Judge
               
               
               ______________________________
               Jane E. Phillips (Concurring)
               Administrative Judge
               
               
               ______________________________
               Joseph K. Riotto (Concurring)
               Administrative Judge

______________
     1/   Solicitations issued on or after January 1, 1990, are
regulated by 13 CFR Part 121 published in 54 Federal Register
52634, et seq., on December 21, 1989, effective January 1, 1990.

     2/   Standard Industrial Classification Manual, Executive
Office of the President, Office of Management and Budget, 1987
Edition.