Comprehensive review of size standards

In 2007, SBA launched a comprehensive review of size standards.  Subsequently, in 2010, U.S. Congress enacted the Small Business Jobs Act (Jobs Act).  Public Law 111-240, 124 Stat. 2504, Sept. 27, 2010.  Section 1344 of 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 required SBA to review at least one-third of all size standards during every 18-month period from the date of its enactment and to review all size standards not less frequently than once every five years, thereafter.  SBA has completed the first five-year review of all size standards.  The SBA’s previous comprehensive size standards review was in the late 1970s and early 1980s.

In accordance with the Jobs Act, SBA has also submitted to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives a report on the factors SBA evaluated for reviewing size standards and the criteria it used for adjusting or not adjusting each size standard.  Specifically, the report (see below) provides an overview of SBA’s “Size Standards Methodology,” including industry and Federal contracting factors and data sources the Agency evaluated when reviewing size standards.  Also included in the report is information on the order in which SBA reviewed size standards in various North American Industry Classification System (NAICS) sectors, number of size standards that were reviewed and revised in each sector, size standards of high public interest and concerns, and impacts of size standard revisions.

SBA is in the process of launching the second 5-year review of size standards.  As part of that effort, the Agency will first publish its revised “Size Standards Methodology” white paper for public comments.  Once the revised methodology is finalized, SBA will start reviewing the size standards and issuing proposed rules for comments.  For more details, interested parties are advised to contact SBA’s Office of Size Standards at sizestandards@sba.gov or 202-205-6618.