If you participate in federal government procurement programs, either as a prime contractor or as a subcontractor, listen up! Your small business size status may have changed on July 14, 2014 as a result of an interim rule issued by the SBA. The rule increased revenue-based size standards for numerous industries, including general and specialty construction. The SBA has estimated that approximately 480 additional firms will now be considered “small” under the new size standards. Federal contractors and subcontractors should visit the System for Award Management (SAM) and verify that all profile and certification information are up to date based upon the revised size standards. A summary of the changes to the construction NAICS codes is set forth below.
The SBA cited inflation as the reason for the change; the last time the size standards were adjusted for inflation was back in 2008. These adjustments are in addition to the recent size standard revisions that were implemented following passage of the Small Business Jobs Act of 2010 (Jobs Act).
The rule made other changes as well, most notably:
- An adjustment to program-based size standards, with the exception of the new alternative size standard for SBA’s 7(a) and 504 loan programs that was established under the Jobs Act. The new alternative size standard will remain in effect until SBA establishes a permanent alternative size standard for the 7(a) and 504 loan programs.
- Deletion of references to surety bond guarantee size standards for contracts awarded in Presidentially declared disaster areas following Hurricanes Katrina, Rita, and Wilma in 2005.
- Deletion of the determination date for eligibility under the SBA’s Economic Injury Disaster Loan (EIDL) Program in connection with Hurricanes Katrina, Rita, and Wilma.
The SBA encourages contractors to review the new rule and provide feedback. The comment period closes on August 11, 2014. Additional information about small business size standards is available on the SBA’s website.
If you need assistance in determining whether you are a “small” business under these newly established NAICS codes, or in general, please do not hesitate to contact us. Here are the new standards for general and specialty construction:
SECTOR 23—CONSTRUCTION
Subsector 236—Construction of Buildings
NAICS Code |
NAICS U.S. Industry Title |
New Standard |
236115 | New Single-family Housing Construction (Except For-Sale Builders) | $36.5 million |
236116 | New Multi-family Housing Construction (Except For-Sale Builders). | $36.5 million |
236117 | New Housing For-Sale-Builders | $36.5 million |
236118 | Residential Remodelers | $36.5 million |
236210 | Industrial Building Construction | $36.5 million |
236220 | Commercial and Institutional Building Construction | $36.5 million |
Subsector 237 Heavy and Civil Engineering Construction
NAICS Code |
NAICS U.S. Industry Title |
New Standard |
237110 | Water and Sewer Line and Related Structures Construction | $36.5 million |
237120 | Oil and Gas Pipeline and Related Structures Construction | $36.5 million |
237130 | Power and Communication Line and Related Structures Construction | $36.5 million |
237210 | Land Subdivision | $27.5 million |
237310 | Highway, Street, and Bridge Construction | $36.5 million |
237990but | Other Heavy and Civil Engineering Construction | $36.5 million |
237990 | Dredging and Surface Cleanup Activities | $27.5 million |
Subsector 238 Specialty Trade Contractors
NAICS Code |
NAICS U.S. Industry Title |
New Standard |
238110 | Poured Concrete Foundation and Structure Contractors | $15 million |
238120 | Structural Steel and Precast Concrete Contractors | $15 million |
238130 | Framing Contractors | $15 million |
238140 | Masonry Contractors | $15 million |
238150 | Glass and Glazing Contractors | $15 million |
238160 | Roofing Contractors | $15 million |
238170 | Siding Contractors | $15 million |
238190 | Other Foundation, Structure and Building Exterior Contractors | $15 million |
238210 | Electrical Contractors and Other Wiring Installation Contractors | $15 million |
238220 | Plumbing, Heating and Air-Conditioning Contractors | $15 million |
238290 | Other Building Equipment Contractors | $15 million |
238310 | Drywall and Insulation Contractors | $15 million |
238320 | Painting and Wall Covering Contractors | $15 million |
238330 | Flooring Contractors | $15 million |
238340 | Tile and Terrazzo Contractors | $15 million |
238350 | Finish Carpentry Contractors | $15 million |
238390 | Other Building Finishing Contractors | $15 million |
238910 | Site Preparation Contractors | $15 million |
238990 | All Other Specialty Trade Contractors | $15 million |
238990 | Building and Property Specialty Trade Services | $15 million |
SECTOR 22—UTILITIES
Subsector 221 Utilities
NAICS Code |
NAICS U.S. Industry Title |
New Standard |
221310 | Water Supply and Irrigation Systems | $27.5 million |
221320 | Sewage Treatment Facilities | $20.5 million |
221330 | Steam and Air Conditioning Supply | $15 million |
Edward T. DeLisle is a Partner in the firm and a member of the Federal Contracting Practice Group.
Maria L. Panichelli is an Associate in the firm’s Federal Practice Group.