fined in "Note" at the end of § 18-1.701-4.

(f) Any concern bidding on contracts for marine cargo handling services is classfied as small if its annual receipts do not exceed $5 million for the preceding three fiscal years.

(g) Any concern bidding on a contract for food services is classified as small if its average annual receipts for its preceding three fiscal years do not exceed $4 million.

(h) (1) Any concern bidding on a contract for laundry services including linen supply, diaper services, and industrial laundering, is classified small if its average annual receipts for its preceding three fiscal years do not exceed $3 million.

(2) Any concern bidding on a contract for cleaning and dyeing including rug cleaning services is classified small if its average annual receipts for its preceding three fiscal years do not exceed $1 million.

(i) Any concern bidding on a contract for computer programming services is classified as small if its average annual receipts for its preceding three fiscal years do not exceed $3 million.

(j) Any concern bidding on a contract for flight training services is classified as small if its average annual receipts for its preceding three fiscal years do not exceed $5 million.

(k) Any concern bidding on a contract for motorcar rental and leasing services or truck rental and leasing services is classified as small if its average annual receipts for its preceding three fiscal years do not exceed $5 million.

(1) Any concern bidding on a contract for tire recapping services is classified as small if its average annual receipts for its preceding three fiscal years do not exceed $3 million.

(m) Any concern bidding on a contract for data processing services is classified as small if its average annual receipts for its preceding three fiscal years do not exceed $3 million.

(n) Any concern bidding on a contract for computer maintenance services is classified as small if its average annual receipts for its preceding three fiscal years do not exceed $5 million.

(v) Transportation industries.—(a) General. Except as provided in (b) and (c) of this subdivision (v), for passenger or freight transportation the number of employees of the concern and its affiliates must not exceed 500 persons.

20-130-74

(b) Air transportation. For air transportation, the number of employees of the concern and its affiliates must not exceed 1,500 persons.

(c) Trucking (local and long distance), warehousing, packing and crating, and/or freight forwarding. For trucking (local and long distance), warehousing, packing and crating, and/or freight forwarding, the annual receipts of the concern and its affiliates must not exceed $5,000,000. No such concern, however, will be denied small business status for the purpose of Government procurement solely because of its contractual relationship with a large interstate van line if the concern's annual receipts have not exceeded $5,000,000 during its most recently completed fiscal year.

(vi) Research, development or testing industries. For research, development, or testing, which requires delivery of a manufactured product, a concern must:

(a) Qualify as a small business manufacturer within the meaning of subdivision (ii) of this subparagraph for the industry in which the product is classified, or

(b) Qualify as a small business nonmanufacturer within the meanings of subdivision (iii) of this subparagraph. For research, development, or testing, which does not require delivery of a manufactured product, the number of employees of the concern and its affiliates must not exceed 500 persons.

(3) Small business subcontractors. In connection with subcontracts' of $2,500 or less, any concern will be considered a small business concern if it, with its affiliates, employs not more than 500 employees. In connection with subcontracts exceeding $2,500, any concern shall be considered a small business concern if it qualifies as such under subparagraphs (1) and (2) of this paragraph.

(b) Dominance in field of operations. A concern "is not dominant in its field of operations" when it does not exercise a controlling or major influence in a kind of business activity in which a number of business concerns are primarily engaged. In determining whether dominance exists, consideration is given to all appropriate factors including volume of business, number of employees, financial resources, competitive status or position, ownership or control of materials, processes, patents and license agreements, facilities, sales territory, and nature of business activity.

(c) Affiliates. Business concerns are affiliates of each other when either directly or indirectly (1) one concern controls or has the power to control the other or (2) a third party controls or has the power to control both. In determining whether concerns are independently owned and operated and whether or not affiliation exists, consideration is given to all appropriate factors including common ownership, common management, and contractual relationships: Provided, however, That restraints imposed on a franchisee by its franchise agreement shall not be considered in determining whether the franchisor controls or has the power to control and, therefore, is affiliated with the franchisee, if the franchisee has the right to profit from his effort, commensurate with ownership, and bears the risk of loss or failure.

(d) Number of employees. In connection with the determination of small business status, "number of employees" means the average employment of any concern, including the employees of its domestic and foreign affiliates, based on the number of persons employed on a full-time, part-time, temporary, or any other basis during the pay period ending nearest the last day of the third month in each calendar quarter for the preceding four quarters. If a concern has not been in existence for four calendar quarters, "number of employees" means the average employment of such concern and

its affiliates during the period such concern has been in existence based on the number of persons employed during the pay period ending nearest the last day of each month.

(e) Small business certificate. A small business certificate is a certificate issued by SBA pursuant to the authority contained in Sections 3 and 8(b) (6) of the Small Business Act certifying that the holder of the certificate is a small business concern for the purpose of Government procurement and in accordance with the terms of the certificate. [39 FR 13077, Apr. 11, 1974] § 18-1.701-2

Established supplier.

An "established supplier" of an item is a concern which has supplied the items satisfactorily to one or more NASA installations, or a concern with which mobilization planning is in effect.

§ 18-1.701-3 Potential supplier.

A "potential supplier" of an item is a concern which is a source of supplies, but, which is not an established supplier. § 18-1.701-4 Manufacturing Industry Employment Size Standards.

The Standard Industrial Classification Manual (1967 Edition) index provides an alphabetical listing of products and the industry with which the product is associated, which includes references to the Classification Code set forth below.

Employment size standard (number of employees)1

1000

1000

1951 Small arms.

1000

1000

750

2271 Woven carpets and rugs.

750

1000

1000

Footnote on Page 74.

§ 18-1.702 General policies.

(a) It is the policy of NASA to place a fair proportion of its total purchases and contracts for supplies and services with small business concerns, and to afford small business concerns an equitable opportunity to compete for contract awards. In the area of research and development contracts, it is NASA policy to award such contracts to those organizations determined by responsible personnel to have a high degree of competence in the specific branch of science or technology required for the successful conduct of the work. It is in the national interest that the number of firms engaged in research and development work for NASA be expanded and that there be an increase in the extent of participation in such work by competent small business firms.

(b) Each NASA installation having procurement authority shall implement this policy by:

(1) Searching continually for and developing information on sources (especially small business concerns) competent to perform research and development. Advance publicity, including use of the Commerce Business Daily (see § 18-1.1003-4) to the fullest extent practicable, shall be given for this purpose. The search should include a review of relevant data or brochures furnished by sources seeking research and development work and a cooperative effort by technical personnel, small business specialists, and contracting officers to obtain information and recommendations with respect to potential sources by publication of proposed procurements, in addition to the synopsis requirement.

(2) Encouraging contracting officers, technical personnel, and small business specialists to cooperatively seek and develop information on the technical competence of small business concerns for research and development contracts. Small business specialists shall regularly bring to the attention of contracting officers, and technical personnel descriptive data, brochures, and other information as to small business concerns that are apparently competent to perform research or development work in fields in which the installation is interested.

(3) Maintaining bidders lists on a current basis and reviewing them to insure that all small business firms who have made acceptable application to NASA or who appear from other infor

mation (including recommendation by the SBA) to be qualified are included therein;

(4) Acquiring descriptive data, brochures, or other information concerning small business firms who appear competent to perform research and development work in fields in which NASA is interested and furnish such information to technical personnel;

(5) To the extent feasible

(i) Dividing procurements of supplies and services into reasonably small lots of not less than economic production runs in order to permit bidding on quantities less than the total requirements;

(ii) Allowing the maximum amount of time practicable for preparation and submission of bids and proposals; and

(iii) Establishing delivery schedules suitable for small business participation.

(6) Providing to authorized SBA representatives, upon request, information necessary to understand NASA needs concerning research and development programs under consideration for specific future procurement actions. The SBA may provide pertinent information concerning potential small business sources developed through its investigation of the capabilities of specific firms in the particular field of research and development covered by the programs. Full evaluation shall be given to any such information in selecting qualified sources;

(7) Disseminating widely information relating to NASA purchasing methods and practices; and

(8) Freely interchanging ideas and information, including statistical data, with appropriate SBA levels, relating to programs for limiting suitable procurements to small business concerns; and making maximum use of the capacity of small firms in such programs in order to accomplish the purpose of this policy. As to subcontracting, see § 18-1.707.

(c) Records of the total value of all contracts placed with small business concerns during each fiscal year, and reports based thereon, are maintained by NASA through its agencywide procurement reporting system described in § 18-16.901.

§ 18-1.703 Determination of status as small business concern.

(a) General (1) Prior to solicitation. If a contracting officer or a small business specialist requires information from