other agency pursuant to its regulations Subpart 18-1.7-Small Business § 18-1.700 Scope of subpart. (2) Industry small business size standards. In addition to being independently owned and operated, and not dominant in the field of operation in which it is bidding on Government contracts, a small business concern in order to qualify as such must meet the appropriate small business size standards established for the industries set forth in subdivisions (i) through (v) of this subparagraph. Contracting officers shall use the Standard Industrial Classification Manual, including the 1963 supplement thereto, prepared by the Bureau of the Budget, as a guide to determine the appropriate industry classification for each item or service to be procured. When an item is classified into two or more industries with different small business size standards, the smallest of such size standards shall be used. When more than one item is being procured and two or more industries with different size business subcontracting standards are involved, the bidder must (a) To implement the Small Business Act of 1958, as amended (15 U.S.C. 631647), and the National Aeronautics and Space Act of 1958, as amended (42 U.S.C. 2451-2459), this subpart sets forth: (1) Policy regarding small business concerns; (2) Policy governing relationships with the Small Business Administration; (3) Small business set-aside procedures; (4) Small policies; § 18-1.701-1 Small business concern. (a) (1) General definition. A small business concern is a concern that is independently owned and operated, is not dominant in the field of operation in which it is bidding on Government contracts, and, with its affiliates, can further qualify under the criteria set forth in subparagraphs (2) and (3) of this paragraph. "Concern" means any business entity organized for profit with a place of business in the United States, its possessions or Puerto Rico, including but not limited to an individual, partnership, corporation, joint venture, association, or cooperative. meet the small business size standard for each item for which he submits a bid. Contracting officers may obtain advice from the SBA Regional Office serving the area in which the procurement office is located, when in doubt concerning the appropriate small business size standard to be prescribed for a particular procurement. The term "annual receipts" as used throughout this Part 18-1 means the annual receipts, less returns and allowances, of a concern and its affiliates during its most recently completed fiscal year. (i) Construction industries. In bidding on a contract for construction, alteration, or repair (including painting and decorating) of buildings, roads, or other real property, the average annual receipts of the concern and its affiliates for its preceding three fiscal years must not exceed $7,500,000, except that if the concern is located in Alaska, such receipts must not exceed $9,375,000. In bidding on a contract for dredging, the average annual receipts of the concern and its affiliates for its preceding, three fiscal years must not exceed $5,000,000, except that if the concern is located in Alaska, such receipts must not exceed $6,250,000. (ii) Manufacturing industries-(a) Food canning and preserving industry. In bidding on a contract for food canning and preserving, the number of employees of the concern and its affiliates must not exceed 500 persons exclusive of "agricultural labor" as defined in 26 U.S.C. 3306(K). (b) Petroleum industry. In bidding on a contract for petroleum, other than lubricants and miscellaneous petroleum products, the number of employees of the concern and its affiliates must not exceed 1,000 employees and it must not have more than 30,000 barrels per day crude oil capacity from owned or leased facilities. ("Crude oil capacity" means the maximum daily average crude throughput of a refinery in complete operation with allowances for necessary shutdown time for routine maintenance, repairs, etc. It approximates the maximum daily average crude runs to stills that can be maintained for an extended period.) (c) Manufacturing industries listed in § 18-1.701-4. In bidding on a contract for a product classified within an industry listed in § 18-1.701-4, the number of employees of the concern and its affiliates must not exceed the small business size standard established therein for that industry. industries not (d) Manufacturing listed in § 18-1.701-4. In bidding on a contract for a product classified within an industry not set forth in this subdivision (ii) or in § 18-1.701-4, the number of employees of the concern and its affiliates must not exceed 500 persons. (iii) Nonmanufacturing industry. One who submits bids or offers in his own name but who proposes to furnish a product not manufactured by himself shall be deemed to be a small business concern only if (a) he is a small business concern within the meaning of § 18-1.701-1, (b) he employs not more than 500 persons, and (c) in the case of a procurement set-aside for small business (see § 18–1.706) or involving equal low bids (see § 18-2.407-6 of this chapter), or otherwise involving the preferential treatment of small business, he agrees to furnish in the performance of the contract end items manufactured or produced in the United States, its possessions, or Puerto Rico, by small business concerns: Provided, That this subdivision does not apply to construction or service contracts. However, if the goods to be furnished are wool, worsted, knitwear, duck, webbing, and thread (spinning and finishing), non manufacturers (dealers and converters) shall furnish such products which have been manufactured or produced by a small weaver (small knitter for knitwear) and, if finishing is required, by a small finisher. (iv) Services industries. For services not elsewhere defined in this section, the average annual sales or receipts of the concern and its affiliates for the preceding 3 fiscal years must not exceed $1 million ($1,250,000 if located in Alaska). Any concern bidding on a contract for engineering services or naval architectural services is classified as small if its average annual sales or receipts for its preceding 3 fiscal years do not exceed $5 million. (v) Transportation industry-(a)· General. Except as provided in (a) and (b) of this subdivision, in bidding on a contract for passenger or freight transportation the number of employees of the concern and its affiliates must not exceed 500 persons. (b) Air transportation. In bidding on a contract for air transportation, the number of employees of the concern and its affiliates must not exceed 1,000 persons. (c) Trucking and/or warehousing industry. In bidding on a contract for trucking and/or warehousing, the annual receipts of the concern and its affiliates must not exceed $3,000,000 except that if the concern is located in Alaska, such receipts must not exceed $3,750,000. No such concern, however, will be denied small business status for the purpose of Government procurement solely because of its relationship with an interstate van line, if (I) the concern's annual receipts have not exceeded $3,000,000 during its most recently completed fiscal year ($3,750,000 if located in Alaska), and (II) not more than fifty percent (50%) of such annual receipts are directly attributable to the concern's relationship with an interstate van line. (3) Small business subcontractors. In connection with subcontracts of $2,500 or less, any concern shall be considered a small business concern if it, with its affiliates, has 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 relationship. [29 F.R. 16502, Dec. 5, 1964, as amended at 31 F.R. 598, Jan. 18, 1966] Inorganic pigments.. 1000 2818 Industrial organic chemicals, not § 18-1.701-4 Manufacturing industry employment size standards. The Standard Industrial Classification Manual (and the 1963 supplement thereto) index provides an alphabetical list of products and the industry with elastomers). 1000 (d) Number of employees. In connection with the determination of small business status, except as the SBA otherwise determines in a particular industry or part thereof, "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 full calendar quarters, "numbers 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. 1 The "number of employees" means the average employment of any concern and its affiliates based on the number of persons employed during the pay period ending nearest the last day of the third month in each cal endar quarter for the preceding four quarters. "Together with its affiliates does not employ more than 1,000 persons and does not have more than 30,000 barrels-per-day capacity from owned and leased facilities. 3 The three Standard Industrial Classification industries (3711, 3712, and 3714) have been combined because of a major problem of defining the reporting unit in terms of these industries. This difficulty arises from the fact that many large establishments have integrated operations which include the production of parts or bodies and the assembly of complete vehicles at the same location. 4 Includes maintenance as defined in the Federal Aviation Regulations (14 CFR 1.1) but excludes contracts solely for preventive maintenance as defined in 14 CFR 1.1. As defined in the Federal Aviation Regulations: ""Maintenance' means inspection, overhaul, repair, preservation, and the replacement of parts, but excludes preventive maintenance.' ""Preventive maintenance' means simple or minor preservation operations and the replacement of small standard parts not involving complex assembly operations." 5 Guided missile engines and engine parts are classified in SIC 3722. Missile control systems are classified in SIC 3662. (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) Maintaining bidders lists on a current basis and reviewing them to ensure that all small business firms who have made acceptable application to NASA or who appear from other information (including recommendation by the SBA) to be qualified are included therein; (2) 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; (3) 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. The (4) 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. 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; (5) Disseminating widely information relating to NASA purchasing methods and practices; and (6) 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 |