offer in its own name, other than for a construction or service contract, but which proposes to furnish a product not manufactured by itself, is deemed to be a small business concern when:

(1) It is a small business concern within the meaning of § 1-1.701-1(a); (2) Its number of employees does not exceed 500 persons; and

(3) In the case of Government procurement reserved for or involving the preferential treatment of small business concerns (including equal low bids), such nonmanufacturer shall furnish in the performance of the contract the products of a small business manufacturer or producer which products are manufactured or produced in the United States. However, if the goods to be furnished are woolen, worsted, knitwear, duck, and webbing, 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. If the procurement is for thread, dealers and converters shall furnish such products which have been finished by a small finisher. (Finishing of thread is defined as all "dyeing, bleaching, glazing, mildew proofing, coating, waxing, and other applications required by the pertinent specification, but excluding mercerizing, spinning, throwing, or twisting operations.") If the procurement is for a refined petroleum product, other than a product classified in Standard Industrial Classification Industries No. 2951, Paving mixtures and blocks, No. 2952, Asphalt felts and coatings, No. 2992, Lubricating oils and greases, or No. 2999, Products of petroleum and coal, not elsewhere classified, paragraph (i) of this section is for application. ("Nonmanufacturer" means any concern which in connection with a specific Government procurement contract, other than a construction or service contract, does not manufacture or produce the products required to be furnished by such procurement. Nonmanufacturer includes a concern which can manufacture or produce the products referred to in the specific procurement, but does not do so in connection with that procurement.)

(e) Research, development, and testing. Any concern bidding on a contract for research, development, and/or testing is classified:

(1) As small if it is bidding on a contract for research and/or development which requires delivery of a manufactured product and (i) it qualifies as a small business manufacturer within the meaning of § 1-1.701-1(c) for the industry into which the product is classified, or (ii) it qualifies as a small business nonmanufacturer within the meaning of § 1-1.701-1(d).

(2) As small if it is bidding on a contract for research and/or development which does not require delivery of a manufactured product or on a contract for testing and its number of employees does not exceed 500 persons.

(f) Services. Any concern bidding on a contract for services is classified:

(1) General. As small if it is bidding on a contract for services (including but not limited to services set forth in Division I, Services, of the Standard Industrial Classification Manual) not elsewhere defined in this section and its average annual receipts for its preceding 3 fiscal years do not exceed $2 million (see § 1-1.701-11 for size standard differentials which are applicable to specified nonforeign areas).

(2) Engineering. As small if it is bidding on a contract for engineering services other than marine engineering service and its average annual receipts for its preceding 3 fiscal years do not exceed $7.5 million (see § 11.701-11 for size standard differentials which are applicable to specified nonforeign areas).

(3) Motion pictures. As small if it is bidding on a contract for motion picture production or motion picture services and its average annual receipts for its preceding 3 fiscal years do not exceed $8 million (see § 1-1.70111 for size standard differentials which are applicable to specified nonforeign areas).

(4) Janitorial and custodial. As small if it is bidding on a contract for janitorial and custodial services and its average annual receipts for its preceding 3 fiscal years do not exceed $4.5 million (see § 1-1.701-11 for size stand

ard differentials which are applicable to specified nonforeign areas).

(5) Base maintenance. As small if it is bidding on a contract for base maintenance and its average annual receipts for its preceding 3 fiscal years do not exceed $7.5 million (see § 11.701-11 for size standard differentials which are applicable to specified nonforeign areas).

(6) Marine cargo handling. As small if it is bidding on a contract for marine cargo handling services and its average annual receipts for its preceding 3 fiscal years do not exceed $7.5 million (see § 1-1.701-11 for size standard differentials which are applicable to specified nonforeign areas).

(7) Naval architectural and marine engineering. As small if it is bidding on a contract for naval architectural and marine engineering services and its average annual receipts for its preceding 3 fiscal years do not exceed $9 million (see § 1-1.701-11 for size standard differentials which are applicable to specified nonforeign areas).

(8) Food services. As small if it is bidding on a contract for food services and its average annual receipts for its preceding 3 fiscal years do not exceed $5.5 million (see § 1-1.701-11 for size standard differentials which are applicable to specified nonforeign areas).

(9)(i) Laundry. As small if it is bidding on a contract for laundry services including linen supply, diaper services, and industrial laundering and its average annual receipts for its preceding 3 fiscal years do not exceed $4 million (see § 1-1.701-11 for size standard differentials which are applicable to specified nonforeign areas).

(ii) Cleaning and dyeing. As small if it is bidding on a contract for cleaning and dyeing (including rug cleaning) services and its average annual receipts for its preceding 3 fiscal years do not exceed $1.5 million (see § 11.701-11 for size standard differentials which are applicable to specified nonforeign areas).

(10) Computer programing. As small if it is bidding on a contract for computer programing services and its average annual receipts for its preceding 3 fiscal years do not exceed $4 million (see § 1-1.701-11 for size standard dif

ferentials which are applicable to specified nonforeign areas).

(11) Flight training. As small if it is bidding on a contract for flight training services and its average annual receipts for its preceding 3 fiscal years do not exceed $7 million (see § 1-1.70111 for size standard differentials which are applicable to specified nonforeign areas).

(12) Motorcar and truck rental and leasing. As small if it is bidding on a contract for motorcar rental and leasing services or truck rental and leasing services and its average annual receipts for its preceding 3 fiscal years do not exceed $7 million (see § 1-1.70111 for size standard differentials which are applicable to specified nonforeign areas).

(13) Tire recapping. As small if it is bidding on a contract for tire recapping services and its average annual receipts for its preceding 3 fiscal years do not exceed $4 million (see § 1-1.70111 for size standard differentials which are applicable to specified nonforeign areas). This paragraph applies only to procurements requiring the services of tire retreading and repair shops (Standard Industrial Classification Industry No. 7534, Tire Retreading and Repair Shops) and not to procurements for the repairing and/or retreading of pneumatic aircraft tires which, by reason of the extent and nature of the equipment and operations required, are considered for size standard's purposes to be manufactured within the meaning of Standard Industrial Classification Industry No. 3011, Tires and Inner Tubes (see § 11.701-1(h)).

(14) Data processing. As small if it is bidding on a contract for data processing services and its average annual receipts for its preceding 3 fiscal years do not exceed $4 million (see § 1-1.70111 for size standard differentials which are applicable to specified nonforeign areas).

(15) Computer maintenance. As small if it is bidding on a contract for computer maintenance services and its average annual receipts for its preceding 3 fiscal years do not exceed $7 million (see § 1-1.701-11 for size standard

differentials which are applicable to specified nonforeign areas).

(16) Helicopters and fixed-wing aircraft. As small if it is bidding on a contract for services requiring the use of one or more helicopters or fixed-wing aircraft and its average annual receipts for its preceding 3 fiscal years do not exceed $3.5 million (see § 11.701-11 for size standard differentials which are applicable to specified nonforeign areas).

(g) Transportation. Any concern bidding on a contract for passenger or freight transportation, not elsewhere defined in this section, is classified:

(1) General. As small if its number of employees does not exceed 500 per

sons.

(2) Air transportation. As small if it is bidding on a contract for air transportation and its number of employees does not exceed 1,500 persons.

(3) Trucking. As small if it is bidding on a contract for trucking (local and/ or long distance), warehousing, packing and crating, and/or freight forwarding and its average annual receipts do not exceed $7 million (see § 1-1.701-11 for size standard differentials which are applicable to specified nonforeign areas).

(h) Table of specific industry employment size standards for the purpose of Government procurement. (See footnotes at end of table.)

MAJOR GROUP 19-ORDNANCE AND ACCESSORIES

"The size standard for SIC 2911 is set forth in § 11.701-1(i).

The size standards for SIC 30111, 30112, and 37171 are set forth in §§ 1-1.701-1(c)(2) and 1-1.7011(c)(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.

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.

Guided missile engines and engine parts are classified in SIC 3722. Missile control systems are classified in SIC 3662.

'The size standard for Census Classification Code 2026, Fluid Milk, will be reduced to 625 employees effective May 1, 1973, and further reduced to 500 employees effective May 1, 1974.

(i) Refined petroleum products. Any concern bidding on a contract for a refined petroleum product other than a product classified in Standard Industrial Classification Industries No. 2951, Paving mixtures and blocks; No. 2952, Asphalt felts and coatings; No. 2992, Lubricating oils and greases; or No. 2999, Products of petroleum and coal, not elsewhere classified, is classified as small if (1)(i) its number of employees does not exceed 1,000 persons; (ii) if it does not have more than 30,000 barrels-per-day crude oil or bona fide feed stock capacity from owned or leased facilities or from facilities made available to such concern under an arrangement such as, but not limited to, an exchange agreement (except one on a refined product for refined product basis), or throughput or other form of processing agreement, with the same effect as though such facilities had been leased; and (iii) the product to be delivered in the performance of the contract will contain at least 90 percent components refined by the bidder from either crude oil or bona fide feed stocks: Provided, however, That a petroleum refining concern which meets the requirements in (i)(1) (i) and (ii) of this section may furnish the product to a refinery not qualified as small business if such product is obtained pursuant to a bona fide exchange agreement, in effect on the date of the