(a) Establish internal procedures and methods for giving effect to this Subpart 1-1.6.

(b) Notify the General Services Administration (GSA) of the name and address of its central office where debarment information should be sent.

(c) Furnish to GSA a copy of the notice of debarment (at time of issuance) on those debarments made under provisions of § 1-1.604(a), or the Buy American Act, and provide GSA with information as to any removals of such debarments.

(d) Check the list of debarred bidders furnished by GSA, and consider firms or individuals listed thereon for inclusion upon its own list, in accordance with the provisions of this Subpart 1-1.6.

(e) As needed, request from GSA a copy of the notice on any debarment case appearing on the list herein provided to be compiled and distributed by GSA. If desired, direct inquiry concerning any debarment case may be made of the agency which originated the action.

(f) Make its list available to all contracting officers within the agency.

§ 1-1.607 General Services Administration responsibility.

In addition to the agency procedure provided in § 1-1.606, GSA will:

(a) Compile and distribute to the designated central office address of each agency a listing of the administrative debarments and debarments under the Buy American Act made by the agencies, including the basis of action, in order that each executive agency may be informed of actions taken by each other agency. In general application, this listing will be for information purposes only and it is not intended to take the place of, or be an addition to, the lists maintained by the various agencies.

(b) Furnish to any agency, on specific request, a copy of the notice reflecting the basis for debarment action taken by another agency for causes contained in § 1-1.604(a) or under the Buy American Act.

(a) This subpart, which implements programs developed cooperatively with the Small Business Administration (SBA) and the Government agencies having procurement responsibility, sets forth: (1) Procurement policy with reference to small business concerns; (2) policy governing the relationship of procurement agencies with SBA; (3) SBA certificate of competency program; (4) small business setaside procedures; (5) small business subcontracting policies; and (6) information concerning SBA's size standards.

(b) This subpart applies only in the United States. As used in this subpart the term United States means the States, its territories and possessions, Puerto Rico, the Trust Territory of the Pacific Islands, and the District of Columbia.

[29 FR 10104, July 24, 1964, as amended at 35 FR 8482, June 2, 1970]

The definitions in this section apply throughout this Subpart 1-1.7. Those definitions relating to SBA size standards for procurement purposes are based on the governing regulations of SBA on the subject (13 CFR Part 121). § 1-1.701-1 Small business concern (for Government procurement).

(a) General. A small business concern for the purpose of Government procurement is a concern, including its affiliates, which is independently owned and operated, is not dominant in the field of operation in which it is bidding on Government contracts, and can further qualify under the criteria set forth in this § 1-1.701. "Concern" means any business entity organized for profit with a place of business located in the United States which makes a significant contribution to the U.S. economy through payment of taxes and/or use of American products, material, and/or labor, etc. "Concern" includes but is not limited to an individual, partnership, corporation,

joint venture, association, or cooperative. For the purpose of making affiliation findings (see § 1-1.701-2) any business entity, whether organized for profit or not, and any foreign entity; i.e., any entity located outside the United States, shall be included. "Annual receipts" means the gross income (less returns and allowances, sales of fixed assets, and interaffiliate transactions) of a concern (and its domestic and foreign affiliates) from sales of products and services, interest, rents, fees, commissions, and/or from whatever other source derived, as entered on its regular books of account for its most recently completed fiscal year (whether on a cash, accrual, completed contracts, percentage of completion, or other acceptable accounting basis) and, in the case of a concern subject to U.S. Federal income taxation, reported or to be reported to the Department of the Treasury, Internal Revenue Service, for Federal income tax purposes. If a concern has been in business less than a year its annual receipts shall be computed by determining its average weekly receipts for the period in which it has been in business and multiplying such figure by 52. If a concern has acquired an affiliate during the applicable accounting period, it is necessary in computing the concern's annual receipts to include the affiliate's receipts during the accounting period, rather than only its receipts during the period in which it has been an affiliate. The receipts of a former affiliate are not included even if such concern had been an affiliate during a portion of the applicable accounting period.

(1) If a procurement calls for more than one item and the bidder can bid on any or all items, the bidder must meet the size standard for each item on which it submits a bid. If a procurement calls for more than one item and a bidder is required to bid on all or none of such items, the bidder can qualify as a small business for such procurement if it meets the size standard for the item accounting for the greatest percentage of the total contract value. (For size standard purposes, a product or service is classified into only one industry, even though,

for other purposes, it could be classified into more than one industry.)

(2) If no standard for an industry, field of operation, or activity (e.g., animal specialty; fin fish; management-logistics support to be performed outside the United States) has been set forth in this § 1-1.701-1, a concern bidding on a Government contract is a small business if, including its affiliates, it is independently owned and operated, is not dominant in the field of operations in which it is bidding on Government contracts, and has 500 employees or less.

(b) Construction. Any concern bidding on a Government contract for construction, alteration, or repair (including painting and decorating) of buildings, bridges, or other real property, or other work which is classified in Division C, Contract Construction of the Standard Industrial Classification Manual, as amended, prepared and published by the Office of Management and Budget (formerly Bureau of the Budget), Executive Office of the President, is classified:

(1) General. As small if its average annual receipts for its preceding 3 fiscal years do not exceed $12 million: Provided, however, That if 75 percent or more (by value) of the work called for by the contract is classified in one of the industries, subindustries, or class of products set forth in this paragraph, it is small if it does not exceed the size standard established therein for that industry. (See § 1-1.701-11 for size standard differentials which are applicable to specified nonforeign areas.)

(2) Dredging. As small if it is bidding on a contract for dredging and: (i) Its average annual receipts for its preceding 3 fiscal years do not exceed $9.5 million (see § 1-1.701-11 for size standard differentials which are applicable to specified nonforeign areas), and (ii) It performs the dredging of at least 40 percent of the yardage advertised in the plans and specifications with dredging equipment owned by the bidder or obtained from another small business dredging concern.

(c) Manufacturing. Any concern bidding on a contract for a product it manufactured is classified:

(1) Food canning and preserving. As small if it is bidding on a contract for food canning and preserving and its number of employees does not exceed 500 persons, exclusive of agricultural labor as defined in the Federal Unemployment Tax Act, 26 U.S.C. 3306(k).

(2) Pneumatic tires. As small if it is bidding on a contract for pneumatic tires within Census Classification Codes 30111 and 30112: Provided, That: (i) The value of the pneumatic tires within Census Classification

Codes 30111 and 30112 which it manufactured in the United States during the preceding calendar year is more than 50 percent of the value of its total worldwide manufacture, (ii) the value of the pneumatic tires within Census Classification Codes 30111 and 30112 which it manufactured worldwide during the preceding calendar year was less than 5 percent of the value of all such tires manufactured in the United States during said period, and (iii) the value of the principal products which it manufactured or otherwise produced or sold worldwide during the preceding calendar year is less than 10 percent of the total value of such products manufactured or otherwise produced or sold in the United States during said period.

(3) Passenger cars. As small if it is bidding on a contract for passenger cars within Census Classification Code 37171: Provided, That: (i) The value of the passenger cars within Census Classification Code 37171 which it manufactured or otherwise produced in the United States during the preceding calendar year is more than 50 percent of the value of its total worldwide manufacture or production of such passenger cars, (ii) the value of the passenger cars within Census Classification Code 37171, which it manufactured or otherwise produced during the preceding calendar year was less than 5 percent of the total value of all such cars manufactured or produced in the United States during the said period, and (iii) the value of the principal products which it manufactured or otherwise produced or sold during the preceding calendar year is less than 10 percent of the total value of such products manufactured or otherwise produced or sold in the United States during said period.

(4) Rebuilding on a factory basis or equivalent. As small if it is bidding on a contract for rebuilding machinery or equipment on a factory basis, the purpose of which is to restore such machinery or equipment to as serviceable and as like new condition as possible and its number of employees does not exceed the number of employees specified for the classification code applicable to the manufacturer of the original item.

NOTE: The size standard contained herein is not limited to concerns who are manufacturers of the original item but is applicable to all bidders or offerors. The term "rebuilding on a factory basis" as used in this subsection does not include ordinary repair services such as those involving minor repair and/or preservation operations.

(5) Manufacturing industries listed in § 1-1.701-1(h). As small if it is bidding on a contract for a product classified within an industry set forth in paragraph (h) of this section and its number of employees does not exceed the size standard established for that industry.

(6) Manufacturing industries not listed in § 1-1.701-1(h). As small if it is bidding on a contract for a product classified within an industry not set forth in paragraph (h) of this section and its number of employees does not exceed 500 persons.

(d) Small business nonmanufacturer. Any concern which submits a bid or 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 busi

ness

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 procurement has an anticipated value of less than $10,000 and is subject to, and is procured under, the “small purchase procedures" (see Subpart 1-3.6), a nonmanufacturer may furnish any domestically produced or manufactured product. Subject to the foregoing, 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 furnished 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 pre

ceding 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 standard 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 differentials 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 Retread