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where classified, is
(1) 0) its number
exceed 1,000 persa
have more than
crude oil or bona f
from owned or les
facilities made avg
under an arranger
limited to, an exc.
cept one on a refir
product basis),

forma of processing
same effect as tho
been leased; and

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delivered in the PE
tract will contair
components refine
either crude oil or
Provided, however
fining concern wh
ments in (1) (1)
section may furn
refinery not qualif
such product is o
bona fide exchang
on the date of the
the bidder or offe
the product to be
ernment which re

stated ratio on ar
het for å refine
hasks, and preclut
ment, and that te
for the products
livered to the GO
quirements in (1)
And provided furt
of products for p
to the Governm
within 90 days
the delivery peri
ment contract,
furnished pursua
change agreemer
In the same Pet
for Defense (PA
which the small

its number
exceed 500 perso
delivered to the
refined by a con
der D) (1) of th

product to be di
ance of the cont
90 percent com
bidder from eitt
leed stocks cont
plishing such
Hilize its own
which it owns
fide lease as


3717 Motor vehicles and parts'.
37171 Passenger cars (knocked dovi

or assembled).
3721 Aircraft
3722 Aircraft engines and espiga
3723 Aircraft propellers and propel"




3729 | Aircraft parts and sociary

equipment, not elephen

3731 Shipbuilding and repairing...
3741 | Locomotives and parts........
3742 Railroad and street cars......




3982 Linoleum, asphalted-fel-lee

and other hard surface doar coverings, Dot elsewbere classified

ployment of any concern and its affiliates here
tries (3711, 37 12, and 3714) have been comtésed
14 CFR 1.1. As defined in the Federal

"Maintenance" means inspection, operte
standard parts not involving complet

Guided missile engines and engine parts and
In SIC 3722. Missile control systems are chain

The size standard for Census Claw concern bidding on & contract for Classification Industries No. 28511 phalt felts and coatings, No. 290 bricating oils and greases, or Nad

Products of petroleum and coal, not! e 41–Public Contracts, Property Manager Chapter 1-Federal Procurement Regulations LECTRICAL MAJOR GROUP 27-TRANSPORTATION RE! where classified, is classified as small if other arrangement

(1) (1) its number of employees does not effect as a lease. The

exceed 1,000 persons; (ii) if it does not a concern which me Census

have more than 30,000 barrels-per-day in (i) (1) (i) and (i classi

crude oil or bona fide feed stock capacity furnish the produc fication

Industry code

from owned or leased facilities or from 1.000

qualified as small bi facilities made available to such concern uct is obtained pur: under an arrangement such as, but not exchange agreemen

limited to, an exchange agreement (ex scribed requirement 750

cept one on a refined product for refined the product exchang 750

product basis), or throughput or other the product to be i

form of processing agreement, with the been refined by the
same effect as though such facilities had its own employees a

been leased; and (iii) the product to be or facilities obtain

ler parts

delivered in the performance of the con fide lease. (“Bona
tract will contain at least 90 percent means crude and an
components refined by the bidder from material actually (
either crude oil or bona fide feed stocks: processing units as
Provided, however, That a petroleum re materials used as c
fining concern which meets the require ucts to be delivered
ments in (i) (1) (i) and (ii) of this ing, settling, or b
section may furnish the product to a capacity" means the
refinery not qualified as small business if erage throughput of
such product is obtained pursuant to a plete operation, a
bona fide exchange agreement, in effect necessary shutdowr.
on the date of the bid or offer, between maintenance, repail
the bidder or offeror and the refiner of mates the maximum
the product to be delivered to the Gov runs to stills that ca
ernment which requires exchanges in a an extended period.)
stated ratio on a refined petroleum prod (29 F.R. 10104, July 24
uct for a refined petroleum product 30 F.R. 9590, July 31
basis, and precludes a monetary settle Feb. 8, 1967; 36 F.R. 11
ment, and that the products exchanged

FR 15372, Aug. 1, 1972
for the products offered and to be de-

1974; 41 FR 3737, Jan. livered to the Government meet the re

Nov. 17, 1976)
quirements in (i) (1) (iii) of this section: § 1-1.701-2 Affilial
And provided further, that the exchange

Business concerns
of products for products to be delivered
to the Government will be completed

other when either d
within 90 days after the expiration of

(a) one concern (ot the delivery period under the Govern

ment company licen: ment contract, and that any products

Business Investment furnished pursuant to a bona fide ex

Istered under the Ir change agreement must be for delivery

Act of 1940, as am in the same Petroleum Administration

has the power to con for Defense (PAD) District as that in

a third party or par which the small refinery is located; or

investment company 2) its number of employees does not

Small Business Inve exceed 500 persons and the product to be

or registered under ti delivered to the Government has been

pany Act of 1940, as refined by a concern which qualifies un

or has the power toc
der (i) (i) of this section. The proviso

termining whether
in (i) (1) (iii) of this section that the

pendently owned
product to be delivered in the perform-

whether affiliation e ance of the contract will contain at least

shall be given to all 90 percent components refined by the

including common bidder from either crude oil or bona fide

management, and c feed stocks contemplates that, in accom

ships: Provided, h plishing such refining, the bidder will

straints imposed on tilize its own employees and facilities

franchise agreement which it owns or obtains under a bona

sidered in determi

franchisor controls fide lease as distinguished from any

control and, therefo 90–132 07745





1 The number of employees" means thas
number of persons employed during the
ending nearest the last day of the id met
Calendar quarter for the preceding 4 quarters

? The size standard for SIC 211 is sit
8 1-1.701-1(i).
: The size standards for SIC 30111, 30112

, od
set forth in $$ 1-1.701-1(c)(2) and 1-1.701–104

* The three Standard Industrial Classificat
of a major problem of defining the reporting
of these industries. This difficulty arises fut

that many large establishments have inter

tions which include the production of parts ar ko 1,000

the assembly of complete vehicles at the same

* Includes maintenance as defined in
Aviation Regulations (14 CFR 1.1

) bat er

tracts solely for preventive maintenance as 1,000 Regulations: 1.000 750

preservation, and the replacement of parts, bars 750

preventive maintenance. 750

"Preventive maintenance" means simple 1.000 preservation operations and the replacement

operations. 750 750

1, 000


000 750

2026, Fluid Milk, will be reduced to 625 emphere tive May 1, 1973, and further reduced to 500 cm effoctive May 1, 1974.

(1) Refined petroleum produto fined petroleum product others product classified in Standard India ing mixtures and blocks; No. 296

750 000



lces, commissary services, refuse C engineering servi grounds mainten services, and ai frigeration main mer

, That whene er determines

bids that the est
the foregoing se
than 50 percent
of the entire con
not be classified
but in the indus
Ice la classified.
1927.R. 2626, Feb.
$1-1701-11 [

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When a conce
or more of its a
attributable to
one of the States
forth herein, th
"annual sales or
in any size defir
subpart, such a
annual receipts,
average net inco
including its affi.

by the percenta State of area as

Virgin Islands
Puerto Rico
(41F2.50688, Nov.
$1-1702 Sma

(0) General
the Governmen
and protect, ins
terests of sma
order to presery
prise; and to
concerns & fal
Government pu
property and
trants for main
thon, and resea

) Specific
Decific small
followed by pro
der to further
(a) of this

1) Small be

allorded an compete for contracts.

(2) Bidders this chapte Hished and po

the Budget), Executive Ofc i
President. (The Standard ins

(SIC) Manual
amended, is used as a guide by the
Business Administration in defisi
dustries. Its use, therefore, is a
and not mandatory.)
188 F.R. 11438, June 12, 1971)
§ 1-1.701-7 Certificate of compel

A "certificate of competency*ok
certificate issued by SBA purs
the authority contained in the
Business Act (15 O.S.C. 691
stating that the holder of the cerut
is competent as to capacity and o
to perform a specific Government
curement contract. (Also see } 1V
8 1-1.701–8 Set-aside for small bus

A set-aside for small business ! act of reserving the entire amount set-aside) or a portion (partido aside) of a procurement for the sive participation of small business cerns. Set-asides may be made tai vidual items or for classes of Items set-asides).

§ 1-1.701-9 Small business restent Government purchases and contracts for 13 & special method of negotiated tion, and research and development).

"Base maintenance" means furnished States, Puerto Rico, Virgin Islands, art the following services: Janitorial / custodial services, protective guards

as the period rather that only to o

Ices, commissary services, fire prevention pliers who have ma. amen

services, refuse collection services, safety cation for inclusion during the period in which is

engineering services, messenger services, other information e risk an affiliate. The employees dar

grounds maintenance and landscaping mendations by the affiliate are not included fat

services, and air-conditioning and re to be qualified for inc concern had been an affiliate de

frigeration maintenance: Provided, how to the issuance of of portion of the applicable sur

ever, That whenever the contracting off and within the frar period.

cer determines prior to the issuance of available, contracti (41 FR 50688, Nov. 17, 1976) bids that the estimated value of one of make every reasonal field

the foregoing services constitutes more ditional small busin § 1-1.701-6 Industry. ercise

than 50 percent of the estimated value ing notification to s in a "Industry" means a grouping di

of the entire contract, the contract shall no local SBA repr ch 8. lishments primarily engaged

not be classified as base maintenance where bidders lists ar prllines of activity as listed and is

but in the industry in which such serv long and not all bid ther in the Standard Industrial Cleach ice is classified.

solicited as provided Il be (SIC) Manual, as amended, 27 (32 F.R. 2626, Feb. 8. 1967)

of this paragraph an iing and published by the Office of N

chapter. § 1-1.701-11 Differentials. Fees, ment and Budget (formerly Rs

(3) Invitations for s or

When a concern which has 50 percent proposals shall be ser ate

or more of its annual sales or receipts appropriate mailing nse Classification

attributable to business activity within where less than a c and

one of the States or nonforeign areas set pursuant to § 1-2.205 forth herein, then, whenever the term ber of small busines

"annual sales or annual receipts" is used solicited. ern

in any size definition contained in this (4) Proposed proc

subpart, such annual receipts, average tract awards shall b ith

annual receipts, assets, net worth, or "Commerce Business ch

average net income of the concern (not ance with Subpart 1ill

including its affiliates), shall be reduced (5) Procurement

by the percentage prescribed for that rn

services shall be divi State or area as follows: of

small lots (not less


duction runs) in orde

25. 0 Hawaii

on quantities less tha

12.5 ch Virgin Islands


ments. Puerto Rico


(6) The maximun

7.5 practicable (see $ 1.2 [41 FR 50688, Nov. 17, 1976)

lowed for preparation 8 1-1.702 Small business policies.

bids and proposals.

(7) Delivery sched (a) General policy. It is the policy of

lished on a realistic E the Government to aid, counsel, assist,

courage small busine and protect, insofar as possible, the interests of small business concerns in

the extent consistent order to preserve free competitive enter

quirements of the Go prise; and to place with small business

(8) Applicable sp and drawings either

with Invitations for b property and services (including con

proposals or, when n tracts for maintenance, repair, construc

formation as to locati

be obtained or exam (b) Specific policies. The following

nished. specific small business policies shall be

(9) Procurements followed by procurement agencies in or.

for exclusive partie der to further the general policy stated

business concerns in

$ 1-1.706. (1) Small business concerns shall be

(10) In the event afforded an equitable opportunity to

preference shall be g compete for prime contracts and sub

ness concerns in

$ 1-2.407-6. (2) Bidders malling lists (see $ 1-2.205

(11) Subcontractir of this chapter) shall include all estab

ness concerns shall lished and potential small business sup

accordance with g 1-1 57



Small business restricted adrese

in (a) of this $ 1-1.702:

curement conducted in the same mi as for formal advertising, excepti competition and awards are restany to small business concerns. § 1-1.701-10 Base maintenance.


at an installation within the city

District of Columbia three of


day period allott

considered timely to the contractin day period allott ing officer therea ing leter (i) with or (ii) postmarke after the date of

(2) The contra time after the bi for the submissio

the small business
oferor for the p
procurement by E
with the SBA dis
area in which the
protested concern
liates, is located
tracting officers
purpose of the pr
whether filed befo
(0) Upon recei

district director
immediately not
diner and the p
such protest was
size of the conce
being considered
trict director or
immediately advi
der or ofteror of
hand and shall for

Widder or offeror
and a blank SB
tion for Small BT
by certified mail
quested. Such bi
mithin 3 working
the copy of the
Porn 355, file 1

directed by SBA,
to a statement in
Hons in the lett
with evidence to

sich bidder o
milt the complete
the attached sta
estdience within
Milad herein, or
perind of time I
the SBA will
sincern is other

SBA will,
posible, alte
investigate and
business status
ofteror and,
Teburn receipt
tracting officer
potested bidde
slon, Such der


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