Size Standards Affiliation Regulations NASA Johnson Space Center Houston, Texas March 13, 2006 Office of Size Standards

Size Standards Topics Overview of Size Standards Affiliation Regulations & Issues Size Protest Process Q & A’s Office of Size Standards

What Is a Small Business? Statutory Criteria Independently Owned and Operated Not Dominant in its Field of Operation Meets Detailed Definition Established SBA Administrator... and Must Vary to Reflect Industry Differences Source: Section 3(a) of Small Business Act Office of Size Standards

Business Concern Organized for Profit Place of Business in the United States Makes Significant Contribution to the U.S. Economy Office of Size Standards

Size Standards by Industry Sector Most Commonly Used Industry Sector Size Standards Manufacturing 500 Employees Wholesale Trade 100 Employees Construction General & Heavy $31.0 Million Special Trades $13.0 Million Retail Trade & Services $6.5 Million Agriculture $0.75 Million Office of Size Standards

Selected Industry Size Standards Industry Size Standard Aircraft Manufacturing 1,500 Employees Audio & Video Equipment 750 Employees Computer Services $23.0 Million Janitorial Services $15.0 Million Medical Laboratories $12.5 Million Guard Services $11.5 Million A& E Services $4.5 Million Travel Agencies $3.5 Million Office of Size Standards

Small Joint Venture Combined Size of Parties of JV Must be Small Except: For Certain Procurements Each Party of JV Can be a Small Business “Bundled” Requirement (13 §125.2(d)(1)(i)) Office of Size Standards

Small JV (Cont.) Exceeds One-Half of Revenue-Based Size Standard Exceeds $10 Million for Employee-Based Size Standard NOTE: Other Requirements for 8(a), HUBZone, SDB, and SDVOSB Procurements Office of Size Standards

Affiliation Regulation Size of Business Includes the Firm and Others it Owns or Controls Ensures Benefits to Small Business Assists Development of Small Business Office of Size Standards

Affiliation (Cont.) Power to Control Through: Ownership Majority Ownership Large Block of Ownership Office of Size Standards

Affiliation (Cont.) Power to Control Through: Common Management Financial Relationships Contractual Relationships Other Interrelations Office of Size Standards

Affiliation (Cont.) Unusually Reliant Economically Dependent Operating in Concert Ostensible Subcontracting Primary & Vital Functions 7 Factor Test Office of Size Standards

Affiliation (Cont.) 7 Factor Test 1.Who will manage the contract? 2.Which party possesses the requisite background and expertise to carryout contract? 3.Who “chased” the contract? Office of Size Standards

Affiliation (Cont.) 4.What degree of collaboration was there on the bid? 5.Are there discrete tasks to be performed or is there a commingling of personnel and materials? 6.What is the relative amount of work to be performed by each? 7.Which party performs the most complex and costly contract functions Office of Size Standards

Affiliation (Cont.) Totality of Circumstances Specific Facts Assessment of Control Office of Size Standards

Guidance Regulations 13 CFR 121 Office of Hearings & Appeals Decisions SBA Size Specialists Legal Counsel Office of Size Standards

Size Protest Process Office of Size Standards 13 CFR – CO MUST FORWARD SIZE PROTEST TO SBA SBA Government Contracting Area Office Location of Protested Concern

Size Protest Process (Cont.) Office of Size Standards SBA Reviews for: Timeliness Specificity Allegations Timeframes for Decision Appeals of Size Determinations to SBA’s Office of Hearings & Appeals

Concluding Comments Office of Size Standards Understand Regulations & OHA Decisions Common Sense Policy Changes Q & A’s

Size Standards Information “What’s New” Topic (202) Office of Size Standards Office of Size Standards