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Updating Size Standards for NAICS Sector 54 Professional, Technical, and Scientific Services

As many of you are probably aware, on February 10, 2012 the Small Business Administration (SBA) issued a Final Rule increasing 37 small business size standards for 34 industries and three sub-industries in North American Industry Classification System (NAICS) Sector 54 Professional, Technical, and Scientific Services. SBA is retaining the current standards for the remaining industries in NAICS Sector 54.  The “new” size standards have an effective date of March 12, 2012.

Contractors whose Schedule contracts are assigned one of these updated NAICS codes can take the below action.

Contractors currently listed as a small business under the Schedule contract:

Since you are already small under the contract and your size status would not change due to the increased size standards, there is no reason for you to rerepresent at this time.

Contractors currently listed as other than small business under the Schedule contract:

You can only rerepresent under the following conditions:
1) Within 30 days of a novation agreement; or
2) Within 30 days after a merger or acquisition; or
3) Within 60 to 120 days prior to the exercise of an option.


You now qualify as a small business under the updated size standards. [See FAR 19.301-3]

In the meantime, the Schedules that include the affected NAICS codes will begin the process of refreshing their solicitations to reflect the updated size standards.  Once the solicitations are refreshed, existing contracts will be modified through the Mass Modification process to reflect the updated size standards.  Rerepresentation mods do not have to wait for the solicitation refresh or Mass Modification in order to be processed. This is because the FAR requires contractors to rerepresent their size in accordance with the size standard that corresponds to the NAICS code assigned to the contract in effect at time of representation and not the size standard listed in the contract.


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Brad deMers
<p>Regarding SBC_07&#39;s &nbsp;question scenerio, here is my assumption:&nbsp;</p><p>1. MOBIS contract was awarded as a small business.&nbsp;</p><p>2. Option renewal in December 2011 re-reppred as large.&nbsp;</p><p>3. Now qualifies as small under new size standards.&nbsp;</p><p>From my understanding of policy, we will now accept a size re-rep at ANY TIME from a business who was originally awarded as a small business on thier GSA MAS contract then subsequently changed to Large (like the scenerio above). I am just now posting this because I was talking to a co-worker about this subject and suddenly remembered this post and thought I would update my answer.&nbsp;</p><p>Here is the rationale behind it (Thanks go to Mahruba Uddowla for this excellent interpretation of the FAR):&nbsp;</p><p>Q.&nbsp;<strong>How are small business contractors able to re-represent at any time but large business contractors have to wait for certain conditions?</strong></p><p>A. FAR&nbsp;<a href="https://www.acquisition.gov/far/current/html/Subpart%2019_3.html#wp1099294">19.301-2</a>&nbsp;covers rerepresentation requirements of small business concerns. This section lists the various times when a small business contractor&nbsp;<u>must</u>rerepresent; it does not prohibit small business contractors from rerepresenting at other times. FAR&nbsp;<a href="https://www.acquisition.gov/far/current/html/Subpart%2019_3.html#wp1099294">19.301-3</a>&nbsp;covers rerepresentation requirements of large business concerns. This section specifies that while large business contractors are never required to rerepresent, they can choose to rerepresent but only under certain conditions.</p>
MAS Blogger
<p>The &quot;other than small&quot; MAS contractor cannot, and does not, rerep in response to the solicitation refresh. They can only rerep under one of the 3 conditions listed in the article.</p>
MAS Blogger
<p>Thanks for your detailed example Brad. Great explanation. :)</p>
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