The Small Business Act (Act) established
SBA to protect the interests of small businesses
and to help ensure that a fair and representative share of government
contracts are placed with small businesses. The law defines a small
business concern as "one that is independently owned and operated
and which is not dominant in its field of operation."
The law also states that in determining what constitutes a small
business, the definition will vary from industry to industry to
reflect industry differences accurately.
At SBA's inception, the fundamental question centered on what would
be the numerical definition of a small business, industry by industry,
to establish eligibility for SBA's programs. This numerical definition
is the "size standard" and is almost always stated in
terms of either number of employees or average annual receipts.
In addition to establishing eligibility for SBA programs, all federal
agencies use SBA's size standards to determine the eligibility of
firms to receive federal government contracts that are specifically
designated for small business. Other laws or programs may similarly
require using SBA's small business definition.
SBA.s Office of Size Standards
develops and recommends small business size standards to the Size Policy Board
and to the Administrator of SBA. These include recommendations on
small business definitions that other federal agencies propose.
Under the Small Business Act, federal agencies must obtain the approval
of the SBA Administrator before adopting a size standard different
from SBA's size standard.
The Office of Government Contracting
makes formal "size determinations" on whether a business
qualifies as an eligible small business for SBA programs.
The Office of Hearings and Appeals
(OHA) reviews appeals of formal size determinations.
The Office of General Counsel interprets size standards regulations
for the Agency and intervenes in OHA size determination appeal cases
if necessary.
The Offices of Size Standards, Government Contracting, and General
Counsel coordinate on all size standard issues.
For further information, you may write or call the Office of Size Standards:
Office of Size Standards
U.S. Small Business Administration
409 3rd St., SW, Washington, DC 20416
Phone: (202) 2056618
Fax: (202) 205-6390
E-mail: SIZESTANDARDS@sba.gov
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