Small Business Size Standards: Information, 72702-72709 [2012-29360]
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Federal Register / Vol. 77, No. 235 / Thursday, December 6, 2012 / Rules and Regulations
SMALL BUSINESS SIZE STANDARDS BY NAICS INDUSTRY—Continued
NAICS
Codes
561422
561431
561439
561440
561450
561491
561492
561499
561510
561520
561591
561599
561611
561612
561613
561621
561622
561710
Size standards
in millions of
dollars
NAICS U.S. industry title
............
............
............
............
............
............
............
............
............
............
............
............
............
............
............
............
............
............
Telemarketing Bureaus and Other contact Centers ..................................................................
Private Mail Centers ...................................................................................................................
Other Business Service Centers (including Copy Shops) .........................................................
Collection Agencies ....................................................................................................................
Credit Bureaus ...........................................................................................................................
Repossession Services ..............................................................................................................
Court Reporting and Stenotype Services ..................................................................................
All Other Business Support Services .........................................................................................
Travel Agencies 10 ......................................................................................................................
Tour Operators 10 .......................................................................................................................
Convention and Visitors Bureaus ...............................................................................................
All Other Travel Arrangement and Reservation Services ..........................................................
Investigation Services ................................................................................................................
Security Guards and Patrol Services .........................................................................................
Armored Car Services ................................................................................................................
Security Systems Services (except Locksmiths) .......................................................................
Locksmiths ..................................................................................................................................
Exterminating and Pest Control Services ..................................................................................
*
561740 ............
*
*
*
*
Carpet and Upholstery Cleaning Services .................................................................................
*
*
561910 ............
561920 ............
561990 ............
*
*
*
*
Packaging and Labeling Services ..............................................................................................
Convention and Trade Show Organizers 10 ...............................................................................
All Other Support Services .........................................................................................................
*
*
............
............
............
............
............
............
............
............
*
*
*
*
Solid Waste Collection ...............................................................................................................
Hazardous Waste Collection ......................................................................................................
Other Waste Collection ..............................................................................................................
Hazardous Waste Treatment and Disposal ...............................................................................
Solid Waste Landfill ....................................................................................................................
Solid Waste Combustors and Incinerators .................................................................................
Other Nonhazardous Waste Treatment and Disposal ...............................................................
Remediation Services ................................................................................................................
*
*
562920 ............
*
*
*
*
Materials Recovery Facilities .....................................................................................................
*
562111
562112
562119
562211
562212
562213
562219
562910
*
*
*
*
*
Size standards
in number of
employees
14.0
14.0
14.0
14.0
14.0
14.0
14.0
14.0
10 19.0
10 19.0
19.0
19.0
19.0
19.0
19.0
19.0
19.0
10.0
*
5.0
*
10.0
10 10.0
10.0
*
35.5
35.5
35.5
35.5
35.5
35.5
35.5
19.0
*
19.0
*
*
*
*
*
*
*
*
*
10 NAICS codes 488510 (part) 531210, 541810, 561510, 561520, and 561920—As measured by total revenues, but excluding funds received
in trust for an unaffiliated third party, such as bookings or sales subject to commissions. The commissions received are included as revenues.
*
*
*
*
*
ACTION:
[FR Doc. 2012–29349 Filed 12–5–12; 8:45 am]
BILLING CODE 8025–01–P
SMALL BUSINESS ADMINISTRATION
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13 CFR Part 121
RIN 3245–AG26
Small Business Size Standards:
Information
U.S. Small Business
Administration.
AGENCY:
14:03 Dec 05, 2012
DATES:
The United States Small
Business Administration (SBA) is
increasing the receipts based small
business size standards for 15 industries
and retaining the current receipts based
size standards for five industries in
North American Industry Classification
System (NAICS) Sector 51, Information.
As part of its ongoing comprehensive
review of all size standards, SBA
evaluated all receipts based size
standards for industries in NAICS
Sector 51 to determine whether they
should be retained or revised. SBA did
not review the employee based
standards for industries in NAICS
Sector 51 in this rule, but will do so at
a later date with other employee based
size standards.
SUMMARY:
Editorial Note: This document was
received at the Office of the Federal Register
on November 30, 2012.
VerDate Mar<15>2010
Final rule.
This rule is effective January 7,
2013.
Dated: April 25, 2012.
Karen G. Mills,
Administrator.
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Jon
Haitsuka, Program Analyst, Size
Standards Division, phone: (202) 205–
6618 or sizestandards@sba.gov.
SUPPLEMENTARY INFORMATION: To
determine eligibility for Federal small
business assistance programs, SBA
establishes small business size
definitions (referred to as size
standards) for private sector industries
in the United States. SBA’s existing size
standards use two primary measures of
business size—average annual receipts
and number of employees. Financial
assets, electric output, and refining
capacity are used as size measures for a
few specialized industries. In addition,
SBA’s Small Business Investment
Company (SBIC), 7(a), and Certified
FOR FURTHER INFORMATION CONTACT:
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Development Company (CDC or 504)
Loan Programs determine small
business eligibility using either the
industry based size standards or net
worth and net income size based
standards. At the start of the current
comprehensive review of SBA’s small
business size standards, there were 41
different size standards levels, covering
1,141 NAICS industries and 18 subindustry activities (i.e., ‘‘exceptions’’ in
SBA’s table of size standards). Of these,
31 were based on average annual
receipts, seven based on number of
employees, and three based on other
measures.
Over the years, SBA has received
comments that its size standards have
not kept up with changes in the
economy, in particular the changes in
the Federal contracting marketplace and
industry structure. SBA last conducted
a comprehensive review of size
standards during the late 1970s and
early 1980s. Since then, most reviews of
size standards have been limited to a
few specific industries in response to
requests from the public and Federal
agencies. SBA also makes periodic
inflation adjustments to its monetary
based size standards. The latest inflation
adjustment to size standards was
published in the Federal Register on
July 18, 2008 (73 FR 41237).
SBA recognizes that changes in
industry structure and the Federal
marketplace since the last overall
review have rendered existing size
standards for some industries no longer
supportable by current data.
Accordingly, in 2007, SBA began a
comprehensive review of its size
standards to determine whether existing
size standards have supportable bases
relative to the current data, and to revise
them, where necessary.
In addition, on September 27, 2010,
the President of the United States signed
the Small Business Jobs Act of 2010
(Jobs Act). The Jobs Act directs SBA to
conduct a detailed review of all size
standards and to make appropriate
adjustments to reflect market
conditions. Specifically, the Jobs Act
requires SBA to conduct a detailed
review of at least one-third of all size
standards during every 18-month period
from the date of its enactment and
review of all size standards not less
frequently than once every 5 years
thereafter. Reviewing existing small
business size standards and making
appropriate adjustments based on
current data is also consistent with
Executive Order 13563 on improving
regulation and regulatory review.
SBA has chosen not to review all size
standards at one time. Rather, it is
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14:03 Dec 05, 2012
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reviewing groups of related industries
on a Sector by Sector basis.
As part of SBA’s comprehensive
review of size standards, the Agency
reviewed all receipts based size
standards in NAICS Sector 51,
Information, to determine whether the
existing size standards should be
retained or revised. On October 12,
2011, SBA published a proposed rule in
the Federal Register (76 FR 63216)
seeking public comment on its proposal
to increase the receipts based size
standards for 15 industries in NAICS
Sector 51. The rule was one of a series
of proposed rules that examines
industries grouped by NAICS Sector.
SBA has recently developed a ‘‘Size
Standards Methodology’’ for
developing, reviewing, and modifying
size standards, when necessary. SBA
has published the document on its Web
site at www.sba.gov/size for public
review and comment and also included
it as a supporting document in the
electronic docket of the October 12,
2011 proposed rule at
www.regulations.gov.
In evaluating an industry’s size
standard, SBA examines its
characteristics (such as average firm
size, startup costs, industry competition,
and distribution of firms by size) and
the level and small business share of
Federal contract dollars in that industry.
SBA also examines the potential impact
a size standard revision might have on
its financial assistance programs and
whether a business concern under a
revised size standard would be
dominant in its industry. SBA analyzed
the characteristics of each industry in
NAICS Sector 51 that has a receiptsbased size standard, mostly using a
special tabulation obtained from the
U.S. Bureau of the Census based on its
2007 Economic Census (the latest
available). SBA also evaluated the level
and small business share of Federal
contracts in each of those industries
using the data from the Federal
Procurement Data System—Next
Generation (FPDS–NG) for fiscal years
2008 to 2010. To evaluate the impact of
changes to size standards on its loan
programs, SBA analyzed internal data
on its guaranteed loan programs for
fiscal years 2008 to 2010.
SBA’s ‘‘Size Standards Methodology’’
provides a detailed description of its
analyses of various industry and
program factors and data sources, and
how the Agency uses the results to
derive size standards. In the proposed
rule, SBA detailed how it applied its
‘‘Size Standards Methodology’’ to
review and modify, where necessary,
the existing standards for industries in
NAICS Sector 51. SBA sought comments
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from the public on a number of issues
concerning its ‘‘Size Standards
Methodology,’’ such as whether there
are alternative methodologies that SBA
should consider; whether there are
alternative or additional factors or data
sources that SBA should evaluate;
whether SBA’s approach to establishing
small business size standards makes
sense in the current economic
environment; whether SBA’s
applications of anchor size standards
are appropriate in the current economy;
whether there are gaps in SBA’s
methodology because of the lack of
comprehensive data; and whether there
are other facts or issues that SBA should
consider.
SBA also sought comments on its
proposal to increase the size standards
for 15 industries and retain the existing
size standards for remaining industries
in NAICS Sector 51 (Information) that
have receipts based size standards.
Specifically, SBA requested comments
on whether the size standards should be
revised as proposed and whether the
proposed revisions are appropriate. SBA
also invited comments on whether its
proposed eight fixed size standard
levels are appropriate and whether it
should adopt common size standards for
some industries in NAICS Sector 51.
SBA’s analyses supported lowering
existing receipts based standards for
four industries and keeping the current
size standard for one industry. However,
as SBA explained in the proposed rule,
lowering size standards would reduce
the number of firms eligible to
participate in Federal small business
assistance programs and would run
counter to what the Federal government
and SBA are doing to help small
businesses and create jobs. Therefore,
SBA proposed to retain the current size
standards for those industries and
requested comments on whether the
Agency should lower size standards for
those five industries for which its
analyses might support lowering them.
Summary of Comments
SBA sought comments on its
proposed rule to increase the size
standard for 15 industries and retain the
existing size standards for the remaining
five industries in NAICS Sector 51 that
have receipts based size standards. SBA
requested comments on whether the
size standards should be revised as
proposed or different size standards
were appropriate. SBA received two
comments to the proposed rule, which
are summarized below.
One commenter fully supported
SBA’s proposed size standards,
particularly with regard to increasing
the size standard for NAICS 519190, All
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Other Information Services, from $7
million to $25.5 million.
The second commenter raised a
number of issues on SBA’s size
standards. The commenter stated that
SBA has not kept up with current
business practices, making the size
standards ‘‘nearly irrelevant.’’ The
comment contended that today’s
businesses are involved in several
NAICS industries, including
manufacturing, wholesale trade, retail
trade, and services. The commenter
stated further that when a manufacturer
is also a wholesaler of products
manufactured overseas, it easily would
meet an employee based size standard.
The second concern the commenter
expressed that some manufacturers that
meet the 1,000-employee to 1,500employee size standards may have
several hundred million dollars in
average annual revenue and are
considered small. The commenter
recommended that SBA’s size standards
include both number of employees and
annual receipts.
SBA agrees that many businesses are
involved in industries covering more
than one NAICS code, but it does not
adopt the commenter’s recommendation
for two reasons. First, although a
concern might participate in multiple
industries, a Federal procurement
generally does not use multiple NAICS
codes. SBA regulations provide that
NAICS codes and their size standards
for Wholesale Trade (NAICS Sector 42)
and Retail Trade (NAICS Sector 44–45)
do not apply to Federal procurement. To
qualify as small for a Federal
procurement opportunity, a business
must meet the size standard for the
NAICS code under that procurement. A
procuring agency’s contracting officer
must use the NAICS code, along with
the appropriate size standard, that best
describes the principal purpose of the
procurement. (13 CFR 121.402(b)). If the
procurement is for services, the
contracting officer will assign a service
NAICS code and the associated size
standard will likely be based on average
annual receipts. To qualify as small
under a receipts based size standard the
firm’s total annual receipts—together
with those of its affiliates (see 13 CFR
121.103)—must meet that size standard,
regardless of whether it might qualify as
small under an employee based size
standard for another NAICS code. If the
procurement is for manufactured
products, then, to qualify as small, the
company must meet the size standard
for the NAICS industry that
manufactures that product. In the event
that a company did not manufacture the
product the government wishes to buy,
then it may qualify as small by
supplying the product as a
‘‘nonmanufacturer.’’ However, the
nonmanufacturer must have 500 or
fewer employees (regardless of what the
size standard is for the manufacturer
making the product) and provide the
product of a small, domestic
manufacturer. This is provided for in
the nonmanufacturer rule. (13 CFR
121.406(b)). Second, for the reasons
provided in its ‘‘Size Standards
Methodology’’ available at
www.sba.gov/size, SBA uses number of
employees to measure the size of
manufacturing industries and average
annual receipts to measure the size of
services industries. SBA believes that
using both number of employees and
average annual receipts for a size
standard would add tremendous
complexity to size standards, and it
would run counter to SBA’s ongoing
effort to simplify size standards. For
these reasons SBA declines to adopt the
comment.
The third issue raised by the
commenter was related to publicly
traded companies bidding on small
business Federal contracts. The
commenter contended that typically the
publicly traded companies are managed
by people formerly associated with large
businesses. SBA’s small business size
regulations do not preclude a publicly
traded company from qualifying as
small if it meets the small business size
requirements. Whether a company is
publicly or privately owned or how
widely a company’s stock is held is not
a relevant factor in determining whether
it can qualify small. If a company
represents itself as a small business
concern on a particular procurement,
and one or more interested parties
believe that the entity does not qualify
as small, SBA has established rules and
procedures for protests of the small
business size status of the company.
(See 13 CFR 121.1001 through
121.1010). If a company is managed by
individuals formerly associated with
large businesses, that may be a relevant
fact in determining whether the
company is affiliated with other firms
and qualifies as small. (13 CFR 121.103).
The fourth issue the commenter
raised related to mergers and
acquisitions (M&A) activities. The
commenter contended that, without
regular review of size standards,
businesses involved in M&As will be
considered small. SBA disagrees with
this comment. Mergers create affiliation
(see 13 CFR 121.103) between or among
the companies involved and their
receipts and employees should be
aggregated to determine if the company
qualifies as small after the merger. To
address this issue, on November 15,
2006, SBA issued a final rule requiring
small business government contractors
to recertify their size status on long-term
contracts when a contract option is
exercised, when a small business is
involved in an executed merger or
purchase with another business, or at
the end of the first five years of a
contract. (71 FR 66434). For contract
opportunities after a merger has
occurred, any interested party may
protest the size of a small business
offeror under 13 CFR 121.1001 through
121.1010. SBA would apply its
affiliation rules during any protest.
Conclusion
Based on SBA’s analyses of relevant
industry and program data and the
public comments it received on the
proposed rule, SBA has decided to
increase the small business size
standards for the 15 industries in NAICS
Sector 51 to the levels it proposed.
Those industries and their revised size
standards are shown in the following
Table 1, Summary of Revised Size
Standards in NAICS Sector 51.
TABLE 1—SUMMARY OF REVISED SIZE STANDARDS IN NAICS SECTOR 51
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NAICS
Code
511210
512110
512131
512199
512290
515111
515112
Current size
standard
($ million)
NAICS Industry title
..
..
..
..
..
..
..
Software Publishers .....................................................................................................................
Motion Picture and Video Production ..........................................................................................
Motion Picture Theaters (except Drive-Ins) .................................................................................
Other Motion Picture and Video Industries ..................................................................................
Other Sound Recording Industries ...............................................................................................
Radio Networks ............................................................................................................................
Radio Stations ..............................................................................................................................
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$25.0
29.5
7.0
7.0
7.0
7.0
7.0
06DER1
Revised size
standard
($ million)
$35.5
30.0
35.5
19.0
10.0
30.0
35.5
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72705
TABLE 1—SUMMARY OF REVISED SIZE STANDARDS IN NAICS SECTOR 51—Continued
NAICS
Code
515120
515210
517410
517919
518210
519110
519120
519190
..
..
..
..
..
..
..
..
Television Broadcasting ...............................................................................................................
Cable and Other Subscription Programming ...............................................................................
Satellite Telecommunications .......................................................................................................
All Other Telecommunications .....................................................................................................
Data Processing, Hosting, and Related Services ........................................................................
News Syndicates ..........................................................................................................................
Libraries and Archives ..................................................................................................................
All Other Information Services .....................................................................................................
For the reasons stated above in this
rule and in the proposed rule, SBA has
decided to retain the current receipts
based size standards for four industries
for which analytical results suggested
lowering them. Not lowering size
standards in NAICS Sector 51 is
consistent with SBA’s recent final rules
on NAICS Sector 44–45, Retail Trade
(75 FR 61597, October 6, 2010); NAICS
Sector 72, Accommodation and Food
Services (75 FR 61604, October 6, 2010);
and NAICS Sector 81, Other Services
(75 FR 61591,October 6, 2010). In each
of those final rules, SBA adopted its
proposal not to reduce small business
size standards for the same reasons.
SBA is also retaining the existing
receipts based size standard for one
industry for which the results supported
it at its current level. Accordingly, SBA
has retained the existing receipts-based
size standards for five industries in
NAICS Sector 51. SBA did not review
the 12 industries in NAICS Sector 51
that have employee based size
standards. Therefore, SBA has retained
the size standards for those industries at
their current levels until the Agency
reviews employee based size standards
at a later date.
Compliance With Executive Orders
12866, 13563, 12988, and 13132, the
Paperwork Reduction Act (44 U.S.C.,
Ch. 35) and the Regulatory Flexibility
Act (5 U.S.C. 601–612)
Executive Order 12866
The Office of Management and Budget
(OMB) has determined that this final
rule is a significant regulatory action for
purposes of Executive Order 12866.
Accordingly, the next section contains
SBA’s Regulatory Impact Analysis. This
is not a major rule, however, under the
Congressional Review Act, 5 U.S.C. 800.
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Current size
standard
($ million)
NAICS Industry title
Regulatory Impact Analysis
1. Is there a need for the regulatory
action?
SBA believes that the revised changes
to small business size standards for 15
industries in NAICS Sector 51,
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Information, reflect changes in
economic characteristics of small
businesses in those industries and the
Federal procurement market. SBA’s
mission is to aid and assist small
businesses through a variety of
financial, procurement, business
development, and advocacy programs.
To assist the intended beneficiaries of
these programs effectively, SBA
establishes distinct definitions to
determine which businesses are deemed
small businesses. The Small Business
Act (15 U.S.C. 632(a)) delegates to SBA’s
Administrator the responsibility for
establishing small business definitions.
The Act also requires that small
business definitions vary to reflect
industry differences. The recently
enacted Jobs Act requires the
Administrator to review one-third of all
size standards within each 18-month
period from the date of its enactment
and to review all size standards at least
every five years thereafter. The
supplementary information sections of
the October 12, 2011 proposed rule and
this final rule explained in detail SBA’s
methodology for analyzing a size
standard for a particular industry.
2. What are the potential benefits and
costs of this regulatory action?
The most significant benefit to
businesses obtaining small business
status as a result of this rule is gaining
eligibility for Federal small business
assistance programs, including SBA’s
financial assistance programs, economic
injury disaster loans, and Federal
procurement opportunities intended for
small businesses. Federal small business
programs provide targeted opportunities
for small businesses under SBA’s
various business development and
contracting programs. These include the
8(a) Business Development program and
programs benefiting small businesses
located in Historically Underutilized
Business Zones (HUBZone), women
owned small businesses (WOSB), and
service-disabled veteran-owned small
businesses (SDVOSB). Other Federal
agencies also may use SBA’s size
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14.0
15.0
15.0
25.0
25.0
7.0
7.0
7.0
Revised size
standard
($ million)
35.5
35.5
30.0
30.0
30.0
25.5
14.0
25.5
standards for a variety of regulatory and
program purposes. These programs help
small businesses become more
knowledgeable, stable, and competitive.
In the 15 industries in NAICS Sector 51
for which SBA has decided to increase
size standards, SBA estimates that more
than 500 firms exceeding the current
size standards will gain small business
status and become eligible for these
programs. That number is 1.2 percent of
the total number of firms that are
classified as small under the current
size standards in all 20 industries in
NAICS Sector 51 that are covered by
this final rule. SBA estimates that this
will increase the small business share of
total industry receipts in those
industries from 13 percent under the
current size standards to 15 percent.
The benefits of increasing size
standards to a more appropriate level
will accrue to three groups in the
following ways: (1) Some businesses
that are above the current size standards
will gain small business status under
the higher size standards; thereby
enabling them to participate in Federal
small business assistance programs; (2)
growing small businesses that are close
to exceeding the current size standards
will be able to retain their small
business status under the higher size
standards, thereby enabling them to
continue their participation in the
programs; and (3) Federal agencies will
have a larger pool of small businesses
from which to draw for their small
business procurement programs.
For the October 12, 2011 proposed
rule, SBA analyzed FY 2007–2009
FPDS–NG data and found that, among
the industries that SBA examined,
nearly 98 percent of Federal contracting
dollars in Sector 51 were accounted for
by those 15 industries for which SBA
has increased size standards. This also
held true in SBA’s updated analysis
using the FY 2008–2010 FPDS–NG data.
SBA estimates that additional firms
gaining small business status in those
industries under the revised size
standards could potentially obtain
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Federal contracts totaling between $15
million and $20 million annually
through the 8(a), HUBZone, WOSB, and
SDVOSB programs and other,
unrestricted procurements. The added
competition for many of these
procurements may also result in lower
prices to the Government for
procurements reserved for small
businesses, although SBA cannot
quantify this benefit.
Based on the 2008 to 2010 data alone,
SBA estimates that approximately 5 to
10 more loans totaling $1 million to $2
million could be made to newly defined
small businesses under its 7(a) and 504
Loan Programs. However, under the Jobs
Act, SBA can now guarantee
substantially larger loans than in the
past. The Jobs Act also established an
alternative size standard for SBA’s 7(a)
and 504 Loan Programs for those
applicants that do not meet the size
standards for their industries. Under the
alternative size standard, if a firm
applies for a 7(a) or 504 loan but does
not meet the size standard for its
industry, it might still qualify if,
including its affiliates, it has tangible
net worth that does not exceed $15
million and has average net income after
Federal income taxes (excluding any
carry-over losses) for its preceding two
completed fiscal years that does not
exceed $5.0 million. Thus, increasing
the size standards may result in an
increase in small business guaranteed
loans to small businesses in these
industries, but it is impractical to try to
estimate the extent of their number and
the total amount loaned.
Newly defined small businesses will
also benefit from SBA’s Economic Injury
Disaster Loan (EIDL) Program. Since the
EIDL program is contingent on the
occurrence and severity of a disaster,
SBA cannot make a meaningful estimate
of future EIDL benefits.
To the extent that those 500 newly
defined small firms under the revised
size standards could become active in
Federal procurement programs, there
may be some additional administrative
costs to the Federal Government. There
will be additional bidders for Federal
small business procurement
opportunities, additional firms applying
for SBA guaranteed loans, additional
firms eligible to enroll in the Central
Contractor Registration’s (CCR) Dynamic
Small Business Search database, and
additional firms seeking certification as
8(a) or HUBZone firms or qualifying for
small business, WOSB, SDVOSB, and
SDB status. Among these businesses,
there could be some additional costs
associated with compliance and
verification of small business status and
protests of small business status. These
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14:03 Dec 05, 2012
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added costs are likely to be minimal
because mechanisms are already in
place to handle these administrative
requirements.
The costs to the Federal Government
may be higher on some Federal
contracts under the higher revised size
standards. With a greater number of
businesses defined as small, Federal
agencies may choose to set aside more
contracts for competition among small
businesses rather than using full and
open competition. The movement from
unrestricted to set-aside contracting will
likely result in competition among
fewer total bidders, although there will
be more small businesses eligible to
submit offers. In addition, higher costs
may result when additional full and
open contracts are awarded to HUBZone
businesses because of a price evaluation
preference. The additional costs
associated with fewer bidders, however,
will likely be minor since, as a matter
of law, procurements may be set aside
for small businesses or reserved for the
8(a), HUBZone, WOSB, or SDVOSB
Programs only if awards are expected to
be made at fair and reasonable prices.
The revised size standards may have
some distributional effects among large
and small businesses. Although SBA
cannot estimate with certainty the
actual outcome of gains and losses
among small and large businesses, there
are several likely impacts. There may be
a transfer of some Federal contracts
from large businesses to small
businesses. Large businesses may have
fewer Federal contract opportunities as
Federal agencies decide to set aside
more Federal contracts for small
businesses. In addition, some agencies
may award more Federal contracts to
HUBZone concerns instead of large
businesses since HUBZone concerns
may be eligible for price evaluation
preferences when they compete on full
and open bidding opportunities.
Similarly, currently defined small
businesses may obtain fewer Federal
contracts due to the increased
competition from more businesses
defined as small under the revised size
standards. This transfer may be offset by
more Federal procurements set aside for
all small businesses. The number of
newly defined and expanding small
businesses that are willing and able to
sell to the Federal Government will
limit the potential transfer of contracts
away from large and small businesses
under the existing size standards. The
SBA cannot estimate with precision the
potential distributional impacts of these
transfers.
The revisions to the existing size
standards for Information industries are
consistent with SBA’s statutory mandate
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Fmt 4700
Sfmt 4700
to assist small business. This regulatory
action promotes the Administration’s
objectives. One of SBA’s goals in
support of the Administration’s
objectives is to help individual small
businesses succeed through fair and
equitable access to capital and credit,
Government contracts, and management
and technical assistance. Reviewing and
modifying size standards, when
appropriate, ensures that intended
beneficiaries have access to small
business programs designed to assist
them.
Executive Order 13563
A description of the need for this
regulatory action and benefits and costs
associated with this action including
possible distributions impacts that
relate to Executive Order 13563,
Improving Regulation and Regulatory
Review, are included above in the
Regulatory Impact Analysis under
Executive Order 12866.
In an effort to engage interested
parties in this action, SBA has presented
its methodology (discussed above under
Supplementary Information) to various
industry associations and trade groups.
SBA also met with various industry
groups to obtain their feedback on its
methodology and other size standards
issues. SBA also presented its size
standards methodology to businesses in
13 cities in the United States and sought
their input as part of the Jobs Act tours.
The presentation also included
information on the latest status of the
comprehensive size standards review
and on how interested parties can
provide SBA with input and feedback
on size standards review.
Additionally, SBA sent letters to the
Directors of the Offices of Small and
Disadvantaged Business Utilization
(OSDBU) at several Federal agencies
with considerable procurement
responsibilities requesting their
feedback on how the agencies use SBA
size standards and whether current
standards meet their programmatic
needs (both procurement and nonprocurement). SBA gave appropriate
consideration to all input, suggestions,
recommendations, and relevant
information obtained from industry
groups, individual businesses, and
Federal agencies in preparing this
proposed rule.
The review of size standards in
NAICS Sector 51, Information, is
consistent with Executive Order 13563,
§ 6 calling for retrospective analyses of
existing rules. The last overall review of
size standards occurred during the late
1970s and early 1980s. Since then,
except for periodic adjustments for
monetary based size standards, most
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Federal Register / Vol. 77, No. 235 / Thursday, December 6, 2012 / Rules and Regulations
reviews of size standards were limited
to a few specific industries in response
to requests from the public and Federal
agencies. SBA recognizes that changes
in industry structure and the Federal
marketplace over time have rendered
existing size standards for some
industries no longer supportable by
current data. Accordingly, in 2007, SBA
began a comprehensive review of all
size standards to ensure that existing
size standards have supportable bases
and to revise them when necessary. In
addition, the Jobs Act directs SBA to
conduct a detailed review of all size
standards and to make appropriate
adjustments to reflect market
conditions. Specifically, the Jobs Act
requires SBA to conduct a detailed
review of at least one-third of all size
standards during every 18-month period
from the date of its enactment and do a
complete review of all size standards
not less frequently than once every 5
years thereafter.
Executive Order 12988
This action meets applicable
standards set forth in Sections 3(a) and
3(b)(2) of Executive Order 12988, Civil
Justice Reform, to minimize litigation,
eliminate ambiguity, and reduce
burden. The action does not have
retroactive or preemptive effect.
Executive Order 13132
For purposes of Executive Order
13132, Federalism, SBA has determined
that this final rule will not have
substantial, direct effects on the States,
on the relationship between the national
government and the States, or on the
distribution of power and
responsibilities among the various
levels of government. Therefore, SBA
has determined that this final rule has
no federalism implications warranting
preparation of a federalism assessment.
Paperwork Reduction Act
For the purpose of the Paperwork
Reduction Act, 44 U.S.C. Ch. 35, SBA
has determined that this final rule
would not impose any new reporting or
record keeping requirements.
mstockstill on DSK4VPTVN1PROD with
Final Regulatory Flexibility Analysis
Under the Regulatory Flexibility Act
(RFA), this final rule may have a
significant impact on a substantial
number of small entities in NAICS
Sector 51, Information. As described
above, this final rule may affect small
entities seeking Federal contracts, SBA’s
7(a) and 504 Guaranteed Loans, SBA’s
Economic Injury Disaster Loans, and
various small business benefits under
other Federal programs.
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14:03 Dec 05, 2012
Jkt 229001
Immediately below, SBA sets forth a
final regulatory flexibility analysis of
this final rule addressing the following
questions: (1) What are the need for and
objective of the rule?; (2) What are
SBA’s description and estimate of the
number of small entities to which the
rule will apply?; (3) What are the
projected reporting, record keeping, and
other compliance requirements of the
rule?; (4) What are the relevant Federal
rules which may duplicate, overlap, or
conflict with the rule?; and (5) What
alternatives will allow the Agency to
accomplish its regulatory objectives
while minimizing the impact on small
entities?
(1) What are the need for and
objective of the rule?
Most of SBA’s size standards for the
Information industries had not been
reviewed since the 1980s. Technological
changes, productivity growth,
international competition, mergers and
acquisitions and updated industry
definitions may have changed the
structure of many industries in that
Sector. Such changes can be sufficient
to support a revision to size standards
for some industries. Based on the
analysis of the latest industry and
program data available, SBA believes
that the revised standards in this rule
more appropriately reflect the size of
businesses in those industries that need
Federal assistance. Additionally, the
Jobs Act requires SBA to review all size
standards and make appropriate
adjustments to reflect current data and
market conditions.
(2) What are SBA’s description and
estimate of the number of small entities
to which the rule will apply?
SBA estimates that approximately 500
additional firms will become small
because of increases in size standards in
20 industries in NAICS Sector 51. That
represents 1.2 percent of the total firms
in industries in that Sector that have
receipts-based size standards. This will
result in an increase in the small
business share of total industry receipts
in those industries from about 13
percent under the current size standards
to nearly 15 percent under the revised
size standards. SBA does not anticipate
a significant competitive impact on
smaller businesses in these industries.
The revised size standards will enable
more small businesses to retain their
small business status for a longer
period. Under current size standards,
many small businesses may have lost
their eligibility or found it difficult to
compete with companies that are
significantly larger than they are, and
this final rule attempts to correct that
impact. SBA believes these changes will
have a positive impact for existing small
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Fmt 4700
Sfmt 4700
72707
businesses and for those that have either
exceeded or are about to exceed current
size standards.
(3) What are the projected reporting,
record keeping, and other compliance
requirements of the rule?
Revising size standards does not
impose any additional reporting or
record keeping requirements on small
entities. However, qualifying for Federal
procurement and a number of other
Federal programs requires that entities
register in the Central Contractor
Registration (CCR) database and certify
at least annually that they are small in
the Online Representations and
Certifications Application (ORCA).
Therefore, businesses opting to
participate in those programs must
comply with CCR and ORCA
requirements. There are no costs
associated with either CCR registration
or ORCA certification. Revising size
standards alters the access to SBA
programs that are designed to assist
small businesses, but does not impose a
regulatory burden as they neither
regulate nor control business behavior.
(4) What are the relevant Federal rules
which may duplicate, overlap, or
conflict with the rule?
Under § 3(a)(2)(C) of the Small
Business Act, 15 U.S.C. 632(a)(2)(c),
Federal agencies must use SBA’s size
standards to define a small business,
unless specifically authorized by
statute. In 1995, SBA published in the
Federal Register a list of statutory and
regulatory size standards that identified
the application of SBA’s size standards
as well as other size standards used by
Federal agencies (60 FR 57988,
November 24, 1995). SBA is not aware
of any Federal rule that would duplicate
or conflict with establishing or revising
size standards.
However, the Small Business Act and
SBA’s regulations allow Federal
agencies to develop different size
standards if they believe that SBA’s size
standards are not appropriate for their
programs, with the approval of SBA’s
Administrator (13 CFR 121.903). The
Regulatory Flexibility Act authorizes an
agency to establish an alternative small
business definition after consultation
with the Office of Advocacy of the U.S.
Small Business Administration (5 U.S.C.
601(3)).
(5) What alternatives will allow the
Agency to accomplish its regulatory
objectives while minimizing the impact
on small entities?
By law, SBA is required to develop
numerical size standards for
establishing eligibility for Federal small
business assistance programs. Other
than varying size standards by industry
and changing the size measures, no
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Federal Register / Vol. 77, No. 235 / Thursday, December 6, 2012 / Rules and Regulations
practical alternative exists to the
existing system of numerical size
standards. The possible alternative size
standards considered for the individual
NAICS Code industries within NAICS
Sector 51 are discussed in the
supplementary information to the
proposed rule and this final rule.
Loan programs—business, Reporting
and recordkeeping requirements, Small
businesses.
For reasons set forth in the preamble,
SBA amends 13 CFR part 121 as
follows:
List of Subjects in 13 CFR Part 121
Administrative practice and
procedure, Government procurement,
Government property, Grant programs—
business, Individuals with disabilities,
PART 121—SMALL BUSINESS SIZE
REGULATIONS
2. In § 121.201, in the table, revise the
entries for ‘‘511210’’, ‘‘512110’’,
‘‘512131’’, ‘‘512199’’, ‘‘512290’’,
‘‘515111’’, ‘‘515112’’, ‘‘515120’’,
’’515210’’, ‘‘517410’’, ‘‘517919’’,
‘‘518210’’, ‘‘519110’’, ‘‘519120’’, and
‘‘519190’’ to read as follows:
■
§ 121.201 What size standards has SBA
identified by North American Industry
Classification System codes?
1. The authority citation for part 121
continues to read as follows:
■
Authority: 15 U.S.C. 632, 634(b)(6), 636(b),
662, 694a(9).
*
*
*
*
*
SMALL BUSINESS SIZE STANDARDS BY NAICS INDUSTRY
NAICS
codes
*
511210
*
512110
*
*
*
*
*
*
512131
*
*
*
*
512199
*
*
*
512290
*
*
*
*
*
515111
515112
515120
515210
*
*
*
*
*
517410
*
*
*
*
*
517919
*
*
*
*
*
518210
*
*
*
*
*
*
*
*
*
*
14:03 Dec 05, 2012
Jkt 229001
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Fmt 4700
*
Sfmt 4700
E:\FR\FM\06DER1.SGM
*
30.0
*
News Syndicates ...........................................................................................................................
Libraries and Archives ...................................................................................................................
VerDate Mar<15>2010
*
30.0
Data Processing, Hosting, and Related Services .........................................................................
*
*
30.0
All Other Telecommunications ......................................................................................................
*
*
30.0
35.5
35.5
35.5
Satellite Telecommunications ........................................................................................................
*
*
10.0
Radio Networks .............................................................................................................................
Radio Stations ...............................................................................................................................
Television Broadcasting ................................................................................................................
Cable and Other Subscription Programming ................................................................................
*
*
19.0
Other Sound Recording Industries ................................................................................................
*
*
35.5
Other Motion Picture and Video Industries ...................................................................................
*
*
30.0
*
*
*
*
Motion Picture Theaters (except Drive-Ins) ..................................................................................
*
Size standards
in number of
employees
$35.5
Motion Picture and Video Production ............................................................................................
*
mstockstill on DSK4VPTVN1PROD with
*
Software Publishers .......................................................................................................................
*
519110
519120
Size standards
in millions
of dollars
NAICS U.S. industry title
*
25.5
14.0
06DER1
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Federal Register / Vol. 77, No. 235 / Thursday, December 6, 2012 / Rules and Regulations
SMALL BUSINESS SIZE STANDARDS BY NAICS INDUSTRY—Continued
NAICS
codes
*
519190
*
*
*
*
*
All Other Information Services ......................................................................................................
*
*
*
Dated: April 25, 2012.
Karen G. Mills,
Administrator.
For
technical questions about this final rule,
contact: Will Gonzalez, Air
Transportation Division, Flight
Standards Service, Federal Aviation
Administration, 800 Independence
Avenue SW., Washington, DC 20591;
telephone: 202–267–4080. For legal
questions, contact: Lorna John, Office of
the Chief Counsel, AGC–200, Federal
Aviation Administration, 800
Independence Avenue SW.,
Washington, DC 20591; telephone (202)
267–3921.
SUPPLEMENTARY INFORMATION:
FOR FURTHER INFORMATION CONTACT:
BILLING CODE 8025–01–P
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
14 CFR Part 91
[Docket No. FAA–2003–14766; Amendment
No. 91–327; SFAR No. 77]
RIN 2120–AK07
Prohibition Against Certain Flights
Within the Territory and Airspace of
Iraq
Federal Aviation
Administration (FAA), DOT.
ACTION: Final rule.
AGENCY:
This action is taken to allow
U.S. civil flight operations to and from
Erbil and Sulaymaniyah International
Airports in Northern Iraq by any United
States (U.S.) air carrier or commercial
operator, any person exercising the
privileges of an airman certificate issued
by the FAA except such persons
operating U.S.-registered aircraft for a
foreign air carrier (who are not covered
by the prohibition), or a person
operating an aircraft registered in the
United States unless the operator of
such aircraft is a foreign air carrier
(which also is not covered by the
prohibition). The FAA has recently
determined that a full flight prohibition
is no longer necessary for these airports
in Northern Iraq, and this action will
allow flights to be conducted provided
that certain measures are taken.
Additional adjustments to the current
flight prohibition may be appropriate as
the risk to aviation safety and security
lessens in other parts of the country,
and ultimately the prohibition may be
lifted completely.
SUMMARY:
14:03 Dec 05, 2012
This action is effective January 7,
Jkt 229001
Authority for This Rulemaking
The FAA is responsible for the safety
of flight in the United States and for the
safety of U.S. civil operators, U.S.registered aircraft, and U.S.-certificated
airmen throughout the world. Also, the
FAA is responsible for issuing rules
affecting the safety of air commerce and
national security. The FAA’s authority
to issue rules for aviation safety is found
in Title 49 of the United States Code.
Subtitle I, Section 106(g), describes the
authority of the FAA Administrator.
Subtitle VII, Aviation Programs,
describes in more detail the scope of the
agency’s authority. Section 40101(d)(1)
provides that the Administrator shall
consider in the public interest, among
other matters, assigning, maintaining,
and enhancing safety and security as the
highest priorities in air commerce.
Section 40105(b)(1)(A) requires the
Administrator to exercise his authority
consistently with the obligations of the
U.S. Government under international
agreements. Furthermore, the FAA has
broad authority under section
44701(a)(5) to prescribe regulations
governing the practices, methods, and
procedures the Administrator finds
necessary for safety in air commerce and
national security.
I. Background
On October 16, 1996, SFAR No. 77
was issued to prohibit flight operations
within the territory and airspace of Iraq
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Size standards
in number of
employees
*
25.5
*
2013.
[FR Doc. 2012–29360 Filed 12–5–12; 8:45 am]
VerDate Mar<15>2010
*
DATES:
Editorial Note: This document was
received at the Office of the Federal Register
on November 30, 2012.
mstockstill on DSK4VPTVN1PROD with
Size standards
in millions
of dollars
NAICS U.S. industry title
*
*
by any U.S. air carrier or commercial
operator, by any person exercising the
privileges of an airman certificate issued
by the FAA except persons operating
U.S.-registered aircraft for a foreign air
carrier (who are not covered by the
prohibition), or by a person operating an
aircraft registered in the United States,
unless the operator of such aircraft is a
foreign air carrier (which also is not
covered by the prohibition). The
prohibition was issued in response to
concerns for the safety and security of
U.S. civil flights within the territory and
airspace of Iraq. In the final rule, the
FAA cited a threat made by then
President Saddam Hussein who urged
his air defense forces to ignore both the
southern and northern no-fly zones and
to attack ‘‘any air target of the
aggressors.’’ The FAA was concerned
that this threat could apply to civilian
as well as military aircraft, and therefore
issued SFAR 77.
In early 2003, a U.S.-led coalition
removed Saddam Hussein’s regime in
Iraq from power. The FAA anticipated
that when hostilities ended in Iraq,
humanitarian efforts would be needed
to assist the people of Iraq. To facilitate
those efforts, in April 2003, the FAA
amended paragraph 3 of SFAR No. 77 to
clarify what the approval process was
for such flights, making clear that
operations could not be authorized by
another agency without the approval of
the FAA.
On November 19, 2003, the FAA
determined that certain limited
overflights of Iraq could be conducted
safely, subject to the permission of the
appropriate authorities in Iraq and in
accordance with the conditions
established by those authorities.
Accordingly, the FAA amended SFAR
No. 77 to permit overflights of Iraq
above Flight Level (FL) 200. That
amendment also allowed aircraft
departing from countries adjacent to
Iraq to operate at altitudes below FL 200
within Iraq to the extent necessary to
permit a climb above FL 200 if the climb
performance of the aircraft would not
permit operation above FL 200 prior to
entering Iraqi airspace.
E:\FR\FM\06DER1.SGM
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]]>Agencies
[Federal Register Volume 77, Number 235 (Thursday, December 6, 2012)]
[Rules and Regulations]
[Pages 72702-72709]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-29360]
-----------------------------------------------------------------------
SMALL BUSINESS ADMINISTRATION
13 CFR Part 121
RIN 3245-AG26
Small Business Size Standards: Information
AGENCY: U.S. Small Business Administration.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The United States Small Business Administration (SBA) is
increasing the receipts based small business size standards for 15
industries and retaining the current receipts based size standards for
five industries in North American Industry Classification System
(NAICS) Sector 51, Information. As part of its ongoing comprehensive
review of all size standards, SBA evaluated all receipts based size
standards for industries in NAICS Sector 51 to determine whether they
should be retained or revised. SBA did not review the employee based
standards for industries in NAICS Sector 51 in this rule, but will do
so at a later date with other employee based size standards.
DATES: This rule is effective January 7, 2013.
FOR FURTHER INFORMATION CONTACT: Jon Haitsuka, Program Analyst, Size
Standards Division, phone: (202) 205-6618 or sizestandards@sba.gov.
SUPPLEMENTARY INFORMATION: To determine eligibility for Federal small
business assistance programs, SBA establishes small business size
definitions (referred to as size standards) for private sector
industries in the United States. SBA's existing size standards use two
primary measures of business size--average annual receipts and number
of employees. Financial assets, electric output, and refining capacity
are used as size measures for a few specialized industries. In
addition, SBA's Small Business Investment Company (SBIC), 7(a), and
Certified
[[Page 72703]]
Development Company (CDC or 504) Loan Programs determine small business
eligibility using either the industry based size standards or net worth
and net income size based standards. At the start of the current
comprehensive review of SBA's small business size standards, there were
41 different size standards levels, covering 1,141 NAICS industries and
18 sub-industry activities (i.e., ``exceptions'' in SBA's table of size
standards). Of these, 31 were based on average annual receipts, seven
based on number of employees, and three based on other measures.
Over the years, SBA has received comments that its size standards
have not kept up with changes in the economy, in particular the changes
in the Federal contracting marketplace and industry structure. SBA last
conducted a comprehensive review of size standards during the late
1970s and early 1980s. Since then, most reviews of size standards have
been limited to a few specific industries in response to requests from
the public and Federal agencies. SBA also makes periodic inflation
adjustments to its monetary based size standards. The latest inflation
adjustment to size standards was published in the Federal Register on
July 18, 2008 (73 FR 41237).
SBA recognizes that changes in industry structure and the Federal
marketplace since the last overall review have rendered existing size
standards for some industries no longer supportable by current data.
Accordingly, in 2007, SBA began a comprehensive review of its size
standards to determine whether existing size standards have supportable
bases relative to the current data, and to revise them, where
necessary.
In addition, on September 27, 2010, the President of the United
States signed the Small Business Jobs Act of 2010 (Jobs Act). The Jobs
Act directs SBA to conduct a detailed review of all size standards and
to make appropriate adjustments to reflect market conditions.
Specifically, the Jobs Act requires SBA to conduct a detailed review of
at least one-third of all size standards during every 18-month period
from the date of its enactment and review of all size standards not
less frequently than once every 5 years thereafter. Reviewing existing
small business size standards and making appropriate adjustments based
on current data is also consistent with Executive Order 13563 on
improving regulation and regulatory review.
SBA has chosen not to review all size standards at one time.
Rather, it is reviewing groups of related industries on a Sector by
Sector basis.
As part of SBA's comprehensive review of size standards, the Agency
reviewed all receipts based size standards in NAICS Sector 51,
Information, to determine whether the existing size standards should be
retained or revised. On October 12, 2011, SBA published a proposed rule
in the Federal Register (76 FR 63216) seeking public comment on its
proposal to increase the receipts based size standards for 15
industries in NAICS Sector 51. The rule was one of a series of proposed
rules that examines industries grouped by NAICS Sector.
SBA has recently developed a ``Size Standards Methodology'' for
developing, reviewing, and modifying size standards, when necessary.
SBA has published the document on its Web site at www.sba.gov/size for
public review and comment and also included it as a supporting document
in the electronic docket of the October 12, 2011 proposed rule at
www.regulations.gov.
In evaluating an industry's size standard, SBA examines its
characteristics (such as average firm size, startup costs, industry
competition, and distribution of firms by size) and the level and small
business share of Federal contract dollars in that industry. SBA also
examines the potential impact a size standard revision might have on
its financial assistance programs and whether a business concern under
a revised size standard would be dominant in its industry. SBA analyzed
the characteristics of each industry in NAICS Sector 51 that has a
receipts-based size standard, mostly using a special tabulation
obtained from the U.S. Bureau of the Census based on its 2007 Economic
Census (the latest available). SBA also evaluated the level and small
business share of Federal contracts in each of those industries using
the data from the Federal Procurement Data System--Next Generation
(FPDS-NG) for fiscal years 2008 to 2010. To evaluate the impact of
changes to size standards on its loan programs, SBA analyzed internal
data on its guaranteed loan programs for fiscal years 2008 to 2010.
SBA's ``Size Standards Methodology'' provides a detailed
description of its analyses of various industry and program factors and
data sources, and how the Agency uses the results to derive size
standards. In the proposed rule, SBA detailed how it applied its ``Size
Standards Methodology'' to review and modify, where necessary, the
existing standards for industries in NAICS Sector 51. SBA sought
comments from the public on a number of issues concerning its ``Size
Standards Methodology,'' such as whether there are alternative
methodologies that SBA should consider; whether there are alternative
or additional factors or data sources that SBA should evaluate; whether
SBA's approach to establishing small business size standards makes
sense in the current economic environment; whether SBA's applications
of anchor size standards are appropriate in the current economy;
whether there are gaps in SBA's methodology because of the lack of
comprehensive data; and whether there are other facts or issues that
SBA should consider.
SBA also sought comments on its proposal to increase the size
standards for 15 industries and retain the existing size standards for
remaining industries in NAICS Sector 51 (Information) that have
receipts based size standards. Specifically, SBA requested comments on
whether the size standards should be revised as proposed and whether
the proposed revisions are appropriate. SBA also invited comments on
whether its proposed eight fixed size standard levels are appropriate
and whether it should adopt common size standards for some industries
in NAICS Sector 51.
SBA's analyses supported lowering existing receipts based standards
for four industries and keeping the current size standard for one
industry. However, as SBA explained in the proposed rule, lowering size
standards would reduce the number of firms eligible to participate in
Federal small business assistance programs and would run counter to
what the Federal government and SBA are doing to help small businesses
and create jobs. Therefore, SBA proposed to retain the current size
standards for those industries and requested comments on whether the
Agency should lower size standards for those five industries for which
its analyses might support lowering them.
Summary of Comments
SBA sought comments on its proposed rule to increase the size
standard for 15 industries and retain the existing size standards for
the remaining five industries in NAICS Sector 51 that have receipts
based size standards. SBA requested comments on whether the size
standards should be revised as proposed or different size standards
were appropriate. SBA received two comments to the proposed rule, which
are summarized below.
One commenter fully supported SBA's proposed size standards,
particularly with regard to increasing the size standard for NAICS
519190, All
[[Page 72704]]
Other Information Services, from $7 million to $25.5 million.
The second commenter raised a number of issues on SBA's size
standards. The commenter stated that SBA has not kept up with current
business practices, making the size standards ``nearly irrelevant.''
The comment contended that today's businesses are involved in several
NAICS industries, including manufacturing, wholesale trade, retail
trade, and services. The commenter stated further that when a
manufacturer is also a wholesaler of products manufactured overseas, it
easily would meet an employee based size standard. The second concern
the commenter expressed that some manufacturers that meet the 1,000-
employee to 1,500-employee size standards may have several hundred
million dollars in average annual revenue and are considered small. The
commenter recommended that SBA's size standards include both number of
employees and annual receipts.
SBA agrees that many businesses are involved in industries covering
more than one NAICS code, but it does not adopt the commenter's
recommendation for two reasons. First, although a concern might
participate in multiple industries, a Federal procurement generally
does not use multiple NAICS codes. SBA regulations provide that NAICS
codes and their size standards for Wholesale Trade (NAICS Sector 42)
and Retail Trade (NAICS Sector 44-45) do not apply to Federal
procurement. To qualify as small for a Federal procurement opportunity,
a business must meet the size standard for the NAICS code under that
procurement. A procuring agency's contracting officer must use the
NAICS code, along with the appropriate size standard, that best
describes the principal purpose of the procurement. (13 CFR
121.402(b)). If the procurement is for services, the contracting
officer will assign a service NAICS code and the associated size
standard will likely be based on average annual receipts. To qualify as
small under a receipts based size standard the firm's total annual
receipts--together with those of its affiliates (see 13 CFR 121.103)--
must meet that size standard, regardless of whether it might qualify as
small under an employee based size standard for another NAICS code. If
the procurement is for manufactured products, then, to qualify as
small, the company must meet the size standard for the NAICS industry
that manufactures that product. In the event that a company did not
manufacture the product the government wishes to buy, then it may
qualify as small by supplying the product as a ``nonmanufacturer.''
However, the nonmanufacturer must have 500 or fewer employees
(regardless of what the size standard is for the manufacturer making
the product) and provide the product of a small, domestic manufacturer.
This is provided for in the nonmanufacturer rule. (13 CFR 121.406(b)).
Second, for the reasons provided in its ``Size Standards Methodology''
available at www.sba.gov/size, SBA uses number of employees to measure
the size of manufacturing industries and average annual receipts to
measure the size of services industries. SBA believes that using both
number of employees and average annual receipts for a size standard
would add tremendous complexity to size standards, and it would run
counter to SBA's ongoing effort to simplify size standards. For these
reasons SBA declines to adopt the comment.
The third issue raised by the commenter was related to publicly
traded companies bidding on small business Federal contracts. The
commenter contended that typically the publicly traded companies are
managed by people formerly associated with large businesses. SBA's
small business size regulations do not preclude a publicly traded
company from qualifying as small if it meets the small business size
requirements. Whether a company is publicly or privately owned or how
widely a company's stock is held is not a relevant factor in
determining whether it can qualify small. If a company represents
itself as a small business concern on a particular procurement, and one
or more interested parties believe that the entity does not qualify as
small, SBA has established rules and procedures for protests of the
small business size status of the company. (See 13 CFR 121.1001 through
121.1010). If a company is managed by individuals formerly associated
with large businesses, that may be a relevant fact in determining
whether the company is affiliated with other firms and qualifies as
small. (13 CFR 121.103).
The fourth issue the commenter raised related to mergers and
acquisitions (M&A) activities. The commenter contended that, without
regular review of size standards, businesses involved in M&As will be
considered small. SBA disagrees with this comment. Mergers create
affiliation (see 13 CFR 121.103) between or among the companies
involved and their receipts and employees should be aggregated to
determine if the company qualifies as small after the merger. To
address this issue, on November 15, 2006, SBA issued a final rule
requiring small business government contractors to recertify their size
status on long-term contracts when a contract option is exercised, when
a small business is involved in an executed merger or purchase with
another business, or at the end of the first five years of a contract.
(71 FR 66434). For contract opportunities after a merger has occurred,
any interested party may protest the size of a small business offeror
under 13 CFR 121.1001 through 121.1010. SBA would apply its affiliation
rules during any protest.
Conclusion
Based on SBA's analyses of relevant industry and program data and
the public comments it received on the proposed rule, SBA has decided
to increase the small business size standards for the 15 industries in
NAICS Sector 51 to the levels it proposed. Those industries and their
revised size standards are shown in the following Table 1, Summary of
Revised Size Standards in NAICS Sector 51.
Table 1--Summary of Revised Size Standards in NAICS Sector 51
----------------------------------------------------------------------------------------------------------------
Current size Revised size
NAICS Code NAICS Industry title standard ($ standard ($
million) million)
----------------------------------------------------------------------------------------------------------------
511210..................... Software Publishers............................ $25.0 $35.5
512110..................... Motion Picture and Video Production............ 29.5 30.0
512131..................... Motion Picture Theaters (except Drive[dash]Ins) 7.0 35.5
512199..................... Other Motion Picture and Video Industries...... 7.0 19.0
512290..................... Other Sound Recording Industries............... 7.0 10.0
515111..................... Radio Networks................................. 7.0 30.0
515112..................... Radio Stations................................. 7.0 35.5
[[Page 72705]]
515120..................... Television Broadcasting........................ 14.0 35.5
515210..................... Cable and Other Subscription Programming....... 15.0 35.5
517410..................... Satellite Telecommunications................... 15.0 30.0
517919..................... All Other Telecommunications................... 25.0 30.0
518210..................... Data Processing, Hosting, and Related Services. 25.0 30.0
519110..................... News Syndicates................................ 7.0 25.5
519120..................... Libraries and Archives......................... 7.0 14.0
519190..................... All Other Information Services................. 7.0 25.5
----------------------------------------------------------------------------------------------------------------
For the reasons stated above in this rule and in the proposed rule,
SBA has decided to retain the current receipts based size standards for
four industries for which analytical results suggested lowering them.
Not lowering size standards in NAICS Sector 51 is consistent with SBA's
recent final rules on NAICS Sector 44-45, Retail Trade (75 FR 61597,
October 6, 2010); NAICS Sector 72, Accommodation and Food Services (75
FR 61604, October 6, 2010); and NAICS Sector 81, Other Services (75 FR
61591,October 6, 2010). In each of those final rules, SBA adopted its
proposal not to reduce small business size standards for the same
reasons. SBA is also retaining the existing receipts based size
standard for one industry for which the results supported it at its
current level. Accordingly, SBA has retained the existing receipts-
based size standards for five industries in NAICS Sector 51. SBA did
not review the 12 industries in NAICS Sector 51 that have employee
based size standards. Therefore, SBA has retained the size standards
for those industries at their current levels until the Agency reviews
employee based size standards at a later date.
Compliance With Executive Orders 12866, 13563, 12988, and 13132, the
Paperwork Reduction Act (44 U.S.C., Ch. 35) and the Regulatory
Flexibility Act (5 U.S.C. 601-612)
Executive Order 12866
The Office of Management and Budget (OMB) has determined that this
final rule is a significant regulatory action for purposes of Executive
Order 12866. Accordingly, the next section contains SBA's Regulatory
Impact Analysis. This is not a major rule, however, under the
Congressional Review Act, 5 U.S.C. 800.
Regulatory Impact Analysis
1. Is there a need for the regulatory action?
SBA believes that the revised changes to small business size
standards for 15 industries in NAICS Sector 51, Information, reflect
changes in economic characteristics of small businesses in those
industries and the Federal procurement market. SBA's mission is to aid
and assist small businesses through a variety of financial,
procurement, business development, and advocacy programs. To assist the
intended beneficiaries of these programs effectively, SBA establishes
distinct definitions to determine which businesses are deemed small
businesses. The Small Business Act (15 U.S.C. 632(a)) delegates to
SBA's Administrator the responsibility for establishing small business
definitions. The Act also requires that small business definitions vary
to reflect industry differences. The recently enacted Jobs Act requires
the Administrator to review one-third of all size standards within each
18-month period from the date of its enactment and to review all size
standards at least every five years thereafter. The supplementary
information sections of the October 12, 2011 proposed rule and this
final rule explained in detail SBA's methodology for analyzing a size
standard for a particular industry.
2. What are the potential benefits and costs of this regulatory
action?
The most significant benefit to businesses obtaining small business
status as a result of this rule is gaining eligibility for Federal
small business assistance programs, including SBA's financial
assistance programs, economic injury disaster loans, and Federal
procurement opportunities intended for small businesses. Federal small
business programs provide targeted opportunities for small businesses
under SBA's various business development and contracting programs.
These include the 8(a) Business Development program and programs
benefiting small businesses located in Historically Underutilized
Business Zones (HUBZone), women owned small businesses (WOSB), and
service-disabled veteran-owned small businesses (SDVOSB). Other Federal
agencies also may use SBA's size standards for a variety of regulatory
and program purposes. These programs help small businesses become more
knowledgeable, stable, and competitive. In the 15 industries in NAICS
Sector 51 for which SBA has decided to increase size standards, SBA
estimates that more than 500 firms exceeding the current size standards
will gain small business status and become eligible for these programs.
That number is 1.2 percent of the total number of firms that are
classified as small under the current size standards in all 20
industries in NAICS Sector 51 that are covered by this final rule. SBA
estimates that this will increase the small business share of total
industry receipts in those industries from 13 percent under the current
size standards to 15 percent.
The benefits of increasing size standards to a more appropriate
level will accrue to three groups in the following ways: (1) Some
businesses that are above the current size standards will gain small
business status under the higher size standards; thereby enabling them
to participate in Federal small business assistance programs; (2)
growing small businesses that are close to exceeding the current size
standards will be able to retain their small business status under the
higher size standards, thereby enabling them to continue their
participation in the programs; and (3) Federal agencies will have a
larger pool of small businesses from which to draw for their small
business procurement programs.
For the October 12, 2011 proposed rule, SBA analyzed FY 2007-2009
FPDS-NG data and found that, among the industries that SBA examined,
nearly 98 percent of Federal contracting dollars in Sector 51 were
accounted for by those 15 industries for which SBA has increased size
standards. This also held true in SBA's updated analysis using the FY
2008-2010 FPDS-NG data. SBA estimates that additional firms gaining
small business status in those industries under the revised size
standards could potentially obtain
[[Page 72706]]
Federal contracts totaling between $15 million and $20 million annually
through the 8(a), HUBZone, WOSB, and SDVOSB programs and other,
unrestricted procurements. The added competition for many of these
procurements may also result in lower prices to the Government for
procurements reserved for small businesses, although SBA cannot
quantify this benefit.
Based on the 2008 to 2010 data alone, SBA estimates that
approximately 5 to 10 more loans totaling $1 million to $2 million
could be made to newly defined small businesses under its 7(a) and 504
Loan Programs. However, under the Jobs Act, SBA can now guarantee
substantially larger loans than in the past. The Jobs Act also
established an alternative size standard for SBA's 7(a) and 504 Loan
Programs for those applicants that do not meet the size standards for
their industries. Under the alternative size standard, if a firm
applies for a 7(a) or 504 loan but does not meet the size standard for
its industry, it might still qualify if, including its affiliates, it
has tangible net worth that does not exceed $15 million and has average
net income after Federal income taxes (excluding any carry-over losses)
for its preceding two completed fiscal years that does not exceed $5.0
million. Thus, increasing the size standards may result in an increase
in small business guaranteed loans to small businesses in these
industries, but it is impractical to try to estimate the extent of
their number and the total amount loaned.
Newly defined small businesses will also benefit from SBA's
Economic Injury Disaster Loan (EIDL) Program. Since the EIDL program is
contingent on the occurrence and severity of a disaster, SBA cannot
make a meaningful estimate of future EIDL benefits.
To the extent that those 500 newly defined small firms under the
revised size standards could become active in Federal procurement
programs, there may be some additional administrative costs to the
Federal Government. There will be additional bidders for Federal small
business procurement opportunities, additional firms applying for SBA
guaranteed loans, additional firms eligible to enroll in the Central
Contractor Registration's (CCR) Dynamic Small Business Search database,
and additional firms seeking certification as 8(a) or HUBZone firms or
qualifying for small business, WOSB, SDVOSB, and SDB status. Among
these businesses, there could be some additional costs associated with
compliance and verification of small business status and protests of
small business status. These added costs are likely to be minimal
because mechanisms are already in place to handle these administrative
requirements.
The costs to the Federal Government may be higher on some Federal
contracts under the higher revised size standards. With a greater
number of businesses defined as small, Federal agencies may choose to
set aside more contracts for competition among small businesses rather
than using full and open competition. The movement from unrestricted to
set-aside contracting will likely result in competition among fewer
total bidders, although there will be more small businesses eligible to
submit offers. In addition, higher costs may result when additional
full and open contracts are awarded to HUBZone businesses because of a
price evaluation preference. The additional costs associated with fewer
bidders, however, will likely be minor since, as a matter of law,
procurements may be set aside for small businesses or reserved for the
8(a), HUBZone, WOSB, or SDVOSB Programs only if awards are expected to
be made at fair and reasonable prices.
The revised size standards may have some distributional effects
among large and small businesses. Although SBA cannot estimate with
certainty the actual outcome of gains and losses among small and large
businesses, there are several likely impacts. There may be a transfer
of some Federal contracts from large businesses to small businesses.
Large businesses may have fewer Federal contract opportunities as
Federal agencies decide to set aside more Federal contracts for small
businesses. In addition, some agencies may award more Federal contracts
to HUBZone concerns instead of large businesses since HUBZone concerns
may be eligible for price evaluation preferences when they compete on
full and open bidding opportunities. Similarly, currently defined small
businesses may obtain fewer Federal contracts due to the increased
competition from more businesses defined as small under the revised
size standards. This transfer may be offset by more Federal
procurements set aside for all small businesses. The number of newly
defined and expanding small businesses that are willing and able to
sell to the Federal Government will limit the potential transfer of
contracts away from large and small businesses under the existing size
standards. The SBA cannot estimate with precision the potential
distributional impacts of these transfers.
The revisions to the existing size standards for Information
industries are consistent with SBA's statutory mandate to assist small
business. This regulatory action promotes the Administration's
objectives. One of SBA's goals in support of the Administration's
objectives is to help individual small businesses succeed through fair
and equitable access to capital and credit, Government contracts, and
management and technical assistance. Reviewing and modifying size
standards, when appropriate, ensures that intended beneficiaries have
access to small business programs designed to assist them.
Executive Order 13563
A description of the need for this regulatory action and benefits
and costs associated with this action including possible distributions
impacts that relate to Executive Order 13563, Improving Regulation and
Regulatory Review, are included above in the Regulatory Impact Analysis
under Executive Order 12866.
In an effort to engage interested parties in this action, SBA has
presented its methodology (discussed above under Supplementary
Information) to various industry associations and trade groups. SBA
also met with various industry groups to obtain their feedback on its
methodology and other size standards issues. SBA also presented its
size standards methodology to businesses in 13 cities in the United
States and sought their input as part of the Jobs Act tours. The
presentation also included information on the latest status of the
comprehensive size standards review and on how interested parties can
provide SBA with input and feedback on size standards review.
Additionally, SBA sent letters to the Directors of the Offices of
Small and Disadvantaged Business Utilization (OSDBU) at several Federal
agencies with considerable procurement responsibilities requesting
their feedback on how the agencies use SBA size standards and whether
current standards meet their programmatic needs (both procurement and
non-procurement). SBA gave appropriate consideration to all input,
suggestions, recommendations, and relevant information obtained from
industry groups, individual businesses, and Federal agencies in
preparing this proposed rule.
The review of size standards in NAICS Sector 51, Information, is
consistent with Executive Order 13563, Sec. 6 calling for
retrospective analyses of existing rules. The last overall review of
size standards occurred during the late 1970s and early 1980s. Since
then, except for periodic adjustments for monetary based size
standards, most
[[Page 72707]]
reviews of size standards were limited to a few specific industries in
response to requests from the public and Federal agencies. SBA
recognizes that changes in industry structure and the Federal
marketplace over time have rendered existing size standards for some
industries no longer supportable by current data. Accordingly, in 2007,
SBA began a comprehensive review of all size standards to ensure that
existing size standards have supportable bases and to revise them when
necessary. In addition, the Jobs Act directs SBA to conduct a detailed
review of all size standards and to make appropriate adjustments to
reflect market conditions. Specifically, the Jobs Act requires SBA to
conduct a detailed review of at least one-third of all size standards
during every 18-month period from the date of its enactment and do a
complete review of all size standards not less frequently than once
every 5 years thereafter.
Executive Order 12988
This action meets applicable standards set forth in Sections 3(a)
and 3(b)(2) of Executive Order 12988, Civil Justice Reform, to minimize
litigation, eliminate ambiguity, and reduce burden. The action does not
have retroactive or preemptive effect.
Executive Order 13132
For purposes of Executive Order 13132, Federalism, SBA has
determined that this final rule will not have substantial, direct
effects on the States, on the relationship between the national
government and the States, or on the distribution of power and
responsibilities among the various levels of government. Therefore, SBA
has determined that this final rule has no federalism implications
warranting preparation of a federalism assessment.
Paperwork Reduction Act
For the purpose of the Paperwork Reduction Act, 44 U.S.C. Ch. 35,
SBA has determined that this final rule would not impose any new
reporting or record keeping requirements.
Final Regulatory Flexibility Analysis
Under the Regulatory Flexibility Act (RFA), this final rule may
have a significant impact on a substantial number of small entities in
NAICS Sector 51, Information. As described above, this final rule may
affect small entities seeking Federal contracts, SBA's 7(a) and 504
Guaranteed Loans, SBA's Economic Injury Disaster Loans, and various
small business benefits under other Federal programs.
Immediately below, SBA sets forth a final regulatory flexibility
analysis of this final rule addressing the following questions: (1)
What are the need for and objective of the rule?; (2) What are SBA's
description and estimate of the number of small entities to which the
rule will apply?; (3) What are the projected reporting, record keeping,
and other compliance requirements of the rule?; (4) What are the
relevant Federal rules which may duplicate, overlap, or conflict with
the rule?; and (5) What alternatives will allow the Agency to
accomplish its regulatory objectives while minimizing the impact on
small entities?
(1) What are the need for and objective of the rule?
Most of SBA's size standards for the Information industries had not
been reviewed since the 1980s. Technological changes, productivity
growth, international competition, mergers and acquisitions and updated
industry definitions may have changed the structure of many industries
in that Sector. Such changes can be sufficient to support a revision to
size standards for some industries. Based on the analysis of the latest
industry and program data available, SBA believes that the revised
standards in this rule more appropriately reflect the size of
businesses in those industries that need Federal assistance.
Additionally, the Jobs Act requires SBA to review all size standards
and make appropriate adjustments to reflect current data and market
conditions.
(2) What are SBA's description and estimate of the number of small
entities to which the rule will apply?
SBA estimates that approximately 500 additional firms will become
small because of increases in size standards in 20 industries in NAICS
Sector 51. That represents 1.2 percent of the total firms in industries
in that Sector that have receipts-based size standards. This will
result in an increase in the small business share of total industry
receipts in those industries from about 13 percent under the current
size standards to nearly 15 percent under the revised size standards.
SBA does not anticipate a significant competitive impact on smaller
businesses in these industries. The revised size standards will enable
more small businesses to retain their small business status for a
longer period. Under current size standards, many small businesses may
have lost their eligibility or found it difficult to compete with
companies that are significantly larger than they are, and this final
rule attempts to correct that impact. SBA believes these changes will
have a positive impact for existing small businesses and for those that
have either exceeded or are about to exceed current size standards.
(3) What are the projected reporting, record keeping, and other
compliance requirements of the rule?
Revising size standards does not impose any additional reporting or
record keeping requirements on small entities. However, qualifying for
Federal procurement and a number of other Federal programs requires
that entities register in the Central Contractor Registration (CCR)
database and certify at least annually that they are small in the
Online Representations and Certifications Application (ORCA).
Therefore, businesses opting to participate in those programs must
comply with CCR and ORCA requirements. There are no costs associated
with either CCR registration or ORCA certification. Revising size
standards alters the access to SBA programs that are designed to assist
small businesses, but does not impose a regulatory burden as they
neither regulate nor control business behavior.
(4) What are the relevant Federal rules which may duplicate,
overlap, or conflict with the rule?
Under Sec. 3(a)(2)(C) of the Small Business Act, 15 U.S.C.
632(a)(2)(c), Federal agencies must use SBA's size standards to define
a small business, unless specifically authorized by statute. In 1995,
SBA published in the Federal Register a list of statutory and
regulatory size standards that identified the application of SBA's size
standards as well as other size standards used by Federal agencies (60
FR 57988, November 24, 1995). SBA is not aware of any Federal rule that
would duplicate or conflict with establishing or revising size
standards.
However, the Small Business Act and SBA's regulations allow Federal
agencies to develop different size standards if they believe that SBA's
size standards are not appropriate for their programs, with the
approval of SBA's Administrator (13 CFR 121.903). The Regulatory
Flexibility Act authorizes an agency to establish an alternative small
business definition after consultation with the Office of Advocacy of
the U.S. Small Business Administration (5 U.S.C. 601(3)).
(5) What alternatives will allow the Agency to accomplish its
regulatory objectives while minimizing the impact on small entities?
By law, SBA is required to develop numerical size standards for
establishing eligibility for Federal small business assistance
programs. Other than varying size standards by industry and changing
the size measures, no
[[Page 72708]]
practical alternative exists to the existing system of numerical size
standards. The possible alternative size standards considered for the
individual NAICS Code industries within NAICS Sector 51 are discussed
in the supplementary information to the proposed rule and this final
rule.
List of Subjects in 13 CFR Part 121
Administrative practice and procedure, Government procurement,
Government property, Grant programs--business, Individuals with
disabilities, Loan programs--business, Reporting and recordkeeping
requirements, Small businesses.
For reasons set forth in the preamble, SBA amends 13 CFR part 121
as follows:
PART 121--SMALL BUSINESS SIZE REGULATIONS
0
1. The authority citation for part 121 continues to read as follows:
Authority: 15 U.S.C. 632, 634(b)(6), 636(b), 662, 694a(9).
0
2. In Sec. 121.201, in the table, revise the entries for ``511210'',
``512110'', ``512131'', ``512199'', ``512290'', ``515111'', ``515112'',
``515120'', ''515210'', ``517410'', ``517919'', ``518210'', ``519110'',
``519120'', and ``519190'' to read as follows:
Sec. 121.201 What size standards has SBA identified by North American
Industry Classification System codes?
* * * * *
Small Business Size Standards by NAICS Industry
----------------------------------------------------------------------------------------------------------------
Size standards Size standards
NAICS codes NAICS U.S. industry title in millions of in number of
dollars employees
----------------------------------------------------------------------------------------------------------------
* * * * * * *
----------------------------------------------------------------------------------------------------------------
511210..................... Software Publishers............................ $35.5
----------------------------------------------------------------------------------------------------------------
* * * * * * *
----------------------------------------------------------------------------------------------------------------
512110..................... Motion Picture and Video Production............ 30.0
----------------------------------------------------------------------------------------------------------------
* * * * * * *
----------------------------------------------------------------------------------------------------------------
512131..................... Motion Picture Theaters (except Drive[dash]Ins) 35.5
----------------------------------------------------------------------------------------------------------------
* * * * * * *
----------------------------------------------------------------------------------------------------------------
512199..................... Other Motion Picture and Video Industries...... 19.0
----------------------------------------------------------------------------------------------------------------
* * * * * * *
----------------------------------------------------------------------------------------------------------------
512290..................... Other Sound Recording Industries............... 10.0
----------------------------------------------------------------------------------------------------------------
* * * * * * *
----------------------------------------------------------------------------------------------------------------
515111..................... Radio Networks................................. 30.0
515112..................... Radio Stations................................. 35.5
515120..................... Television Broadcasting........................ 35.5
515210..................... Cable and Other Subscription Programming....... 35.5
----------------------------------------------------------------------------------------------------------------
* * * * * * *
----------------------------------------------------------------------------------------------------------------
517410..................... Satellite Telecommunications................... 30.0
----------------------------------------------------------------------------------------------------------------
* * * * * * *
----------------------------------------------------------------------------------------------------------------
517919..................... All Other Telecommunications................... 30.0
----------------------------------------------------------------------------------------------------------------
* * * * * * *
----------------------------------------------------------------------------------------------------------------
518210..................... Data Processing, Hosting, and Related Services. 30.0
----------------------------------------------------------------------------------------------------------------
* * * * * * *
----------------------------------------------------------------------------------------------------------------
519110..................... News Syndicates................................ 25.5
519120..................... Libraries and Archives......................... 14.0
----------------------------------------------------------------------------------------------------------------
[[Page 72709]]
* * * * * * *
----------------------------------------------------------------------------------------------------------------
519190..................... All Other Information Services................. 25.5
----------------------------------------------------------------------------------------------------------------
* * * * * * *
----------------------------------------------------------------------------------------------------------------
Dated: April 25, 2012.
Karen G. Mills,
Administrator.
Editorial Note: This document was received at the Office of the
Federal Register on November 30, 2012.
[FR Doc. 2012-29360 Filed 12-5-12; 8:45 am]
BILLING CODE 8025-01-P
