Subpart 19.1
Size Standards
FAR Subpart 19.1 ensures that small business size standards and NAICS codes are correctly assigned and provides a process for appealing these determinations, which is crucial for eligibility in small business programs.
Overview
FAR Subpart 19.1 establishes the framework for determining small business size standards and the use of North American Industry Classification System (NAICS) codes in federal contracting. It outlines how contracting officers assign NAICS codes and size standards to solicitations and contracts, and provides procedures for contractors to appeal these determinations. The subpart is foundational for ensuring that small business programs are applied correctly and that businesses are properly classified for set-aside and other procurement opportunities.
Key Rules
- Assignment of NAICS Codes and Size Standards
- Contracting officers must assign the appropriate NAICS code and corresponding size standard to each solicitation, based on the principal purpose of the procurement.
- Appeal Procedures
- Contractors may appeal the contracting officer’s NAICS code or size standard determination if they believe it is incorrect, following specific procedures outlined in the subpart.
Responsibilities
- Contracting Officers: Must accurately assign NAICS codes and size standards and inform offerors of their right to appeal.
- Contractors: Should review assigned NAICS codes and size standards and file appeals if they believe an error has been made.
- Agencies: Ensure compliance with small business program requirements and proper application of size standards.
Practical Implications
- This subpart ensures fair access to small business opportunities by standardizing how size standards are applied.
- Accurate NAICS code assignment is critical for eligibility in set-aside contracts and small business programs.
- Misclassification can lead to lost opportunities or improper awards, making compliance and awareness essential for both contractors and contracting officers.