Appendix B to Subpart D - Determinations of Business Size

In determining the eligibility of businesses for purposes of 49 CFR part 23, recipients must determine whether or not a business is a small business concern as defined by section 3 of the Small Business Act. If a business is not a small business concern according to these standards, then it is not eligible to participate as an MBE, WBE, or disadvantaged business under 49 CFR part 23. This is true even though the business may be owned and controlled by minorities, women, or socially and economically disadvantaged individuals and is eligible in all other respects. Even a firm certified by the SBA under the 8(a) program is not eligible under this regulation if it is not a small business.

In determining whether a business is a small business concern, recipients should apply the standards established by the Small Business Administration in 13 CFR part 121. In particular, recipients should refer to § 121.3-8 (Definition of Small Business for Government Procurement) and § 121.3-12 (Definition of Small Business for Government Subcontractors). This appendix lists the most frequent applications of these sections to the kinds of contracting done by FHWA and UMTA recipients. For information on types of businesses not listed in this appendix (e.g., manufacturers), recipients should consult § 121.3-8 and the appendices to 13 CFR part 121.

Recipients should apply the following size standards:

1. Subcontracts of $10,000 or less: A business is small if, including its affiliates, it does not have more than 500 employees.

2. Subcontracts over $10,000 and prime contracts:

A business is regarded as small if it meets the following criteria:

(a) Construction.

(1) General Construction (in which less than 75 percent of the work falls into one of the categories in paragraph (2)): The firm's average annual receipts for the three preceding fiscal years do not exceed $12 million.

(2) Special trade contractors:

Type of firmMaximum average annual receipts in preceding 3 fiscal yearsPlumbing, heating (except electric) and air-conditioning$5 million for all types of contractors on this list.Painting, paperhanging, and decoratingMasonry, stone setting, and other stoneworkPlastering, drywall, acoustical and insulating workTerazzo, tile, marble, and mosaic workCarpentering and flooringFloor laying and other floorworkRoofing and sheet metal workConcrete workWater well drillingStructural steel erectionGlass and glazing workExcavating and foundation workWrecking and demolition workInstallation or erection of buildings equipmentSpecial trade contractors, not elsewhere classified

(b) Suppliers of manufactured goods: The firm, including its affiliates, must not have more than 500 employees.

(c) Service contractors:

Type of firmMaximum average annual receipts in preceding 3 fiscal years (in millions of dollars)Engineering$7.5Janitorial and custodial4.5Computer programming or data processing4Computer Maintenance7Protective Services4.5Others not mentioned in 13 CFR 121.3-8(e)2