Size Standard (SIS)

A Size Standard is the SBA threshold used to determine whether a business qualifies as small for a specific procurement or industry category. It is usually based on annual receipts or number of employees, depending on the assigned NAICS code.

What Is a Size Standard?

In government contracting, a Size Standard defines the maximum size a company can be and still qualify as a small business for a particular opportunity.

It is important because small business eligibility is not based on one universal rule. It depends on the industry classification assigned to the procurement.

Key Characteristics

Set by the SBA

Used to determine small business eligibility

Usually based on receipts or employee count

Tied to a specific NAICS code

Affects set-aside and certification eligibility

How It Works in Government Contracting

A Size Standard is applied during acquisition planning, solicitation, offer evaluation, certification, and protest review. The government assigns a NAICS code to the procurement, and the corresponding SBA size standard determines whether a company qualifies as small.

It is used by contracting officers, small business specialists, SBA officials, and contractors. In practice, a company may qualify as small under one NAICS code but not under another.

This makes the assigned NAICS code and its related Size Standard critical to eligibility.

Regulatory Framework

Size Standards are part of the federal small business eligibility framework. They are established and maintained by the SBA and are used across many federal small business programs and set-aside procurements.

Their application depends on the assigned NAICS code and the business structure of the company being evaluated.

Why It Matters for Contractors

Size Standards matter because they directly affect whether a contractor can compete for small business opportunities. If a business exceeds the applicable threshold, it may not qualify for a set-aside award.

They also matter strategically because contractors need to understand which NAICS codes apply to their business and how growth, affiliation, or restructuring may affect size status.

Common Misconceptions

A business is either small or not small for everything.

A company may be small under one NAICS code and not small under another.

Size Standard is always based on revenue.

Some are based on receipts, while others are based on number of employees.

Size Standard only matters during registration.

It also matters during proposals, certifications, protests, and award decisions.

Frequently Asked Questions

What is a Size Standard?

It is the SBA threshold used to decide whether a business qualifies as small.

What is a Size Standard based on?

Usually annual receipts or employee count, depending on the NAICS code.

Why is a Size Standard important?

Because it determines eligibility for many small business set-aside opportunities.

Can a company be small in one industry and not in another?

Yes. Size status depends on the NAICS code and its associated threshold.