EligibilityDiscovery

What determines if my business is considered "small" for federal contracts?

Short Answer

What determines if my business is considered "small" for federal contracts? Size standards vary by NAICS code and are based on average annual revenue (typically $750K-$47M) or average employees (typically 500-1,500) over the past 3-5 years.

Detailed Answer

Small business size determination: **How Size Standards Work:** - Each NAICS code has specific threshold - Revenue-based: 3-5 year average receipts - Employee-based: 12-month average employees - Standards range widely by industry **Example Size Standards:** - IT Services (541512): $34 million - Engineering (541330): $25.5 million - Construction (varies): $18.5-$45 million - Manufacturing: Often 500-1,500 employees **Calculating Your Size:** - Include all receipts (gross revenue) - Include affiliates' revenue/employees - Average over measurement period - Compare to NAICS-specific standard **Affiliation Impact:** - Related companies counted together - Includes investors with control - Includes joint ventures - Can disqualify otherwise small businesses

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Read Full Guide: Small Business Size Standards: Revenue and Employee Thresholds