Glossary / Classification, Business
Size standard
A size standard is the largest a company can be and still be small for a particular industry. SBA sets one for every NAICS code, either in average annual receipts over the last five fiscal years (for example $19 million for many professional services, $47 million for many construction trades) or in average employees over the last 24 months (for example 500, 1,000 or 1,250 for many manufacturers). Size is measured with affiliates included, and a company certifies its size on each offer against the code the buyer assigned to that solicitation. A firm can be small under one code and large under another.
Why it matters to your pipeline
The size standard decides whether a company can compete for a set-aside at all, and it changes with the code the buyer picks. That is why contractors care which NAICS code a buy is assigned and sometimes ask the buyer to change it. Growing past the standard is a planned event: it ends set-aside eligibility and the strategy shifts to full-and-open work or to teaming with small firms. GovSmith checks the client's size against the standard on every opening it matches.
When this term shows up in an opening GovSmith finds for you, your vCM explains what it means for that pursuit and does whatever it calls for. You decide; we do the work.
Example
A software firm with $14M in average receipts is small under NAICS 541511 (a $34 million standard) and bids a set-aside as the prime. Under NAICS 541611, with a $24.5 million standard, it is still small; under a 150-employee manufacturing code it would need to count heads instead.
Find out what applies to you
Some terms will matter to your business right away and some won’t for years. A vCM can tell you which are which.