Tero Tek International, Inc., No. 3271 (March 22, 1990) Docket No. SIC-90-3-6-21 UNITED STATES OF AMERICA SMALL BUSINESS ADMINISTRATION OFFICE OF HEARINGS AND APPEALS WASHINGTON, D.C. 20416 SIC APPEAL OF: ) ) Tero Tek International, Inc. ) ) Appellant ) ) Docket No. SIC-90-3-6-21 Solicitation No. ) DAKF48-90-R-0006 ) Department of the Army ) Headquarters III Corps ) Fort Hood, Texas ) DIGEST A solicitation for aircraft maintenance services not involving rebuilding on a factory basis is correctly classified under Standard Industrial Classification (SIC) code 4581 (Airports, Flying Fields, and Airport Terminal Services). DECISION March 22, 1990 BLAZSIK, Administrative Judge, Presiding: Jurisdiction This appeal is decided under the Small Business Act of 1958, 15 U.S.C. sec. 632 et seq., and the regulations codified at 13 CFR Part 121. Issue Whether the correct classification to be assigned to this solicitation is SIC code 4581. Facts On February 2, 1990, the Department of the Army, Headquarters III Corps, Fort Hood, Texas, issued this solicitation for "Aircraft Maintenance" and classified it under Standard Industrial Classification (SIC) code 4581 (Airports, Flying Fields, and Airport Terminal Services), having a $3.5 million average annual receipts size standard. 1/ The solicitation was totally set aside for small business, and bids were due on March 15, 1990. By letter postmarked March 1, 1990, and received at the Office of Hearings and Appeals on March 6, 1990, Tero Tek International, Inc. (Appellant) filed an appeal from the Contracting Officer's SIC code designation, arguing that the work required under the solicitation is tantamount to repairing or rebuilding to a factory basis and that, therefore, SIC code 3721 (Aircraft), which has a 1,500-employee size standard, is a more appropriate classification. On March 14, 1990, the Contracting Officer filed the following in support of SIC code 4581: The work to be accomplished under this solicitation is aircraft maintenance, not manufacturing or rebuilding. Some tasks are inherently depot-level work, or are classified "not reparable this station." In these cases, the craft or component is evacuated to the depot. Occasionally, in the course of maintaining a craft, a task is identified which is classified as depot-level, or beyond the capability of this station. Depending upon the task, the depot, when contacted, may authorize a one-time repair of the component. This is the exception, rather than the rule. The decision to use SIC 4581 was based on review of the following: a. The requirement-maintenance and repair services which do not constitute rebuilding on a factory basis. b. The industry number definitions provided in the Standard Industrial Classification Manual. The Contracting Officer also asserts that the appeal is untimely because it was received by this Office on March 6, 1990, seven business days prior to the date for bid submissions and, thus, was not received within the 10-day period specified in the regulation. The scope of work to be performed under the solicitation is identified in Section C and requires the successful contractor to provide all personnel, management, administration, labor, tools, supplies, and equipment for Aviation Unit Maintenance and r Aviation Intermediate Maintenance. These services consist of inspection, installation, repair, alignment, assembly, disassembly, troubleshooting, replacing, adjusting, and testing engines, major components, and other related support equipment. There is no manufacturing or rebuilding of equipment involved. Discussion The regulation at 13 CFR 121.1705 provides: (b)(l) Except as provided in paragraph (b)(2) of this section, an appeal from a SIC code designation must be filed with the Office of Hearings and Appeals no later than 10 days (exclusive of Saturdays, Sundays, and legal holidays) before the bid opening day or deadline for submitting proposals or quotations as specified in the solicitation. If a solicitation is modified to extend the bid opening day or deadline for submitting proposals or quotations, the 10 day period for filing shall be from the date designated in the modification. (2) Where the bid opening day or deadline for submitting proposals or quotations is less than 30 days after the issuance of the invitation for bids or request for proposals or quotations, the appeal must be filed with the Office of Hearings and Appeals no later than 5 days (exclusive of Saturdays, Sundays, and legal holidays) before the bid opening day.... The regulation codified at 13 CFR 121.1702(c) defines the word "file" as to deliver personally or to send by U.S. certified mail, return receipt requested or by any other mail service that provides proof of mailing and receipt. The filing date will be determined by reference to the postmark date. The record shows that more than 30 days exist between the date of issuance of the solicitation and the bid opening day. The record also shows that the appeal was postmarked on March 1, 1990. Thus, in accordance with the above regulations, the appeal was filed within the 10-day period enumerated by 13 CFR 121.1705(b)(1) and is, therefore, timely. SIC code 4581 is described, with examples, in the SIC Manual Zy as follows: Establishments primarily engaged in operating and maintaining airports and flying fields; in servicing, repairing (except on a factory basis), maintaining, and storing aircraft; and in furnishing coordinated handling services for airfreight or passengers at airports. This industry also includes private establishments primarily engaged in air traffic control operations. Government air traffic control operations are classified in Public Administration, Industry 9621. Aircraft modification centers and establishments primarily engaged in factory type overhaul of aircraft are classified in Manufacturing, Major Group 37, and flying fields maintained by aviation clubs are classified in Services, Industry 7997. Examples shown under SIC code 4581 include aircraft servicing and repairing, except on a factory basis, aircraft cleaning and janitorial service, hangar operation, aircraft upholstery repair, and aircraft storage at airports. SIC code 3721 advocated by the Appellant is described in the SIC Manual as follows: Establishments primarily engaged in manufacturing or assembling complete aircraft. This industry also includes establishments owned by aircraft manufacturers and primarily engaged in research and development on ircraft whether from enterprise funds or on a contract or fee basis. Also included are establishments engaged in repairing and rebuilding aircraft on a factory basis. Establishments primarily engaged in manufacturing engines and other aircraft parts and auxiliary equipment are classified in Industry 3724 and 3728; and those manufacturing guided missiles and space vehicles and parts are classified in Industry Group 376. Establishments primarily engaged in the repair of aircraft, except on a factory basis, are classified in Transportation, Industry 4581; and research and development on aircraft by establishments not owned by aircraft manufacturers are classified in Services, Industry 8731. Examples listed under SIC code 3721 include aircraft, airships, balloons, and research and development on aircraft by the manufacturer. This solicitation is similar to that at issue in SIC Appeal of J & J Maintenance Co., No. 2940 (1988) in which we made the following distinction between SIC codes 4581 and 3721: The central distinction between the two SIC code descriptions is that SIC code 3721 pertains to manufacturing or assembling aircraft, whereas SIC code 4581 is service and maintenance oriented. A review of the work statement demonstrates that the service being procured is for service and maintenance of aircraft, not overhauling and manufacturing of aircraft to a "factory basis." The solicitation at issue requires the contractor to provide Aviation Unit Maintenance and Aviation Intermediate Maintenance. These services include inspection, installation, repair, assembly, disassembly, repairing, troubleshooting, adjusting, and other maintenance repair services. There is no evidence that the repair services to be supplied under this solicitation constitute manufacturing or rebuilding on a factory basis. The Contracting Officer's reply specifically states that the "maintenance and repair services [under this solicitation] do not constitute rebuilding to a factory basis." The work to be contracted for under this solicitation is of a type described under SIC code 4581 and does not rise to the level of overhauling on a factory basis claimed by the Appellant. See SIC Appeal of Pride Management & Services Co., No. 3122 (1989). Conclusion The proper classification for this solicitation is SIC code 4581. The Contracting Officer's designation is AFFIRMED, and the appeal is DENIED. This constitutes the final decision of the Small Business Administration. See 13 CFR 121.11(t), (u), and (v). ______________________________ Gloria E. Blazsik (Presiding) Administrative Judge ______________________________ Jane E. Phillips (Concurring) Administrative Judge ______________________________ Joseph K. Riotto (Concurring) Administrative Judge ______________ 1/ Solicitations issued on or after January 1, 1990, are regulated by 13 CFR Part 121 published in 54 Federal Register 52634, et seq., on December 21, 1989, effective January 1, 1990. 2/ Standard Industrial Classification Manual, Executive Office of the President, Office of Management and Budget, 1987 Edition.