Download the 2023 Size Standards Methodology White Paper and review the proposed revisions to SBA’s methodology.
SBA's Size Standards Methodology White Paper explains how it establishes, reviews, and modifies its small business size standards pursuant to the Small Business Act and related legislative guidelines.
Following the completion of the second comprehensive review of size standards, SBA is proposing to revise its Size Standards Methodology White Paper in accordance with SBA’s Federal Register notice 88 FR 85852 issued on December 11, 2023.
SBA welcomes comments and feedback on its revised methodology. This will be applied to the forthcoming third five-year review of size standards. SBA must receive comments to the 2023 revised methodology on or before February 9, 2024.
You can also access previous versions of this document:
- 2019 Size Standards Methodology White Paper
- 2018 Revised Size Standards Methodology White Paper
- 2009 Size Standards Methodology White Paper
Why has the methodology changed?
As part of the second 5-year comprehensive review of size standards in 2019, SBA established a detailed Size Standards Methodology White Paper explaining how the agency determines, reviews, or modifies its small business size standards. SBA has revised the 2019 Methodology, addressing public comments received under the second five-year review of size standards, and making certain analytical improvements.
Major changes to the size standard methodology include:
- Replacing the current approach to account for the Federal contracting factor with the “disparity ratio” approach
- Using The Federal Procurement Data System – Next Generation (FPDS-NG) and The System for Award Management (SAM) data to compute the 20th percentile and 80th percentile values of industry factors for evaluating size standards at subindustry levels (“exceptions”), instead of having those calculated based on the Economic Census data
- Updating the minimum and maximum size standard levels
- Updating the 20th percentile and 80th percentile values of industry factors, derived from the latest 2017 Economic Census and other industry data, used to evaluate the structure of each industry
How to submit comments
Comments may be submitted on the 2023 Size Standards Methodology White Paper, Docket number SBA-2023-0015, by one of the following methods:
- Federal eRulemaking Portal: Follow the instructions for submitting comments
- Mail/Hand Delivery/Courier: Send to
U.S. Small Business Administration
Khem R. Sharma, Chief, Office of Size Standards
409 3rd St. SW, Mail Code 6530
Washington, DC 20416 - E-mail sizestandards@sba.gov
- SBA will also accept oral comments during two virtual public forums on size standards, which will take place on January 23rd and 25th.