Small Business Size Thresholds Raised for Architecture and Engineering

In early 2012, the Small Business Administration raised the small business size standard for NAICS Codes 541310 (Architecture) and 541330 (Engineering).   The relevant thresholds have been raised to $7 million and $14 million, respecitvely.  Until very recently, the threshold for both NAICS codes was $4.5 million.

The dollar figures refer to average annual gross revenues for a firm’s last three years.  This includes revenues for a firm’s affiliates as defined by relatively stringent federal definitions.

These new, higher thresholds apply to all firms, including those that had grown out of eligibility previously. As long as a business entity is at or below the relevant threshold, it can regain eligibility for federal procurement and assistance programs aimed at small firms.

For NAICS Code 541330 (Engineering), the previous version of the size standard included exceptions.  There were higher thresholds for certain categories of services (e.g., marine engineering).  The size standard for these exceptions has been raised to $35.5 million.