Small business size standards, explained
How SBA decides whether you're small for a contract, the standards for the codes AV firms use, how receipts and employees are counted, and why affiliates matter.
Published November 9, 2026. 2 minute read.
"Small business" in federal contracting doesn't have one definition. SBA sets a size standard for every NAICS code, either in average annual receipts or in employees, and you're small for a contract if you're under the standard for the code on that solicitation. You can be small for one bid and not for the next.
Standards for the codes AV firms use
From SBA's table (13 CFR 121.201), receipts standards in force since 17 March 2023:
| NAICS | Industry | Size standard |
|---|---|---|
| 238210 | Electrical and other wiring installation | $19.0 million |
| 238290 | Other building equipment contractors | $22.0 million |
| 236220 | Commercial and institutional building construction | $45.0 million |
| 541512 | Computer systems design services | $34.0 million |
| 541519 | Other computer related services | $34.0 million (IT value-added resellers: 150 employees) |
| 561621 | Security systems services | $25.0 million |
| 811210 | Electronic equipment repair and maintenance | $34.0 million |
| 334310 | Audio and video equipment manufacturing | 750 employees |
| 423690 | Other electronic parts and equipment wholesalers | 250 employees |
SBA reviews these every five years and proposed raising many receipts standards in August 2025. Always check the current table on sba.gov before you certify.
How size is measured
- Receipts are averaged over your last five completed fiscal years, using total income plus cost of goods sold as reported on your tax returns.
- Employees are averaged over the last 24 months, counting full-time, part-time and temporary staff (pay periods, not just year-end).
- Size is set on the date you submit your first offer that includes price. If you grow after that, you stay small for that contract.
Affiliates count
SBA adds in the receipts or employees of every affiliate: companies that control you, that you control, or that are under common control (including through family members or shared management). A small firm that's 60% owned by a large one isn't small. Joint ventures and teaming arrangements can create affiliation too; see the ostensible subcontractor rule.
Supplies and the nonmanufacturer rule
If a solicitation is for equipment and you're not the manufacturer, you generally have to supply products made by a small business (the nonmanufacturer rule) unless SBA has waived it for that product class. Many AV products have no small manufacturer, so waivers matter: check before you bid an equipment-heavy set-aside.
Recertifying
You certify size in SAM.gov and on each offer. You have to recertify after a merger or acquisition, and on long-term contracts at set points. A wrong certification can cost you the award in a size protest, so check every time the NAICS code is one you don't usually bid.