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There is a federal comment window closing on Monday that will reshape who you bid against. Two proposed rules published August 20 would rewrite the SBA size standards that decide which companies count as small for federal contracting, and comments close September 21, 2026.
If you sell to the government, or plan to, this is the most consequential change to that definition in decades. The thresholds are not moving a little. In some industries they multiply.
What the rules would change
The table today runs to about 995 standards, mapped onto 978 NAICS codes at the six-digit level, with 18 extra carve-outs bolted on for unusual pockets of work. All of it would compress down to 338, pitched at the broader four- and five-digit tiers.
Each of the 18 carve-outs disappears. The best known of them covers Information Technology Value Added Resellers, a bracket capped today at 150 employees that plenty of firms built their entire model around.
A universal minimum arrives too, either 500 employees or $30.6 million in revenue, depending which measure applies. The old maximums vanish. Nothing gets revised downward either, including across the 45 industries whose own agency modeling argues for a smaller number.
How far the thresholds move
Two examples show the scale.
Proposed changes to selected size standards
Industry
Current standard
Proposed
Engineering services (541330)
$25.5 million
$252 million
Computer systems design (5415)
$34 million
$531 million
IT Value Added Reseller
150 employees
$531 million
Wherever the agency can choose, the yardstick becomes headcount rather than sales. The rationale is practical. Revenue moves with inflation and with any one big award, which flips companies in and out of eligibility for reasons that have nothing to do with how big they really are.
Revenue thresholds would also track productivity gains rather than inflation alone. That indexing is new.
Who wins and who loses
B… Read More
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