Federal Contracting Size Standards refer to the maximum allowable size that a business entity can be to qualify for federal government contracts. These standards are set by Small Business Administration (SBA) and vary depending on the industry in which a business operates. The size standards are typically based on either the number of employees a company has, or its average yearly receipts.
The purpose of these standards is to ensure that small businesses have a fair opportunity to compete for and win federal contracts. It’s a crucial part of maintaining healthy competition and diversity within the federal marketplace. Businesses that exceed Federal Contracting Size Standards are typically considered “large” businesses and may not be eligible for certain government contracts reserved for small businesses. It’s essential for businesses to understand these standards to determine their eligibility for different government contracting opportunities.
