The Small Business Administration has adjusted the size standards for small businesses that perform research and development in the aerospace field (including businesses that are required to deliver manufactured product as part of a research and development contract).
Research and Development in the Physical, Engineering, and Life Sciences is currently categorized under NAICS 541712. This NAICS code has three sub-industries or “exceptions.” The SBA feels that the small business standard for these companies should be consistent with that of peer companies that manufacture parts. SBA is therefore modifying the titles of the three exceptions, and the size thresholds associated with them.
| NAICS code | NAICS industry title | Current size standard (number of employees) | New size standard (number of employees) |
| 541712 | Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology) | 500 | 1000 |
| except | Aircraft Engine and Engine Parts | 1000 | 1500 |
| except | Other Aircraft Parts and Auxiliary Equipment | 1000 | 1250 |
| except | Guided Missiles and Space Vehicles, Their Propulsion Units and Propulsion Parts | 1000 | 1250 |
This rule change becomes effective on February 26, 2016. Full details of this change are available in the Federal Register.