NAICS 541715 size standard: Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

A business whose primary industry is NAICS 541715 (Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)) is small for SBA and federal contracting purposes if it has no more than 1,000 employees on average, including affiliates.

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Footnote 11. NAICS code 541713, 541714, and 541715— (a) Research and Development” means laboratory or other physical research and development. It does not include economic, educational, engineering, operations, systems, or other nonphysical research; or computer programming, data processing, commercial and/or medical laboratory testing. (b) For research and development contracts requiring the delivery of a manufactured product, the appropriate size standard is that of the manufacturing industry. (c) For purposes of the Small Business Innovation Research (SBIR) and Small Business Transfer Technology (STTR) programs, the term “research” or “research and development” means any activity which is (A) a systematic, intensive study directed toward greater knowledge or understanding of the subject studied; (B) a systematic study directed specifically toward applying new knowledge to meet a recognized need; or (C) a systematic application of knowledge toward the production of useful materials, devices, and systems or methods, including design, development, and improvement of prototypes and new processes to meet specific requirements. See 15 U.S.C. 638(e)(5) and section 3 of the SBIR and STTR policy directives available at www.sbir.gov. For size eligibility requirements for the SBIR and STTR programs, see § 121.702 of this part. (d) “Research and Development” for guided missiles and space vehicles includes evaluations and simulation, and other services requiring thorough knowledge of complete missiles and spacecraft.

Before you rely on this

• Affiliates count. SBA adds the receipts or employees of your affiliates (companies that control you, that you control, or that share common ownership or management) to yours. See 13 CFR 121.103.
• Receipts are a 5-year average. Average annual receipts are generally your total receipts over your last 5 completed fiscal years divided by 5 (13 CFR 121.104).
• Employees are a 24-month average. Employee-based standards use your average number of employees per pay period over the preceding 24 completed calendar months, counting part-time and temporary staff (13 CFR 121.106).
• The contract decides the code. For a federal contract, the contracting officer assigns one NAICS code in the solicitation, and that code’s size standard is the one that counts.
• Check officially. Use the official SBA Size Standards Tool and keep your SAM.gov registration current.

Not legal or professional advice. This is a free estimate from AwardWatchdog based on SBA’s published table. AwardWatchdog is not affiliated with SBA or the U.S. government. Only SBA can make a formal size determination.