Overview
This section outlines the formal process and mandatory timelines for challenging a Contracting Officer’s selection of a North American Industry Classification System (NAICS) code or size standard for a federal procurement. It establishes the SBA’s Office of Hearings and Appeals (OHA) as the deciding body and dictates how the procurement process must be managed while an appeal is pending.
Key Rules
- Filing Deadlines: Appeals must be filed within 10 calendar days of the initial solicitation or the amendment changing the NAICS code; however, the SBA may file an appeal at any time before offers are due.
- Jurisdiction: All NAICS code and size standard appeals are adjudicated by the SBA’s Office of Hearings and Appeals (OHA) in accordance with 13 CFR part 134.
- Standing: Any person "adversely affected" by the designation has the right to appeal, except in 8(a) sole source contracts where only specific SBA administrators may do so.
- Stay of Award: Once an appeal is docketed, the Contracting Officer must withhold the contract award unless it is determined that withholding the award is not in the best interests of the Government.
- Effect of Decision: If the OHA decision is received before the offer due date, the solicitation must be amended to reflect the ruling. If received after the due date, the decision applies only to future procurements of the same requirement.
Practical Implications
- Speed is Critical: Interested parties have a very narrow 10-day window to act; missing this deadline results in a summary dismissal and a forfeiture of the right to challenge the code for that procurement.
- Procurement Delays: A NAICS appeal often forces the government to pause the acquisition process, potentially shifting the timeline if a code change is mandated before offers are submitted.