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Acquisition Policy Flash! 17-04

What's Changed?

Adoption and Implementation of the North American Industry Classification System — Revision for 2017 (NAICS 2017)

Purpose:  To notify the Department of Veterans Affairs (VA) acquisition workforce of the adoption and implementation of the North American Industry Classification System (NAICS) revisions for 2017, and to delay using the 2017 revision until the Small Business Administration (SBA) updates it’s ‘Table of Small Business Size Standards’ to NAICS 2017.

Dated:  October 21, 2016

Federal Acquisition Regulation (FAR) and Veterans Affairs Acquisition Regulation (VAAR) Sections referenced:  FAR Part 19, VAAR Part 819

Effective Date:  Immediately

Background:  On August 8, 2016, the U. S. Office of Management and Budget (OMB) published for public comment, its “Notice of NAICS 2017 Final Decisions” (81 FR 52584).  OMB’s NAICS 2017 final decisions are to adopt the recommendations contained in the August 4, 2015 Federal Register notice (80 FR 46480), with an additional title modification for NAICS 33522 from ‘Major Appliance Manufacturing’ to ‘Major Household Appliance Manufacturing.’  As in previous revisions, NAICS 2017 Revision has created new NAICS codes that are not in NAICS 2012.  In addition, it revised, deleted, or consolidated numerous industry definitions and codes in NAICS 2012.  NAICS 2017 Revision has impacted about 30 6-digit industry definitions and codes in NAICS 2012.

Applicability:  This notice applies to contract specialist, warranted contracting officers, Head of Contracting Activities, and other members of the acquisition workforce utilizing NAICS.

Action Required:  Once SBA goes through the Federal rulemaking process, which can take several months to complete, the updated NAICS 2017 based small business size standards will replace the NAICS 2012 based small business size standards in the System for Award Management (SAM) and other Federal procurement systems, including Federal Procurement Data System — Next Generation (FPDS-NG) and SBA’s Dynamic Small Business Search (DSBS).  The following actions shall be taken in the interim:

(1) Do not use the NAICS 2017 codes when preparing solicitations and awarding contracts until SBA updates its small business size standards to NAICS 2017.

(2) Continuing using the NAICS 2012 codes until after SBA’s small business size standards are updated to NAICS 2017.

SBA anticipates updating its ‘Table of Small Business Size Standards’ to NAICS 2017 on October 1, 2017.

Additional Information:  Questions or concerns should be addressed to the Office of Acquisition and Logistics (003A), Procurement Policy and Warrant Management Service (003A2A) at (202) 632-5288 or va.procurement.policy@va.gov.