FAR 19.103—Appealing the contracting officer's North American Industry Classification System code and size standard determination.
Plain-English Summary
FAR 19.103 explains how a contracting officer’s North American Industry Classification System (NAICS) code designation and corresponding size standard can be challenged, who may appeal, when the appeal must be filed, and what happens while the appeal is pending. It covers the finality of the contracting officer’s determination, the 10-calendar-day filing deadline, the special rule allowing SBA to appeal before offers are due, who has standing to appeal (including the special limitation for sole source 8(a) contracts), the requirement to notify the public by solicitation amendment, SBA Office of Hearings and Appeals (OHA) procedures, dismissal of untimely appeals, the contracting officer’s duty to respond and provide the solicitation record, the general rule to withhold award during the appeal, and the effect of OHA’s decision on the pending procurement versus future procurements. In practice, this section is important because the NAICS code and size standard determine which firms can compete as small businesses, so an incorrect designation can materially affect competition, set-aside eligibility, and the integrity of the procurement. The section also cross-references SBA regulations at 13 CFR 121.1102 through 121.1103 and 13 CFR part 134, which govern the appeal process in more detail. For contractors, this rule creates a short and strict window to challenge a code that may exclude them from competition; for contracting officers, it requires prompt notice, record production, and careful handling of the procurement while the appeal is pending.
Key Rules
CO determination is final
The contracting officer’s NAICS code and size standard determination is final unless timely appealed. This means the solicitation’s classification controls unless a proper appeal is filed within the required time.
Short appeal deadline
An appeal must be served and filed within 10 calendar days after issuance of the initial solicitation or any amendment that changes the NAICS code or size standard. SBA itself may file a NAICS code appeal at any time before offers are due.
Who may appeal
Any person adversely affected may appeal a NAICS code designation or size standard, except that for a particular sole source 8(a) contract only the SBA Associate Administrator for Business Development may appeal the NAICS code designation. The SBA program Associate or Assistant Director may also appeal through SBA’s Office of General Counsel.
Public notice required
The contracting officer must notify the public of a NAICS code appeal by amending the solicitation. The notice must include the procedures and deadline for interested parties to file and serve arguments on the appeal.
Untimely appeals dismissed
SBA’s OHA will summarily dismiss an appeal that is filed too late. Missing the deadline generally ends the challenge, regardless of the merits.
OHA filing and process
NAICS code appeals must be filed under 13 CFR 121.1103, and OHA will notify the contracting officer of the docket number, receipt date, and assigned judge. The contracting officer may respond with argument and evidence, typically within 15 calendar days of the docketing notice unless the judge sets a different deadline.
Award may be withheld
After receiving OHA’s docketing notice and order, the contracting officer must withhold award unless doing so is not in the Government’s best interests. The contracting officer must also send the solicitation and all NAICS-related amendments to OHA and keep OHA informed of procurement developments.
Decision timing controls effect
If OHA’s decision arrives before offers are due, it is final for that solicitation and the solicitation should be amended if needed. If the decision arrives after the initial offer due date, it does not affect the pending solicitation but applies to future solicitations for the same products or services.
Responsibilities
Contracting Officer
Select and state the NAICS code and size standard in the solicitation, then treat that determination as final unless appealed. If an appeal is filed, amend the solicitation to notify the public, provide the solicitation and related amendments to OHA, submit any response with argument and evidence within the required time, withhold award unless contrary to the Government’s best interests, and keep OHA informed of any procurement changes or developments.
Offerors / Interested Parties
Monitor the solicitation for the NAICS code and size standard, determine whether they are adversely affected, and file and serve any appeal within 10 calendar days after the initial solicitation or a relevant amendment. They must follow SBA/OHA filing procedures and submit arguments within the deadlines stated in the solicitation notice and OHA rules.
SBA
May file a NAICS code appeal before offers are due, and through the appropriate SBA officials may initiate appeals in the circumstances allowed by the regulation. SBA also administers the appeal process through its Office of Hearings and Appeals and related regulations.
SBA Office of Hearings and Appeals (OHA)
Receive and docket NAICS code appeals, notify the contracting officer, assign an Administrative Judge, dismiss untimely appeals, accept and consider the record and arguments, and issue a decision after the record closes.
SBA Program Officials
The Associate or Assistant Director for the SBA program involved may file an appeal through SBA’s Office of General Counsel when authorized by the regulation.
SBA Associate Administrator for Business Development
For a particular sole source 8(a) contract, this official is the only party authorized to appeal the NAICS code designation on SBA’s side.
Practical Implications
The NAICS code and size standard can determine who is eligible to compete, so a wrong code can exclude qualified small businesses or improperly open a procurement to larger firms.
The 10-day appeal window is very short and runs from solicitation issuance or the amendment changing the code/size standard, so contractors must review solicitations immediately.
Contracting officers should expect to pause award activity once an appeal is docketed unless there is a documented best-interest reason to proceed; failing to manage this can create protest-like delays and procurement disruption.
A late OHA decision usually will not fix the current solicitation, but it can affect future procurements, so agencies should treat the issue as recurring if the same requirement will be re-solicited.
Because the rule cross-references SBA regulations, parties must follow both FAR timing requirements and SBA/OHA filing rules; missing either can result in dismissal or loss of the challenge.
Official Regulatory Text
(a) The contracting officer’s determination is final unless appealed as follows: (1) An appeal of a contracting officer’s NAICS code designation and the applicable size standard shall be served and filed within 10 calendar days after the issuance of the initial solicitation or any amendment affecting the NAICS code or size standard. However, SBA may file a NAICS code appeal at any time before offers are due. (2) Appeals of a contracting officer's NAICS code designation or applicable size standard may be filed with SBA’s Office of Hearings and Appeals (OHA) by— (i) Any person adversely affected by a NAICS code designation or applicable size standard. However, with respect to a particular sole source 8(a) contract, only the SBA Associate Administrator for Business Development may appeal a NAICS code designation; or (ii) The Associate or Assistant Director for the SBA program involved, through SBA’s Office of General Counsel. (3) Contracting officers shall advise the public, by amendment to the solicitation, of the existence of a NAICS code appeal (see 5.102 (a)(1)). Such notices shall include the procedures and the deadline for interested parties to file and serve arguments concerning the appeal. (4) SBA’s OHA will dismiss summarily an untimely NAICS code appeal. (5) NAICS code appeals are filed in accordance with 13 CFR 121.1103 . (6) Upon receipt of a NAICS code appeal, OHA will notify the contracting officer by a notice and order of the date OHA received the appeal, the docket number, and the Administrative Judge assigned to the case. The contracting officer's response to the appeal, if any, shall include argument and evidence (see 13 CFR part 134 ), and shall be received by OHA within 15 calendar days from the date of the docketing notice and order, unless otherwise specified by the Administrative Judge. Upon receipt of OHA’s docketing notice and order, the contracting officer shall withhold award, unless withholding award is not in the best interests of the Government, and immediately send to OHA an electronic link to or a paper copy of both the original solicitation and all amendments relating to the NAICS code appeal. The contracting officer shall inform OHA of any amendments, actions, or developments concerning the procurement in question. (7) After close of record, OHA will issue a decision and inform the contracting officer. If OHA’s decision is received by the contracting officer before the date the offers are due, the decision shall be final and the solicitation shall be amended to reflect the decision, if appropriate. OHA’s decision received after the due date of the initial offers shall not apply to the pending solicitation but shall apply to future solicitations of the same products or services. (b) SBA’s regulations concerning appeals of NAICS code designations are located at 13 CFR 121.1102 to 121.1103 and 13 CFR part 134 .