NAICS APPEAL OF: MARVIN TEST SOLUTIONS, INC., APPELLANT

*1 On May 16, 2017, the U.S. Department of Navy, Naval Air Warfare Center Aircraft Division, issued Request for Proposals (RFP) No. N68335-17-R-0085 for production and delivery of Common Aircraft Armament Test Set (CAATS) systems and Pure Air Generator System (PAGS) Adapter Set (PAS) units. The RFP contemplates the award of a single indefinite-delivery/indefinite-quantity contract for a minimum of 80 CAATS and 60 PAS units, and a maximum of 180 CAATS and 100 PAS units. (RFP §§ A.1, A.3.)

*1 The Contracting Officer (CO) set aside the procurement entirely for small businesses, and assigned North American Industry Classification System (NAICS) code 334519, Other Measuring and Controlling Device Manufacturing, with an associated size standard of 500 employees. Proposals are due June 16, 2017.

*1 On May 17, 2017, Marvin Test Solutions, Inc. (Appellant) filed the captioned appeal. Appellant asserts that the CO erred in selecting NAICS code 334519, and that the correct NAICS code is 336413, Other Aircraft Parts and Auxiliary Equipment Manufacturing, with a corresponding size standard of 1,250 employees. For the reasons discussed infra, the appeal is denied.

*1 The U.S. Small Business Administration (SBA) Office of Hearings and Appeals (OHA) decides appeals of NAICS code designations under the Small Business Act of 1958, 15 U.S.C. § 631 et seq., and 13 C.F.R. parts 121 and 134. Appellant filed this appeal within ten calendar days after issuance of the RFP, so the appeal is timely. 13 C.F.R. §§ 121.1103(b)(1) and 134.304(b). Accordingly, this matter is properly before OHA for decision.

*1 Appellant previously filed a NAICS code appeal with OHA on this same procurement based on the synopsis published on March 28, 2017. OHA dismissed the earlier appeal as premature, explaining that “a presolicitation notice does not constitute a NAICS code designation” within the meaning of SBA regulations. NAICS Appeal of Marvin Test Solutions, Inc., SBA No. NAICS-5826, at 2 (2017).

*2 The RFP states that the contractor will produce and deliver up to 180 CAATS systems and up to 100 PAS units to Navy program offices, pursuant to drawings and specifications referenced in the RFP. (RFP §§ A.1, C.2.1.) The RFP explains that a CAATS system “tests rack and launcher aircraft weapons interfaces off the aircraft prior to the loading of ordnance to ensure proper system functionality and safety of operation.” (Id. § C.1.0.) The equipment will be used to test bomb racks, missile launchers, pylons and rocket launchers. (Id.) The contractor will “manufacture, assemble, stress screen, test, calibrate, package and ship” each CAATS system, and will “manufacture, assemble, test, calibrate, package and ship each [PAS].” (Id. § C.3.1.) The RFP states that the Navy will evaluate proposals based on three evaluation factors: (1) Technical; (2) Past Performance; and (3) Price. (Id. § M.3.0.)

*2 The NAICS code selected by the CO, 334519, Other Measuring and Controlling Device Manufacturing, comprises:

*2 NAICS Manual at 439. Examples of establishments under NAICS code 334519 include “[a]ircraft engine instruments manufacturing,” “[p]hysical properties testing and inspection equipment manufacturing,” and “[s]urveying instruments manufacturing.” Id. at 439-40. Index entries that refer to NAICS code 334519 include: “[a]ircraft engine instruments manufacturing”; “[k]inematic test and measuring equipment manufacturing”; “[f]atigue testing machines, industrial, mechanical, manufacturing”; “[t]esters for checking hydraulic controls on aircraft manufacturing”; and “[t]esting equipment (e.g., abrasion, shearing strength, tensile strength, torsion) manufacturing.” Id. at 1064, 1191, 1261, 1427.

*2 The NAICS code advocated by Appellant, 336413, Other Aircraft Parts and Auxiliary Equipment Manufacturing, comprises

*3 Id. at 473. The NAICS Manual does not provide illustrative examples for NAICS code 336413, but index entries associated with NAICS code 336413 are: “[a] ircraft assemblies, subassemblies, and parts (except engine) manufacturing”; ““[a]ircraft brakes manufacturing”; “[a]ircraft control surface assemblies manufacturing”; “[a]ircraft fuselage wing tail and similar assemblies manufacturing”; “[a]ircraft propellers and parts manufacturing”; “[a]ircraft wheels manufacturing”; and “[d]eveloping and producing prototypes for aircraft parts (except engines) and auxiliary equipment”. Id. at 1063-64, 1164. A footnote in the size standards table states that “[c]ontracts for the rebuilding or overhaul of aircraft ground support equipment on a contract basis are classified under NAICS code 336413.” 13 C.F.R. § 121.201 fn.7.

*3 Appellant contends that the CO erred in selecting NAICS code 334519 for the RFP. According to Appellant, the CAATS and PAS equipment being procured “is an aircraft test set that is considered aircraft auxiliary equipment,” and thus is best represented by NAICS code 336413. (Appeal at 1.) Appellant claims that NAICS code 334519 is “more generic” than NAICS code 336413. (Id.) Appellant further asserts that the use of NAICS code 334519 restricts companies specializing in aircraft auxiliary equipment and aircraft test equipment from competing for the RFP. (Id.) Appellant offers a list of “other Aircraft Test Sets Solicitations” that reportedly utilized NAICS code 336413. (Id. at 3.)

*3 On June 1, 2017, the CO responded to the appeal. The CO maintains that NAICS code 334519 is the correct designation, as the primary purpose of this procurement is to acquire “test equipment or components of test equipment.” (CO's Response at 1.) The CO explains that the Navy “utilizes NAICS codes [in NAICS industry group] 3345 for the majority of [its] test equipment,” and particularly 334519 for test sets and components of test sets. (Id.) Further, in the CO's view, the procurements identified by Appellant as having utilized NAICS code 336413 are inapposite. (Id.) According to the CO, those contracts were primarily Air Force procurements for a “broad range of aircraft related items the agency buys.” (Id.) The CO disputes Appellant's claim that NAICS code 334519 will significantly restrict competition, noting that Navy identified several small businesses under NAICS code 334519 before publishing the RFP, and has already received numerous inquiries from small businesses. (Id. at 2.)

*4 Appellant has the burden of proving, beyond a preponderance of the evidence, all elements of its appeal. Specifically, Appellant must show that the CO's NAICS code designation is based upon a clear error of fact or law. 13 C.F.R. § 134.314; NAICS Appeal of Durodyne, Inc., SBA No. NAICS-4536, at 4 (2003). SBA regulations do not require the CO to select the perfect NAICS code. NAICS Appeal of Evanhoe & Assocs., LLC, SBA No. NAICS-5505 (2013). Rather, the CO must assign the NAICS code that best describes the principal purpose of the product or service being acquired in light of the industry descriptions in the NAICS Manual, the description in the solicitation, the relative value and importance of the components of the procurement making up the end item being procured, and the function of the goods or services being acquired. Federal Acquisition Regulation (FAR) 19.303(a)(2); 13 C.F.R. § 121.402(b). OHA will not reverse a NAICS code designation “merely because OHA would have selected a different code.” NAICS Appeal of Eagle Home Med. Corp., SBA No. NAICS-5099, at 3 (2009).

*4 Appellant has not shown that the CO clearly erred in assigning NAICS code 334519 to this RFP. As a result, the appeal must be denied.

*4 The primary purpose of this procurement is to acquire CAATS and PAS units for testing bomb racks, missile launchers, pylons, and rocket launchers on military aircraft. See Section II.B, supra. Indeed, both parties recognize that the CAATS and PAS units are types of testing equipment, as Appellant characterizes the units as “aircraft test sets” and the CO describes them as “test equipment or components of test equipment.” Sections II.D and II.E, supra. Pursuant to the NAICS Manual, NAICS code 334519 encompasses a wide variety of testing and measuring equipment manufacturing, including testing equipment intended for use with aircraft. Section II.C, supra. Accordingly, the CO reasonably selected NAICS code 334519 for this RFP.

*4 Because Appellant has not established that the CO's choice of NAICS code was clearly erroneous, OHA need not consider the NAICS code Appellant advocates or other alternative NAICS codes. E.g., NAICS Appeal of Creative Info. Tech., Inc., SBA No. NAICS-5828, at 7 (2017); NAICS Appeal of Nat'l Elec. Coil, SBA No. NAICS-5666, at 8 (2015). Nevertheless, it is worth noting that Appellant's recommended NAICS code, 336413, pertains to the manufacturing of aircraft parts and assemblies, but is not associated with aircraft testing and monitoring equipment. Section II.C, supra. OHA similarly has held that NAICS code 336413 “does not encompass all specialized components made for aircraft,” and therefore does not apply merely because a procurement relates in some manner to aircraft. NAICS Appeal of DCX/CHOL Enters., Inc., SBA No. NAICS-4893, at 3 (2008). Appellant has not persuasively shown that NAICS code 336413 best describes the testing equipment at issue here.

*5 Appellant's remaining arguments are also meritless. Appellant contends that NAICS code 336413 has been assigned to other similar procurements. The CO disputes this assertion, but even assuming Appellant is correct, these other procurements are not before OHA, and OHA attaches little weight to the NAICS codes assigned to other procurements that were not appealed to OHA. NAICS Appeal of Arrowhead Contracting, Inc., SBA No. NAICS-5725, at 8 (2016). Appellant's claim that NAICS code 334519 will restrict competition also fails. Again, Appellant offers no evidence or explanation to support this allegation, and OHA has held in any event that such considerations “are not part of the criteria for selecting the NAICS code.” NAICS Appeal of Pac. Shipyards Int'l, LLC, SBA No. NAICS-5464, at 6 (2013) (quoting NAICS Appeal of Circle Solutions, Inc., SBA No. NAICS-5181, at 14 (2011)). Instead, by regulation, the CO must designate the NAICS code that best describes the principal purpose of the product or service being acquired. 13 C.F.R. § 121.402(b); FAR 19.102.

*5 For the above reasons, the appeal is DENIED. The CO appropriately selected NAICS code 334519 for this procurement. This is the final decision of the U.S. Small Business Administration. See 13 C.F.R. § 134.316(d).