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Appellant Successfully Challenges CO’s NAICS Code

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The appellant maintained that the contracting officer (CO) erred in assigning NAICS code 541614, which involves advice and assistance, rather than NAICS code 541330 for engineering services. OHA agreed with the appellant. It found the sector and subsector of the CO's original code excluded day-to-day operations. OHA therefore granted the appeal and the corresponding, larger size standard.

NAICS Appeal of ITC Defense Corp., SBA No. NAICS-6364
  • Background - The Missile Defense Agency (MDA) issued a solicitation for contractor logistics support, program management, training support, and materials in support of the Terminal High Altitude Area Defense (THAAD) weapon system. The CO designated NAICS code 541614 (Process, Physical Distribution and Logistics Consulting Services).
  • Appeal - The appellant asserted NAICS code 541330 (Engineering Services [Exception 1 for Military and Aerospace Equipment and Military Weapons]), which had a larger corresponding size standard, was appropriate and that the contracting officer erred in choosing NAICS 541614.
  • Decision - OHA agreed with the appellant. The 54 sector excludes day-to-day services such as physical distribution and logistics. The subsector 5416 is primarily for providing advice and assistance. Thus, the CO's NAICS code 541614 encompasses establishments that provide "operating advice" to organizations. The appellant's suggested NAICS code

    541330 adequately involved support of military or aerospace weapons or equipment. This applies as the contractor will be working directly on the THAAD systems and providing maintenance directly on the weapons.

Jeffery M. Chiow, Eleanor M. Ross, and Olivia C. Bellini of Greenberg Traurig LLP appeared for the appellant. Jonathan Dickens of the Missile Defense Agency appeared for the government.

-- Case summary by Joshua Lim, Assistant Editor.

Pub K obtained this decision in this format from Stan Hinton

NAICS Appeal of ITC Defense Corp., SBA No. NAICS-6364 (2025)

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