Appellant Successfully Challenges CO’s NAICS Code

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.