SBA size standard
1,000 employees
Measured by average number of employees over the last 24 months
SBA table effective March 2023
Official definition
This U.S. industry comprises establishments primarily engaged in conducting biotechnology (except nanobiotechnology) research and experimental development. Biotechnology (except nanobiotechnology) research and experimental development involves the study of the use of microorganisms and cellular and biomolecular processes to develop or alter living or non-living materials. This research and development in biotechnology (except nanobiotechnology) may result in development of new biotechnology (except nanobiotechnology) processes or in prototypes of new or genetically-altered products that may be reproduced, utilized, or implemented by various industries.
FY2025 federal spending
The Department of Health and Human Services bought 68% of the $1.5B obligated under 541714 in FY2025.
- Contract awards
- 1,459
- Contract vehicles (IDVs)
- 218
Top buying agencies
- Department of Health and Human Services$1.0B
- Department of Defense$434.0M
- Department of Veterans Affairs$26.2M
- National Aeronautics and Space Administration$15.5M
- Department of the Interior$4.6M
FY2025 federal contract obligations, USAspending.gov
NAICS 541714 obligated $1.5 billion in FY2025 across 1,459 contract awards. HHS is $1.03 billion, or 68 percent, driven by NIH and BARDA research and countermeasure development. DoD follows at $434 million through its medical research commands, VA at $26 million, NASA at $15 million. Separately, the retired 2012 code 541711 still received $623 million in FY2025 for the same industry.
What belongs here
Biotechnology research and experimental development other than nanobiotechnology: the use of microorganisms and cellular and biomolecular processes to develop or alter living or non-living materials.
- Nanotechnology research, including nanobiotechnology, is 541713.
- Physical, engineering, and life sciences research outside biotechnology is 541715.
- Performing diagnostic testing rather than research is 621511.
Competing in this code
The code had 218 IDVs alongside 1,459 awards in FY2025, and the more important structural fact is how HHS buys. Countermeasure and advanced development work runs through mechanisms with milestone-based funding and option structures, not conventional fixed-price delivery, so a company's financial model has to survive long option periods and go or no-go decisions. The employee-based 1,000-person size standard means a biotech with heavy laboratory headcount can lose small business status faster than its revenue would suggest, which is worth checking before building a set-aside strategy.
NAICS 541714 FAQ
What is the SBA size standard for NAICS 541714?
SBA sets it at 1,000 employees, counted as a 24-month average headcount across your company and every affiliate, not revenue. At or under that number you are small on NAICS 541714 solicitations and eligible for the set-asides in this code.
Which agencies buy biotechnology research under NAICS 541714?
FY2025 obligations: HHS ($1 billion), DoD ($434 million), VA ($26 million), NASA ($15 million), Interior ($5 million). HHS at 68 percent funds the bulk of it through research and countermeasure development, and DoD's medical research commands supply most of the remainder.
Why does spending still appear under NAICS 541711?
Because 541711 was the 2012 biotechnology research code that NAICS 2017 replaced with 541714, and federal systems continue obligating against legacy codes on existing awards. FY2025 shows $1.5 billion under 541714 and $623 million under 541711, so both belong in any market analysis of federal biotechnology research.
Does the employee-based size standard hurt biotech firms here?
It can. The standard is 1,000 employees counted across the company and all affiliates, not revenue. A research-stage biotech with heavy laboratory and manufacturing headcount can exceed it while revenue is still modest, so verify your count before building a strategy around set-asides in this code.