SBA size standard
1,000 employees
Measured by average number of employees over the last 24 months
Exceptions
- Aircraft, Aircraft Engine and Engine Parts
- 1,500 employees
- Other Aircraft Parts and Auxiliary Equipment
- 1,250 employees
- Guided Missiles and Space Vehicles, Their Propulsion Units and Propulsion Parts
- 1,300 employees
The solicitation names the standard that applies.
SBA table effective March 2023
FY2025 federal spending
The Department of Defense bought 68% of the $48.5B obligated under 541715 in FY2025.
- Contract awards
- 20,503
- Contract vehicles (IDVs)
- 2,731
Top buying agencies
- Department of Defense$33.1B
- National Aeronautics and Space Administration$8.1B
- Department of Energy$4.0B
- Department of Health and Human Services$1.4B
- General Services Administration$1.2B
FY2025 federal contract obligations, USAspending.gov
Research and Development in Information Technology (NAICS 541715) covers companies conducting R&D in computing, software, networks, and information systems. This code is valuable for tech startups pursuing federal research funding through SBIR and other research programs. If your company develops novel technology solutions through government-funded research, 541715 is appropriate.
What Businesses Fall Under This Code
541715 includes companies conducting IT research, software research, network research, and computing research. This applies to companies developing new algorithms, novel security approaches, emerging technologies, or fundamental research in computer science. Startups pursuing federal research contracts often use this code.
SBA Size Standard and What It Means
The SBA size standard for 541715 is 1,000 employees. With 1,000 employees or fewer, you count as a small business on contracts filed under this code. Some work under this code has its own standard: Aircraft, Aircraft Engine and Engine Parts (1,500 employees); Other Aircraft Parts and Auxiliary Equipment (1,250 employees); Guided Missiles and Space Vehicles, Their Propulsion Units and Propulsion Parts (1,300 employees).
Federal Spending in This Category
Federal R&D spending in IT exceeds $15 billion annually. This includes SBIR funding ($3.5 billion), Department of Defense research contracts, National Science Foundation grants, Department of Energy research, and agency-specific R&D initiatives. Federal agencies invest heavily in cutting-edge research for cybersecurity, AI, quantum computing, and emerging technologies.
Top Agencies Buying in This Code
The Department of Defense (including DARPA), National Science Foundation, National Institutes of Health, Department of Energy, Department of Homeland Security, and the Intelligence Community are major R&D spenders. DARPA alone spends billions annually on cutting-edge technology research.
Tips for Tech Companies Using This Code
If you're a startup developing novel technology, register under 541715. Pursue SBIR Phase I awards ($50-150K) to fund early-stage research, then Phase II ($500K-750K) for further development. Show clear innovation and technical merit. SBIR Phase III transitions research into commercialization with federal agencies.
Pro Tip: 541715 is essential if you're pursuing SBIR funding. Even if you also do custom development (541511), register for 541715 if you conduct any government-funded research. SBIR contracts can fund early-stage innovation that becomes your primary product.