In a victory for architectural firms, the Small Business Administration has backed away from a proposed major boost in the revenue a firm can have and still be rated "small." That ceiling governs eligibility for small-business programs, such as contracts set aside for such firms.

Last year SBA proposed hiking the "size standard" for both architectural and landscape architectural firms to $19 million in average annual receipts, from $4.5 million for architects and $7 million for landscape architects. Under the higher caps, small firms would compete against much bigger ones for small-business set-asides. After architects flooded SBA with criticisms about the $19-million plan, SBA retreated. In a final rule printed on Feb. 10, SBA raised architects' ceiling to $7 million and kept landscape architects' cap at $7 million.

SBA lifted the engineering services limit to $14 million, from $4.5 million. It had proposed $19 million. The American Council of Engineering Cos. "raised numerous concerns" about the proposal, says Steve Hall, vice president for government affairs. "Some of those concerns apparently struck a chord." The new caps take effect on March 12.

"I think we're very excited that we got them away from that $19 million," says Jessica Salmoiraghi, American Institute of Architects director of federal relations and counsel. The $7-million cap covers 95.5% of AIA members, up from 91.7% at the old mark. The American Society of Landscape Architects was "extremely pleased" that SBA agreed with its recommendation to keep the $7-million cap, says Roxanne Blackwell, ASLA federal government affairs manager. "It keeps more landscape architecture firms active and viable in the SBA procurement arena," she adds.