Godwin Opara is paying close attention to the U.S. Small Business Administration's move to redefine what constitutes a small business.

Opara owns Transtecs Corp., a Wichita business that does work for the Department of Defense. A new SBA definition of small businesses could have a big impact on his work -- and his bottom line.

His designation as a small business helps him get and keep contracts with the federal government. Businesses must meet size standards to qualify for SBA loans, too.

The SBA is currently holding meetings around the country to determine whether to change size standards for small businesses.

Officials predict that the federal government will spend $400 billion on goods and services in fiscal year 2004, up from $280 billion in fiscal year 2003. Some 77 percent of federal contract dollars go to large businesses, and 23 percent to small businesses, SBA spokeswoman Iris Newton said.

Currently, the SBA determines small-business status either by a company's gross annual revenues averaged over a three-year period or by the company's number of employees.

How companies are measured depends on their specific industry.

"The size standard is very essential in our industry," said Opara, whose business provides information technology, engineering and logistics services. It also has a manufacturing division.

For its services, Transtecs' small-business status is determined by gross annual revenue. In his industry, the limit is $6 million, which Opara said his company has exceeded.

For its manufacturing work, Transtecs' status is determined by number of employees. A business in his industry can have as many as 1,500 employees and still be classified as small. Opara has 200 workers. That means he competes with much larger companies for government contracts.

The SBA is holding public hearings across the country about the size standards. The closest to Wichita was in St. Louis.

But Opara still is paying attention.

Other small businesses should as well, said Elizabeth Auer, district director of the SBA in Wichita.

"About 97 percent of businesses in Kansas are currently classified as small," Auer said. A redefinition of standards "could have a big impact."

The changes haven't been ironed out, but it looks as though the SBA is looking to use the number of employees at a business, rather than revenue, to determine small-business status.

"Very few will be based on the gross revenues now," Auer said.

Some businesses could benefit from new size standards, making them eligible for contracts they previously weren't. Some could lose their ability to bid on contracts.

Opara would benefit if the SBA increased the gross revenues or reduced the number of employees in his industry standards.

Opara would like to see his industry size standard top out at 400 employees.

Auer said the last public hearing about size standards will be June 29 in Los Angeles.

The SBA will compile public comment about the issue and then come up with a recommendation.

"I would expect that across the country they'll get a lot of the same comments," Auer said. "I would hope that they would come out with a new proposed regulation in a few months."

Area small-business owners who wish to comment may contact the SBA in Wichita at 269-6616. Small-business owners also may want to talk to their congressional representative.