Socio-economic status at a glance
Claiming only what applies. Every cell below is accurate as of today.
| Category | Status | Notes |
|---|---|---|
| SBA Small Business | Yes | Under size standards for NAICS 541512, 541511, 541519, 541715, 518210. |
| Minority-Owned Small Business | Yes | Founder is a minority (Asian American). Counts toward minority-owned subcontracting goals. |
| Iowa-based small business | Yes | Principal office in Ames, Iowa. Relevant for state and regional set-asides. |
| 8(a) Business Development | Not yet | Requires U.S. citizenship. Founder projected eligible mid-to-late 2027. |
| Woman-Owned Small Business (WOSB / EDWOSB) | No | Founder is male. We will not claim WOSB status. |
| HUBZone | No | Ames, Iowa principal office is not in a currently-designated HUBZone. |
| Service-Disabled Veteran-Owned (SDVOSB) | No | Founder is not a veteran. |
| Veteran-Owned Small Business (VOSB) | No | Founder is not a veteran. |
SBA Small Business size standards
Under NAICS 541512 (Computer Systems Design Services), the SBA uses a receipts-based size standard for small business classification. Precision Federal sits far below the threshold as a founder-led firm launched in 2026, with limited revenue history and no payroll that approaches the receipts ceiling. The same holds across our secondary NAICS codes.
| NAICS | Size standard type | Precision Federal |
|---|---|---|
| 541512 | Receipts-based (SBA IT services threshold) | Far below threshold |
| 541511 | Receipts-based | Far below threshold |
| 541519 | Receipts-based | Far below threshold |
| 541715 | Employee-based (R&D) | Far below threshold |
| 518210 | Receipts-based | Far below threshold |
Precision Federal will continue to qualify as a small business for the foreseeable future. We run intentionally lean — lean enough that growth stays compatible with small-business size standards for years.
Minority-owned status
The founder, Bo Peng, is a minority (Asian American). Precision Federal is 100% minority-owned and minority-controlled. Federal agencies and primes tracking minority-owned subcontracting goals can count Precision Federal dollars toward those goals under FAR Part 52 reporting. Minority-owned status is independent of 8(a) — we are minority-owned today even though 8(a) certification comes later.
Iowa-based
Precision Delivery Federal LLC is organized under Iowa law (filed March 14, 2026) and operates its principal office in Ames, Iowa 50010. Iowa has one of the lowest operating-cost bases in the United States, which means a larger share of every contract dollar goes to engineering effort rather than overhead. For federal programs seeking geographic diversity in their vendor base beyond the Beltway, an Iowa small business is a clean way to hit that mark.
Why a small business is the right path for federal AI contracts
Federal contracting outcomes correlate with team structure more than people admit. Small, founder-led firms consistently out-deliver large integrators on production AI work for a few structural reasons:
- Faster decisions. Scoping, pricing, and contract-vehicle decisions happen in one conversation with the person responsible for delivery. No committee, no six-week approval chain.
- More budget to the work. A lean firm routes a higher percentage of every contract dollar to senior engineering hours. Large integrators burn 30-50% on overhead layers that don't touch the code.
- No handoff tax. Pre-sales writes, delivery executes. At Precision Federal, they're the same person. The proposal says what the code will do, and the code does it.
- Satisfy socio-economic goals. Your SB and minority-owned dollars go up, your program gets real AI capability, and the reporting happens without gymnastics.
- Accountability is personal. When the founder signs, the founder delivers. There's no "the engineer who wrote that proposal left the company" story.
Which set-asides apply
Precision Federal can prime on or team under the following set-aside categories today:
- Small Business set-asides — any solicitation designated SB set-aside under our NAICS codes.
- Partial small business set-asides — the SB portion of combined solicitations.
- Minority-owned subcontracting goal contribution — dollars flowed to us count as minority-owned small business participation.
- SBIR / STTR — inherently small-business programs. Precision Federal is SBIR-registered (approved April 16, 2026) and DSIP-active.
- Small Business Innovation Research Phase III — sole-source authority for follow-on work derived from our Phase I/II awards.
We do not qualify for WOSB, HUBZone, SDVOSB, or 8(a) set-asides today. If your solicitation is exclusively reserved for any of those, we are not the right prime — but we can still team with a qualifying prime and carry substantive AI/ML scope.
Using Precision Federal toward your subcontracting plan
Primes above the FAR subcontracting-plan threshold must submit a Small Business Subcontracting Plan (FAR 52.219-9) with measurable goals. Here's the efficient way to use Precision Federal against those goals.
Step 1 — Scope the AI/ML workshare you need covered
Write down, in one paragraph, the AI or ML component of your project. Data pipeline, model training, agentic system, RAG, production inference, eval harness — whatever it is.
Step 2 — Email us with the opportunity
Include the vehicle or solicitation, the due date, the scope you'd like us to carry, and whether you want an NDA first. See contact for a template.
Step 3 — Teaming agreement
We return a proposed workshare and a standard teaming agreement within a few business days. No open-ended exclusivity; we team on specific opportunities.
Step 4 — Deliver
Your subcontracting report shows small-business and minority-owned dollars, and your program gets working AI/ML delivered by a senior engineer. Both boxes checked.
Future 8(a) plans (post-citizenship, 2027)
The SBA 8(a) Business Development program requires the qualifying individual to be a U.S. citizen. The founder's naturalization is projected for mid-to-late 2027, with N-400 filing early 2027. We will pursue 8(a) certification promptly after naturalization.
We are being explicit about this timeline because we will not claim 8(a) status we do not hold. Firms that over-represent socio-economic status on proposals damage their reputation permanently and invite SBA protest actions. We would rather wait eighteen months and certify correctly than chase a sole-source that isn't legally ours.
Agencies and primes with 8(a) pipelines that mature in 2028 and beyond: we can pre-position now (via standard small-business teaming) and move to 8(a) direct awards once certification is in hand.
Why "minority-owned" matters in today's federal procurement context
Many agencies and primes track minority-owned small business participation as part of their socio-economic reporting under the Small Business Act and FAR Part 19. Using a minority-owned small business with real technical scope moves the reported numbers in a way that reflects actual work performed. Precision Federal offers that: minority-owned status, substantive AI/ML delivery, and clean documentation.
What we will not do
- Pass-through fronting. If the scope is a shell with no actual AI/ML work flowing to us, we decline. Pass-through arrangements are illegal under SBA rules and our brand will not touch them.
- Over-claim socio-economic status. We do not market 8(a), WOSB, HUBZone, or SDVOSB status we do not hold.
- Unlimited exclusivity. We team on specific opportunities. Blanket exclusive small-business arrangements are not in our or the government's interest.
- Take credit for work we didn't do. If a prime's work is what earned the outcome, we'll say so. Past performance means actual performance.
Small business representations and certifications
The representations and certifications below are what we assert in SAM.gov and on proposal paperwork.
- Small business concern: Yes
- Minority-owned: Yes
- Woman-owned: No
- Veteran-owned: No
- Service-disabled veteran-owned: No
- HUBZone: No
- 8(a) BD program participant: No (planned post-2027)
- Small disadvantaged business: Self-certified small disadvantaged business under SBA rules
Frequently asked
How do I know you'll stay a small business?
Our growth plan is deliberately lean. We do not intend to balloon past SBA small-business thresholds. Our revenue model is project-based AI/ML delivery, not staff-augmentation body count. We expect to qualify as a small business for the foreseeable future.
Can dollars to Precision Federal count in two socio-economic categories?
Yes. The same dollar routed to us counts in both small-business and minority-owned categories, per FAR subcontracting-plan reporting.
Do you sign NDAs before we discuss opportunities?
Yes, standard mutual NDA, one business day. Email [email protected].
When will 8(a) be available?
Pursuing 8(a) certification after founder naturalization in mid-to-late 2027. Certification itself takes additional processing time. Plan for 2028+.
Are you a small disadvantaged business (SDB)?
We self-certify as small and disadvantaged under SBA rules based on the founder's minority status. This is separate from 8(a) and is available today.