NAICS codes
The North American Industry Classification System is how the government labels what a business does. In federal contracting it is not administrative trivia, it decides which work you are shown, whether you count as small, and which set-asides you can use.
484
industry codes have federal work open under them right now, out of roughly 1,100 codes in the system. Most codes have nothing open at any given moment, which is why the code you register under matters more than how many you hold.
How the six digits are built
The code narrows as it lengthens. The first two digits are the sector, such as 23 for construction or 54 for professional and technical services. The third adds the subsector, the fourth the industry group, the fifth the industry, and the sixth the national detail.
So 541611, management consulting, sits inside 5416 which sits inside 54. Federal solicitations are tagged at the full six digits, and that is the level you register and bid at.
How many you should have
As many as genuinely describe your work. There is no penalty for holding several and each one is a separate stream of opportunities you will be shown. Registering one code and stopping is the most common self-inflicted wound in federal contracting, because you simply never see most of the work you could do.
They decide whether you are small
The SBA sets a size standard per code, either average annual receipts or employee count. The same company can be small under one code and not under another on the same day, and size is judged against the code on the specific solicitation. This is why the code an agency chooses for a requirement genuinely matters to you, and why it is worth raising at the sources sought stage if it looks wrong.
Picking the right one
Pick by what you actually deliver, not by what sounds most impressive or by which code has the most money in it. A mismatch between your code and your past performance is visible to an evaluator, and a code with plenty of spending but nothing you can deliver is worth nothing at all.
Where to check yours
Your codes live on your SAM registration and you can change them any time, free. Describe what you do to find codes that fit, or look up a company by name to see what it registered under.
Questions people ask
What is a NAICS code?
A six digit code identifying what kind of work a business does. The federal government tags every purchase with one.
How many NAICS codes can I have?
As many as genuinely apply. There is no limit and no penalty, and each opens a separate stream of opportunities.
How do I find my NAICS code?
Describe your work in plain words and match it to a code, then add it to your SAM registration. Changing them is free and immediate.
Does my NAICS code decide if I am a small business?
Yes. The SBA sets a revenue or headcount limit per code, so status is judged per code rather than per company.
How many NAICS codes are there?
Roughly 1,100 at the six digit level, though only a few hundred have federal work open at any given time.
What is the difference between NAICS and SIC?
SIC is the older system, largely retired in federal use. NAICS replaced it and is what federal contracting runs on.
Related
Find your NAICS codes · Look up a company's codes · What counts as small · Browse open solicitations