The North American Industry Classification System (NAICS) codes help government agencies and contractors identify eligible businesses for procurement opportunities. Understanding how to classify your business with the right NAICS code can boost your chances of securing federal contracts and growing your business.
What Are NAICS Codes?
Definition and Purpose
NAICS codes are standardized six-digit codes used by federal agencies to classify businesses by industry type. These codes help determine eligibility for government contracts, set-aside programs, and reporting requirements.
Who Uses NAICS Codes?
- Federal procurement officers
- Small Business Administration (SBA)
- Businesses applying for government contracts
- Industry analysts and economic researchers
How to Find the Right NAICS Code for Your Business
Step 1: Visit the NAICS Website
Use the official NAICS website (https://www.census.gov/naics) to search for your industry classification.
Step 2: Identify Your Primary Business Activity
Choose the NAICS code that best represents your main products or services.
Step 3: Verify With SBA Guidelines
The Small Business Administration (SBA) assigns size standards based on NAICS codes to determine eligibility for small business programs.
Step 4: Register in SAM.gov
Registering your business in the System for Award Management (SAM.gov) with the correct NAICS code is essential for bidding on federal contracts.
Why NAICS Codes Matter for Federal Contracting
Eligibility for Small Business Set-Asides
Certain contracts are reserved for small businesses that meet SBA size standards under specific NAICS codes.
Industry-Specific Opportunities
Agencies use NAICS codes to match businesses with relevant procurement needs.
Competitive Advantage
Proper classification can help businesses qualify for targeted government contracts and funding opportunities.
Common Challenges in Choosing NAICS Codes
Multiple Business Activities
Some businesses offer diverse products or services that may fall under different NAICS codes.
Changing Industry Standards
NAICS codes are periodically updated, so businesses must ensure they are using the most current classification.
Understanding SBA Size Standards
Each NAICS code has specific revenue or employee-based thresholds to qualify as a small business.
How to Optimize Your NAICS Code for Federal Contracts
Research Your Industry’s Federal Spending Trends
Analyze which NAICS codes receive the most government spending to align your classification strategically.
List Secondary NAICS Codes
Businesses can register under multiple NAICS codes to reflect all their capabilities and increase contract opportunities.
Work with a Government Contracting Consultant
Experts can help ensure your business is classified correctly to maximize contracting opportunities. Visit us for more details.
FAQs About NAICS Codes for Federal Contracts
- Can a business have more than one NAICS code? Yes, businesses can register multiple NAICS codes to reflect various services or products they offer.
- How often are NAICS codes updated? NAICS codes are reviewed and updated every five years to reflect changes in industries and economic trends.
- Do I need to update my NAICS code if my business grows? If your business expands into new services, updating your NAICS code ensures proper classification for contracts.
- How does my NAICS code affect SBA certifications? Your NAICS code determines your eligibility for SBA programs like 8(a), HUBZone, and WOSB.
- Where can I check my NAICS code? Visit the NAICS website or check your business registration details on SAM.gov.
Get a Free Consultation to Optimize Your NAICS Code
Choosing the correct NAICS code can mean the difference between missed opportunities and winning government contracts. A free consultation can help you:
- Identify the most strategic NAICS codes for your business
- Ensure compliance with SBA size standards
- Improve your federal contracting success rate
Get expert guidance today—book your free consultation and position your business for government contracting success.
Conclusion
Properly classifying your business with the right NAICS code is essential for accessing federal contracts. By understanding how to select and optimize your NAICS code, you can increase your chances of winning government opportunities. Take the first step by booking a free consultation to refine your classification and maximize your success.
