STEP 5
SELECT YOUR INDUSTRY NAICS CODES

New to federal government contracting you should understand and choose your Industry NAICS Codes that identify your business.  By selecting the correct naics code allow the federal governmental agencies to identify what type of products or services you can provide to them.

The most important things in federal government contracting are knowing your industry code(s).

What Is a NAICS Code?

NAICS stands for North American Industry Classification System. NAICS codes are used to classify businesses according to the type of economic activity they perform.

A NAICS code is generally a six-digit code.

For example:

  • 541611 — Administrative Management and General Management Consulting Services
  • 541512 — Computer Systems Design Services
  • 561210 — Facilities Support Services
  • 236220 — Commercial and Institutional Building Construction
  • 484110 — General Freight Trucking, Local

A business can have more than one NAICS code if it legitimately provides multiple types of products or services.

YOUR INDUSTRY NAICS CODES 

Why Choosing Your Industry NAICS Codes Matter in Federal Contracting?

NAICS codes can affect several parts of the federal contracting process, including:

  • Finding contract opportunities
  • Determining whether a solicitation applies to your business
  • Identifying your business's industry
  • Determining applicable small-business size standards
  • Researching federal spending in your industry
  • Researching competitors
  • Finding potential subcontracting opportunities
  • Understanding agency purchasing patterns
  • Evaluating whether your business qualifies for certain solicitations

One of the biggest mistakes beginners make is treating a NAICS code as simply a number they need to enter into SAM.gov. The code should accurately describe the business activity that you intend to perform.

Your Primary vs. Additional NAICS Codes

When it comes to identifying and selecting your NAICS code you should distinguish between your primary business and additional business activities you perform.

For example, suppose a company provides:

  • Janitorial services
  • Building maintenance
  • Landscaping

Those activities may fall under different NAICS codes. Your company should research for the appropriate classification code for each service rather than selecting one code simply because it appears frequently in solicitations.