Navigating the NAICS Codes: Your Guide to Industry Classification for Federal Contracts

Keywords: NAICS codes, industry classification, SAM registration, government contracts, UEI

Understanding and correctly identifying your NAICS codes is a critical step in positioning your business for federal contracting opportunities. In our comprehensive guide on getting your business procurement ready, we briefly touched on NAICS codes. 

Today, we’ll explore them in depth to help you align your business with the right federal opportunities.

What are NAICS Codes?

The North American In

dustry Classification System (NAICS) is a standardized system used by federal statistical agencies to classify businesses based on the type of economic activity. Each NAICS code consists of six digits that define a specific industry.

Why NAICS Codes Matter in Federal Procurement

• Identifying Opportunities: Federal agencies use NAICS codes to categorize solicitations and find potential contractors.

• Determining Size Standards: The Small Business Administration (SBA) uses NAICS codes to set size standards for small business eligibility.

• Compliance and Reporting: Accurate NAICS codes ensure compliance with reporting requirements.

How to Find and Select Your NAICS Codes

1. Assess Your Products and Services: List all the goods and services your business offers.

2. Use the NAICS Search Tool: Visit the U.S. Census Bureau’s NAICS website to search for relevant codes.

3. Select Multiple Codes if Necessary: If your business operates in multiple industries, you can select more than one NAICS code.

4. Update Your SAM Registration: Ensure your selected NAICS codes are included in your SAM registration.

Tips for Effective NAICS Code Selection

• Be Specific: Choose codes that most accurately reflect your primary business activities.

• Consult Industry Guides: Use industry-specific guides or consult with a procurement advisor (if you need support here, you can contact us here).

• Monitor Changes: NAICS codes are updated every five years. Stay informed about any changes that may affect your classification.

Further Reading:

• Unveiling the Secrets of SAM Registration

• Demystifying Federal Procurement: Unlocking Government Contract Opportunities

For a complete roadmap on preparing your business for federal contracts, revisit our original guide on getting your business procurement ready.