NAICS codes classify businesses by industry and help government agencies identify qualified vendors, assign solicitations, determine SBA size standards, and match firms with relevant government bid opportunities. This guide explains how NAICS codes work, how to select primary and secondary codes, how size standards are applied, and how vendors can use NAICS classifications to improve bid matching and procurement visibility.
NAICS (North American Industry Classification System) codes are standardized industry classification codes used by federal, state, and local government agencies to identify the types of products and services businesses provide. Government buyers use NAICS codes to classify solicitations and identify qualified vendors.
NAICS codes help government agencies identify vendors, determine small business eligibility, assign industry classifications to solicitations, and match businesses with relevant contract opportunities.
Choose the code that best represents the activity generating the largest portion of your revenue. Additional codes can be added for secondary services and products your company provides.
A primary NAICS code represents your main business activity. Secondary NAICS codes describe additional products, services, or capabilities offered by your company.
Yes. Most businesses maintain one primary NAICS code and multiple secondary NAICS codes to accurately represent their full range of services.
There is no required number. Businesses should use enough NAICS codes to accurately represent their services without adding unrelated industries.
Yes. Incorrect or incomplete NAICS codes can reduce bid matching accuracy and may cause your business to miss relevant government contract opportunities.
No. NAICS codes classify industries, while keywords describe specific products, services, materials, technologies, brands, or project types. Vendors should use both when searching for opportunities.
NAICS (North American Industry Classification System) codes classify businesses based on the products or services they provide. PSC (Product Service Code), also known as FSC (Federal Supply Classification), classifies the specific products or services being purchased by government agencies. Many government solicitations include both NAICS and PSC/FSC codes to help vendors identify relevant opportunities.
In many cases yes, provided your business can perform the work and meets any applicable size standards. However, vendors should review their profile regularly and add relevant NAICS codes when appropriate.
Yes. The SBA establishes size standards for each NAICS code. Depending on the industry, size standards may be based on annual revenue or number of employees.
SBA size standards determine whether a company qualifies as a small business for a specific NAICS code. A business may qualify as small under one NAICS code but not another.
Yes. Agencies assign NAICS codes based on the principal purpose of the solicitation. Vendors may pursue opportunities outside their primary NAICS code if they can perform the required work and meet the applicable requirements.
Yes. Capability statements should include primary and key secondary NAICS codes to help contracting officers and prime contractors quickly understand your industry qualifications.
Yes. NAICS codes can improve bid matching accuracy, especially when combined with industry keywords, target agencies, categories, and geographic regions.
Businesses should review their codes at least annually or whenever they add new services, enter new markets, update vendor profiles, or notice poor bid matching results.
Examples include 236220 (Commercial Construction), 541330 (Engineering Services), 541511 (Custom Computer Programming), 541512 (Systems Design), and 561720 (Janitorial Services).
Construction companies often use codes for commercial construction, specialty trades, electrical work, painting, roofing, utilities, and infrastructure projects depending on the services they provide.
IT companies commonly use codes related to software development, systems integration, cybersecurity, cloud services, data processing, and technical consulting.
GovCB allows vendors to combine NAICS codes with keywords, agencies, categories, and geographic filters to identify relevant government bids, RFPs, RFQs, IFBs, contract histories, and procurement opportunities.
Businesses can search the official NAICS code directory, review tax records, examine existing SAM.gov registrations, or identify the code that best represents the activity generating the largest portion of company revenue.
Both can be useful. NAICS codes help identify opportunities based on your industry, while PSC/FSC codes help locate bids for specific products and services. GovCB allows vendors to search government bid opportunities using keywords, NAICS codes, FSC categories, agencies, locations, and other filters to help identify relevant opportunities.
To continue preparing your business for government bid opportunities, explore our other technical step-by-step FAQs:
• SBA Certifications • SAM.gov Registration • Capability Statements • Bid Awards & Contract History