North American Industry Classification System(NAICS)
The standard numerical system used to classify business establishments by industry type, determining size standards and contract eligibility.
Overview
The North American Industry Classification System (NAICS) is the standard framework used by the United States, Canada, and Mexico to classify businesses by their primary economic activity. In government contracting, NAICS codes determine which size standard applies to your business, what set-aside programs you qualify for, and which contract opportunities match your capabilities.
Why It Matters in GovCon
Every government solicitation is assigned a NAICS code. That code determines whether you qualify as a "small business" for that particular procurement — because size standards vary by industry. Choosing the right primary NAICS code and understanding how secondary codes affect your eligibility is foundational to your contracting strategy.
Key Details
- Structure: Six-digit codes where the first two digits represent the economic sector, and each additional digit provides finer classification.
- Size Standards: The SBA assigns a size standard to each NAICS code — either a revenue cap (e.g., $30 million annual receipts) or an employee count (e.g., 500 employees).
- Multiple Codes: Businesses can have multiple NAICS codes but designate one as primary for SAM.gov registration.
- Solicitation Assignment: The contracting officer assigns the NAICS code that best describes the principal purpose of the procurement.
- Protests: Competitors can challenge the NAICS code assignment if they believe the wrong code was used.
How GovCon Data Can Help
GovCon Data uses your NAICS codes to automatically match you with relevant federal and SLED opportunities. The AI matching engine considers both your primary and secondary codes to surface contracts you might otherwise miss.
Related Terms
- Small Business Administration (SBA)
- Size Standard
- System for Award Management (SAM)
- Set-Aside
More Classification Terms
An international body that develops voluntary standards for quality, safety, and processes across industries.
A 13-digit numeric code used by the federal government to identify and catalog supplies and materials in a standardized way.
A four-character alphanumeric code used to classify products and services in federal contracting, enabling reporting and opportunity categorization.
A legacy U.S. government system for classifying industries by type of economic activity, largely superseded by NAICS but still used in some contexts.
The computer-to-computer exchange of business documents and data in a standardized electronic format between trading partners.
United Nations Standard Products and Services Code, a global classification system used by governments and organizations to categorize products and services.
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