Federal contractors must strategically select NAICS codes that accurately reflect their business activities and revenue sources. Technology providers typically use 511210, 541519, or 541511, while construction companies focus on codes within NAICS 23. Businesses should identify primary codes based on highest revenue and add secondary codes for expanded capabilities. Proper classification increases visibility to government buyers, prevents disqualification from set-asides, and aligns with federal priorities. The following sections offer deeper insights into industry-specific selection strategies.
Common NAICS Codes for Technology and IT Service Providers
Federal contract navigation requires understanding the North American Industry Classification System (NAICS) codes that align with technology and IT services. The highest federal IT spending in FY24 flows through five primary NAICS codes: 511210 (Software Publishers) leading with $7.26B, followed by 541519 (Other Computer Related Services) at $7.1B, and 541511 (Custom Computer Programming) with $6.4B.
Supporting technology providers should consider additional classifications like 541513 (Computer Facilities Management) and 517911 (Telecommunications Resellers) for specialized service offerings. Contractors can use the NAICS to SIC Crosswalk for translating between classification systems when working with agencies that reference legacy codes. These codes are particularly important as the Department of Government Efficiency is focusing on technology modernization across agencies. The standardized framework provided by NAICS codes helps businesses accurately align with their industries to improve eligibility for government contracts.
Growth trends indicate substantial increases, with Software Publishers showing a remarkable 130% spending increase since FY21. Federal contracts increasingly favor systems design (541512), which experienced 62% growth, making these NAICS codes essential for technology contractors seeking government opportunities.
Strategic Selection of NAICS Codes for Construction and Infrastructure Contracts
Maneuvering construction and infrastructure contract opportunities requires precise NAICS code selection to confirm bid eligibility and competitive positioning.
Construction firms must ascertain project alignment between their capabilities and the appropriate six-digit NAICS code, as federal procurement systems automatically filter bids based on these designations.
The construction sector primarily falls under NAICS 23, with key subcategories including residential building (2361), commercial/institutional (2362), heavy civil engineering (237), and specialty trades (238).
Each subcategory contains specific codes that define workforce capabilities and project scope—for example, NAICS 236220 covers commercial buildings while 238120 applies to concrete foundation contractors.
Companies should select codes that reflect over 50% of their historical contract earnings and align with their certified capabilities to avoid disqualification from set-aside programs. Industry leaders like DR Horton Inc and Lennar Corporation have mastered NAICS classification strategy to maintain competitive advantages in federal contracting. Understanding industry classifications is crucial for contractors seeking to position themselves effectively in areas of high government procurement demand. Contractors can utilize the SIC to NAICS Crosswalk for accurate conversion of legacy classification codes when dealing with older project references or government documentation.
Best Practices for Leveraging Multiple NAICS Codes to Expand Bidding Opportunities
Strategically selecting multiple NAICS codes enables contractors to markedly expand their federal bidding opportunities across diverse contract types.
Businesses should identify their primary code based on highest revenue while adding secondary codes that accurately reflect additional capabilities for NAICS code optimization.
Successful multi-industry bidding requires thorough compliance verification, as each NAICS carries specific size standards that must be met.
Companies should analyze FPDS-NG data to identify commonly paired codes in their target agencies and align secondary codes with federal priorities like cybersecurity or clean energy.
Contractors should target IDIQ vehicles with multiple SINs, which often accommodate complementary services under different codes.
Always document NAICS rationale in proposals to prevent status protests, and consider strategic partnerships to address requirements outside primary expertise.
Nonprofit organizations should utilize expert consultation when selecting NAICS codes to ensure proper classification of their programs and increase eligibility for government funding.
The five-year review cycle of NAICS codes requires businesses to stay informed about updates to ensure their classifications remain current and competitive in the federal marketplace.
Maintaining active SAM registration is essential for businesses pursuing opportunities across multiple NAICS codes, as this central database makes your company visible to government purchasing officials.
Frequently Asked Questions
How Often Are NAICS Codes Updated or Revised?
NAICS code updates occur every five years, with the most recent NAICS classification revisions implemented in 2022. The next scheduled review of the North American Industry Classification System is planned for 2027.
Can a Business Appeal if Assigned an Incorrect NAICS Code?
Yes, businesses can challenge incorrect NAICS codes through SBA’s Office of Hearings and Appeals. The NAICS code appeal process must be initiated within 10 days of solicitation issuance. Incorrect NAICS implications affect size standard eligibility.
What Penalties Exist for Misrepresenting Your NAICS Classification?
Misrepresentation penalties for NAICS classification include criminal charges, imprisonment up to 5 years, substantial fines, presumed financial loss recovery, False Claims Act violations, loss of certification, and damaged reputation. Classification consequences can severely impact future contracting opportunities.
How Do International Companies Determine Appropriate NAICS Codes?
International companies determine NAICS codes using the same self-classification methods as domestic firms, following international classification methods based on primary revenue-generating activities. Code determination strategies remain consistent regardless of company origin.
Can Subcontractors Use Different NAICS Codes Than Prime Contractors?
Subcontractors typically must align with prime contractor requirements regarding NAICS codes. Different subcontractor classifications are generally not permitted unless the work is clearly segmented and complies with federal subcontracting limitations for the primary contract’s industry.