What is NAICS Code?
A standardized numeric code that classifies businesses by industry sector, used by federal agencies to categorize contract opportunities.
The North American Industry Classification System (NAICS) is the standard used by federal statistical agencies to classify business establishments. In government contracting, agencies assign NAICS codes to solicitations to indicate the industry of the work being procured.
NAICS codes range from 2-digit sector codes (e.g., 54 for Professional, Scientific & Technical Services) down to 6-digit specific codes (e.g., 541512 for Computer Systems Design Services). When registering on SAM.gov, contractors select the NAICS codes that best describe their capabilities. The Small Business Administration (SBA) uses NAICS codes to set small business size standards — the revenue or employee thresholds that determine whether a firm qualifies as a small business for a given contract.
Choosing the right NAICS codes is critical: it determines which opportunities you see, which set-aside programs you qualify for, and how agencies find your firm.
Related Terms
A 4-character code that describes the type of product or service being procured in a federal contract.
SAM.govThe System for Award Management — the official U.S. government website where businesses register to bid on federal contracts and where agencies post opportunities.
Set-AsideA federal procurement restriction that limits competition for a contract to a specific category of small business.
Small Business Size StandardThe maximum revenue or employee count a firm can have and still qualify as a small business for a given NAICS code.