NAICS Codes Explained: A Guide for Government Contractors

If you're pursuing government contracts, you've probably encountered NAICS codes. These six-digit numbers might seem like bureaucratic overhead, but they're actually the key to getting found by contracting officers and receiving relevant bid opportunities.

What Are NAICS Codes?

NAICS stands for North American Industry Classification System. It's a standardized system used by the U.S., Canada, and Mexico to classify businesses by their primary activity. The federal government uses NAICS codes to:

• Categorize every contract opportunity
• Determine small business size standards
• Track spending by industry
• Set aside contracts for specific business types

How NAICS Codes Are Structured

NAICS codes follow a hierarchical structure:

• 2 digits - Sector (e.g., 54 = Professional Services)
• 3 digits - Subsector (e.g., 541 = Professional, Scientific, Technical Services)
• 4 digits - Industry Group (e.g., 5415 = Computer Systems Design)
• 5 digits - Industry (e.g., 54151 = Computer Systems Design and Related Services)
• 6 digits - National Industry (e.g., 541512 = Computer Systems Design Services)

Common NAICS Codes for Government Contractors

IT and Technology

• 541512 - Computer Systems Design Services
• 541511 - Custom Computer Programming Services
• 541519 - Other Computer Related Services
• 518210 - Data Processing and Hosting Services

Construction

• 236220 - Commercial Building Construction
• 237310 - Highway, Street, and Bridge Construction
• 238210 - Electrical Contractors
• 238220 - Plumbing and HVAC Contractors

Professional Services

• 541611 - Administrative Management Consulting
• 541612 - Human Resources Consulting
• 541330 - Engineering Services
• 541620 - Environmental Consulting

How to Choose the Right NAICS Codes

1. Identify your primary business activity - What generates most of your revenue?
2. Research the NAICS manual - Use the official Census Bureau lookup tool
3. Check competitor codes - See what similar companies use on SAM.gov
4. Consider size standards - Each NAICS has different thresholds for "small business"
5. Register multiple codes - Most businesses qualify under several codes

Why NAICS Codes Matter for Alerts

When you set up bid alerts, your NAICS codes determine which opportunities you see. If you're registered under 541512 (Computer Systems Design), you'll receive alerts for IT contracts - but might miss opportunities posted under 541511 (Custom Programming) or 541519 (Other Computer Services).

That's why ProcurePing lets you configure multiple NAICS codes and uses intelligent matching to catch related opportunities. Set up your alert feed with all your relevant codes.