NAICS Code

A NAICS code is a 6-digit number from the North American Industry Classification System that identifies what industry a business operates in. The federal government uses it to classify both contractors and the contracts they pursue.

What is NAICS Code?

NAICS stands for North American Industry Classification System. Each code is six digits long, and the digits get more specific as you read from left to right. The first two digits name the broad sector (for example, 54 covers Professional Services), and the remaining digits narrow it down to a single industry. For instance, 541512 is Computer Systems Design Services and 541330 is Engineering Services.

When an agency posts an opportunity, it assigns a NAICS code that describes the kind of work being bought. When a company registers to do business with the government, it lists the NAICS codes that match what it does. Matching the two is how contractors and contracts find each other. The system is also tiered for searching: you can filter by a 2-digit sector, a 4-digit group, or a full 6-digit code, depending on how broad or narrow you want your view to be.

Why NAICS matters for government contractors

Your NAICS code controls which opportunities you can realistically win. It is part of your SAM.gov registration, it determines your small business size standard, and agencies use it to filter who is eligible for a given solicitation. The Small Business Administration sets a size limit for each code (for NAICS 541512, the limit is $34M in annual revenue), so the code you fall under decides whether you count as a small business and whether you qualify for programs like the 8(a) program. For a deeper walkthrough, see our guide on NAICS codes explained.

Example

A software firm registers under NAICS 541512, Computer Systems Design Services. Because that is one of the largest federal markets (Computer Systems Design Services grew from $23.1B in FY2020 to $33.4B in FY2024), the firm can search every open opportunity tagged 541512, see which agencies buy the most, and confirm it stays under the $34M size standard to keep its small business status.

Frequently Asked Questions

How many digits is a NAICS code?

A full NAICS code is six digits. The first two digits identify the sector, and each additional digit makes the classification more specific until the final six digits point to one industry. You can also search at the 2-digit or 4-digit level when you want a broader view.

What is the difference between a NAICS code and a PSC code?

A NAICS code classifies the contractor's industry, while a PSC (Product and Service Code) describes what was actually purchased. A company under NAICS 541512 (Computer Systems Design) might deliver work under PSC D318 (IT integrated solutions). They answer two different questions, so federal data uses both.

Does my NAICS code affect my small business status?

Yes. The Small Business Administration sets a size standard for each NAICS code, usually a revenue or employee limit. For NAICS 541512, a business under $34M in annual revenue counts as small. Falling under the right code can make you eligible for set-aside opportunities and certifications.

Where do I set my NAICS codes?

You list your NAICS codes during your SAM.gov registration as part of your company profile. Agencies read these codes to decide which solicitations you are eligible for, so keeping them accurate and complete is important.

Can a contract have more than one NAICS code relevance?

An individual contract is assigned a single primary NAICS code that best fits the work. A contractor, however, can register under many NAICS codes, and a broad contract vehicle such as a GSA Schedule may span multiple NAICS codes and functional areas.