NAICS Code

The North American Industry Classification System (NAICS) code is a six-digit numerical code that classifies businesses by their primary type of economic activity. Developed jointly by the United States, Canada, and Mexico, NAICS codes are used extensively in federal procurement to categorize contract opportunities.

Every federal contract opportunity is assigned a NAICS code, which determines the small business size standard for that procurement. The size standard defines whether a company qualifies as a small business for that specific contract, affecting eligibility for set-aside opportunities.

Businesses should identify all NAICS codes relevant to their capabilities and register them in the System for Award Management (SAM). Having the correct NAICS codes is essential for finding relevant opportunities and qualifying for small business programs.