This video walks through the core concepts for this module. Watch it first, then use the slides below to go deeper.
A San Antonio cybersecurity firm registered using NAICS code 541519 ("Other Computer Related Services") because it sounded general enough to cover everything.
They never appeared in agency searches for cybersecurity work. The correct codes โ 541512 (Computer Systems Design) or 541690 (Technical Consulting) โ were what contracting officers were actually searching. Nine months in the system. Zero targeted opportunities. One code change fixed it.Don't pick codes that sound right. Find the codes contracting officers are actually using.
NAICS codes โ North American Industry Classification System โ are 6-digit numbers that classify your business by what it does. The federal government uses them for three purposes that directly affect you:
Most businesses pick NAICS codes by going to the census.gov lookup and finding something that sounds like their business. This is the wrong approach.
The codes you find through actual awards are the codes contracting officers use when they buy work like yours. That's the only list that matters.
Not sure which codes apply to your specific business? Alex can walk you through the research for your industry right now.
High-volume codes in Texas state and local government contracting. Use as a starting reference โ verify through USASpending research for your specific services.
| NAICS | Description | Size Standard |
|---|---|---|
| 541511 | Custom Computer Programming Services | $34M revenue |
| 541512 | Computer Systems Design Services | $34M revenue |
| 541611 | Administrative Management Consulting | $19.5M revenue |
| 236220 | Commercial and Institutional Building Construction | $45M revenue |
| 238990 | All Other Specialty Trade Contractors | $19.5M revenue |
| 561720 | Janitorial Services | $25M revenue |
| 561320 | Temporary Staffing Agencies | $41.5M revenue |
| 611430 | Professional and Management Development Training | $12M revenue |
A business with $18M in revenue is "small" under NAICS 541511 ($34M limit) butnotsmall under NAICS 611430 ($12M limit). Verify size standards for every code you plan to use. Incorrectly self-certifying as small is a federal violation.
sam.gov has one primary NAICS code plus room for additional codes. The practical rule: list 2โ5 codes total.
The code that best represents the majority of your government contracting work. This is the code that appears first in searches and on your sam.gov profile. Choose it based on where most of your contract revenue comes from.
Only list codes for services you've genuinely done before and can prove experience in. More than five looks unfocused. Listing codes you have no experience in will hurt you when a CO asks for relevant past performance.
Your NAICS codes aren't permanent. As your business evolves, update them insam.govโ no waiting period, no fee. Revisit codes at least once a year during your annual renewal. A business that updates codes annually is more visible than one that set them in year one and never looked again.
NAICS codes describe what your business does. PSC codes describe what the government is buying. Every solicitation has a PSC code.
Product Service Codes โ describe the government's purchase (the contract scope), not your business. Every solicitation and every award record on sam.gov has one. Contracting officers use them when posting solicitations and searching for vendors.
Your capability statement and sam.gov vendor profile should include the PSC codes for the work you pursue. When a CO runs a market research search using PSC codes, having those codes on your profile increases your visibility.
Look at 10 solicitations in your target agency and target work type. Note the PSC codes they use. Those are the codes to include in your profile and capability statement. The full PSC code list is atacquisition.gov/PSC_Manual.
| Term | Definition |
|---|---|
| NAICS Code | 6-digit North American Industry Classification System number that classifies your business by activity โ used by COs to search for vendors and designate set-asides |
| PSC Code | Product Service Code โ describes what the government is purchasing on a specific contract; every solicitation has one; include relevant PSC codes on your capability statement |
| Size Standard | Revenue or employee count threshold that defines "small business" for each NAICS code; set by the SBA; varies significantly by code; determines set-aside eligibility |
| Primary NAICS Code | The single code that best represents the majority of your government contracting work; appears first in sam.gov searches |
| usaspending.gov | Federal database of every government contract award โ best source for finding what NAICS codes COs actually use when buying work like yours |
A real scenario from the field. No answer permanently locks you out โ but the consequences below are real. Choose one, then see what unfolds.
Your IT firm does software development and IT consulting. The RFP you want to bid uses NAICS 541512 (Computer Systems Design Services) as the primary code. Your SAM.gov registration only has 541519 (Other Computer Related Services). You think they're close enough.
Make a choice above, then continue to the knowledge check.
Two quick questions to lock in what you just learned. Click any answer โ right or wrong, you'll see the full explanation. The goal is retrieval, not a grade.
Module 5 covers federal small business certifications โ SDVOSB, WOSB, HUBZone, 8(a) โ and which ones your business should pursue based on your situation.
Paste any NAICS code and instantly see if it's correct for your business type, what the size standard is, and which active opportunities match that code in your state.