Module 4 ยท Video Module Overview

Watch Before You Read

This video walks through the core concepts for this module. Watch it first, then use the slides below to go deeper.

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Module 4 ยท Slide 1 of 9 Foundation ⏱ ~60 min

Wrong code. Nine months. Zero relevant opportunities.

A San Antonio cybersecurity firm registered using NAICS code 541519 ("Other Computer Related Services") because it sounded general enough to cover everything.

โš  What happened

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:

  • Vendor searches: COs search by NAICS code. Wrong code = invisible, no matter how qualified you are
  • Set-aside designations: Your codes determine which set-asides you can compete on
  • Size standards: Each code has a revenue or employee threshold defining "small business" โ€” this changes your eligibility
Module 4 ยท Slide 2 of 9 Foundation

How to find the right codes โ€” work backward from real contracts.

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.

  1. 1Go to usaspending.gov and search for work similar to yours using descriptive keywords for the specific tasks your business performs โ€” not industry categories.
  2. 2Find 5โ€“10 recent contract awards for work that closely matches what your business delivers.
  3. 3Record the NAICS code listed on each award. You'll see a pattern โ€” a few codes appear repeatedly for the type of work you're researching.
  4. 4Cross-reference with census.gov/naics to confirm the description genuinely matches your work.
  5. 5Check your size standard for each code at sba.gov. Confirm you qualify as small under each one you plan to use.
๐Ÿ’ก Why this method works

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.

๐Ÿค–
Ask AlexYour AI coach โ€” click any prompt to open the chat

Not sure which codes apply to your specific business? Alex can walk you through the research for your industry right now.

"What NAICS codes should I use for my [type of business] that does [main service] โ€” give me the top 3 with size standards"
"I'm registered under NAICS [your code] โ€” is that the best code for getting found by Texas state agencies buying [service type]?"
Module 4 ยท Slide 3 of 9 Foundation

Common NAICS codes for Texas small businesses.

High-volume codes in Texas state and local government contracting. Use as a starting reference โ€” verify through USASpending research for your specific services.

NAICSDescriptionSize Standard
541511Custom Computer Programming Services$34M revenue
541512Computer Systems Design Services$34M revenue
541611Administrative Management Consulting$19.5M revenue
236220Commercial and Institutional Building Construction$45M revenue
238990All Other Specialty Trade Contractors$19.5M revenue
561720Janitorial Services$25M revenue
561320Temporary Staffing Agencies$41.5M revenue
611430Professional and Management Development Training$12M revenue
โš  Size standards vary dramatically

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.

Module 4 ยท Slide 4 of 9 Foundation

Primary code, additional codes โ€” and why less is more.

sam.gov has one primary NAICS code plus room for additional codes. The practical rule: list 2โ€“5 codes total.

Primary NAICS Code

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.

Additional Codes (2โ€“4 max)

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.

โœ… Update your codes annually

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.

Module 4 ยท Slide 5 of 9 Foundation

PSC Codes โ€” the other classification system you need to know.

NAICS codes describe what your business does. PSC codes describe what the government is buying. Every solicitation has a PSC code.

What PSC Codes Are

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.

Why They Matter to You

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.

๐Ÿ“‹ How to find the right PSC codes

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.

Module 4 ยท Slide 6 of 9 Foundation

Key Terms โ€” Module 4

TermDefinition
NAICS Code6-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 CodeProduct 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 StandardRevenue 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 CodeThe single code that best represents the majority of your government contracting work; appears first in sam.gov searches
usaspending.govFederal database of every government contract award โ€” best source for finding what NAICS codes COs actually use when buying work like yours
Module 4 · Slide 7 of 9 Decision Point

Decision Point

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.

Module 4 · Slide 8 of 9 Knowledge Check

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.

1. What does 'size standard' mean in the context of a NAICS code?
2. Is there a maximum number of NAICS codes you can list in your SAM.gov registration?
Module 4 ยท Slide 9 of 9 Foundation

Complete these before moving to Module 5.

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.

  • โœ“Used usaspending.gov to find 5 real contract awards for work similar to yours โ€” recorded their NAICS codes
  • โœ“Verified your primary NAICS code against census.gov/naics โ€” description genuinely matches your core work
  • โœ“Checked your SBA size standard for each NAICS code you plan to use โ€” confirmed you qualify as small
  • โœ“Updated NAICS codes in sam.gov if the original entries were inaccurate
  • โœ“Identified 3โ€“5 PSC codes for your target work type by reviewing actual solicitations
๐Ÿ”
BidWatchHQ Tool
NAICS Check

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.

Open NAICS Check โ†’

Codes correct. Now get certified.

Module 5: Federal Certifications โ†’
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