Understanding NAICS Codes: How to Find Your Code for Government Contracts

If you are pursuing government contracts, NAICS codes are one of the first things you need to understand. They determine which contracts you are eligible to bid on, whether your company qualifies as a "small business" for a given solicitation, and how agencies find vendors like you.

What Are NAICS Codes?

NAICS stands for North American Industry Classification System. It is a standardized system used by the US, Canada, and Mexico to classify businesses by their primary type of economic activity.

Each NAICS code is a six-digit number. The first two digits identify the broad economic sector. Each additional digit narrows the classification:

54 = Professional, Scientific, and Technical Services
541 = Professional, Scientific, and Technical Services (subsector)
5415 = Computer Systems Design and Related Services
54151 = Computer Systems Design and Related Services (industry)
541511 = Custom Computer Programming Services

The government assigns a NAICS code to every contract solicitation. Your business must operate in the industry described by that code to be eligible.

Why NAICS Codes Matter for Government Contracting

Eligibility

Contracting officers assign a NAICS code to each solicitation based on the principal purpose of the work. If your company does not perform work in that NAICS category, you should not bid.

Size Standards

Each NAICS code has an associated size standard that determines whether your business qualifies as "small." Size standards are based on either annual revenue or number of employees, and they vary significantly by industry.

For example:

541511 (Computer Programming) = $34 million in annual receipts
236220 (Commercial Building Construction) = $45 million in annual receipts
561210 (Facilities Support Services) = $47 million in annual receipts
334111 (Computer Manufacturing) = 1,250 employees

If your annual revenue or employee count exceeds the size standard for a given NAICS code, you do not qualify as a small business for contracts under that code, even if you qualify under a different code.

SAM.gov Registration

When you register in SAM.gov, you list your NAICS codes. Agencies use these codes to search for qualified vendors. Listing the right codes makes you findable. Listing wrong or irrelevant codes wastes everyone's time.

How to Find Your NAICS Codes

Method 1: Census Bureau Lookup

The Census Bureau NAICS search lets you search by keyword. Type in what your business does and review the matching codes. Read the full description for each code to make sure it accurately describes your work.

Method 2: Study Past Awards

Search for contracts similar to the work you perform on GovContractData. Look at the NAICS codes assigned to those awards. This shows you which codes agencies actually use when buying services like yours, which may differ from what you would guess.

Method 3: Check Your Competitors

Look up companies you compete with in SAM.gov. See which NAICS codes they have listed. This gives you a practical view of how similar businesses classify themselves.

Method 4: Ask a PTAC

Procurement Technical Assistance Centers provide free counseling to businesses pursuing government contracts. A PTAC counselor can help you identify the right NAICS codes for your business.

How Many NAICS Codes Should You List?

Most businesses list between two and five codes. Choose codes that accurately describe the work you perform today. Do not list codes for work you hope to do someday but have no experience in. Agencies will check your past performance against the NAICS code on a solicitation.

Your primary NAICS code should be the one that generates the most revenue for your business. This is the code you will be judged against for size standard purposes in most situations.

Common NAICS Code Mistakes

Choosing codes that are too broad. A two-digit code like "54" is never used on solicitations. You need the full six digits.
Listing codes for aspirational work. If you have never performed cybersecurity services, do not list NAICS 541512 just because you want to.
Ignoring size standard implications. You might qualify as small under one NAICS code but not another. Understand the size standard for each code you list.
Using outdated codes. NAICS codes are updated every five years. Make sure you are using the current version.

NAICS Codes and Contract Research

Understanding NAICS codes unlocks powerful contract research. On GovContractData, you can filter contract awards by NAICS code to see:

Total federal spending in your industry
Which agencies award the most contracts in your NAICS codes
Who the top contractors are in each category
Average award sizes by NAICS code
Geographic distribution of awards

Browse awards by specific NAICS codes like 541511 (Computer Programming) or 236220 (Commercial Construction) to see the competitive landscape in your industry.

For programmatic access to NAICS-filtered contract data, explore our API plans.