What Are NAICS Codes and Why They Matter
The North American Industry Classification System (NAICS) is the standard used by federal statistical agencies to classify business establishments. In government contracting, NAICS codes serve a dual purpose: they categorize the type of work being procured, and they determine the small business size standard that applies to a given contract.
Every federal contract is assigned a NAICS code by the contracting officer. To bid on that contract as a small business, your company must be 'small' under the size standard associated with that NAICS code. Size standards vary by industry and are measured either by annual revenue (typically $8 million to $47 million) or number of employees (typically 100 to 1,500).
Choosing the right NAICS codes for your SAM.gov registration is critical. Your primary NAICS code determines your default size standard, and the codes you list affect which contract opportunities you'll find when searching. You can list multiple NAICS codes, but each should genuinely represent work your company performs.