Your NAICS code is one of the most consequential decisions in federal contracting. The wrong code means missing contracts written specifically for your industry. It also means your size standard — the revenue or employee threshold that determines whether you qualify as a small business — may be calculated against the wrong benchmark.
What Is a NAICS Code?
The North American Industry Classification System (NAICS) is how the U.S. government classifies businesses by industry. Every solicitation posted on SAM.gov includes at least one NAICS code that tells you what kind of business the agency expects to fulfill the contract. When you register in SAM.gov, you enter your primary NAICS code and any secondary codes that describe your capabilities.
NAICS codes are 6 digits. The more digits you share with a solicitation's NAICS code, the more directly that contract applies to your business.
Step 1: Describe What You Do
Before you start searching, write out a plain-language description of your company's primary service or product. Keep it brief — one or two sentences. Avoid vague terms like "consulting" or "technology" and be specific: "custom software development for federal agencies" or "HVAC installation and maintenance for commercial buildings."
Step 2: Use the NAICS Finder Tool
BidStride's NAICS Finder lets you search by keyword and returns codes with descriptions, common agency buyers, and typical contract size ranges. Type your business description and scan the results.
Alternatively, use the Census Bureau's official NAICS search at census.gov/naics. It is comprehensive but less tailored to government contracting contexts.
Step 3: Read the Full Code Description
Do not just look at the title. The NAICS manual includes detailed descriptions and examples of what falls under each code — and explicit notes about what is excluded. A common error: picking a code that sounds right based on the title but actually excludes your specific work type.
For example, NAICS 541511 (Custom Computer Programming Services) is for companies developing software to client specifications. NAICS 541512 (Computer Systems Design Services) includes broader IT consulting and systems integration. Many IT companies need both.
Step 4: Check the Size Standard
Each NAICS code has a small business size standard set by SBA. For most service businesses it is a revenue threshold (e.g., $30 million or $40 million in average annual receipts). For manufacturing it is typically an employee count (500 or 1,500 employees).
You must qualify as small under the size standard for the primary NAICS code of each contract you bid. If your revenue is approaching the threshold, pay attention — you could age out of small business eligibility in a specific code.
Step 5: Look at Who Actually Wins Contracts in That Code
Search USASpending.gov for recent awards in your target NAICS codes. See what agencies are awarding, what the typical contract sizes are, and whether small businesses are winning. This takes 15 minutes and tells you whether the code is competitive for companies like yours.
Common Mistakes
Picking only one NAICS code. Most businesses can legitimately claim 3–8 NAICS codes. Registering only one means missing all the solicitations tied to your other capabilities.
Using your primary code for everything. When a solicitation's NAICS code is not your primary code, double-check that your size standard under that secondary code still qualifies you as small. Size standards vary significantly across codes.
Not updating after pivoting. If your business focus has shifted, update your SAM.gov NAICS codes. You can change your primary and secondary codes at any time during your annual renewal.