Every government contract lists a NAICS code. Every SAM.gov registration requires one. And the code you pick determines whether the government considers your business “small” or not.
NAICS codes are the classification system the federal government uses to sort businesses by industry. Pick the wrong code, and you could lose your small business status. Pick the right one, and you unlock set-aside contracts reserved just for companies your size.
This guide explains what NAICS codes are, how to find yours, and how to use them to compete for government contracts. No jargon. No fluff. Just the steps you need.
What You’ll Learn
- What NAICS codes are and why they matter
- How to look up the right codes for your business
- The difference between primary and secondary NAICS codes
- How SBA size standards connect to your NAICS code
- Common mistakes that cost businesses contracts
- A table of popular NAICS codes for GovCon industries
What Is a NAICS Code?
NAICS stands for North American Industry Classification System. It is a set of 6-digit codes that classify every business in the United States, Canada, and Mexico by the type of work they do.
The U.S. Census Bureau maintains NAICS codes. The current version is the 2022 revision, and the next update is expected in 2027. There are 1,012 individual NAICS codes spread across 20 industry sectors.
Think of a NAICS code as a label. It tells anyone looking at your business: “This company does this type of work.” The government uses these labels to organize contracts, track spending, and determine which businesses qualify as small.
How the 6 Digits Work
Each digit adds specificity. Here is an example using IT consulting:
| Digits | Code | What It Represents |
|---|---|---|
| First 2 | 54 | Professional, Scientific, and Technical Services (sector) |
| First 3 | 541 | Professional, Scientific, and Technical Services (subsector) |
| First 4 | 5415 | Computer Systems Design and Related Services (industry group) |
| First 5 | 54151 | Computer Systems Design and Related Services (industry) |
| All 6 | 541512 | Computer Systems Design Services (U.S. industry) |
The first two digits identify the broad sector. Each additional digit narrows it down. By the time you reach all six, you have a specific industry classification.
Why NAICS Codes Matter in Government Contracting
NAICS codes are not just a formality. They affect your business in three direct ways.
1. They Determine Your Small Business Size Standard
The Small Business Administration (SBA) assigns a size standard to every NAICS code. That size standard defines the maximum revenue or maximum number of employees a company can have and still qualify as a “small business” under that code.
This matters because small businesses get access to set-aside contracts that larger companies cannot touch. The government’s goal is to award at least 23% of federal contract dollars to small businesses. If you qualify as small under your NAICS code, you can compete for those reserved contracts.
Size standards vary widely. Some codes set the bar at $9 million in average annual revenue. Others go up to $47 million. Some use employee counts instead: 500 employees, 1,000 employees, or even 1,500.
2. They Control Which Contracts You See
Every government solicitation (contract posting) lists a specific NAICS code. When contracting officers search for vendors on SAM.gov, they filter by NAICS code. If your codes don’t match what they’re looking for, your business won’t show up in their search results.
Your NAICS codes are your visibility settings in the federal marketplace. The right codes put you in front of the right buyers. The wrong codes make you invisible.
3. They Are Required for SAM.gov Registration
You cannot complete your SAM.gov registration without selecting at least one NAICS code. Your primary NAICS code goes on your entity record and determines your default small business size standard. You can add secondary codes for other services you offer.
How to Find Your NAICS Codes
Finding the right NAICS codes takes about 15 minutes. Here is the step-by-step process.
Step 1: Go to the Census Bureau NAICS Search
Visit census.gov/naics. This is the official source. Click the “Search” tool and type a keyword that describes what your business does.
For example, if you run a cybersecurity company, type “computer” or “cybersecurity” or “information security.” The tool returns a list of matching codes with descriptions.
Step 2: Read the Full Description
Don’t just match on the code title. Click into each result and read the full description. The Census Bureau provides details about what each code includes and, just as important, what it excludes.
For example, NAICS 541512 (Computer Systems Design Services) covers businesses that plan and design computer systems. But if your company primarily writes custom software, NAICS 541511 (Custom Computer Programming Services) is the better fit.
Step 3: Check What Your Competitors Use
Search for similar businesses on SAM.gov using the Entity Information search. Look at what NAICS codes companies in your industry have selected. This is public information. If three of your direct competitors all use the same code, that is a strong signal.
Step 4: Look at Past Contract Awards
Search the Contract Opportunities section of SAM.gov for contracts similar to what you offer. Each award lists the NAICS code the government assigned. If the government consistently classifies work like yours under a specific code, use that code.
Step 5: Confirm the Size Standard
Before you finalize your choice, check the SBA size standard for each code. Visit the SBA Size Standards page and search by NAICS code. Make sure you qualify as a small business under that code’s threshold.
Primary vs. Secondary NAICS Codes
SAM.gov lets you list multiple NAICS codes. But one must be your primary code. Understanding the difference matters.
Your Primary NAICS Code
Your primary NAICS code represents the main work your business does. It generates the largest share of your revenue. This code determines your default small business size standard in SAM.gov.
Choose your primary code carefully. It should reflect what you do most, not what you aspire to do or what sounds most impressive.
Your Secondary NAICS Codes
Secondary codes cover additional services or products you offer. You can list as many as you need in SAM.gov (the system supports up to 1,000, though most businesses list 3 to 10).
Each secondary code has its own size standard. You might qualify as small under one code but not another. That is normal. The government evaluates your size based on the specific NAICS code assigned to each solicitation, not your primary code.
For example, an IT company might list:
- Primary: 541512, Computer Systems Design Services ($34 million)
- Secondary: 541511, Custom Computer Programming ($34 million)
- Secondary: 541519, Other Computer Related Services ($30 million)
- Secondary: 541611, Administrative Management Consulting ($24.5 million)
SBA Size Standards: How Your NAICS Code Defines “Small”
Here is the key concept most beginners miss: there is no single definition of “small business” in government contracting. The definition changes based on your NAICS code.
The SBA sets a size standard for every NAICS code. Size standards are measured in one of two ways:
- Average annual receipts: Your average gross revenue over the past 5 completed fiscal years (used for most service and construction industries)
- Number of employees: Your average number of employees over the past 24 months (used for most manufacturing industries)
A construction company with $40 million in revenue could be “small” under NAICS 236220 (Commercial Building Construction, $45 million threshold). That same company would not be small under a code with a $19 million threshold.
The SBA reviews and adjusts size standards at least once every five years. In August 2025, the SBA proposed increases to size standards across 263 industries. All proposed changes were increases, not decreases. Check the SBA Table of Size Standards for the current thresholds tied to your codes.
Popular NAICS Codes for Government Contractors
The table below lists commonly used NAICS codes in federal contracting, along with their current SBA size standards. These codes represent some of the highest-volume industries in government procurement.
| NAICS Code | Description | Size Standard |
|---|---|---|
| 541511 | Custom Computer Programming Services | $34 million |
| 541512 | Computer Systems Design Services | $34 million |
| 541519 | Other Computer Related Services | $30 million |
| 541330 | Engineering Services | $25.5 million |
| 541611 | Administrative Management and General Management Consulting | $24.5 million |
| 541612 | Human Resources Consulting Services | $24.5 million |
| 541690 | Other Scientific and Technical Consulting | $19.5 million |
| 236220 | Commercial and Institutional Building Construction | $45 million |
| 238220 | Plumbing, Heating, and Air-Conditioning Contractors | $19 million |
| 561210 | Facilities Support Services | $47 million |
| 561320 | Temporary Help Services | $34 million |
| 561612 | Security Guards and Patrol Services | $34 million |
| 541380 | Testing Laboratories and Services | $19 million |
| 541715 | Research and Development in the Physical, Engineering, and Life Sciences | 1,000 employees |
| 541990 | All Other Professional, Scientific, and Technical Services | $17 million |
Source: SBA Table of Size Standards. Size standards are subject to periodic updates. Always verify current thresholds before making business decisions.
Notice the range. A facilities support company can earn up to $47 million and still be “small.” A testing lab hits the ceiling at $19 million. The code you choose directly affects how long you can keep your small business status as you grow.
How NAICS Codes Connect to Finding Contracts
Once your NAICS codes are set in SAM.gov, they become your main tool for finding government contracts.
Searching SAM.gov Contract Opportunities
Go to the Contract Opportunities section on SAM.gov. Use the NAICS code filter to search for open solicitations in your industry. Every posted opportunity lists a NAICS code. That code tells you two things: what kind of work the contract involves, and what size standard applies.
Understanding Set-Asides
When a contracting officer posts a small business set-aside, they assign a specific NAICS code. Your eligibility as a small business is measured against that code’s size standard, not your primary NAICS code.
This means you could qualify as small for one contract and not another, depending on the NAICS code attached to each solicitation. That is why listing accurate secondary codes matters.
Building Your Capability Statement
Your capability statement should list your primary and key secondary NAICS codes. Government buyers use these codes to quickly determine if your company fits their requirements. A clean list of relevant codes tells a contracting officer: “This company does the work I need.”
5 Common NAICS Code Mistakes
These mistakes are preventable. Each one costs businesses real opportunities.
1. Picking a Code That Is Too Broad
Choosing a general code like 541990 (All Other Professional Services) when a more specific code exists makes your business harder to find. Contracting officers search for specific codes. If your real work is management consulting (541611), list that code. The broad “other” codes are a last resort, not a first choice.
2. Picking a Code That Is Too Narrow
Going too specific can also hurt you. If you pick a code that covers only part of what you do, you miss opportunities that fit your broader capabilities. Review the full descriptions at census.gov/naics to find the right balance.
3. Not Updating Your Codes
Businesses change over time. A company that started in staffing (561320) might expand into management consulting (541611). If you don’t update your SAM.gov codes, you are invisible to buyers looking for your new services. Review your NAICS codes during every annual SAM.gov renewal.
4. Ignoring the Size Standard
Choosing a code without checking its size standard is a costly oversight. If you pick a code with a $17 million threshold and your revenue is $18 million, you no longer qualify as small under that code. You lose access to small business set-asides for that entire category. Always check the threshold before adding a code.
5. Listing Codes You Can’t Back Up
Adding NAICS codes for work you don’t actually do might seem like a way to see more opportunities. But if you win a contract and can’t perform the work, you face default termination, negative past performance ratings, and potential suspension from federal contracting. Only list codes for services and products you can deliver today.
How to Add or Change NAICS Codes in SAM.gov
You can update your NAICS codes at any time. You don’t need to wait for your annual renewal.
- Log in to SAM.gov
- Go to your entity registration
- Select “Update Entity” from the Workspace
- Go to the Core Data section
- Update your NAICS codes (add new ones, remove old ones, change your primary)
- Review and submit the update
Updates typically process within 3 to 5 business days. Your registration stays active while the update is pending.
Frequently Asked Questions
Can I have more than one NAICS code?
Yes. You must have one primary NAICS code, and you can add as many secondary codes as you need. Most businesses list between 3 and 10 codes. Only list codes for work you can actually perform.
Who assigns the NAICS code on a government contract?
The contracting officer assigns the NAICS code for each solicitation. They choose the code that best describes the principal purpose of the contract. If you believe the wrong code was assigned, you can challenge it by filing a NAICS code appeal with the SBA Office of Hearings and Appeals before the deadline listed in the solicitation.
How often do NAICS codes change?
The Census Bureau updates NAICS codes every five years. The current version is the 2022 revision. The next revision is expected in 2027. Between revisions, individual codes may be added, removed, or reclassified. The SBA reviews size standards on a separate schedule, at least once every five years per the Small Business Jobs Act of 2010.
What happens if my revenue exceeds my NAICS code’s size standard?
You no longer qualify as a small business under that specific code. You lose eligibility for small business set-aside contracts tied to that code. However, you might still qualify as small under other codes with higher thresholds. The SBA measures your size based on average annual receipts over your last 5 completed fiscal years, not a single year’s revenue.
Is there a fee to look up or use NAICS codes?
No. NAICS codes are public information maintained by the Census Bureau. Looking them up at census.gov/naics is free. Adding them to your SAM.gov registration is free. There is never a charge for using NAICS codes.
Your Next Steps
You now know what NAICS codes are, how to find yours, and why they matter for government contracting. Here is what to do next:
- Look up your codes. Go to census.gov/naics and search for codes that match your business.
- Check the size standards. Visit the SBA Size Standards page and confirm you qualify as small under each code.
- Update SAM.gov. Add your codes to your SAM.gov registration if you haven’t already.
- Add codes to your capability statement. List your primary and key secondary NAICS codes on your capability statement.
- Start searching for contracts. Use your NAICS codes to filter contract opportunities on SAM.gov.
If you are brand new to government contracting, start with Step 1 of our Start Here path and work through each guide in order. NAICS codes are one piece of a bigger picture. The full path gives you everything you need to go from registration to your first bid.
This article is for informational purposes only. It is not legal, financial, or regulatory advice. Size standards and NAICS codes are subject to change. Always verify current information at sba.gov and census.gov before making business decisions.
