Federal IT spending is poised for significant growth in 2025, with billions of dollars allocated to modernizing systems, enhancing cybersecurity, and adopting cutting-edge technologies like artificial intelligence. If your business operates in the IT sector, focusing on the right NAICS codes can position you for success in the federal marketplace. Learn which codes to prioritize and how federal spending trends are shaping opportunities in this high-demand industry.
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Federal contractors are facing a wave of uncertainty as Diversity, Equity, and Inclusion (DEI) policies come under scrutiny. Many small business owners are concerned about the potential ripple effects on set-aside programs like SDVOSB, WOSB 8(a), and others. With information circulating, it’s critical to understand the facts and separate policy changes from speculation.
This is your guide to unlocking a wider range of opportunities and increasing your cash flow from federal contracting.
After reading this, you’ll have everything you need to write a winning capabilities statement.
Let’s go.
When disaster strikes, the federal government steps in with massive funding to aid recovery efforts. But where does that money go, and how can businesses benefit from these opportunities? This article breaks down federal spending priorities, highlights which agencies manage funds, and explains how businesses can position themselves to secure emergency-related contracts.
Mentor-protégé programs have been instrumental in helping small businesses navigate the federal contracting landscape. They enable smaller firms to partner with larger, more experienced companies, gaining access to resources, expertise, and federal opportunities that might otherwise be out of reach.
This article explores the benefits of these programs, recent updates, and actionable steps small businesses can take to thrive under changing regulations.
Sole-source contracts offer businesses a unique opportunity to secure federal contracts without the competitive bidding process. These contracts are awarded directly to a single vendor, often because they provide something no other company can. For many businesses, sole-source awards are an effective way to build relationships with federal agencies and establish a strong foothold in the federal marketplace.
What Are Sole-Source Contracts?
Sole-source contracts are issued when competition is not practical or necessary. Federal agencies use them to meet urgent needs, acquire proprietary solutions, or partner with businesses uniquely qualified to fulfill specific requirements.
Common scenarios include:
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Urgent disaster response.
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Proprietary technology or expertise.
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Situations where only one vendor can meet the agency’s needs.
Example: The U.S. Army awarded a sole-source contract to Palantir Technologies for its proprietary battlefield intelligence platform, Palantir Gotham. The platform’s unique algorithms and data integration capabilities made it irreplaceable for real-time battlefield analysis, addressing critical national security needs. This highlights how sole-source contracts can meet specialized demands that no other vendor can fulfill.
Who Qualifies for Sole-Source Contracts?
To qualify for sole-source contracts, businesses typically need to meet specific criteria, which vary depending on the contract’s purpose. Here are the primary ways businesses become eligible:
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Small Business Programs: Federal set-asides make up a large portion of sole-source awards. Programs like the 8(a) Business Development Program, HUBZone, Women-Owned Small Business (WOSB), and Service-Disabled Veteran-Owned Small Business (SDVOSB) are key pathways. Each program has its own requirements and offers opportunities to eligible businesses.
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Proprietary Capabilities: If your business provides a one-of-a-kind product or service—such as patented technology or specialized expertise—you may qualify for sole-source opportunities outside of small business programs.
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Emergency Response: Federal agencies often turn to sole-source contracting during emergencies when time-sensitive solutions are required.
Benefits of Sole-Source Contracts
Sole-source contracts eliminate the need for competition, giving your business direct access to federal opportunities. Some of the key benefits include:
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Fewer competitors: You avoid the lengthy and competitive bidding process.
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Relationship-building: Sole-source awards help you establish trust and long-term connections with federal agencies.
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Steady opportunities: Winning a sole-source contract can lead to additional contracts, as agencies often prefer to work with trusted vendors.
How to Position Your Business for Sole-Source Success
Getting a sole-source contract is about preparation, certification, and visibility. Follow these steps to position your business:
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Complete Your SAM Registration: Federal contracting starts with an active SAM (System for Award Management) registration. Ensure your profile is accurate and lists the right NAICS codes to reflect your offerings. Learn more about our SAM Registration Assistance.
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Obtain SBA Certifications: Small business certifications are a key entry point. Programs like 8(a), HUBZone, WOSB, and SDVOSB are designed to make sole-source contracts more accessible.
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Create a Capability Statement: This essential document highlights your business’s core competencies, past performance, and unique qualifications. It’s a must-have for federal agencies considering your company for a sole-source award.
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Network with Agencies: Build relationships with federal buyers and contracting officers. Tools like the Advanced Procurement Portal (APP) help you identify opportunities and connect with the right people.
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Respond to Sources Sought Notices: These notices let agencies gauge market interest and identify potential vendors. Responding increases your visibility and positions you as a preferred vendor.
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Emphasize Your Value: Showcase what sets your business apart. Whether it’s proprietary technology or specialized expertise, make sure agencies know why your company is uniquely qualified.
Take the First Step Toward Sole-Source Success
Sole-source contracts are an exclusive opportunity to grow your federal contracting presence. Whether you’re just getting started or ready to expand, preparation is key.
Position your business today with the help of USFCR’s SAM Registration Assistance and SBA Certification services. Our team is here to guide you through every step of the process so you can stand out in the federal marketplace and win these lucrative contracts.
Federal contracting has undergone significant transformation since we began assisting businesses with registrations in 2010. One of the most impactful changes was the consolidation of earlier systems like the Central Contractor Registration (CCR) and the Online Representations and Certifications Application (ORCA) into a unified platform now known as SAM (System for Award Management). These changes simplified processes and made federal opportunities more accessible to contractors across industries.
Wildfire disaster recovery involves a wide range of services—from clearing debris to rebuilding infrastructure and restoring the environment. Contractors looking to secure federal contracts for these projects need to identify the correct NAICS (North American Industry Classification System) codes to align their services with federal opportunities. This guide explains the most relevant NAICS codes for wildfire recovery and how to use them effectively.
Why NAICS Codes Matter
NAICS codes are critical for federal contracting. They categorize businesses based on their industries and services, helping federal agencies match contractors to specific project needs. For wildfire recovery, choosing the right NAICS code is essential to:
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Ensure your business is visible for relevant contract opportunities.
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Qualify for set-aside contracts tailored to small or disadvantaged businesses.
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Streamline the federal contracting process by accurately defining your services.
Top NAICS Codes for Wildfire Recovery
Here are the most commonly used NAICS codes for wildfire disaster response and recovery:
Immediate Response
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561730 – Landscaping Services
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Clearing trees, brush, and debris from wildfire-affected areas.
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562998 – All Other Miscellaneous Waste Management Services
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Handling specialized waste management tasks, such as removing hazardous debris.
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624230 – Emergency and Other Relief Services
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Providing temporary housing, food distribution, and emergency logistics.
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621910 – Ambulance Services
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Medical transport and emergency response in disaster areas.
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Short-Term Recovery
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238910 – Site Preparation Contractors
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Grading, excavation, and preparation for rebuilding efforts.
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237310 – Highway, Street, and Bridge Construction
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Restoring damaged roads and bridges in wildfire-affected areas.
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541330 – Engineering Services
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Planning and engineering recovery efforts, such as rebuilding infrastructure and erosion control.
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Long-Term Recovery
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562910 – Remediation Services
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Cleaning up hazardous materials and remediating contaminated sites.
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113310 – Logging
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Salvaging timber and managing forest health post-fire.
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115310 – Support Activities for Forestry
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Managing reforestation efforts and implementing wildfire prevention measures.
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How to Select the Right NAICS Codes
Follow these steps to ensure your business is using the most relevant NAICS codes for wildfire recovery:
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Evaluate Your Services: Identify the core services your business provides that align with wildfire recovery needs.
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Research Federal Opportunities: Look at active RFPs in wildfire disaster recovery to see which NAICS codes are being used.
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Update Your SAM Profile: Ensure your SAM registration includes all applicable NAICS codes. This increases your chances of being matched to the right opportunities.
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Highlight in Proposals: Clearly list your NAICS codes in your capability statement and proposals to show alignment with federal requirements.
Leveraging Set-Asides with NAICS Codes
Many wildfire recovery contracts are awarded through set-asides, which are opportunities reserved for small and disadvantaged businesses. By selecting the correct NAICS codes, you can qualify for:
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Small Business Set-Asides: Contracts reserved exclusively for small businesses.
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HUBZone Set-Asides: Opportunities for businesses located in historically underutilized business zones.
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8(a) Program: Contracts for socially and economically disadvantaged businesses.
Cross-Referencing NAICS and SIC Codes
Some contractors still reference Standard Industrial Classification (SIC) codes. While NAICS has largely replaced SIC, understanding how these systems relate can be helpful for businesses working with older clients or transitioning to federal work.
Tips for Success
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Stay Updated: NAICS codes evolve over time. Regularly review your codes to ensure they reflect your services accurately.
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Seek Guidance: If you’re unsure which codes apply to your business, USFCR can help you analyze your services and update your SAM profile.
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Be Proactive: Start researching wildfire-related RFPs early to identify trends in NAICS code usage.
Let USFCR Help
Navigating NAICS codes and federal contracting can be overwhelming, but USFCR simplifies the process. Learn more about how USFCR can help you succeed in wildfire recovery through the VIPR Program. From SAM registration to proposal writing, we ensure your business is well-positioned for success in wildfire recovery projects. Contact us today to get started.
California’s 2025 wildfire season has already inflicted wide-ranging devastation, with Los Angeles County experiencing major blazes like the Palisades, Eaton, and Hurst. Together, these fires have consumed over 40,000 acres, destroyed thousands of structures, and pushed the estimated damage to $250 billion.
The Federal VIPR Program is now open for the 2025 season, running from January 1, 2025, to March 10, 2025, to help rebuild and bring in skilled professionals. This specialized initiative connects qualified contractors with federal funding opportunities, enabling them to assist in debris removal, infrastructure repairs, and community rehabilitation.
As a federal contractor, staying ahead of the curve is essential for winning bids and securing contracts. One of the best ways to gain a competitive edge is by attending industry expos. Whether focused on disaster relief, construction, defense, or sustainability, expos offer invaluable networking opportunities, insights into industry trends, and a chance to showcase your services. Ready to plan your year? Download our 2025 Federal Contracting Events Calendar to access a complete list of expos, conferences, and summits designed for federal contractors.
