What Are NAICS Codes?
The North American Industry Classification System (NAICS) is how the federal government categorizes businesses based on their economic activity. These codes are essential for federal contracting, used by agencies to classify industries, set aside contracts, and conduct market research. If you’re registering in SAM, pursuing set-aside contracts, or analyzing your competition, your NAICS code determines your eligibility and positioning.
Why NAICS Codes Matter in 2025
Federal contracting is always evolving, and NAICS codes play a major role in how agencies structure their opportunities. Here’s why they’re important:
- Contracting Opportunities: Agencies use NAICS codes to assign contracts, including small business set-asides.
- Certifications & Set-Asides: Programs like 8(a), SDVOSB, HUBZone, and WOSB all have NAICS-specific requirements.
- GSA Schedules & BPAs: Many government-wide purchasing programs categorize vendors based on their NAICS codes.
- Market Research & Competition: Your NAICS code helps identify competitors and pinpoint where the government is spending.
- Upcoming Updates: The NAICS system is updated every five years, with the next update in 2027. These updates could impact size standards, contract eligibility, and your competitive position.
How to Find and Use Your NAICS Code
✔ Identify Your Primary Business Activity – Use the NAICS lookup tool to find your code.
✔ Select the Closest Match – Choose the code that best reflects your core business function.
✔ Use Multiple Codes If Needed – If your business covers multiple industries, you can have more than one NAICS code.
✔ Keep Your SAM Registration Updated – Ensure your NAICS codes are correctly listed in SAM and match your federal certifications.
✔ Stay Ahead of Changes – Monitor updates to avoid losing eligibility for contracts or missing new opportunities.
5 NAICS Code Frequently Asked Questions
1. Can my business have more than one NAICS code?
Yes! Businesses can list multiple NAICS codes. However, your primary NAICS code should reflect the service or product that generates the most revenue.
2. How do NAICS codes impact federal contracts?
NAICS codes determine contract classifications and small business size standards. If your business qualifies under the SBA’s size criteria, you can compete for set-aside contracts.
3. Can I change my NAICS code?
Yes, you can update your NAICS code in SAM at any time. Just be mindful—changing your primary code can affect certifications, set-aside eligibility, and your competitive positioning.
4. What happens when NAICS codes change?
Every five years, NAICS codes are revised. The next update is in 2027. These updates could mean code splits, merges, or redefinitions, which may impact your business’s federal eligibility.
5. How do I find my competitors’ NAICS codes?
Use resources like SAM, USAspending.gov, and SBA’s DSBS (Dynamic Small Business Search) to find businesses with similar NAICS codes. However, not all company details are public.
What’s Next for NAICS Codes in 2025?
Federal procurement trends suggest increasing specialization within NAICS codes, potential regulatory changes, and more alignment with emerging industries. Keeping your NAICS codes accurate and up to date is key to staying competitive.
How USFCR Helps
At US Federal Contractor Registration (USFCR), we help businesses navigate federal contracting—from NAICS code selection to full SAM registration and set-aside certifications. Whether you need market research, bid training, or compliance support, our team ensures you’re positioned for success.
Your NAICS code is more than a classification—it’s your gateway to federal contracts. Whether you're bidding on contracts, qualifying for set-asides, or analyzing your competition, keeping your NAICS codes updated is essential.
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