As part of our focus on NAICS codes this month, our team did a deep dive into the NAICS codes associated with the largest federal IT spending. Given that IT modernization is still a big priority, it’s important to look at those spending trends. Specifically, we’ve reviewed the top five IT NAICS codes from fiscal years 2016 and 17.

Why review these codes? One factor driving your sales and marketing success is the ability to find great opportunities for your organization. Knowing what your NAICS Codes are, and how well they do within the government space is the first step. For example, is your main NAICS code rarely associated with government opportunities? Or are there countless opportunities for that code? If it is not associated with good opportunities, you may need to consider other relevant NAICS codes, and start looking for opportunities with those codes instead. The IT industry is a good place to start given the high spending levels in that category.  

Having a small business designation can fuel marketing and sales efforts for new federal business opportunities. Every year, the Small Business Administration (SBA) aims for certain percentage goals of budget spending that are designated for small business contracts. So, it’s critical to know if your company is eligible for small business set-aside contracts, but how to be sure? The answer is lies in the North American Industry Classification System (NAICS). Your company’s NAICS codes help determine if you qualify as a small business based on certain size standards. Through the Small Business Act, the SBA established size standards for NAICS codes to help businesses get their designation, and see relevant opportunities for which they qualify. 

Find out if you are a small business

Just a few days into 2018, it’s clear that blockchain technology and cryptocurrency are hot topics whose popularity will continue to surge. In 2017, at times it seemed impossible to escape a discussion with peers about how we wish we’d invested in Bitcoin starting in 2009. The spike in public interest in blockchain-based cryptocurrency has nearly everyone taking note – now even the U.S. Government.

What makes cryptocurrency so valuable is the underlying technology it depends on, called blockchain. Blockchain could have a dramatic impact on internet security and communications moving forward.  

The North American Industry Classification System (NAICS) classifies businesses into over 700 different industrial categories or codes. For government contractors, it’s crucial to understand these codes and effectively leverage them to win government business.

What are NAICS codes?

Developed by the Office of Management and Budget (OMB), NAICS is a classification system used by government agencies to collect, analyze and publish statistical data on the United States business economy. OMB developed this system  with statistical agencies in the United States, Canada and Mexico to create common industry standards for statistical data presentation and analysis. The federal procurement sector uses the code to classify industries.

GSA Multiple Award Schedules (MAS) contracts often have many compliance standards, some of the most complex being the ones for the Trade Agreements Act (TAA).  How do you know if your products meet TAA standards? The simplest way to determine if your product is TAA compliant is to check the list of approved countries of origin. This list outlines all the pre-approved countries of origin permissible under the TAA.

But what if the products you want to offer come from a non-TAA compliant country?

Under TAA, a vendor may import goods from a non-compliant country if the final product undergoes a “substantial transformation” either in the U.S. or another TAA- compliant country.  So, if acquired parts or goods supplied from a non-compliant country are “substantially transformed” in the final product, a contract holder can assert TAA compliance.

Networking with government buyers and other contractors can drive business success in 2018.  Now is a great time to take a NEW approach to networking beyond the usual tactics. 

So, how do you capture the attention of decision makers in more innovative ways? Networking channels and tactics have changed as agencies now reach out to the private sector for help driving their missions. Last week’s HHS hackathon addressing the opoid crisis with data is just one example.

Government contracting is fiercely competitive today. Often, what drives your chance of capturing a win includes having a competitively-priced, unique or timely offering, or being small-business certified. One important factor in any win is whether your company is the contract incumbent, having already done business with the agency. Traditionally, being the incumbent gives you a competitive edge though the market is changing.

New research on winners and losers

Grant Thornton’s (GT) 2016 Government Contractor Survey collected and analyzed data from companies who primarily do business with the federal government during Fiscal Year 2016.  For six years, this survey has shed light on how companies compete for contracts.

Though the GSA tried to make doing business with its Multiple Award Schedule (MAS) contracts easier, the process is still complex. Per GSA, “A mass modification is a government-initiated modification that occurs when a uniform change occurs schedule-wide.”[1]  A mass mod is a schedule-wide update to a contract’s terms that require the contractor’s acceptance. Often, these modifications are all-encompassing updates that incorporate new government regulations or legislation. One recent example is mod A509 for the new Transactional Data Reporting system.

Strengthening the security of federal networks, systems, and data is one of the most important challenges federal agencies face. Therefore, the General Services Administration (GSA) is changing how it provides access to the Department of Homeland Security (DHS)'s cybersecurity program through the Continuous Diagnostics and Mitigation (CDM) program. GSA's newest Schedule 70 Special Item Number (SIN) 132-44, Continuous Diagnostics and Mitigation Tools, is a dynamic approach to strengthening the cybersecurity of government networks and systems. The jointly administered program by DHS and the GSA currently operates under a Blanket Purchase Agreement (BPA) which will expire in August, 2018. The GSA began the BPA-to-GSA transition process by adding the SIN 132-44 to IT Schedule 70.

This update will affect SINS 520-16 through 520-20.