In the past few years, change has been a constant in the GSA Multiple Award Schedule (MAS) program. From the consolidation to aligning North American Industry Classification System (NAICS) codes with Special Item Numbers (SINs), government contractors have needed to be very alert and flexible to change. As of October 27, 2022, we have more to add to that—the NAICS Association has released changes to NAICS Codes, which could affect your business. Here’s what you need to know about the NAICS Code changes and how you may be impacted.
What Are NAICS Codes and What Do they Mean for My GSA Contract?
In case your company is new to the world of government contracting, we’ll briefly cover what NAICS Codes are and why this update is important. NAICS Codes are used to classify businesses into industries, help federal agencies collect useful data, provide relevant contracting opportunities, and help determine if companies are considered small businesses. This means they are an important code for GSA contractors especially because you can use them to identify business opportunities and figure out your business size. If your business is considered small, you will also have access to several set-aside opportunities.
Changes to NAICS Codes in 2022
Several NAICS Codes have been given new codes, consolidated, or expanded this year, so it’s important to look-up your primary NAICS Code to see if it has been affected. While it would take up this entire blog to outline every line-item change on the 1000+ NAICS Codes, we’ll highlight a few of the frequently used codes and examples of some of the changes you’ll see. All the updates can be viewed in the 2022-2017 NAICS Code Concordance Document on NAICS.com.
- NAICS Code 511210—Software Publishers, has been changed to 513210. This is one of the top 5 NAICS Codes of FY 2022, so it’s a big deal that the number is changing.
- NAICS Code 541380—Testing Laboratories is an example of a code that has stayed the same but changed its name to Testing Laboratories and Services.
- NAICS Code 335911—Storage Battery Manufacturing and NAICS Code 335912—Primary Battery Manufacturing are an example of NAICS Codes that are being consolidated into one code, 335910—Battery Manufacturing.
- NAICS Code 325315—Compost Manufacturing is an example of a completely new NAICS Code
It’s important to note that while there are several changes in NAICS Code industries 44 and 45, these NAICS Codes are prohibited from the GSA Schedule. If your primary NAICS Code starts with this number and you have a GSA contract, you will need to change it.
How Are Contractors Affected By NAICS Code Changes?
If your primary NAICS Code has been changed, you will need to submit a terms and conditions modification. NAICS Code changes can also affect your SAM.gov entity registration. If your registration is impacted, SAM will send you an email notifying you to update it. NAICS Codes have already been updated on SAM to reflect entity registration and contract opportunities, so if you have any saved searches, filters, and followed items, make sure to make any necessary changes. NAICS Codes have also already been updated on FPDS.gov.
How Often Do NAICS Codes Change?
If you’ve been a contractor for 5 or more years, this may not seem new to you at all. NAICS Codes are changed in the U.S., Canada, and Mexico every 5 years to reflect changes in the North American economy. While they may not have affected you in 2017, the recent changes might impact you, so it’s important to check the list to compare your primary NAICS in 2017 to 2022.
Managing Your GSA Schedule
While your GSA Schedule is very rewarding, it can not only be difficult to keep up with all the changes and general compliance such as modifications and reporting your GSA sales, but there’s a lot of news and updates to follow. Some contractors aren’t sure how to stay in the know since there seems to be an overwhelming amount of sites and information to choose from. We suggest joining a GSA Interact group related to your offerings such as IT or Professional Services, and joining the Multiple Award Schedule (MAS) group. You can receive timely email alerts and news about important regulation changes, compliance, or upcoming contract vehicles. To keep up with all GSA updates and government contracting insights, you can also check out our blog and monthly newsletter. If you have questions about your primary NAICS Code or your GSA Schedule, one of our consultants would be happy to help you.
