Phone: (202) 296-5505 Email: info@winvale.com

New Call-to-action

 Back to all posts

Top 5 IT Industry NAICS Codes and their Spending Trends Blog Feature
Stephanie Hagan

By: Stephanie Hagan on February 11th, 2022

Print/Save as PDF

Top 5 IT Industry NAICS Codes and their Spending Trends

Government Business Development | Technology | 6 Min Read

Information Technology (IT) modernization in the federal government has been on the rise for several years, and there's no slowing down in sight. In fact, the White House FY 2022 Federal IT Budget request was the highest it's ever been, and included increasing the Technology Modernization Fund (TMF) by $500 million, as well as improving the federal IT workforce, among other initiatives. It's safe to say that IT modernization has become a top priority in federal procurement. So why take a closer look at the top IT-North American Industry Classification (NAICS) Codes through the GSA Schedule? 

NAICS Codes can provide valuable insight into government spending. As a current or prospective GSA Schedule contractor, one factor driving your government sales and marketing success is the ability to find great opportunities. Knowing what your NAICS Codes are, how they rank, and what the trends are is the first step in figuring out how you fit into the government space, and seeing if there are opportunities you are missing or not capitalizing on. Given that IT is a booming industry, we decided to follow the top 5 IT NAICS Codes through the GSA Multiple Award Schedule (MAS) Program and report how they are performing in federal procurement. 

What is a NAICS Code?

Before we launch into the top IT NAICS Codes, it's important to understand what NAICS Codes are and their significance for government contractors. North American Industry Classification Codes, or NAICS Codes, are reference numbers used to classify the core offerings and industry of a business. Government agencies use NAICS codes to collect, analyze, and publish statistical data on the U.S. business economy. 

Why Are NAICS Codes Important for GSA Contractors? 

NAICS Codes put your business into categories that government agencies use to fulfill their procurement needs. In other words, NAICS Codes can help you find relevant contracting opportunities. NAICS Codes also help determine whether your company is considered a small business and can therefore reap the benefits of small business set-aside contracts. 

It's important to note that the NAICS Code system is self-assigning, so you want to make sure you pick the most relevant code for your business. Under the recent Multiple Award Schedule (MAS) Consolidation, NAICS Codes and Special Item Numbers (SINs) which directly correlate to GSA Schedules, now have a very similar numbering system. In covering the top 5 IT-related NAICS Codes, we hope that you can better understand the IT industry in federal contracting and if your company is going after the right NAICS Codes and their corresponding opportunities. 

Top 5 IT NAICS Codes

Using GSA's Schedule Sales Query +, we created a table highlighting the top IT-related NAICS Codes for Fiscal Years 2020 and 2021 and the total dollar amount spent through the GSA MAS program. The top 5 IT NAICS Codes were the same for both years, and we used the government Fiscal Year timeline--October 1 to September 30. 

NAICS Code

2020

2021

541519 - Other Computer Related Services

$7,213,331,973

$7,743,915,887

541511 - Custom Computer Programming Services

$3,792,711,359

$4,477,547,597

511210 - Software Publishers

$2,740,166,875

$3,156,834,170

541512 - Computer Systems Designs Services

$1,632,584,924

$1,955,965,502

334111 - Electronic Computer Manufacturing 

$666,285,036

$839,753,061

It's important to note that 4 out of the 5 top IT NAICS Codes were also the top NAICS Codes over all the industries. That means that government agencies are spending more money on IT products total more than anything through the GSA Schedules program. If you want to learn more about each NAICS Code and how they fit into government procurement system, you can visit naics.com

Top Government Agency Spending By NAICS Code

Let’s break down these 5 NAICS codes a bit further. We looked at the top 3 government agencies doing business with these NAICS Codes. If your company is listed under one of these NAICS Codes or you are looking to add one in the future, you'll want to keep a close eye on these agencies. We used USAspending.gov to find this information. 

 

 Top Agencies

541519 - Other Computer Related Services

DOD - Department of Defense

VA - Department of Veterans Affairs 

DHS - Department of Homeland Security

541511 - Custom Computer Programming Services

DOD - Department of Defense

HHS - Department of Health and Human Services 

DHS - Department of Homeland Security

511210 - Software Publishers

DOD - Department of Defense

HHS - Department of Health and Human Services

GSA - General Services Administration

541512 - Computer Systems Designs Services

DOD - Department of Defense

GSA - General Services Administration

VA - Department of Veterans Affairs

334111 - Electronic Computer Manufacturing

DOD - Department of Defense

VA - Department of Veterans Affairs

DOS - Department of State 

Want to Learn More About Opportunities with NAICS Codes?

We hope it's clear now that NAICS Codes play an integral role in your GSA Schedule. It's important you choose the right NAICS Code, and understand how it can be used to determine business size standards as well as identify relevant contracting opportunities. 

If you want to learn more about NAICS Codes and opportunities, check out our blog, "NAICS Codes--What Do they Mean for Your Business?" and if you want to learn more about finding contracting opportunities, check out our blog "How to Find Government Contract Opportunities on SAM.gov." Of course, one of our consultants is here to help if you have questions about your GSA Schedule or finding the right NAICS Code for your business.

New call-to-action

 

About Stephanie Hagan

Stephanie Hagan is the Content Writer and Digital Editor for Winvale where she helps the marketing department continue to develop and distribute GSA and government contracting content. Stephanie grew up in Sarasota, Florida, and earned her Bachelor's of Arts in Journalism and Rhetoric/Communications from the University of Richmond.