NAICS (North American Industry Classification System) Codes are a very important part of government contracting. Many contractors may only think of them as codes that identify their specific industry, but they can be powerful tools for determining business size and finding relevant contract opportunities. Especially now that we are in the midst of the Q4 spending spree, you can use NAICS Codes to your advantage. Read on to learn more about identifying your best contracting opportunities with NAICS Codes.
How to Get Started Identifying Opportunities with NAICS Codes
To begin a search with NAICS Codes, you must first determine which NAICS Codes are important and relevant to your organization’s offerings. Try to narrow down your list to around five NAICS Codes that best represent your business’s core service areas. For a complete list of NAICS Codes check out the Census Bureau’s website here. If you already know your primary NAICS Code you can use that as well.
Begin a Search with Your Relevant NAICS Codes
Once you enter them, relevant opportunities will pop-up related to your products and/or services. However, it might be an overwhelming amount to comb through. You can use other filters such as "Notice Type," "Dates" if you are looking for a specific time period, or "Keywords" to narrow it down more. We'll cover that more in the next section.
Search Quality Matters
When searching for opportunities, you need to use as much criteria as possible to filter your search if you want to avoid sorting through results that aren't a good fit for your organization. NAICS Codes are a key piece of this strategy, and will greatly improve the quality of search results.
However, make sure you are focusing on NAICS Codes that really represent your business. If you don’t find good opportunities with your chosen NAICS Codes, you may need to reconsider those codes and choose others that are a better fit with your products and services.
As mentioned above, you should use the other filters in SAM.gov to narrow your searches and make them more relevant for you. No one has the time to qualify 10,000 opportunities. NAICS Codes will get you in the right place, and adding search parameters such as timeframe, small business set asides, and notice type, will direct you to more valuable opportunities.
Using NAICS Codes to Research Your Competitors
You can also use sites like NAICS.com/search site and FPDS.gov to gain more information about your competitors. On the NAICS search you can find information on the top businesses by annual sales for each NAICS Code (seen below).
On FPDS, you can use the Advanced search to look for modifications related to your NAICS Codes, and find specific contract details from your competitors, see the top 10 agencies procuring from your NAICS Codes, and top 10 competitors as well.
NAICS Codes and Business Size
NAICS Codes also determine your company's business size in the eye of the government. You can use the Small Business Administration's (SBA) Size Standards Tool to plug-in your primary NAICS Code and use either the number of employees or receipts (depending on the NAICS) to see what your business size is. If you don't already have your primary NAICS, you can use this tool as a preliminary search for business size opportunities. For example, if your company is just over the limit on one NAICS, but is considered small on another relevant NAICS, then you can optimize your business opportunities. Of course, you must still use a NAICS that corresponds with your primary industry.
If you are considered a small business, then you will have access to additional small business set-aside contracts, support, or other socio-economic programs.
Need Help with Your GSA Schedule?
Once you get your GSA Schedule you have access to a whole new marketplace, but it might be overwhelming to keep up with the regulations, maintenance, and finding opportunities. If you need help figuring out where to start, or need help with managing your GSA Schedule, one of our consultants would be happy to help you.
Or, are you unsure which NAICS Codes you should be using? We can also help you to determine which NAICS Codes are the best for you and your business.
