Top NAICS codes for federal contractors include both IT and non-IT categories. Leading IT codes are 541511 (Custom Computer Programming), 541512 (Systems Design), and 541519 (Other Computer Services). High-spending non-IT codes include 524114 (Health Insurance), 236220 (Commercial Construction), and various manufacturing classifications. Contractors should select codes representing their core capabilities, verify small business set-aside eligibility, and use these classifications to filter relevant opportunities. The strategic selection of NAICS codes directly impacts contract visibility and success potential.
The Top 10 IT NAICS Codes for Federal Government Contracts
Understanding the most utilized NAICS codes in federal IT contracting provides contractors with valuable strategic insight for business development planning. The federal government consistently prioritizes specific IT categories to meet its technological demands.
Leading the field is NAICS 541511 (Custom Computer Programming Services), which focuses on tailored software solutions for federal automation, AI, and analytics. This code is particularly relevant for Department of Defense and Homeland Security contracts, where emerging technologies drive mission-specific AI development. Selecting the proper NAICS codes is essential for maintaining visibility in government contracting opportunities and avoiding disqualified bids.
Following closely is 541512 (Computer Systems Design Services), which addresses enterprise IT infrastructure integration and legacy system modernization. The six-digit hierarchy allows for precise classification of specialized technology services within the federal marketplace. Accurate NAICS code identification during SAM Registration significantly influences a business’s eligibility for specific contract opportunities.
Other significant codes include 541519 (Other Computer Related Services), 541513 (Computer Facilities Management), and 541715 (Research and Development in Nanotechnology).
Government cybersecurity requirements underpin these contracting opportunities, with CMMC 2.0 and FedRAMP certification becoming essential prerequisites for successful bidders in the federal marketplace.
Non-IT NAICS Codes Seeing High Federal Spending
Five major sectors beyond information technology attract substantial federal contract spending, creating diverse opportunities for government contractors.
Healthcare services show significant investment, particularly in NAICS codes like 524114 for Direct Health Insurance Carriers and 622110 for General Medical Hospitals.
Federal healthcare contracting thrives through significant investments in insurance carriers and medical facilities.
Construction-related codes, including 236220 for Commercial Building Construction, remain consistently funded as government facilities require maintenance and expansion.
Manufacturing codes such as 332120 and 336310 see robust spending for critical machinery and vehicle production.
Sustainability initiatives drive funding to codes like 562920 for Materials Recovery Facilities, which support federal environmental goals.
Additionally, specialized service categories like 561710 for pest control services receive steady contracts to maintain government property.
Transportation and logistics codes also represent significant spending areas, ensuring the government’s extensive supply chain remains operational across various agencies and departments.
The Department of Veterans Affairs currently tops the list of federal agencies by total spending, indicating significant contracting opportunities in veteran-related services and healthcare.
Businesses seeking to pursue these non-IT contracts should complete their SAM registration to establish eligibility and increase visibility to government procurement officers.
How to Leverage NAICS Codes for Government Contract Success
Strategic selection of NAICS codes represents one of the most powerful tools available to government contractors seeking competitive advantage in the federal marketplace. Effective NAICS code utilization begins with thorough market research to identify which classifications align with a company’s capabilities and government spending patterns.
Contractors should incorporate NAICS codes into their government contract strategy by:
- Customizing capability statements for specific NAICS-related opportunities
- Searching SAM.gov using relevant codes to identify targeted contract opportunities
- Verifying eligibility for small business set-asides within their NAICS categories
- Analyzing competitors operating under the same classifications
Understanding that the correct classification can save time and resources by filtering out irrelevant solicitations allows businesses to focus their bidding efforts more efficiently. Regularly reassessing NAICS codes is essential when quality opportunities aren’t materializing through initial searches.
Additionally, businesses can form strategic partnerships with companies holding complementary NAICS codes to broaden service offerings and strengthen bid proposals. Selecting appropriate primary NAICS code that accurately represents your core business activities enhances your visibility to potential government clients.
This approach enables contractors to pursue larger, more complex opportunities while maintaining compliance with federal contracting regulations.
Frequently Asked Questions
How Often Do Federal Agencies Update Their Preferred NAICS Codes?
Federal agencies typically update their preferred NAICS codes following the official five-year revision cycle.
After new codes are released, agencies implement updates gradually over 1-2 years, with full adoption across all economic programs completed by the end of the cycle.
The OMB coordinates these NAICS updates, requiring federal agency requirements to align with current classifications.
For example, the Bureau of Labor Statistics implemented 2022 NAICS codes in February 2023, while other agencies may complete their adjustments by 2024.
Can a Business Register Under Multiple NAICS Codes?
Yes, businesses can register under multiple NAICS codes. While one primary code based on dominant revenue activity is required, companies can add several secondary codes that accurately represent their diverse operations.
For government contractors, this flexibility proves especially valuable when pursuing federal opportunities across different sectors. SAM.gov allows one primary code with unlimited secondary classifications, though experts recommend limiting selections to 3-5 codes for ideal balance between visibility and specificity.
What Happens if You Bid Using an Incorrect NAICS Code?
Bidding with an incorrect NAICS code can have serious implications for government contractors. Incorrect bids may be automatically disqualified if the business exceeds the size standard for the assigned code.
Contractors risk wasting bid preparation resources and facing potential legal issues for misrepresentation. Even if a bid is accepted initially, competitors may file protests that could invalidate the award.
Appeals must demonstrate clear error in code selection and must be filed within 10 calendar days of solicitation issuance.
How Do Size Standards Differ Between NAICS Codes?
Size standards differ greatly between NAICS codes based on industry characteristics. The size classification differences reflect each sector’s competitive landscape, with manufacturing typically using employee counts (ranging from 500-1,500 workers) while service industries use annual receipts ($16.5M-$22M).
Industry impact assessment shows that specialized sectors like aircraft manufacturing (NAICS 336411) allow 1,500 employees, whereas custom computer programming (NAICS 541511) caps at $16.5M in receipts.
Standards are periodically adjusted to reflect economic changes and industry conditions.
Are Certain NAICS Codes More Competitive Than Others?
Yes, certain NAICS codes exhibit vastly different competitive landscapes. High-dollar sectors like defense (NAICS 541330) and IT services (NAICS 541512) attract numerous bidders, creating intense competition.
Industry trends show that emerging technologies like cybersecurity (NAICS 541519) are becoming increasingly competitive.
Conversely, specialized niches with certification requirements, such as remediation services (NAICS 562910), often have fewer qualified competitors.
Geographic factors also influence competitiveness, with some codes having stronger regional competition versus nationwide competition.