• What kind of work the solicitation covers
• Whether you qualify as a small business
• Which set-aside programs you can compete under

For small businesses, choosing the correct NAICS codes and using them to filter opportunities is one of the most practical ways to focus efforts and compete effectively in the federal marketplace.

In this blog we will walk you through how NAICS codes work and how to use them to search for government contracts that align with your capabilities.

What are NAICS codes?

NAICS is a standardized system used by federal agencies to classify businesses based on their economic activity. Every industry sector has an associated six-digit NAICS code, helping agencies organize data, manage procurements, and ensure that businesses compete fairly within their appropriate industries.

For example:

• 541611 – Administrative Management and General Management Consulting Services
• 236220 – Commercial and Institutional Building Construction
• 541512 – Computer Systems Design Services

Why NAICS Codes Matter for Small Businesses

In federal procurement, NAICS codes do far more than categorize industries. They define how competition works and who qualifies for small business advantages.

Here’s why they’re essential for your government contracting strategy:

1. Targeted Contract Search

When you search for opportunities using your NAICS code, you immediately filter solicitations to those relevant to your line of work. Instead of wading through thousands of unrelated opportunities, you can focus only on the contracts that match your expertise.

2. Small Business Size Determination

The U.S. Small Business Administration (SBA) uses NAICS codes to determine whether your company qualifies as a small business. Each code is linked to a size standard either by annual revenue or number of employees.

Example:

• Under NAICS 541611 (Management Consulting), a business may be considered small if it earns less than an average of $21.5M in annual receipts over the last five years.
• Under NAICS 512230 (Music Publishers) the small business size is 900 employees or less.

Your eligibility for small business programs and your ability to bid on certain contracts depends on staying within these limits.

3. Set-Aside Contract Eligibility

Set-aside programs like 8(a), WOSB, HUBZone, or SDVOSB are all tied to NAICS-based size standards. Using the right code ensures your business appears in searches when agencies are sourcing for socioeconomic vendors under those programs.

4. Proposal Compliance and Accuracy

Submitting a proposal under the wrong NAICS code can lead to automatic disqualification. Every solicitation specifies its primary NAICS code, and if that primary NAICS code is not listed in your SAM.gov entity page, your proposal will be immediately disqualified.

5. Market Research and Positioning

NAICS codes power tools like USAspending.gov and FPDS.gov, which organize historical federal spending by industry. You can analyse which agencies buy your services, how much they spend, and who your top competitors are, all by filtering with your NAICS code.

Learn how to read and respond to a government solicitation 

How to Identify the Right NAICS Code for Your Business

If you’re new to government contracting or unsure which NAICS code fits best, here’s how to find the right one:

1. Use the Official SBA or Census Lookup Tools

Go to the U.S. Census Bureau NAICS Search page and enter keywords describing your primary services. Review the list of six-digit codes and their definitions to find the most accurate match.

2. Check Past Contracts and Competitors

Visit USAspending.gov or SAM.gov and search for similar businesses or contract types. Note which NAICS codes appear most frequently, that’s a good indicator of how your industry is classified.

Also, you can download the “U. S. Small Business Administration Table of Small Business Size Standards Matched to North American Industry Classification System Codes” PDF and use the search function within the PDF to find specific NAICS codes or to find your core capabilities and their associated NAICS codes.

3. Review Your SAM Registration

Log into your SAM.gov profile and ensure your Primary NAICS Code reflects your main business activity. You can also list secondary codes for additional services you offer.

Tip: Many businesses qualify under multiple NAICS codes. If you offer both construction and design services, for instance, you can track both under your SAM profile to maximize visibility.

Check out our guide on how to register and prepare your business for government contracting

Search for Opportunities in OppyHound with NAICS codes

Once you’ve identified your NAICS codes, you can use them across our platforms to narrow your contract opportunities search.

OppyHound’s Basic Search lets you enter NAICS codes to:

• Filter opportunities by industry-specific solicitations
• Businesses often qualify under more than one NAICS code, track all that apply.
• Combine NAICS code filters with small business programs (like 8(a), WOSB) to discover tailored opportunities.
• Save searches and set alerts for matching future opportunities

Note: OppyHound visuals in this blog are subject to change as the platform is regularly updated and improved.

Understanding the NAICS Code Structure

Every NAICS code has six digits. Each pair adds more detail:

Digits	Meaning	Example (541512)
First two	Economic Sector	54 – Professional, Scientific, & Technical Services
Third	Subsector	541 – Professional, Scientific, & Technical Services
Fourth	Industry Group	5415 – Computer Systems Design
Fifth	NAICS Industry	54151 – Computer Systems Design and Related Services
Sixth	National Industry	541512 – Computer Systems Design Services

Understanding this structure helps you browse industries more efficiently and locate related codes for your service lines.

NAICS Codes by Sector

Here’s a quick look at major sectors and examples relevant to small businesses:

Sector	Industry Examples	Common Small Business NAICS Codes
23	Construction	236220 – Commercial & Institutional Building Construction
31-33	Manufacturing	332710 – Machine Shops
42	Wholesale Trade	423430 – Computer & Software Merchant Wholesalers
51	Information Technology	518210 – Data Processing & Hosting Services
54	Professional Services	541611 – Management Consulting
56	Administrative Support	561110 – Office Administrative Services
62	Health Care & Social Assistance	621111 – Offices of Physicians
81	Other Services	811212 – Computer & Office Machine Repair

How to Use NAICS Codes for Strategic Market Research

Your NAICS code can do more than filter contracts; it can help you understand where your opportunities truly lie.

1. Track Federal Spending

Visit USAspending.gov and use your NAICS code to explore:

• Which agencies buy your services
• Average contract sizes
• Top competitors and awardees

2. Analyze Industry Trends

Use USAspending.gov and FPDS.gov to research historical awards by NAICS codes to understand trends like what agencies are buying, how much they are spending, prime winners, and small business share. Use Acquisition Gateway’s forecast tool and market research resources to complement this with forward‐looking analysis to understand what agencies say they will buy, category strategies, buying trends.

3. Plan Partnerships and Subcontracts

Knowing your NAICS category makes it easier to find teaming partners and prime contractors who regularly win in your industry segment.

Common Mistakes to Avoid

• Using the Wrong NAICS Code: Even a small mismatch between your proposal and the solicitation’s NAICS code can lead to rejection.
• Ignoring Secondary Codes: Many businesses focus only on their primary code and miss opportunities under other relevant codes. Most companies list several NAICS codes in SAM.gov to cover all their products and services; make sure you list them all too.
• Not Updating SAM Profiles: Outdated NAICS listings can affect your eligibility or visibility in searches.

The Future of NAICS Codes Beyond 2026

The NAICS system is revised every five years to reflect changes in the economy and emerging industries. The 2022 version is currently in use, but the next revision, NAICS 2027, is expected to be released in late 2026.

Possible updates may include:

• New codes for AI and data-driven services
• Expanded categories for green and sustainable technologies
• Adjusted size standards reflecting inflation and industry growth

Until then, businesses should continue using NAICS 2022 codes for all registrations and proposals.

Keep an eye on the Federal Register and Census Bureau’s NAICS site for announcements. Early awareness gives your business a headstart in adapting registrations and targeting new sectors.

Free Tools and Resources

You don’t need paid subscriptions to find your codes, these free tools can help:

• Census NAICS Search – The official government lookup tool.
• SBA Size Standards Tool – Confirms whether you qualify as a small business.
• The U. S. Small Business Administration Table of Small Business Size Standards Matched to North American Industry Classification System (NAICS) Codes Document – A downloadable PDF document that lists all NAICS codes and their associated size values.
• USAspending.gov – Analyze historical awards by NAICS.
• SAM.gov – Review your NAICS registration and active opportunities.
• OppyHound – Search, filter, and analyze contract opportunities by NAICS code.

Use the Right NAICS Codes to Win More Government Contracts

NAICS codes are more than standard classifications; they’re the backbone of how federal agencies define, search, and award contracts. For small businesses, understanding and using them effectively can mean the difference between chasing every opportunity and focusing on the ones that truly fit.

By aligning your business profile, proposals, and market research around your correct NAICS codes, you can target opportunities that match your expertise and size while saving time and improving your win rate.

Simplify your contract search with smart NAICS code matching on OppyHound. Sign up for free and start finding government contracts that align with your NAICS codes and business strengths.

FAQs

1. What is a NAICS code and why does it matter for small businesses?
A NAICS code (North American Industry Classification System code) identifies the primary business activity of a company. For small businesses, it’s essential because federal agencies use NAICS codes to determine eligibility for small business set-asides and to match contractors with relevant government contract opportunities.

2. How do I find my NAICS code?
You can find your NAICS code by visiting the official NAICS.gov website and entering a keyword that describes your business activity.

3. Can a business have more than one NAICS code?
Yes. Many businesses operate in multiple industries, so they can have more than one NAICS code. However, you’ll need to identify your primary NAICS code , the one that represents your main line of business for registration on SAM.gov and when bidding on contracts.

4. How are NAICS codes used in government contracts?
Federal agencies use NAICS codes to classify contracts by industry and determine small business size standards. When you search for federal contract opportunities, your NAICS code ensures that you’re viewing bids that align with your business capabilities.

5. What are the most common NAICS codes for small business contracts in 2026?
Some of the top NAICS codes for small businesses in 2026 include:

• 541512 – Computer Systems Design Services
• 541611 – Administrative Management & Consulting
• 236220 – Commercial and Institutional Building Construction
• 541330 – Engineering Services
• 561210 – Facilities Support Services