Understanding NAICS Codes for Government Contractors

NAICS codes (North American Industry Classification System) define what your business does. The government uses them to determine which contracts you can compete for and whether you qualify as a "small business."

Why NAICS Codes Matter

Every federal contract is assigned a NAICS code. If that code isn't in your SAM.gov registration, you technically can't bid. More importantly, each NAICS code has a small business size standard — a revenue or employee threshold that determines if you're "small" for that work.

Example: NAICS 541512 (Computer Systems Design) has a $34 million revenue threshold. If you're under that, you're a small business for those contracts. But NAICS 541511 (Custom Programming) has a $34 million threshold too. Pick the wrong code and you might miss set-aside opportunities.

How to Choose Your NAICS Codes

1. Start with your primary business activity — What do you actually do for customers?
2. Look at contracts you want — What NAICS codes are those opportunities using?
3. Check the size standards — Make sure you're "small" for each code you select.
4. Don't over-register — Only select codes you can genuinely perform. The government can challenge your eligibility.

Common Mistakes

Registering for everything: Some contractors add 50+ NAICS codes hoping to cast a wide net. This backfires — contracting officers see it as a red flag that you don't know what you do.

Missing related codes: If you do cybersecurity services (541512), you might also qualify for 541519 (Other Computer Related Services) or 561611 (Investigation Services). Check related codes.

Not updating annually: Your SAM.gov registration needs annual renewal. Update your NAICS codes as your business evolves.

Ignoring size standards: A NAICS code with a $15M threshold treats you differently than one with a $40M threshold. Know your numbers.

How We Use NAICS

When you set up your Aeon profile, we ask for your NAICS codes. We use these to filter opportunities — you only see contracts where your NAICS codes match the solicitation. No noise from industries you don't serve.