The NAICS (North American Industry Classification System) is the standard used by the Federal Government in classifying business establishments; it replaced the Standard Industrial Classification (SIC) system back in 1997. Various agencies use the NAICS as a basis for their procurement programs however the NAICS is an “Industry” classification system and not a product classification system. It is neither intended nor well suited for this purpose. When classifying products the FSC or Federal Supply Class is used.
The current NAICS version is 2017. The NAICS is comprised of a 6-digit code with the first two digits designating the economic sector with an additional 4 digits to represent and complete the code. For example: A NAICS beginning with 33 represents the manufacturing sector. The industry classification code for Machine Shops is 332710.
You will see the NAICS being used in Government contracts and in Government solicitations. Typically when a Government contract award is entered into a federal procurement system the NAICS code may be one of the 100’s of codes associated to that contract award. When searching for Government solicitations you may also see the NAICS code used as it relates to a small business set aside status. Basically it provides the rules on the size of company that can win the award based on the companies listed NAICS classification in either company size “number of employees” or “dollars of sales”. The SBA’s (Small Business Administration) business size program publishes these in the table of small business size standards. For example: The NAICS code for Machine Shops is 332710 and the size standards table lists the number of employees at 500.
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