NAICS codes and size standards

The North American Industry Classification System (NAICS) sorts businesses by what they do. Federal buyers use NAICS codes on every notice, and the code decides who counts as a small business for that notice.

What a NAICS code is

Each code has six digits. The first two digits name a broad sector, and each added digit narrows it. For example, 541511 is Custom Computer Programming Services, and the first four digits, 5415, cover computer systems design and related services. The U.S. Census Bureau publishes the codes. The 2022 edition is in use today.

How to pick your codes

1. Write down what you actually do and sell, in plain words.
2. Search the Census NAICS site with those words.
3. Pick one main code that describes most of your work.
4. Add a few related codes for other work you can really do.

Do not add codes just because a lot of money is spent in them. Buyers judge you on what you can deliver. You list your codes in your SAM.gov registration, and you can update them later. SAM.gov registration is free.

Why the code on each notice matters

When a buyer posts a notice, the contracting officer picks one NAICS code for it. That code sets the size limit for "small business" on that notice. The same company can be small under one code and not small under another.

The code on a notice is not always the one you would have picked. Read the work itself, not just the code.

Size standards in plain words

SBA sets a size standard for each NAICS code.

• Most service and retail industries use average yearly revenue, called receipts. For federal contracting, receipts are generally averaged over your last five completed fiscal years.
• Most manufacturing industries use the number of employees, generally averaged over the last 24 months.

Example: as of October 2026, the size standard for 541511 is $34 million in average yearly receipts. Size standards change from time to time, and SBA proposed large changes to many of them in August 2026. Check the current SBA table before you claim small business size.

Affiliates count

Your size includes your affiliates. A person or business that controls you, or has the power to control you, is an affiliate. So is a business under common control with yours. This is true even if the control is never used. Count their receipts or employees with yours.

If you are not sure whether you are affiliated with another business, ask SBA or an attorney before you claim small business size.

You represent your own size

In SAM.gov and in each offer, you state whether you are small under the notice's code. A contracting officer generally accepts that unless someone challenges it. A false size claim is serious, so check before you claim.

Product and Service Codes

Buyers also tag each purchase with a Product and Service Code (PSC) that describes what is being bought. PSCs do not set size. They help you search, and Victavio lets you filter by both NAICS and PSC.

How Victavio uses your codes

Your NAICS codes carry the most weight in your fit score. An exact six-digit match counts the most, and a match on the first four or two digits counts less. Keep your codes current in Settings, under Workspace. See How the fit score works.