SPONSORED CONTENT: NAICS Codes And Identifying Bids

SPONSORED CONTENT:
MyGovWatch
If you are interested in winning Federal contracts and have been told by anyone to make sure you know your NAICS Code(s) so you can plug them into your Capability Statement or SAM.gov, join this complimentary webinar to learn why knowing your NAICS Code(s) is just not good enough. Roughly, 38% of NAICS Codes are assigned incorrectly to solicitations. Learn more in this webinar!
Webinar takeaways will include actionable items to implement to help you win more federal business.

1. NAICS Codes & Identifying Bids: More Than Meets the Eye June 9, 2023

2. NAICS @ A Glance 1930s: Standard Industrial Classification (SIC) 1997: NAICS established (Census Bureau) 2000: NAICS adopted for size standards 2012: Sam.gov created to replace CCR 2021: Beta.Sam.gov replaces FedBizOpps NAICS is an arbitrary taxonomy; others: PSC: Product Service Code NIGP: National Institute of Government Purchasing UNSPSC: United Nations Standard Products and Services Code Sector Sector Name 11 Agriculture, Forestry, Fishing and Hunting 21 Mining, Quarrying, and Oil and Gas Extraction 22 Utilities 23 Construction 31-33 Manufacturing 42 Wholesale Trade 44-45 Retail Trade 48-49 Transportation and Warehousing 51 Information 52 Finance and Insurance 53 Real Estate and Rental and Leasing 54 Professional, Scientific, and Technical Services 55 Management of Companies and Enterprises 56 Administrative and Support and Waste Management and Remediation Services 61 Educational Services 62 Health Care and Social Assistance 71 Arts, Entertainment, and Recreation 72 Accommodation and Food Services 81 Other Services (except Public Administration) 92 Public Administration

3. NAICS Structure Two-digit top-level codes Six-digit bottom level codes 1,012 six-digit codes NAICS Hierarchy Sector Name XX Sector XXX Subsector XXXX Group XXXXX Industry XXXXXX National Industry 54 Professional, Scientific &Technical Services 541 Professional, Scientific, and Technical Services 5411 Legal Services 54111 Offices of Lawyers 541110 Offices of Lawyers 54112 Offices of Notaries 541120 Offices of Notaries 54119 Other Legal Services 541191 Title Abstract and Settlement Offices 541199 All Other Legal Services 5412 Accounting, Tax Preparation, Bookkeeping, and Payroll Services 54121 Accounting, Tax Preparation, Bookkeeping, and Payroll Services 541211 Offices of Certified Public Accountants 541213 Tax Preparation Services 541214 Payroll Services 541219 Other Accounting Services

4. NAICS in Federal Contracting On the BUYING SIDE: Code of Federal Regulations : 48 CFR 19.102(b)(1) “Contracting officers shall assign one NAICS code and corresponding size standard to all solicitations, contracts, and task and delivery orders. The contracting officer shall determine the appropriate NAICS code by classifying the product or service being acquired in the one industry that best describes the principal purpose of the supply or service being acquired.” (emphasis added) On the SELLING SIDE: List one or more NAICS on your Sam.gov profile, specifying which is your principal NAICS

5. Sam.gov & NAICS 99,868 active items as of Wednesday (exc. Sales of Property) What are they buying? Who is on this webinar? * Data randomly chosen for one day of new listings on sam.gov

6. MyGovWatch Data Study Why did MyGovWatch do this? Identified a sample of sam.gov purchasing actions Categorized each one: Product or Service? Correct NAICS? One NAICS appropriate?

7. MyGovWatch Findings A large percentage of solicitations have an incorrect NAICS assignment.

8. Product Vs. Service Findings Buyers are more likely to get product NAICS assignments correct than service NAICS assignments.

9. Example #1: Egregious Error FY23 PASSOVER MEALS 311119 - Other Animal Food Manufacturing Inexcusable mistake

10. Example #2: The Best Intentions Lower Monumental Dam Goat Grazing 112420 - Goat Farming Buyer TRIED

11. Example #3: Marginally Correct Traffic Management 561320 – Temporary Help Services Generic NAICS

12. Example #4: CORRECT NAICS! Still Wrong. Pesticide and Application – Clay Center NE 325320 - Pesticide and Other Agricultural Chemical Manufacturing “You can be right and still be wrong.”

13. Example #5: One NAICS Not Sufficient AFD National Vessel Contract: Relocation/Delivery , Storage , Maintenance , Appraisal , and Disposal Services for Seized and/or Forfeited Vessels for CONUS and OCONUS 713930 – Marinas One NAICS not enough

14. Example #6: Tail Wagging the Dog B--USFWS R7 CGL Yukon River Chum Salmon Analysis 921150 - American Indian and Alaska Native Tribal Governments Tail wagging the dog

15. Wrong NAICS Ramifications Inaccurate government-wide reporting on spending Less visibility / opportunity for contractors Fewer bidders (higher prices or less value for same spend) Affects small business and socioeconomic set asides Less teaming & subcontracting to meet bundled requirements Reduced efficiency in Federal operations More frequent legal challenges (set asides)

16. Takeaways: What Should I Do Next? Spend time each day searching seemingly-unrelated NAICS codes. When looking for opportunities on paid websites OTHER THAN MyGovWatch: Don’t sign up for one that uses NAICS codes to drive your experience. Ask customer service: What are all the ways that your platform attempts to route the correct leads my way? Ask yourself: Does your provider have proactive US-based customer service to make sure the right leads are making it to your inbox? Also ask yourself: Am I overpaying for marginally relevant leads? When assigning NAICS to your Sam profile: Assign additional codes adjacent to your NAICS.

17. Offer: Extended MyGovWatch Trial Anyone who starts a FREE MyGovWatch trial by close of business today will have their trial EXTENDED to 30 DAYS! Click the link in the chat to start your free trial today.