NAICS & PSC Codes: How to Pick the Right Ones

NAICS and PSC codes are the language government buyers use to describe what they need. If you choose the wrong codes — or too many — you'll either drown in irrelevant opportunities or miss the ones meant for you. Getting them right is the difference between a search that works and one that wastes your time.

TL;DR: NAICS codes describe your industry; PSC codes describe the thing being bought. Pick 3–7 NAICS codes that match your core revenue, confirm your small-business size status for each, and use both code types to target and filter opportunities.

What is a NAICS code?

NAICS (North American Industry Classification System) is a 6-digit code that classifies businesses by industry. Examples:

• 541512 — Computer Systems Design Services
• 236220 — Commercial and Institutional Building Construction
• 561720 — Janitorial Services

Each federal solicitation is assigned one primary NAICS code, and the SBA uses that code to set the size standard that determines whether the buy is "small business" territory.

What is a PSC code?

A PSC (Product Service Code), sometimes paired with the older FSC system, describes the specific product or service being procured. Where NAICS says "you are an IT services company," PSC says "this contract is for IT help-desk support" (D399) versus "custom software development" (DA01).

NAICS vs PSC at a glance

How to choose your NAICS codes

1. Start with your revenue. Which 3–5 activities actually generate your income? Those map to your primary codes.
2. Look up the official definitions. Read the full NAICS description, not just the title — the boundaries matter.
3. Check the size standard. Confirm you qualify as small under each code (revenue- or employee-based). This affects set-aside eligibility.
4. See what your competitors and target agencies use. Search past awards: which NAICS codes do the agencies you want to sell to actually buy under?
5. Designate a primary code in SAM.gov, then add secondary codes for adjacent work.

How to choose PSC codes

PSCs are more about search precision than registration. Use them to:

• Filter opportunities down to the exact service line you deliver.
• Analyze historical spend ("how much does the Army buy under R425 each year?").
• Spot adjacent PSCs where your capability could expand.

Using codes to actually find work

Codes are only useful if you search with them. On CivicContracts you can search in plain English and still filter by NAICS, or browse awards by agency to see which codes each buyer uses most. The workflow most contractors land on:

1. Save a search for each core NAICS code.
2. Layer in PSC filters when a code is too broad.
3. Set alerts so new matching opportunities come to you.

Common pitfalls

• Listing 20 NAICS codes "just in case." It signals a lack of focus and doesn't help you win.
• Ignoring size standards. Bidding a set-aside you don't qualify for under that code wastes everyone's time.
• Confusing NAICS with PSC. They answer different questions — use both.

Next steps

With your codes locked in, you're ready to find the right opportunities and make sure your capability statement lists those codes prominently. Start exploring awards by code on CivicContracts.