For several years the information technology (IT) industry has modernized how the federal government does business. When examining the White House FY 2022 Federal IT Budget, requests were higher than ever. Not only did this budget include improving the federal IT workforce, but it also included a $500 million increase in the Technology Modernization Fund (TMF). It’s very evident that today, more than ever before, IT modernization is a top priority for federal procurement. Because of this, it’s essential to look deeper into the top IT-North American Industry Classification (NAICS) Codes through the GSA Schedule.
If you are a current or prospective GSA Schedule Contractor, you will need to know how to find excellent opportunities for your company in order to be successful. Understanding what your NAICS codes are is the first step to finding your space in the federal contracting marketplace.
What are NAICS codes?
The federal government uses NAICS codes to classify businesses according to their primary activities. There are over 1,000 different NAICS codes organized into 20 major sectors. Small businesses can use NAICS codes to research government contracting opportunities. Furthermore, NAICS codes can offer valuable insight into government spending.
Why are NAICS codes important?
Businesses use NAICS codes to identify themselves and their products or services for statistical purposes. Governments use NAICS codes to track and monitor the economy for tax purposes and procurement.
Business owners and operators also use NAICS codes to:
- Determine which businesses are their competitors
- Research markets
- Identify potential customers
- Identify businesses that may be interested in selling their products or services.
To learn more about each NAICS Code and how they fit into the government procurement system, you can visit naics.com.
Top 5 IT NAICS Code
1.NAICS Code 334111 – Electronic Computer Manufacturing
This industry comprises establishments whose primary function is to manufacture electronic computers, including mainframes, desktop and laptop computers, and computer servers. This industry also includes establishments manufacturing portable computers, such as tablets and handhelds.
2. NAICS Code 54151 – Computer Systems Design and Related Services
This industry comprises establishments primarily engaged in planning and designing computer systems that integrate computer hardware, software, and communication technologies. The hardware and software components may be provided by this establishment or company as part of integration activity or may be provided by third parties. These establishments often install the system they designed.
3. NAICS Code 51121 – Software Publishers
This industry comprises establishments primarily engaged in developing, producing, publishing, and distributing computer software for sale or license to end users. This industry includes in-house developed software, as well as custom software development.
4. NAICS Code 541511 – Custom Computer Programming Services
This industry comprises establishments primarily engaged in writing, modifying, testing, and supporting software to meet the needs of a particular customer. Programming services may be performed using proprietary or third-party software.
5. NAICS Code 541519 – Other Computer-Related Services
This industry comprises establishments primarily engaged in computer-related services, such as computer systems design, managed IT services, cloud computing, and other computer-related services.
Below are the top 5 IT NAICS codes, the total amount spent through the GSA Multiple Award Schedules (MAS) in the 2021 fiscal year, and the top government agencies doing business with these NAICS codes.
The IT industry is vital to the success of businesses and government agencies worldwide. By understanding the top 5 IT industry NAICS codes and their spending trends, companies will be better equipped to make informed decisions and capitalize on the right opportunities.
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