NAICS impact on small business set-asides

Abstract

This project describes the role of the North American Industry Classification System (NAICS) in the federal government contracting process, especially with respect to small-business solicitations. Because of its importance, mistakes made by contract officers in assigning a NAICS code to a project may have serious adverse effects on small business competition and participation. An analysis of small business opportunities in construction over the years 2012–2014 reveals mistakes in assigning NAICS codes, suggesting that additional oversight is needed along with enhanced efficiency in the NAICS appeal process.