The NAICS code selection process and small business participation
Miller, Marcus A.
Ellis, John M.
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The purpose of this project is to analyze small business participation in the United States Air Force in relation to the North American Industry Classification System (NAICS) code selection process. Anecdotally, there appears to be a wide range of interpretation across federal government agencies when applying a NAICS code to a contract. Contracting Officers are required to pick from 19,225 NAICS codes, often choosing among codes with very similar descriptions. In our professional experience, Contracting Officers are not provided any training on how to pick the most appropriate code, nor are they told why this is important. Therefore, this study selects commodities and services common to many federal contracting agencies to see if there is diversity in NAICS code selection. Further, we seek to determine the impact (negative and/or positive) improper code selection has on small business set-asides and provide recommendations to support appropriate NAICS code selection.
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