What is NAICS?

Chris WiedemannWhat is a contract vehicle?By Chris Wiedemann, consultant

Over the course of this series, we’ve covered a lot of the ins and outs of government contracting in the IT and COTS space.

Of course, the government buys products and services across the full range of the American economy, in addition to its role in monitoring, reporting on and regulating American industry. That led to the need for a classification system to bucket American companies based on the service or product they provide – the North American Industrial Classification System (NAICS).

NAICS codes, as they are known, are six-digit codes that categorize companies and are used by the government in different ways. For example, every solicitation that an agency releases must indicate a primary NAICS that the solicitation pertains to (and, in some cases, additional NAICS codes that might apply).

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What is a set-aside?

By Chris Wiedemann, consultant

Over the last few months, I’ve blogged on the basics of government contracting and selling to government customers – focusing on things like contract vehicles, the Federal Acquisition Regulations, the General Services Administration and federal cybersecurity requirements.

Taken together, those topics describe a basic framework for government procurement and the way industry interacts with it. They also demonstrate that public sector customers (both federal and state/local) behave differently than customers in the commercial space.

However, we haven’t yet addressed one of the most fundamental differences between public and private sector customers: The government, in addition to needing industry to help fulfill its mission, has a broad incentive to encourage economic growth across all sectors of American industry. Often, this growth means prioritizing small businesses over large corporations in contracting – and there are a set of contracting tools, known as set-asides, that enable just that.

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