There is an ongoing conversation about the use of NAICS Codes, the primary and most widely-known classification system in federal contracting, and Product and Service Codes which were in use prior to adoption of the North American Industry Classification System, and still in use today. Many are not aware of PSCs and many have forgotten them. But every transaction in FPDS-NG includes a reference to PSCs and the Department of Defense uses them as part of their Better Buying Power Initiative and Strategic Sourcing.
For these reasons, it’s probably important for vendors to understand the relationship between PSC and NAICS Codes.
— The Chief Visionary
For once, I really will keep it short and sweet.
– 523991 Trust, Fiduciary and Custody Activities
– 523999 Miscellaneous Financial Investment Activities
– 541211 Offices of Certified Public Accountants
– 541219 Other Accounting Services
on your SAM profile to let agencies and other companies know what your offerings entail. If you’re really on top of things, you’ve also claimed some PSC Codes as well. Why? Because PSC Codes represent what the Government is buying in each of the transactions it executes. You can find them on records in the Federal Procurement Data System and announcements on the Federal Business Opportunities site.
So let’s say you did select PSC Codes and one of them is R703 Support-Management: Accounting. Do you include this in your market research activities currently? If you did, then you might know during Fiscal Year 2015 when federal agencies indicated they were making a purchase of Support-Management: Accounting, thirty-eight (38) contracting departments referenced this PSC under forty-three (43) different NAICS Codes on the way to obligating a net of $269 million.
How many of the NAICS Codes listed below were not on your company’s radar and how many dollars did your company miss as a result?
This isn’t the only PSC Code that matters to company’s providing accounting services, and not every transaction will be a good fit for every accounting firm. But how many of the dollars in NAICS Codes you’ve never considered ARE for the exact services you provide?
You can read more about NAICS Codes and PSC Codes in the various articles (and a video) I’ve created on the subject. Here’s the current list:
- 542 Reasons to Change How You Use NAICS and PSC Codes
- ‘To See or To Be Seen, Use the Right Codes!‘ (Video)
- ‘Balancing NAICS and PSC For Business Sake‘
- ‘Marketing? Market Research? Don’t Ignore Product and Service Codes.‘
- ‘Quick Guide to Product and Service Codes in Government Contracting‘
- ‘Fact, Fiction and More About NAICS Codes‘
If your current marketing and market research is based solely or primarily on the use of NAICS Codes to identify customers and opportunities, you are not seeing the entire picture and you’re consuming too much information on the road to acquiring the information that matters.
Don’t let lack of knowledge and understanding of this classification system be your company’s Achilles’ Heel as you view the opportunity landscape.
“The person who says it cannot be done should not interrupt the person doing it.”