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Chief Visionary's Blog, FEATURED ARTICLES, Industry Contributor, Industry News, Op-Ed/Blog, The CI Community

Opportunities are Visible (More or Less) Based on How You Look for Them

GTVendors large and small have grown accustomed to relying on NAICS Codes as the ‘be-all and end-all’ descriptor related to the goods and services procured by federal agencies of the U.S. Government. And they’ve done so to a fault. The North American Industry Classification System (NAICS) is comprehensive and multi-faceted, but as used by many in industry during the development of market intelligence, the view it provides is incomplete.

This is another entry in my ongoing discussion about the relationship between the NAICS and PSC classification systems.

— The Chief Visionary

When it comes to assigning a NAICS Code to an acquisition, federal agency buyers are encouraged to select one that ‘best describes the principal purpose of the product or service being acquired.’ To describe ‘WHAT was bought for each contract action‘ they are given guidance to select a Product or Service Codebased on the predominant product or service Featured Image -- 4523purchased.’ Keep all of this in mind as you move through this piece.

Whether your approach is reacting to automated notifications about upcoming business opportunities, or if your style is more akin to chasing down information to uncover information and relationships long before those alerts are sent, how you look at that information will have significant impact on your view of the opportunity landscape.

Here’s an example.

Companies providing Janitorial Services very likely adopt and stalk everything associated with the NAICS Code 561720 – Janitorial Services which, according to the Federal Procurement Data System – Next Generation, was referenced in contract actions with obligations totaling $1.3 billion during Fiscal Year 2015. Vendors using that as a primary or sole descriptor in conducting market research and receiving opportunity alerts, would have seen a bevy of requirements based on agencies procuring the following products and services:

ADP SOFTWARE
AIRCRAFT, FIXED WING
BAGS AND SACKS
BOOKS AND PAMPHLETS
BROOMS, BRUSHES, MOPS, AND SPONGES
CABLE, CORD, AND WIRE ASSEMBLIES: COMMUNICATION EQUIPMENT
CHEMICALS
CLEAN WORK STATIONS, CONTROLLED ENVIRONMENT, AND RELATED EQUIPMENT
CLEANING AND POLISHING COMPOUNDS AND PREPARATIONS
CONSTRUCTION OF MAINTENANCE BUILDINGS
CONSTRUCTION OF MISCELLANEOUS BUILDINGS
CONSTRUCTION OF OFFICE BUILDINGS
CONSTRUCTION OF RESTORATION OF REAL PROPERTY (PUBLIC OR PRIVATE)
CONSTRUCTION OF UNIMPROVED REAL PROPERTY (LAND)
ENVIRONMENTAL SYSTEMS PROTECTION- ENVIRONMENTAL REMEDIATION
ENVIRONMENTAL SYSTEMS PROTECTION- PESTICIDES SUPPORT
EQUIPMENT AND MATERIALS TESTING- CLEANING EQUIPMENT AND SUPPLIES
FENCING, FENCES, GATES AND COMPONENTS
FLOOR POLISHERS AND VACUUM CLEANING EQUIPMENT
FOOD, OILS AND FATS
GARDENING IMPLEMENTS AND TOOLS
HOUSEHOLD AND COMMERCIAL UTILITY CONTAINERS
HOUSEHOLD FURNISHINGS
HOUSEKEEPING- CARPET LAYING/CLEANING
HOUSEKEEPING- CUSTODIAL JANITORIAL
HOUSEKEEPING- FACILITIES OPERATIONS SUPPORT
HOUSEKEEPING- FIRE PROTECTION
HOUSEKEEPING- FOOD
HOUSEKEEPING- FUELING AND OTHER PETROLEUM
HOUSEKEEPING- GUARD
HOUSEKEEPING- INSECT/RODENT CONTROL
HOUSEKEEPING- LANDSCAPING/GROUNDSKEEPING
HOUSEKEEPING- LAUNDRY/DRYCLEANING
HOUSEKEEPING- OTHER
HOUSEKEEPING- SNOW REMOVAL/SALT
HOUSEKEEPING- SURVEILLANCE
HOUSEKEEPING- TRASH/GARBAGE COLLECTION
HOUSEKEEPING- WAREHOUSING/STORAGE
HOUSEKEEPING- WASTE TREATMENT/STORAGE
INSPECTION- CLEANING EQUIPMENT AND SUPPLIES
INSPECTION- PLUMBING, HEATING, AND WASTE DISPOSAL EQUIPMENT
INSPECTION- SPECIAL INDUSTRY MACHINERY
INSTALLATION OF EQUIPMENT- CHEMICALS AND CHEMICAL PRODUCTS
INSTALLATION OF EQUIPMENT- ELECTRICAL AND ELECTRONIC EQUIPMENT COMPONENTS
INSTALLATION OF EQUIPMENT- MISCELLANEOUS
INSTALLATION OF EQUIPMENT- REFRIGERATION, AIR CONDITIONING, AND AIR CIRCULATING EQUIPMENT
INSTALLATION OF EQUIPMENT- TOILETRIES
IT AND TELECOM- DATA ENTRY
IT AND TELECOM- FACILITY OPERATION AND MAINTENANCE
IT AND TELECOM- OTHER IT AND TELECOMMUNICATIONS
KITCHEN EQUIPMENT AND APPLIANCES
LABORATORY EQUIPMENT AND SUPPLIES
LEASE OR RENTAL OF EQUIPMENT- CLEANING EQUIPMENT AND SUPPLIES
LEASE OR RENTAL OF EQUIPMENT- MISCELLANEOUS
LEASE OR RENTAL OF EQUIPMENT- OFFICE MACHINES, TEXT PROCESSING SYSTEMS, AND VISIBLE RECORD EQUIPMENT
LEASE OR RENTAL OF EQUIPMENT- PLUMBING, HEATING, AND WASTE DISPOSAL EQUIPMENT
LEASE OR RENTAL OF EQUIPMENT- TOILETRIES
LEASE/RENTAL OF OFFICE BUILDINGS
LUMBER AND RELATED BASIC WOOD MATERIALS
MAINT/REPAIR/REBUILD OF EQUIPMENT- AIRCRAFT COMPONENTS AND ACCESSORIES
MAINT/REPAIR/REBUILD OF EQUIPMENT- CLEANING EQUIPMENT AND SUPPLIES
MAINT/REPAIR/REBUILD OF EQUIPMENT- CONSTRUCTION AND BUILDING MATERIALS
MAINT/REPAIR/REBUILD OF EQUIPMENT- FOOD PREPARATION AND SERVING EQUIPMENT
MAINT/REPAIR/REBUILD OF EQUIPMENT- FURNITURE
MAINT/REPAIR/REBUILD OF EQUIPMENT- HOUSEHOLD AND COMMERCIAL FURNISHINGS AND APPLIANCES
MAINT/REPAIR/REBUILD OF EQUIPMENT- MATERIALS HANDLING EQUIPMENT
MAINT/REPAIR/REBUILD OF EQUIPMENT- MISCELLANEOUS
MAINT/REPAIR/REBUILD OF EQUIPMENT- PLUMBING, HEATING, AND WASTE DISPOSAL EQUIPMENT
MAINT/REPAIR/REBUILD OF EQUIPMENT- REFRIGERATION, AIR CONDITIONING, AND AIR CIRCULATING EQUIPMENT
MAINT/REPAIR/REBUILD OF EQUIPMENT- SERVICE AND TRADE EQUIPMENT
MAINT/REPAIR/REBUILD OF EQUIPMENT- SPECIAL INDUSTRY MACHINERY
MAINTENANCE OF AIR TRAFFIC CONTROL TOWERS
MAINTENANCE OF FAMILY HOUSING FACILITIES
MAINTENANCE OF HOSPITALS AND INFIRMARIES
MAINTENANCE OF LABORATORIES AND CLINICS
MAINTENANCE OF MAINTENANCE BUILDINGS
MAINTENANCE OF MISCELLANEOUS BUILDINGS
MAINTENANCE OF OFFICE BUILDINGS
MAINTENANCE OF OTHER ADMINISTRATIVE FACILITIES AND SERVICE BUILDINGS
MAINTENANCE OF OTHER INDUSTRIAL BUILDINGS
MAINTENANCE OF OTHER NON-BUILDING FACILITIES
MAINTENANCE OF OTHER RESIDENTIAL BUILDINGS
MAINTENANCE OF PARKING FACILITIES
MAINTENANCE OF RECREATION FACILITIES (NON-BUILDING)
MAINTENANCE OF RECREATIONAL BUILDINGS
MAINTENANCE OF TROOP HOUSING FACILITIES
MAINT-REP-ALT/AIR TRAFFIC TOWERS
MAINT-REP-ALT/MISC BLDGS
MAINT-REP-ALT/OFFICE BLDGS
MAINT-REP-ALT/OTHER ADMIN BLDGS
MEDICAL AND SURGICAL INSTRUMENTS, EQUIPMENT, AND SUPPLIES
MEDICAL- OTHER
MILLWORK
MINERALS, NATURAL AND SYNTHETIC
MISCELLANEOUS CRUDE AGRICULTURAL AND FORESTRY PRODUCTS
MISCELLANEOUS FURNITURE AND FIXTURES
MISCELLANEOUS ITEMS
MISCELLANEOUS SERVICE AND TRADE EQUIPMENT
MISCELLANEOUS SHIP AND MARINE EQUIPMENT
MODIFICATION OF EQUIPMENT- ALARM, SIGNAL, AND SECURITY DETECTION SYSTEMS
MODIFICATION OF EQUIPMENT- FURNACE, STEAM PLANT, AND DRYING EQUIPMENT; NUCLEAR REACTORS
NATURAL RESOURCES/CONSERVATION- FISHERIES RESOURCES MANAGEMENT
NATURAL RESOURCES/CONSERVATION- OTHER
NATURAL RESOURCES/CONSERVATION- OTHER FOREST/RANGE IMPROVEMENTS (NON-CONSTRUCTION)
NATURAL RESOURCES/CONSERVATION- RECREATION SITE MAINTENANCE (NON-CONSTRUCTION)
OFFICE DEVICES AND ACCESSORIES
OFFICE SUPPLIES
OPERATION OF MAINTENANCE BUILDINGS
OPERATION OF OFFICE BUILDINGS
OPTICAL INSTRUMENTS, TEST EQUIPMENT, COMPONENTS AND ACCESSORIES
OTHER ENVIRONMENTAL SERVICES
OTHER QC/TEST/INSPECT- CLEANING EQUIPMENT AND SUPPLIES
OTHER QC/TEST/INSPECT- CONTAINERS, PACKAGING, AND PACKING SUPPLIES
OTHER QC/TEST/INSPECT- TOILETRIES
PEST CONTROL AGENTS AND DISINFECTANTS
PLYWOOD AND VENEER
QUALITY CONTROL- CLEANING EQUIPMENT AND SUPPLIES
R&D- DEFENSE OTHER: CONSTRUCTION (BASIC RESEARCH)
R&D- DEFENSE OTHER: SERVICES (BASIC RESEARCH)
R&D- DEFENSE OTHER: SERVICES (COMMERCIALIZED)
R&D- DEFENSE OTHER: SERVICES (ENGINEERING DEVELOPMENT)
R&D- DEFENSE OTHER: SERVICES (MANAGEMENT/SUPPORT)
R&D- DEFENSE OTHER: SERVICES (OPERATIONAL SYSTEMS DEVELOPMENT)
R&D- MEDICAL: BIOMEDICAL (BASIC RESEARCH)
REPAIR OR ALTERATION OF FAMILY HOUSING FACILITIES
REPAIR OR ALTERATION OF MUSEUMS AND EXHIBITION BUILDINGS
REPAIR OR ALTERATION OF OFFICE BUILDINGS
REPAIR OR ALTERATION OF POLLUTION ABATEMENT AND CONTROL FACILITIES
SAFETY AND RESCUE EQUIPMENT
SALVAGE- OTHER
SOCIAL- OTHER
SOCIAL- SOCIAL REHABILITATION
SPECIAL STUDIES/ANALYSIS- OTHER
SUPPORT- ADMINISTRATIVE: COURIER/MESSENGER
SUPPORT- ADMINISTRATIVE: INFORMATION RETRIEVAL
SUPPORT- ADMINISTRATIVE: OTHER
SUPPORT- MANAGEMENT: OTHER
SUPPORT- PROFESSIONAL: EXPERT WITNESS
SUPPORT- PROFESSIONAL: INDUSTRIAL HYGIENICS
SUPPORT- PROFESSIONAL: LEGAL
SUPPORT- PROFESSIONAL: OTHER
SUPPORT- PROFESSIONAL: PERSONAL SERVICES CONTRACTS
SUPPORT- PROFESSIONAL: PROGRAM MANAGEMENT/SUPPORT
SUPPORT- PROFESSIONAL: VETERINARY/ANIMAL CARE
TECHNICAL REPRESENTATIVE- CLEANING EQUIPMENT AND SUPPLIES
TOILET SOAP, SHAVING PREPARATIONS, AND DENTIFRICES
TOILETRY PAPER PRODUCTS
TRAINING AIDS
TRANSPORTATION/TRAVEL/RELOCATION- TRANSPORTATION: OTHER
TRANSPORTATION/TRAVEL/RELOCATION- TRAVEL/LODGING/RECRUITMENT: LODGING, HOTEL/MOTEL
UTILITIES- ELECTRIC
UTILITIES- OTHER
UTILITIES- WATER
WASTE DISPOSAL EQUIPMENT

In conjunction with NAICS Codes 561720 for Janitorial Services, agencies referenced 154 different Product and Service Codes as illustrated above. If the majority of the buys were procured as the result of a 13888630_ml shocked businessmansynopsis or combined synopsis/solicitation, then companies searching on NAICS Codes saw a number of irrelevant opportunities. Companies using the NAICS to look at historical contract data would have seen a similar result.

At the same time both would also have missed potential opportunities. Here’s why.

In the initial search based on the NAICS Code, just over one billion of the obligations were to the Product Service Code for Housekeeping – Custodial Janitorial (PSC Code S201).

If we base a search on WHAT the Government was buying, in this case using the PSC for Housekeeping – Custodial Janitorial, we find out that agencies obligated $1.2 billion in the course of making buys that referenced ninety-eight different NAICS Codes in the process. If they are buying the product or service you sell, the only reason the NAICS matters is because of the associated size standard, if it’s a set-aside procurement.

Based on how NAICS and PSC Codes are prescribed to be used, the result was $200 million in obligations for opportunities many companies might never have seen.

In an earlier post I mentioned that NAICS Codes and PSC Codes are part of the collective of ‘dots‘ everyone is (or should be) trying to connect. Understanding what they mean during procurement planning and execution will serve you well as you prepare and position your company for opportunities.balanced naics-psc 36553291_l

If you would like additional information on NAICS Codes and PSC Codes, here are other articles (and a video) I’ve posted on GovConChannel.com:

 

Peace!

Guy Timberlake, The Chief Visionary (bio)
http://www.theasbc.org/visionary

“The person who says it cannot be done should not interrupt the person doing it.”

About Editor-in-Chief Visionary

Guy Timberlake is the Editor-in-Chief Visionary of GovConChannel and oversees the creation and curation of relevant and timely 'News And Information That Matters To Small Government Contractors.'

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