Government agencies are always looking for businesses to invest in, however, it is often taken for granted or missed. More than $5 billion in Simplified Acquisition dollars are ‘left on the table’ by small businesses each fiscal year.
Through simplified acquisition procedures (SAP), rules are thrown out the window. A new set of rules are followed but it only applies to contracts that follow the specified category.
Having said that, federal agencies use NAICS code for SAP to determine the products and services that they want to buy. Choosing the wrong NAICS code for SAP could hinder your path to success.
Are you interested in learning how to win in the marketplace? Get to know the top players that have been in high demand, here’s the top 10 industries in 2021 for SAP.
1.331410
Non-Ferrous metal (except aluminum) smelting and refining comes first on our list. This industry is responsible for the smelting of non-ferrous metals, except aluminum, from ores and/or the primary refining of these metals by electrolytic methods or other processes.
Non-ferrous metals are considered highly valuable, which is probably why the collective amount obligated by the federal government to this industry has reached $229 million.
2. 541512
In this day and age, all organizations rely on computer and information technology but many of them don’t have the internal resources to effectively design, implement, or manage the products and systems that they need, this is where computer systems design services enter.
Government agencies, at all levels, are undergoing digital transformation. They have invested about $212 million in this industry, for SAP contracts alone. Digital government transformation has become critical for meeting the expectations of modern citizens.
3. 336413
This is the industry that manufactures and/or develops aircraft parts or auxiliary equipment (except engines and aircraft fluid power subassemblies).
Aviation has made a significant impact on human life, one of which is the import and export of goods. With a cumulative spending amount for SAP contracts of $202 million, it is clear that the government sees the importance of these companies.
4. 541519
Other computer related services pertain to businesses that provide computer related services except those that are offered by companies under the 541512 NAICS code. They come in when there is a need for computer disaster recovery or software installation.
SAP contracts under this code that have won are worth about $184 million, collectively, not as much as those under 541512 but it is still quite up there.
5. 541611
Administrative management and general management consulting services provide operating advice and assistance to businesses and other organizations on administrative management issues.
Since this industry is vital for every business of all kinds, it does not exclude the federal government from needing it, which is why they’ve also spent around $184 million on it.
6. 336611
Establishments under this code are primarily engaged in ship building and repairing. To put it simply, they operate a shipyard which includes constructing, repairing, altering, and producing ships.
In 2021, the government spending on this industry for SAP contracts is around $148 million.
7. 541330
Engineering services apply physical laws and principles of engineering in the design, development, and utilization of machines, materials, instruments, structures, processes, and systems.
This industry is quite broad, as engineering encompasses a wide range of industries, but as a whole, they have won SAP contracts worth $138 million.
8. 511210
This code comprises software publishers that are primarily engaged in computer software publishing or publishing and reproduction.
Software development matters. The contracts that have won under this code are worth $126 million. It is difficult to imagine a successful business model without online marketing, since a well-integrated software can take any company to the next level.
9. 561210
The facilities support services provide operating staff to perform a combination of support services within a client’s facilities. The government has invested $124 million in this industry.
Oftentimes, people don’t notice the benefits of proper facilities management and how it significantly increases productivity.
10. 339113
Businesses in this industry manufacture surgical appliances and supplies such as orthopedic devices, prosthetic appliances, surgical dressings, etc. The relevance of the healthcare industry has always been constant, but 2021 has increased that tenfold.
Although it comes last on the list, the federal government’s spending on this industry is about $118 million, which is still an insane amount.
RESOURCES
The ranking from this article was taken from usaspending.gov. Federal awards that were completed under SAP were listed from highest to lowest, according to their NAICS code and their respective cumulative amount obligated by the federal government.
If you want to know how to win small contracts with the U.S. federal government through SAP, check out this video entitled, “Low hanging fruit contracts (SAP) Simplified Acquisition Procedures – Eric Coffie”, to know your way around the industry.
To also learn more about all things NAICS, you can check out the website here.