There will always be an unfair advantage in government contracting for big companies when they are in competition with smaller ones.

Big businesses, most likely, already have all the necessary requirements needed to win a contract such as complete equipment, full staff, and even cheaper services.

Winning big contracts, however, isn’t always beyond small businesses. The size of a business shouldn’t be seen as a disadvantage. In fact, use it to navigate your place in the industry!

If you are a small business that is struggling to compete with larger companies, make use of the government set-asides. This allows you to compete at an even playing field. These contracts are specifically meant for businesses that operate in disadvantaged locations or businesses owned by minorities or women.

There are always opportunities waiting for you, you just have to know where to look. To help you get started, it’s always good to know the industries that the federal government is investing in. 

Here’s a list of the top 10 NAICS codes that have conquered set-aside spending this 2021.

1. 541512 

The Computer Design Services are those establishments primarily engaged in planning and designing computer systems that integrate computer hardware, software, and communication technologies.

Think of the people who are behind your company’s tech system. They are the masterminds. They train and support the users of the system, as well.

2. 541519 

For every system design, there will always be the need for software installation and computer disaster recovery to make sure that it works and will continue to work in the future.

This industry is labeled as “other computer related services,” and it’s exactly that. These are establishments that provide computer related services, except those that are provided for by the computer design services.

3. 236220 

This industry is quite self explanatory, as it is described to be commercial and institutional building construction. 

This refers to the construction of commercial and institutional buildings and related structures, such as stadiums, grain elevators, and indoor swimming facilities. Building general contractors, builders, and project construction management firms are part of this industry.

4. 541715 

Under this code are those who conduct research and experimental development  in the physical, engineering, and life sciences (except nanotechnology and biotechnology).

This industry is diverse as it covers agriculture, electronics, environmental, biology, botany, computers, chemistry, food, fisheries, forests, geology, health, mathematics, medicine, oceanography, pharmacy, physics, veterinary and other allied subjects.

5. 561210 

Facility support services provide operating staff that perform a combination of support services within a client’s facilities. They, however, are not involved with or responsible for the core business processes or activities of the client.

The combination of support services, mentioned, are janitorial, maintenance, trash disposal, guard and security, mail routing, reception, and laundry.

6. 541330 

This code covers most, if not all, businesses that provide engineering services. This pertains to establishments that make use of the principles of engineering in their design and development processes.

These establishments may involve any of the following activities: provision of advice, preparation of feasibility studies, preparation of preliminary and final plans and designs, provision of technical services during the construction or installation phase, inspection and evaluation of engineering projects, and related services.

7. 541611 

Administrative management and general management consulting services provide and operate advice and assistance to businesses and other organizations.

This is the industry for general management consultants, since they provide a full range of management consulting services to their clients. These services include, administrative, human resource, marketing, process, physical distribution, and logistics.

8. 541712 

In this industry, the establishments are primarily engaged in Research and Development in the Physical, Engineering and Life Sciences Engineering, and Life Sciences (except Biotechnology). This code, however, has been replaced by 541715.

Note: The NAICS Code that should be used instead (effective January 1, 2017) is 541715 unless the requirement is dealing with nanotechnology. In that case, the NAICS Code 541713 should be used. 

9. 541511

This code is similarly related to 541512-Computer Design services. The difference, however, is that this industry provides custom computer programming services.  

It focuses more on writing, modifying, testing, and supporting software to meet the needs of a particular customer, hence the term custom was used.

10. 561440

Collection agencies are establishments primarily engaged in collecting payments for claims and remitting payments collected to their clients.

They are used by lenders or creditors to recover funds that are past due or from accounts that are in default. Often, a creditor will hire a collection agency after it has made multiple failed attempts to collect its receivables.

RESOURCES

The list of NAICS codes from this article was taken from usaspending.gov, wherein federal awards for set-aside spending in 2021 was categorically ranked from highest to lowest, according to each industry’s collective spending amount.

If you have grown an interest in set-aside contracts and are curious about finding set-aside awards, check out this video entitled, “Finding set-aside awards on USAspending.gov,” to find opportunities waiting for you.

To also learn more about all things NAICS, you can check out the website here.