Newsletter

MESSAGE FROM THE NORTH DAKOTA PTAC TEAM

We’re excited to announce the recent hiring of Nikki Kallias as a Procurement Specialist based in Minot. Ms. Kallias joins the PTAC with a background in banking and city government. Her office is co-located with another network partner, the North Dakota Small Business Development Centers.  

If you are not already a PTAC client but are interested in selling your goods or services to local, state, or federal government agencies, visit the ND PTAC website and register for our no cost, confidential services.  If your business is not based in North Dakota please visit the APTAC website to locate the PTAC serving your area.

Understanding How NAICS Codes Are Used
in Federal Contracting

If you registered in SAM, you had to supply one or more North American Industry Classification System (NAICS) codes for your business. And if you’ve won a federal contract, you’ve seen the contract classified with a NAICS code. 

These six-digit codes are an important part of federal government contracting. However, it’s not always clear exactly how they’re used by government and industry alike – and that lack of clarity can be costly for contractors. So how, exactly, are NAICS codes used in federal contracting? Let’s take a look!

How Does a Contracting Officer Pick a Solicitation's NAICS Code?

Under Federal Acquisition Regulation (FAR) 19.102, except in the case of certain multiple-award acquisitions, a Contracting Officer must assign one – and only one – NAICS code to each solicitation, contract, and order. 

The Contracting Officer cannot just pick a code at random. Rather, per the FAR, he or she "shall determine the appropriate NAICS code by classifying the product or service being acquired in the one industry that best describes the principal purpose of the supply or service being acquired." While the Contracting Officer may consider several factors, and some element of subjectivity may exist, "a procurement is usually classified according to the component that accounts for the greatest percentage of contract value." 

Why Does the Contracting Officer's NAICS Code Choice Matter?

For small business set-asides and solicitations restricted to socioeconomic subcategories of small businesses, such as 8(a) and HUBZone set-asides, the Contracting Officer's NAICS code selection plays a major role in establishing the competitive field. The U.S. Small Business Administration assigns a size standard to each NAICS code. When the Contracting Officer selects the appropriate NAICS code, the corresponding size standard automatically applies to the solicitation. The size standard, in turn, determines which companies are eligible for the contract. 

If you're curious about the small business size standards corresponding to each NAICS code you work under, check out the Size Standards Table on the SBA's website. 

How Do I Determine My Business's Primary NAICS Code?

Contracting Officers aren't the only ones who have to figure out which NAICS code to use. When a contractor registers in SAM, the contractor must identify its primary NAICS code. But how, exactly, do you do that?

Fortunately, there's a place to find the answer: the NAICS Manual. Published by the Census Bureau, the NAICS Manual provides descriptions for each NAICS code to help you pick the right one. It's the same resource Contracting Officers use. If you do business in several NAICS codes and you're unclear which one to choose as your primary, it's wise to have a discussion with your PTAC counselor. 

What Other NAICS Codes Should I List in SAM?

Contrary to a very common misconception, an offeror need not list a particular NAICS code in its SAM profile to be awarded a contract designated with that NAICS code. That said, it is a best practice – though not a legal requirement – for a contractor to list every NAICS code that corresponds to work the contractor may bid. 

Don’t go overboard, though, and list irrelevant NAICS codes – like listing NAICS code 311230 (Breakfast Cereal Manufacturing) if you work exclusively in IT. Listing too many NAICS codes can give Contracting Officers the impression that your business isn’t focused on any specific type of work.

What About Subcontracts?

Under the SBA's regulations, an other-than-small prime contractor usually must "assign to each subcontract . . . the NAICS code and corresponding size standard that best describes the principal purpose of the subcontract." In other words, the prime contractor must step into the Contracting Officer's shoes and pick the appropriate NAICS code for each subcontract – and those NAICS codes may or may not be the same as the NAICS code assigned to the prime contract.

If you're in the process of negotiating a subcontract and confused or concerned about what NAICS code to apply, or if you have any other questions about how NAICS codes are used in federal contracting, give your PTAC counselor a call.

The U.S. Small Business Administration has proposed a slate of revisions to its regulations governing the 8(a) Business Development program, joint ventures, affiliation, and more. Several of these changes are intended to make the SBA’s regulations more user-friendly, such as by including clearer examples of restrictions on joint ventures and making it easier for small businesses to determine when they might violate the ostensible subcontractor affiliation rule. With respect to the 8(a) Program, the proposed revisions would increase the importance of an 8(a) firm’s business development plan by prohibiting a new 8(a) firm from receiving 8(a) contracts until the SBA approves its business plan. 

Read the complete proposed rule and a summary of some of the more notable changes. If you would like to learn more about the 8(a) Program or receive assistance with an application, schedule time to talk with your PTAC counselor. 

“A slow walk through the proposed CMMC Level 1 and the FAR 52-204-21 Basic Cyber Hygiene”
Date: November 15
Time: 12:00 p.m. CT
Format: Webinar
Registration:  “A slow walk through the proposed CMMC Level 1..."


Understanding Federal Acquisition Regulations (FAR)
Date: December 6
Time: 9:00 – 10:00 a.m. CT
Format: Webinar
Registration:  Understanding Federal Acquisition Regulations (FAR)

Hosted in partnership with the MN, ND, and SD PTACs and SBA District offices, this presentation will help you understand the basic elements of the Federal Acquisition Regulations, more commonly known as the FAR.  It will include what the FAR is, what it covers, and how it is structured. We will discuss the various and notable FAR clauses and their meanings, as well as explain some of the main supplements to the FAR, especially the Defense Federal Acquisition Regulations (DFARS). Finally, we will discuss how the FAR is woven into government contracts and guides each step of the government acquisition process, even when not explicitly referenced. By the end of this presentation, you will have no reason to fear the FAR!


Quarterly Strategic Teaming Alliance Roundtable
Date: December 15
Time: 9:00 – 11:00 a.m. CT
Format: Webinar
Registration available soon:  Quarterly Strategic Teaming Alliance Roundtable

Join us for the third of a series of STAR roundtables, hosted by regional PTACs in alliance with Northrop Grumman Corporation, designed to assist small businesses to navigate and benefit from doing business with the federal government and large business contractors. Connect with panelists from a variety of large and small businesses currently successfully performing as prime and subcontractors. Learn helpful tips to assist you in achieving your government contracting goals. This is a series of events and new panelists that will provide unique information at each roundtable!


North Dakota 11th Annual Government Procurement Fair
Date: March 28, 2023
Format: University of North Dakota – Memorial Union
Registration:  North Dakota 11th Annual Government Procurement Fair

We know it’s early, but registration is already open for our annual government procurement fair!  It will be at UND’s new Memorial Union and offer workshops where you can learn about local, state, and federal government market sectors.  In addition, you will learn how to complete registrations and talk about current solicitations, how to do business with state and federal agencies, and more.  Attendees will be provided an educational environment and the ability to network and share their capabilities with government agencies (potential customers!)  Register today for this in-person only event. 

Experts from around North Dakota and the country share information on a wide range of topics. National Veteran’s Small Business Week is in early November.  Our guest writer, Wendy Klug, shares about veteran events and veteran certifications. Read the ND PTAC Blog and check out our website, LinkedIn, and Facebook pages.

White House Raises Contract Spending Goals for Small Disadvantaged Businesses

The White House has issued new guidance to procuring agencies, calling for at least 12% of prime contract dollars to be awarded to Small Disadvantaged Businesses in the new fiscal year. The new guidance raises the bar from the previous fiscal year, in which agencies met the White House’s 11% SDB goal. The 12% goal is likely to increase again next year as the Administration seeks to achieve a 15% SDB spend by 2025. Read "White House Raises Contract Spending Goals..." and see "Agency-Specific Small Disadvantaged Business Goals Now In Effect"  for additional background on the 15% goal. 


A Helpful Guide: The VA’s Memorandum on the New Certification System

The SBA will take over the certification of service-disabled veteran-owned and veteran-owned small businesses in January 2023, and the certification requirement will expand to include almost all federal agencies, not just the VA. Now the VA has issued a memorandum with helpful guidance about this major pending change and what it means for contractors. Read "A Helpful Guide..." and see the original memorandum.


More Than Ever, Contractors Need a Vehicle Strategy to Capitalize on a Growing Federal Market

Federal contracting spending continues to grow, but so does consolidation, with more and more spending being allocated through large contract vehicles such as GSA’s large Government-wide Acquisition Contracts. This article explains what is happening in the federal marketplace and why it’s important for many contractors to have a strategy for getting on, and succeeding under, these large contract vehicles. Read "More Than Ever, Contractors Need a Vehicle Strategy...."