GSA’s Procurement Overhaul Is Underway—Is Your Business Aligned with the Right NAICS Codes?

If you’ve been around the federal contracting space long enough, you know that change is inevitable—and often slow. But when change does come, especially from the General Services Administration (GSA), it’s a good idea to pay attention. Right now, we’re witnessing one of those moments.

GSA is spearheading a broad transformation of how federal agencies procure goods and services, and at the heart of that shift is a familiar acronym you’ve probably seen a thousand times: NAICS.

That’s right—NAICS codes, those six-digit numbers that once felt like bureaucratic red tape, are now becoming central to how agencies organize their needs, how vendors are sorted, and how contracts are awarded. And if your codes aren’t aligned with what you actually offer? You could be missing out on major contracting opportunities without even realizing it.

Let’s unpack what’s happening, why it matters to you, and how you can make sure your business is ready for the next chapter in government procurement.

What’s Going On With GSA?

GSA is leading the Government-wide Procurement Consolidation Effort, a strategic initiative aimed at cutting through the complexity of the current federal acquisition process. Think of it like a major tune-up to the procurement engine that powers government buying—fewer silos, clearer categories, and a smoother path from agency need to contract award.

The ultimate goal? Streamlining how agencies buy and how the private sector engages.

For industry professionals, this is good news. Less confusion. More transparency. And a better chance for small and mid-sized businesses to be discovered and compete effectively.

But this shift isn’t just about simplifying systems—it’s about reorganizing how the marketplace itself is structured. That’s where NAICS codes come in.

NAICS Codes: From Administrative Checkbox to Strategic Cornerstone

NAICS, or the North American Industry Classification System, is used by federal agencies to categorize businesses based on the products or services they offer. You’re required to list them when you register in SAM.gov, and you likely chose your primary code based on what you considered your core business.

But here’s the thing: GSA’s transformation will make NAICS codes even more central to your visibility, your eligibility, and your success in the government marketplace.

These codes will become the framework through which:

• Agencies identify potential vendors
• Contracts are grouped and aligned
• Categories of service are defined and procured
• Opportunities are matched to vendor profiles

If your NAICS codes are outdated, incomplete, or misaligned, your business could be left out of searches or incorrectly categorized. That’s like owning a store on Main Street but having your sign in the wrong language—it’s not that you’re invisible, but you’re not making it easy for buyers to find you.

The Problem: Most Contractors Choose NAICS Codes Incorrectly

It might surprise you to know that a large percentage of businesses misidentify their core NAICS codes during the SAM registration process.

Some use overly broad codes. Others select secondary codes as their primary. Many fail to update their codes when their business evolves.

And with GSA placing greater emphasis on accurate categorization, these mistakes can become costly.

This isn’t just about compliance. It’s about competitive advantage. Agencies are getting more efficient—and that means they’re also becoming more selective in their searches. If your NAICS code doesn’t reflect what you do today, you won’t show up in the results tomorrow.

What’s Changing for Vendors?

Here are a few specific shifts tied to this broader GSA effort that vendors should be aware of:

1. Contract Consolidation Means Clearer Categories

The days of overlapping contract vehicles and redundant procurement paths are slowly being phased out. GSA is working to align contract offerings with specific NAICS-based service or product categories. This helps agencies buy smarter—but it also means you need to be clearly aligned with the right NAICS groupings.

If you’re not in the right category, you may not be eligible for certain consolidated contracts.

2. Category Management Is Getting Smarter

The federal government has been moving toward category management for years, and this GSA initiative puts it on the fast track. Category management relies on accurate data—starting with how vendors are tagged in SAM.gov.

NAICS codes will be a big part of that tagging. That means what you’re labeled as will influence where you show up, who sees you, and what awards you can compete for.

3. Greater Focus on Small Business Visibility

One of the bright spots of this procurement overhaul is the renewed focus on helping small businesses stand out. But again, that only works if your business is showing up where it’s supposed to.

Inaccurate NAICS selections don’t just hurt your eligibility—they hurt your chances of being discovered by agencies that want to do business with small, disadvantaged, or socio-economically certified firms.

Real Talk: What Contractors Need to Do Right Now

If you’re reading this and wondering whether your NAICS codes are working for or against you, here are a few key steps to take:

Audit Your Current NAICS Codes

Go back into your SAM profile and take a fresh look. Are your primary and secondary codes aligned with the services or products you currently offer? Have you expanded or shifted focus recently? Are you using niche or legacy codes that no longer reflect your value?

Research What Codes Are Common in Your Industry

Take a look at what other successful contractors in your space are using. If you see a consistent pattern and your profile doesn’t match, it may be time to realign.

Update SAM and DSBS Properly

Updating your NAICS codes isn’t just a checkbox. It needs to be reflected across your SAM.gov profile and the Dynamic Small Business Search (DSBS) database, which contracting officers use daily to find vendors.

That’s why SAM and DSBS optimization is so important—and where many contractors fall short.

How We Can Help

Here at FedBiz Access, we’ve completed tens of thousands of SAM registrations and SAM & DSBS optimizations for small businesses across nearly every industry sector. Our team doesn’t just get you registered—we make sure you’re positioned correctly so that government buyers can find you, understand your offerings, and include you in their procurement strategy.

That means:

• Helping you select the right NAICS codes based on current capabilities and market positioning
• Optimizing your SAM & DSBS profiles for search visibility and compliance
• Aligning your business with category management trends and GSA’s new procurement structure
• Ensuring your certifications and business designations are visible and up-to-date

Because when you’re aligned correctly, you’re not just eligible—you’re visible.

The Bottom Line: Don’t Sleep on This Shift

NAICS codes may have seemed like a bureaucratic necessity in the past—but that’s no longer the case.

As GSA pushes forward with its procurement consolidation and streamlining effort, your NAICS strategy will define your place in the government marketplace. If you’re not visible in the right categories, you’re going to get left behind.

Now is the time to reassess, realign, and reposition your business to take full advantage of the opportunities ahead.

And you don’t have to go it alone.

Need Help Navigating the Government Marketplace?

For over 24 years, FedBiz Access has been the trusted partner for small businesses looking to succeed in government contracting. We’ve helped our clients secure over $36 billion in government awards—and we’re just getting started.

If you need help understanding where your business fits into this evolving procurement landscape—or want a professional review of your current NAICS code selections and SAM/DSBS profiles—we’re here for you.

👉 Schedule a complimentary consultation with a FedBiz Specialist today. Let’s make sure your business is aligned, visible, and ready to win.