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2017 NAICS Changes

US-NAICS-Logo.svgIn the Government contracting arena, we deal in NAICS Codes daily.  I checked out THE authority for NAICS: NAICS was updated in 2012, and before that 2007, and 2002. Are you seeing the pattern here? NAICS was recently reviewed and there is now an update effective January 2017. NAICS is scheduled to be reviewed every five years, so it can keep pace with our changing economy.  We sometimes see a rise in dollar value in dollar-based NAICS or changes in the maximum number of employees for employee-based NAICS.

According to the census website, “North American Industry Classification System (NAICS, pronounced Nakes) was developed under the direction and guidance of the Office of Management and Budget (OMB) as the standard for use by Federal statistical agencies in classifying business establishments for the collection, tabulation, presentation, and analysis of statistical data describing the US economy. Use of the standard provides uniformity and comparability in the presentation of these statistical data. NAICS is frequently used for various administrative, regulatory, contracting, taxation, and other non-statistical purposes. For example, some state governments offer tax incentives to businesses classified in specified NAICS industries. Some contracting authorities require businesses to register their NAICS codes, which are used to determine eligibility to bid on certain contracts.

There were 1,065 industries in 2012 NAICS United States, and in 2017 NAICS United States there are 1,057 industries. For 2017, revisions were made to address changes in the economy. These included the addition of new and emerging industries, content revisions for selected areas, title changes, and clarification of a few industry definitions.”

Changes were made to six of the 20 NAICS sectors during the 2017 revision of NAICS, but there is only one that has relevance to Government contracting in the North Alabama area. Most 2012 NAICS 541712 has changed to 541715, as long as they do not include Nanotechnology and Biotechnology, as they each now have their own code for 2017. Below is the description of the new 541715.

Sector 54, Professional, Scientific, and Technical Services – A new 6-digit industry was created: 541713, Research and Development in Nanotechnology, resulting in two other new 6-digit industries: 541714, Research and Development in Biotechnology (except Nanobiotechnology); and 541715, Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology).

If you get confused with NAICS, the website above also has a search feature for 2007, 2012, and 2017 NAICS. It may take us a while to get used to this new NAICS, but as new RFPs are released and subsequent contracts awarded, we will see 541715 in briefings and pretty soon we will forget that 541712 ever existed. At least until 2022, when a new NAICS revision is released.

Photo credit: U.S. Census Bureau