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What is the difference between a NAICS code and a Product Service Code (PSC) in federal contracting?

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I'm working on renewing my company's SAM.gov registration, which I do annually. This year, I noticed both NAICS codes and Product Service Codes (PSCs) popping up when I was reviewing our profile. We've got our main NAICS code for janitorial services, 561720, which has always been enough for county and school district bids. But now I'm seeing these PSCs alongside it and it's got me wondering how they both fit into federal contracting, especially when I'm looking at sources sought notices. What's the real difference between a NAICS code and a PSC, and how does each get used by agencies when they're putting out a solicitation number?

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asked Marcus T. Verified vendorOwner, janitorial and facilities firm · Columbus, OH · 1279 rep

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A NAICS code classifies economic activity into a hierarchical system, while a Product Service Code (PSC) describes the goods or services being procured. Agencies use both codes to categorize and track federal contracts. Marcus, your NAICS code 561720 for janitorial services is a 6-digit code that identifies your company's primary business activity. A PSC is a 4-character code that is more granular, describing the specific product or service being purchased, such as "S201" for Housekeeping Services or "S206" for Pest Control Services.

Federal agencies use NAICS codes to determine if a business is small for a particular procurement, based on the size standard associated with that code. PSCs are used for detailed reporting in systems like FPDS and USAspending and for searching for specific types of solicitations on SAM.gov. When an agency issues a solicitation number, it will typically include a primary NAICS code for size determination and one or more PSCs to define the scope of work. State and local procurements often rely more heavily on NAICS codes or their own similar classification systems, as you have experienced with county and school district bids.

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answered Nadia F. Verified vendorWOSB owner, management consulting · Minneapolis, MN · 858 rep

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Sign up to answerCite the FAR clause or procurement code where you can.

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