Every federal solicitation lists a NAICS code, and that code carries a small-business size standard that decides whether you compete as a small business. For IT and software work, a handful of codes do most of the heavy lifting. Here is what each one covers, its current size standard, and how to choose the one your bid should target. This is educational, not legal advice — always confirm against the solicitation and SBA.
What a NAICS code does in a federal bid
Two jobs: it classifies the work, and it sets the size standard that defines “small.”
It describes the work being bought
The contracting officer assigns the single NAICS code that best describes the principal purpose of the requirement. It tells you, at a glance, whether a solicitation is really in your lane — and it is how the live opportunity board filters IT work.
It carries a size standard
Each code has an SBA size standard — a ceiling in average annual receipts (dollars) or number of employees. If you are under it, you may compete as a small business and pursue set-asides. Different codes, different ceilings — so the code on the solicitation matters.
The IT codes and their current standards
Current SBA size standards (effective March 17, 2023 table). SBA proposed raising many monetary standards in August 2025, but that rule is not yet final — verify the live figure on SBA’s table.
| NAICS | Title | Size standard |
|---|---|---|
| 541511 | Custom Computer Programming Services | $34.0M receipts |
| 541512 | Computer Systems Design Services | $34.0M receipts |
| 541519 | Other Computer Related Services | $34.0M receipts (ITVAR: 150 employees) |
| 518210 | Computing Infrastructure, Data Processing & Hosting | $40.0M receipts |
| 541715 | R&D in Physical, Engineering & Life Sciences | 1,000 employees |
| 541513 | Computer Facilities Management Services | receipts-based — confirm on SBA’s table |
Adjacent codes such as 541513 (Computer Facilities Management), 541618 and 541990 also appear on IT-adjacent work — check the official SBA Table of Size Standards for the exact current figure.
Open the explainer for each code
What it classifies, its size standard, and how it differs from the codes next to it.
Custom Computer Programming
You write, modify, and test the software. The core federal custom-software code.
541512Computer Systems Design
You design and integrate the system — hardware, software, and communications.
541519Other Computer Related Services
The catch-all code — plus the ITVAR exception with its own employee-based standard.
518210Data Processing & Hosting
Cloud infrastructure, hosting, and data processing — a higher receipts ceiling.
541715R&D in Engineering
The R&D code behind SBIR/STTR — measured in employees, not receipts.
NEXT STEPSet-aside programs
Once you know your code and that you’re “small,” see which set-asides you can pursue.