NAICS Code Shopping and Small Business Concerns highlighted in FederalComputerWeek
The August 28, 2009 online article by Matthew Weigelt quotes an un-named owner of an 80 employee small business who believes “They’re basically shopping the NAICS codes” in a way that disadvantages small business owners in favor of larger firms under the new NAICS code chosen by the Air Force.
The dispute revolves around the NAICS code picked for the NetOps and Infrastructure Solutions small business companion contract. Under the wireless telecom carriers code, small businesses are defined as those having fewer than 1,500 employees, while other category size code set the standard as less than $25 million in annual revenue.
“NetCents 2 contract dogged by code-shopping allegation”
The charge was repeated in a Washington Technology blog the next day also written by Matthew Weigelt. In the article, code shopping is described as the practice of choosing NAICS codes that allow favored or larger companies to bid as small businesses, rather than those that most fairly apply to the contract’s scope of work.