MyGovWatch Study Reveals 38% of NAICS Wrongly Assigned to Federal Bids

Another 22% List One NAICS Where Accuracy Calls for Multiple, a government bid notification and intelligence website, has announced the completion of a data study to determine the rate at which Federal procurement personnel incorrectly assign North American Industry Classification System (NAICS) codes to procurements listed on (Sam).

As a result of reviewing a sizeable sample of recent active solicitations on Sam, MyGovWatch determined 38% of Federal purchasing actions received either a blatantly incorrect NAICS code assignment or one easily subject to challenge by an interested party. One procurement in the sample sought a vendor to provide special meals to Federal prisoners of a particular religion for holiday observance. That procurement was assigned a NAICS code for animal food production.

People interested in hearing about and winning Federal contracts or who have an interest in learning more should visit the MyGovWatch website to read the whole story.

"Incorrect NAICS code assignments on Federal bids is a significant problem our website overcomes for people and organizations who want to hear about opportunities of interest to them," stated MyGovWatch President Nick Bernardo, continuing, "Fortunately, our platform's use of artificial intelligence and alternative classification logic works to make sure our users stand the best chance of hearing about bids that are important to them not only Federally, but also across SLED (state, local, educational) markets."

NAICS code assignments partially determine who hears about Federal solicitations and, when work is set aside for various types of small businesses, who can compete. NAICS codes also drive reporting on what the Federal government is buying across departments and their subdivisions. When NAICS codes are incorrectly assigned, it reduces the pool of qualified bidders, increasing the cost of goods and services to government, while inviting administrative appeals and legal action from bidders while mischaracterizing government reporting on what it's buying overall.

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About MyGovWatch

MyGovWatch is a government bid notification and intelligence website for companies in more than 200 industries delivering leads using AI best practices at double the rate of free government tools and at a fraction of the cost of legacy websites.


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