Does your company have a prohibited NAICS Code listed on your GSA Multiple Award Schedule (MAS) Contract? If so, you should have received an “action required” email from GSA earlier this month. Learn more about what the email means and how to correct the issue.

Which NAICS Codes are Prohibited?

Due to Small Business Association (SBA) regulation 13 C.F.R. § 121.402(b)(2), Wholesale Trade and Retail Trade NAICS codes are not allowed to be used in federal contracting. Prohibited Wholesale Trade and Retail Trade NAICS codes begin with the numbers 42, 44 and 45.

Prohibited NAICS Codes

How to Check if You Have a Prohibited NAICS Code

GSA’s Multiple Award Schedule Program Management Office (MAS PMO) recently reviewed all GSA MAS Contracts for compliance with SBA’s regulation. GSA then sent an email to companies that held contracts with a prohibited NAICS code.

If you’re not sure if you received an email notice, there is also a quick way to check if your GSA Contract NAICS Code is in compliance with the SBA regulation. Go to your GSA eLibrary page and look at the first two digits of the NAICS code listed. If your NAICS code begins with 42, 44, or 45, you’ll need to take action to correct it.

What NAICS Codes Should You Have?

There are specific NAICS codes associated with each Special Item Number (SIN) on the GSA Schedule. You can use our NAICS Code lookup tool to search for the SIN(s) you hold and see the NAICS Code(s) that correspond with your SIN(s).

Need to Change Your GSA Contract NAICS Code?

If you have a NAICS Code beginning with 42, 44 or 45 listed on your GSA Contract, you’ll need to correct it. You must submit a modification to update your contract to an appropriate NAICS Code no later than October 31st.

How to Correct Your GSA Contract NAICS Code

• If you hold more than one SIN, you’ll first need to decide which SIN represents the preponderance of your work
• With your “preponderance of work” SIN selected, you can then determine the most applicable NAICS code that corresponds with that SIN
• If needed, update your System for Award Management (SAM) record on www.sam.gov to reflect the applicable NAICS code
• Finally, you must complete a special cover letter and submit a modification through GSA eMod to certify under your updated NAICS Code

Get Help Updating Your GSA Contract NAICS Code

Stay focused on capturing sales during this busy season, and let our team handle your administrative contract updates.

FEDSched is an employee-owned small business that has been successfully helping companies obtain and manage their GSA Contracts since 1986. We can work with you to make sure your contract is compliant, and that your pricing and offerings are up to date.

Reach out today to discuss how we can help!