The Best NAICS Codes for Small Businesses Going After SLED Contracts in 2025
State, local, and education (SLED) contracts can be a goldmine for small businesses, but only if you know how to position yourself. One of the most overlooked (but powerful) ways to boost your visibility and competitiveness? Picking the right NAICS code.
If you’re already in the federal space or working toward 8a certification, women owned small business certification, or disabled veteran small business certification, there’s a good chance you’re familiar with the NAICS code system. But SLED contracting is a different animal.
Let’s break it down and uncover the best NAICS codes for small businesses to target in 2025.
SLED vs. Federal: What You Need to Know
SLED contracts operate on different timelines, platforms, and procurement policies than federal contracts. States often have their own registration portals, bidding rules, and funding sources (grants, bonds, general funds). But one thing they do have in common with federal contracting? NAICS codes.
Even though SLED buyers don’t always require a NAICS code, many still use them to structure bids and prequalify vendors. The right code can boost your discoverability and help you align with active or upcoming procurement needs.
Top High-Demand NAICS Codes for SLED in 2025
Based on trends from NASPO, NIGP, and GovWin forecasts, here are some of the best NAICS codes for small businesses going after SLED opportunities:
541512 – Computer Systems Design Services
States are pouring millions into digital transformation, cybersecurity, and IT modernization. This code is a heavy hitter across education, public safety, and municipal government.561210 – Facilities Support Services
From janitorial to security and building maintenance, this code applies to nearly every public agency or campus environment.236220 – Commercial and Institutional Building Construction
Infrastructure spending at the state level is holding strong thanks to federal stimulus dollars and capital bond initiatives. Think schools, fire stations, libraries.611430 – Professional and Management Development Training
Workforce development is a top priority for many states, especially in post-COVID economic recovery planning. If you offer leadership, DEI, or compliance training, this is your code.541611 – Administrative Management and General Management Consulting
A go-to code for government consulting, from strategic planning to policy analysis. State agencies often outsource project management and operational improvement support.
Low-Competition, High-Opportunity NAICS Codes
If you're looking for a strategic edge, explore codes that are in demand but not oversaturated:
541620 – Environmental Consulting Services
With rising climate resiliency spending, this is a hidden gem—especially for firms with science, engineering, or compliance expertise.511210 – Software Publishers
Many states are ditching legacy systems for SaaS and cloud-based tools. This code covers educational software, HR platforms, and workflow automation tools.237310 – Highway, Street, and Bridge Construction
Rural and mid-sized municipalities are constantly issuing small-scale roadwork contracts. Fewer bidders than big urban projects = more opportunity.624310 – Vocational Rehabilitation Services
Relevant for nonprofits or social enterprises offering training or employment services, particularly to veterans or persons with disabilities.
So What Should You Do Next?
Here are a few practical tips to sharpen your game in SLED procurement:
Review your SAM.gov profile to ensure your NAICS codes match what you actually want to win—especially if you’re pursuing SLED alongside federal work.
Research state procurement portals (like New York's NYS Contract Reporter or Texas's CMBL) and see which NAICS codes are tied to recent awards.
Expand your certification strategy to stand out. Women business certification, disabled veteran small business certification, and SBA 8a certification can all help, even in state-level bids.
Match codes to capability statements for specific SLED targets. Even if a state buyer doesn’t require a NAICS code, referencing one can make you easier to categorize.
Final Thoughts
SLED contracting isn’t just for local vendors. It’s a viable path for certified small businesses ready to diversify beyond federal work. And choosing the right NAICS code can open doors to underserved, well-funded opportunities.
If you're serious about growing your government contracting business, it's time to rethink your NAICS strategy.
Looking for more guidance on government procurement? Check out our recent blog on low-competition federal NAICS codes that are winning in 2025. You might be surprised where the green space is.
If you aren't a Squared Compass partner, what are you waiting for? From getting your business set up with specific government set-aside programs at both the State and Federal level, to being empowered by a Fractional Capture team to win government contracts, to receiving tailored government contract opportunities Squared Compass delivers immense value which helps propel our partners to success. Schedule a chat with our team today.
