The Top 10 PSCs for Small-Business Federal Contracts in FY2024 — and How to Win in Them

Small businesses had a record-breaking year in FY2024, winning $183.5 billion in federal prime contracts — about 28.8% of all federal contract spending. That’s not just a win for Main Street; it’s a clear signal that targeted set-asides, strategic NAICS code choices, and strong positioning in high-demand service areas are paying off.

New FPDS and USAspending data shows which Product Service Codes (PSCs) drove the most dollars to small businesses last year. If you’re serious about landing more government contracting opportunities, these are the categories to watch — and target.

The Top PSCs for Small-Business Obligations in FY2024

The top 10 are all service categories — no surprise, since small firms tend to thrive in service contracts and construction projects more than big-ticket manufacturing. Here’s the ranking, along with key NAICS alignments and agency hot spots:

1. Y1AZ – Construction of Other Administrative Facilities & Service Buildings

• Dominant NAICS: 236220, 236210

• Big buyers: Army Corps of Engineers, GSA, VA, Air Force, Navy

2. R425 – Professional Engineering/Technical Support

• Dominant NAICS: 541330

• Big buyers: Navy, Air Force, Army, MDA, NASA

3. R499 – Other Professional Support Services

• Dominant NAICS: 541611, 541618, 541990

• Big buyers: Army, HHS, DHS, VA, State

4. D399 – Other IT & Telecom Services

• Dominant NAICS: 541512, 541519, 541511, 518210

• Big buyers: Army, Air Force, VA, DHS, HHS

5. R408 – Program Management/Support

• Dominant NAICS: 541611, 561110

• Big buyers: Army, Air Force, DHS, HHS, DOE, VA

6. Y1EZ – Construction of Other Industrial Buildings

• Dominant NAICS: 236220, 237990

• Big buyers: Army, Air Force, USDA, DHS, DOJ

7. Z2AZ – Repair/Alteration of Other Administrative Facilities & Service Buildings

• Dominant NAICS: 236220

• Big buyers: GSA, VA, Army, Air Force, DHS, DOI

8. S216 – Facilities Operations Support

• Dominant NAICS: 561210

• Big buyers: Army, Air Force, VA, GSA, DHS, DOE

9. R706 – Logistics Support

• Dominant NAICS: 541614, 561210, 488999

• Big buyers: DLA, Army, TRANSCOM, DHS, State

10. R707 – Contract/Procurement/Acquisition Support

• Dominant NAICS: 541611, 561110

• Big buyers: Army, Air Force, DHS, HHS, VA, GSA

Why This Matters for Small Businesses

These PSCs aren’t just statistical curiosities — they’re the lanes where the federal market is actively steering work toward small businesses. If your government contracting business is in IT, construction, logistics, or professional services, there’s money on the table right now.

For example:

• Construction PSCs (Y1AZ, Y1EZ, Z2AZ) continue to be rich hunting grounds, especially for firms with disabled veteran small business certification or women owned small business certification in the trades.

• IT services (D399) remains highly competitive but is full of teaming opportunities, especially on vehicles like T4NG.

• Professional support (R425, R408, R499, R707) often pairs well with 8a contracts services or SBA 8a certification to win sole-source or competitive set-aside awards.

• Logistics (R706) is on the rise for small firms that can meet niche needs — think contractor NAICS code 541614 or 488999.

How to Take Action Now

1. Match your NAICS codes to the right PSCs. Use tools like SAM.gov’s contract history search to see where your NAICS overlaps with these top PSCs. This is essential for optimizing your government contracting certification process.

2. Target top agencies for your PSC. Focus your outreach to the OSDBUs and small business specialists in the departments listed above.

3. Get or maintain the right certifications. Many of these PSCs see higher win rates for firms with 8a certification assistance, women business certification, or disabled veteran government contracts eligibility.

4. Strengthen your proposal game. PSCs like R425, R499, and R408 are crowded. Competitive Government Contract Proposal Writing can make the difference between a loss and a multi-year win.

5. Watch for set-asides in high-demand PSCs. Even full-and-open bids can be converted to small-business set-asides if market research supports it — especially in facilities work and management support.

The Big Picture

The fact that no pure product PSCs made the top 10 reinforces a key reality: small businesses should prioritize federal contracting certifications and capability development in service and construction markets. These are the categories where the government not only spends big but also meets and exceeds its small-business goals.

If you want to know how to position your company in these lanes — and identify the best NAICS codes for small business in your industry — now is the time to act.

For a comprehensive look at FAR requirements, check out our related post: FAR Overhaul & Mandatory EFT Payments: Two Federal Contracting Shifts You Can’t Ignore.

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