What is the difference between the North American Industrial Classification System (NAICS) and Product and Service Codes (PSC)? Why does FPDS-NG have both?
The North American Free Trade Agreement (NAFTA) requires the use of NAICS by the Government. The NAICS classifies commercial activity into broad business categories, such as soybean farming, manufacturer, wholesaler, retail, and services. PSCs describe specific products and services which form the basis for national stock numbers. Both fields are required because statute requires some reports to be based on NAICS information, some on PSC information, and some, such as the Competitive Demonstration Program, must use both codes. It also helps narrow a search if we allow users to select what they want from two or three filters.
