SBA size standard
$40 million
Measured by average annual receipts over the last 5 fiscal years
SBA table effective March 2023
FY2025 federal spending
The Department of Defense bought 38% of the $3.4B obligated under 518210 in FY2025.
- Contract awards
- 3,384
- Contract vehicles (IDVs)
- 428
Top buying agencies
- Department of Defense$1.3B
- Department of Veterans Affairs$345.5M
- Department of Health and Human Services$292.4M
- Department of Transportation$241.6M
- Department of Homeland Security$209.6M
FY2025 federal contract obligations, USAspending.gov
Data Processing, Hosting, and Related Services (NAICS 518210) covers companies providing data center services, hosting, cloud infrastructure, and data processing services. If your company operates data centers, provides cloud hosting, or offers data processing services to federal agencies, 518210 is your primary code.
What Businesses Fall Under This Code
518210 includes cloud service providers, data center operators, hosting companies, and data processing firms. This includes Infrastructure-as-a-Service (IaaS), Platform-as-a-Service (PaaS), and data processing service providers. Federal agencies increasingly procure through 518210 vendors for cloud infrastructure and hosting.
SBA Size Standard and What It Means
The SBA size standard for 518210 is $40 million in average annual receipts. With average annual receipts of $40 million or less, you count as a small business on contracts filed under this code.
Federal Spending in This Category
Federal cloud and hosting spending exceeds $20 billion annually and is growing. DoD, DHS, VA, and civilian agencies all migrate to cloud infrastructure. Agencies prefer FedRAMP-authorized cloud providers for security compliance.
Top Agencies Buying in This Code
The Department of Defense (particularly for DoD Cloud Computing Services contracts), General Services Administration, Department of Veterans Affairs, and DHS are major cloud and hosting customers. The Defense Logistics Agency manages significant cloud procurement.
Tips for Tech Companies Using This Code
If you're a cloud provider, pursue FedRAMP authorization—it's essential for federal sales. FedRAMP certification signals to agencies that your cloud meets federal security requirements. Target specific agency clouds (e.g., AWS GovCloud, Microsoft Government Cloud) or pursue independent FedRAMP authorization. Show compliance with FISMA, NIST standards, and federal data protection requirements.
Pro Tip: FedRAMP is expensive and time-consuming but essential for federal cloud business. Plan for 12-18 months and significant costs for FedRAMP authorization. Partner with larger FedRAMP-authorized providers if you can't pursue independent authorization.