SBA size standard
$34 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 $10.4B obligated under 541511 in FY2025.
- Contract awards
- 7,532
- Contract vehicles (IDVs)
- 2,612
Top buying agencies
- Department of Defense$4.0B
- Department of Health and Human Services$1.3B
- Department of Veterans Affairs$811.8M
- Department of Homeland Security$772.7M
- General Services Administration$551.4M
FY2025 federal contract obligations, USAspending.gov
Custom Computer Programming Services (NAICS 541511) is one of the most common NAICS codes used by federal IT contractors. This classification covers businesses that write, modify, test, and support custom software applications for government agencies and commercial customers. If your company develops custom software, mobile apps, or specialized applications, this is likely your primary NAICS code.
What Businesses Fall Under This Code
541511 includes custom software development shops, system integrators, and consultancies that build tailored applications. This differs from software publishers (511210) who sell packaged software. Federal agencies in DoD, DHS, VA, and civilian departments procure heavily in this category—they need custom solutions for mission-specific systems, not off-the-shelf products.
SBA Size Standard and What It Means
The SBA size standard for 541511 is $34 million in average annual receipts. With average annual receipts of $34 million or less, you count as a small business on contracts filed under this code.
Federal Spending in This Category
Federal spending in custom programming services exceeds $50 billion annually across all agencies. DoD alone spends $20+ billion annually on custom software development. This is the single largest federal IT spending category, making it the most competitive but also most accessible market for tech startups and small developers.
Top Agencies Buying in This Code
The Department of Defense, Department of Homeland Security, Department of Veterans Affairs, and Health & Human Services are the primary buyers. The Federal Reserve, Treasury, Social Security Administration, and VA all have massive custom software initiatives. These agencies prefer working with small to mid-size vendors who understand agile development and modern software practices.
Tips for Tech Companies Using This Code
If you're under $34 million revenue, emphasize your small business status and agility. Larger agencies want to work with vendors who move faster than traditional contractors. Build specialization—DoD needs defense-specific expertise, VA needs veteran services domain knowledge. Consider SBIR Phase III opportunities after successful Phase I/II research.
Pro Tip: 541511 is highly competitive, so differentiate through specialization or capability. Don't just be a generic custom software vendor—be the custom software vendor for a specific domain (healthcare IT, financial systems, intelligence analysis, etc.).