NAICS Code and the NDA
Started by general_correspondence · Feb 24, 2020 · 3 replies
- gOriginal post
general_correspondence
Feb 24, 2020 · 6y ago
When pursuing government RFP capture managers and procurement people often need to get other suppliers and subcontractors involved.
I'm just curious if its a good practice, accepted practice - to identify in the Scope of Work of the NDA, adding the NAICS code (could be more than one) of the activity you have in mind for this subcontractor? I am considering doing this in lieu of the typical couple of sentences on why this NDA is being created. I think using a NAICS code helps support whatever narrative may be written in the Scope, any thoughts or ideas on this?
- j
jayandstacey
Feb 25, 2020 · 6y ago
When you say NDA, do you mean a Non-Disclosure Agreement, or are you speaking of a teaming agreement? Or maybe something else?
Assuming you mean a teaming agreement or something like it (since you mentioned "when pursuing government RFP" and "scope of work" vs the scope of information to protect), no, I would not use the NAICS code as anything beyond a *maybe* a reference to the RFP.
NAICS codes are notoriously vague, overlapping and non-prescriptive - they are used primarily to create economic 'buckets' for reporting purposes, and of course become the basis for small business size determinations. They are NOT good (IMHO) at describing specific tasks, expectations or even boundaries of work to be performed. Worse still, if you were to use a specific NAICS code in a teaming agreement and the underlying procurement changed NAICS codes (this does happen), you may have voided your teaming agreement or at least caused it to become questionable.
The only way I might use a NAICS code in a TA or subcontract might be to condition the agreement on the other company's continuing to qualify as a small business under NAICS code X...but even there, I'd rather use more direct language like "continuing to qualify as a small business in accordance with the requirements of the contract" or something like that.
Bottom line: I would not do as you've proposed.
- g
general_correspondence
Feb 28, 2020 · 6y ago
Thanks Jay
but I used the NAICS - I think it's appropriate for NDA, not teaming agreements
- j
jayandstacey
Feb 28, 2020 · 6y ago
general_correspondence said:
Thanks Jay
but I used the NAICS - I think it's appropriate for NDA, not teaming agreements
Thanks for the update and good luck.