Sign In
  • Question

    What is the relationship between PSC vs. OCC vs. NAICS?


    Answer

    A Product Service Code (PSC) is a four-digit code that describes a product, service, or research and development (R&D) activity purchased by the federal government. The Product and Service Codes Manual maintained by the General Services Administration (GSA) lists all the existing product/service codes.  These categories, as established by the Office of Management and Budget (OMB) and the cross-agency Category Management Leadership Council (CMLC), group together like products or services to enable the government to buy smarter and more like a single enterprise, delivering more savings, value, and efficiency for Federal Agencies. The PSC codes indicate “WHAT” was bought for each contract action reported in the Federal Procurement Data System (FPDS).

     

    Object Class Code is a required data element in the DoD Standard Financial Information Structure (SFIS), as defined in DoD FMR Volume 1, Chapter 4. Based on OMB Circular A-11, the specific values for Object Class Code and all other SFIS data elements are documented in the SFIS Values Library on the SFIS web page.  Obligations are classified by the initial purpose for which they are incurred, rather than for the end product or service provided. For example, if payments are made directly for personal services or supplies used in the construction of a building, the amounts should be classified as obligations for personnel compensation or supplies rather than for land and structures. Conversely, if contracts are awarded for the construction of a building, the amounts should be classified in the object class for lands and structures rather than in the object class used to report individual types of materials and services required to construct the building.

    The North American Industry Classification System (NAICS) is the standard used by Federal statistical agencies in classifying business establishments for the purpose of collecting, analyzing, and publishing statistical data related to the U.S. business economy.  NAICS was developed under the auspices of the Office of Management and Budget (OMB), and adopted in 1997 to replace the Standard Industrial Classification (SIC) system. It was developed jointly by the U.S. Economic Classification Policy Committee (ECPC), Statistics Canada, and Mexico's Instituto Nacional de Estadistica y Geografia, to allow for a high level of comparability in business statistics among the North American countries.  This official U.S. Government Web site provides the latest information on plans for NAICS revisions, as well as access to various NAICS reference files and tools (https://www.census.gov/naics)

    What is the connection between PSC, NAICS, and OCC?

    NAICS Codes are used for the business function and PSC Codes are for the product itself.  Object class codes must be incorporated into DoD accounting systems to provide for preparation of the Report on Obligations, SF-225.  Each has a purpose and should be utilized appropriately. Furthermore, government contracting professionals use the PSC and NAICS  differently in market research.  OCC are used by the financial professionals as part of the line of accounting on contracts or funding documents.

     

     

    Open full Question Details
Chat with DAU Assistant
Bot Image