NIGP Category Code selections work for you and your vendors

NIGP codes are widely used amongst local government agencies for their solicitation processes. Consisting of a specific set of numbers, these codes are used to identify commodities and/or services during the procurement process. Therefore, local government agencies use these codes to identify the goods or services that they are looking to purchase. Classifying products by code is not unique to local government; SIC codes or custom classification codes are often used in the private sector and NAICS codes are used along with NIGP codes within state purchasing. The Federal government uses multiple classification codes, often times depending on federal agency; either NAICS, PSC & FSC. Whichever classification codes your purchasing department uses, it is important to be more specific than general when selecting codes. That is one reason that the NIGP codes are great for local government purchasing; you can select a code that matches exactly the good or service you are looking to purchase with the 5-digit code.

Reach the right vendors

The most important reason for local government buyers to select the correct NIGP codes is to ensure that you are reaching appropriate vendors for the good/service. E-sourcing solutions, such as BidNet Direct, utilize the NIGP Code selection to match open bids to relevant vendors who provide that good or service.  Upon registering on BidNet Direct, vendors select applicable codes for the goods/services that they provide. Vendors will often search for bids matching their codes, and it is how notification alerts are processed. Therefore, if your agency isn’t using the correct NIGP codes, interested vendors may never see your solicitation.

NIGP classification is available as a 3-digit class code and a 5-digit class-item code. BidNet Direct suggests using the 5-digit NIGP code for the best match possible. It is a specific code that is far more unique than the broader 3-digit main NIGP codes also available. Using the 3-digit NIGP code may alert vendors who can’t supply – or can only partially provide – the goods/services required. Vendors get frustrated and overloaded with irrelevant bid opportunities, so it is very important to select the correct 5-digit NIGP code or a number of 5-digit NIGP codes when issuing a bid.

NIGP 5-digit classification codes

For example, if your agency was looking for shipping solutions and software, 208 for “Computer Software for Microcomputers (Preprogrammed)” is the 3-digit NIGP code. However, there are 36 sub codes under this category, including shipping software, which has the code of 20883. By selecting the specific 5-digit NIGP code, you can ensure that only vendors that can provide the correct service or product are notified and “matched” to the solicitation. This is a help for you and the vendor community in general. “Vendors do not want to receive irrelevant bids either,” Susan Roberts, part of the BidNet Direct Vendor Support team, explains. “We have vendors that call in and ask why they are getting a request to bid on a shipping software solicitation, when they only provide language translation software consulting.  It is very frustrating to the vendors when they receive emails for open solicitations that are not what products or services they provide,” Roberts continues.

Choosing the correct NIGP codes helps to ensure accurate bid submissions and saves time for both the buyer and potential vendors. In addition, selecting the correct codes for your government organizations solicitations’ will provide greater outreach and competition from qualified, relevant vendors. NIGP codes, when used properly in the solicitation process, are a win-win for both the local government agency and vendors.  

Find out how BidNet Direct can help your government organization today!