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What Are Commodity Codes for Vendor Registration?
Commodity codes are standardized classification systems that government agencies use to categorize the products and services they purchase. When you register as a vendor, you select the commodity codes that match what your business offers. The state then uses these codes to notify you of relevant bid opportunities.
Common Classification Systems
- NIGP (National Institute of Governmental Purchasing) Codes — the most widely used system for state and local government procurement. These are typically 5-digit codes organized by product/service category.
- NAICS (North American Industry Classification System) Codes — used primarily for federal contracting and SAM.gov registration. These are 6-digit codes that classify businesses by industry.
- UNSPSC (United Nations Standard Products and Services Code) — used by some states like California. An 8-digit global classification system.
- SIC (Standard Industrial Classification) Codes — an older system still referenced by some agencies.
Why Commodity Codes Matter
Choosing the right commodity codes is critical because:
- States use them to match your business with relevant solicitations
- If your codes don’t match, you won’t receive bid notifications for opportunities you’re qualified for
- Selecting too many codes can flood you with irrelevant notifications
- Most vendor portals let you update your codes at any time
Tips for Selecting Commodity Codes
- Start broad, then narrow down to the most specific codes that match your products/services
- Look at past solicitations in your industry to see which codes are commonly used
- Select codes for ALL products and services you offer, not just your primary business
- Review and update your codes periodically as your business evolves
- Each state may use a different classification system — check during registration
Last updated: April 2026.