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Many U.S. businesses -- and in particular, small and medium sized enterprises -- report that a major obstacle to exporting is a lack of actionable market intelligence. In line with the President's National Export Initiative and with Executive Order 13630 of December 6, 2012, the State Department's Economic Bureau and IRM's Office of eDiplomacy have developed BIDS -- the Business Information Database System -- as an open, internet-based platform to aggregate information on tender opportunities and trade leads, and make that information available to U.S. business.
BIDS is populated by data entered at posts and collected from the Multilateral Development Banks (MDBs). At present, the focus of BIDS is on major, strategic projects funded by MDBs or governments. It's not intended to be a comprehensive catalog of the universe of projects; the focus is on projects where U.S. firms can be competitive.
BIDS is an open platform, meaning anyone will be able to access its data. This was a conscious decision made for a number of reasons, not least of which was to lighten the burden of data entry on Embassies. Any information posted on BIDS is visible to anyone, including our foreign competitors. The intent is that U.S. companies will follow up with posts directly for more details on projects that are of interest, providing the opportunity to connect firms to resources and information that may give them the edge in securing the deal.
BIDS is not a standalone project. It is part of the broader Department of State and U.S. government effort to promote U.S. exports. BIDS data is available through a State Department website, and U will also be available through the Department of Commerce (and its network of U.S. Export Assistance Centers across the U.S.), and used by the U.S. Small Business Administration (and its network of Small Business Development Centers across the U.S.), and other agencies such as the U.S. Trade and Development Agency and the Overseas Private Investment Corporation. Data from BIDS will also be directly available to organizations such as the American Water Works Association which will be able to package it and push it out to their members.
BIDS has been developed with a great deal of input from posts, from other agencies, and from the private sector. It is and will remain a work in progress. Contributions to BIDS -- from adding new leads, to commenting and updating existing leads, to giving constructive feedback on the system -- will are instrumental in supporting U.S. business.
The BIDS Website is at . The website works both in Internet Explorer (versions 8 and above) and in Google Chrome. BIDS will also be available through the "Econ@State" Portal () on the State Department's Intranet.
This is the BIDS Webpage. It consists of four main elements:
- - The Map
- - The Search/Filter Panel
- - The Menu Bar, and
- - The Business Lead List.
The map is interactive; you can click or use the scroll wheel on your mouse to zoom in and out, and click and drag to move the map. You can also zoom in or out using the (%2B/-) buttons on the top left corner of the map.
Dots on the map indicate projects. Hovering over a dot will cause a box will appear either referring to a specific project, or indicating the number of projects connected to that location. Clicking on the individual project brings up the details of the project; if more than one project is represented in a dot, clicking on the dot will open a list of the projects, where you can click on an individual project for more information.
The Search/Filter Table allows users to select parameters to find specific projects. (The specific data fields are described in detail in the " Adding A Trade Lead " section below.) Most of the search/filter functions are selected by drop-down tables; click on the parameter and select the appropriate criteria. Then click the "Search" button below the tables and the map will show only the projects matching the selected criteria. You may select as many criteria as you wish.
You can also search by keywords. The keyword search will search across all alphanumeric data fields (project description, etc.), not just those in the "keywords" field.
Clicking the "Reset" button clears the criteria you have selected and resets the map to the original view.
Home resets the map, clears any criteria in the search filters and returns you to the BIDS Landing page.
Map will bring you back to the Map from any other page on the site you may be visiting.
Add A Lead appears in both the menu bar and at the bottom of the Search/Filter panel. Currently this function is only available when accessing BIDS from a computer connected to the Department of State internal network. Add A Lead opens a new window where you may add a new trade lead (see " Adding A Trade Lead " below).
Data will take you to a page where you may preview and download the full BIDS dataset as a 'Comma Separated Values' (.CSV) file to use in Microsoft Excel or another program. In the Data view, you may sort data by each data field (Country, Status, Sector).
FAQs opens a list of Frequently Asked Questions, and also allows you to submit a question about BIDS. A list of government and non-government resources that relate to infrastructure development and business support can also be found here — these are primarily links to websites such as those of the multilateral development banks or U.S. government agencies.
Help will lead you to this Standard Operating Procedures document.
Contact Us : click here and your default mailbox program will create an e-mail to the BIDS developers for your questions or comments.
The Business Leads List is a narrow strip across the bottom of the BIDS window. When you click on the Business Leads List, the List will scroll up. It presents in tabular format the same data that you are looking at on the map. Use the scroll bar at the bottom and the right of the list to see all the data fields.
The list represents filtered data; that is, if you have selected any criteria in the Search/Filter Table, the same criteria are used to populate the Map and the Business Leads List. Resetting the Search/Filter Table will reset the Business Leads List as it does the Map.
Two buttons appear at the upper left corner of the Business Leads List. The first is the "Edit Entry" button. Click on an entry in the list will highlight that entry; then click on the "Edit Entry" button. A new window opens where you can edit the entry to make corrections or update information (see " Editing A Trade Lead " below). The edit entry button is only available when you are accessing BIDS from a computer connected to the internal State Department network. Only authorized users are permitted to edit entries.
The second button is the "Export to CSV;" this will download a 'Comma-Separated Values' file of the filtered data in the Business Leads List that you may save to your system and open using Microsoft Excel or another software program.
Questions or comments about BIDS can be sent to [email protected] ; to report specific technical problems with BIDS, click on "Report a Bug" at the bottom of the BIDS map. Also check the FAQs on the website.
Posts should develop their own internal clearance and approval systems for adding information to BIDS. We expect that Economic related offices (FCS, USAID, etc.) at posts will review proposed entries; at some posts the Economic Counselor or the Deputy Chief of Mission may want to approve submissions. In Washington, EB/CBA and EB/IFD/ODF will be reviewing submissions largely for consistency and format. To ensure information is delivered in a timely manner, it's important the review cycle be quick. EB expects to be able to clear most entries within one business day.
BIDS is not an encyclopedia of all possible foreign government tenders. Projects submitted for BIDS should be selected strategically, based on answers to a few simple questions such as:
- Is this project of particular interest to post or to the United States?
- Is this a sector where U.S. businesses have successfully competed?
- Is this a sector that could benefit from U.S. technology or expertise?
- Is the host government interested in attracting more U.S. firms?
If the answer to any of these or similar questions is 'yes', then the project may be a good candidate for BIDS. We are looking for quality information, not quantity.
Officers overseas will find two primary uses for BIDS.
The first is to enter trade leads in country as a way to alert U.S. business to potential new export opportunities.
The second involves using BIDS to search for MDB or other projects in country that have been entered automatically into BIDS. Officers can add value to those entries by contacting key ministries or U.S. companies to develop more information and updating the BIDS dataset.
Only authorized users who access BIDS from a computer connected to the State Department OpenNet system are able to enter trade leads. In some cases the system may be slow to recognize your connection. If you erroneously get a message saying you are not connected to OpenNet, please give the system a few seconds to recognize you and then try again.
Clicking on either the "Add A Lead" button on the top right of the page or at the bottom of the left panel first opens a pop-up window; clicking "OK" confirms the user understands that only unclassified information may be added to the system and that the user has obtained any necessary clearances or approvals at post to enter the data. Then a second pop-up window opens where you can enter information about business opportunities. The data fields are described below. Underlined fields are required, others are optional.
Project Title: Please use the official title of the project. Where there is no official title, please use a brief description, e.g.: Ring Road Project.
Specific Location: Please indicate the city or a specific landmark such as a university, natural feature, or province. If the project is nationwide or is not easily connected with a single location, like an electrification project in several different provinces, please indicate the geographic area. Check to make sure that your project will map properly by going to Google" and attempting to map it there.
Country: Please indicate the country where the project will be located.
Primary Sector: Check one box indicating the appropriate sector for the project. The sectors included here are based on the two digit North American Industry Classification System (NAICS) codes maintained by the U.S. Census Bureau. More information on NAICS is provided in the Appendix; complete descriptions of the sectors and subsectors can be found on the Census Bureau website. In some cases, a project may bridge two or more sectors; please pick the predominant sector. Please use the "Keywords" field to add additional information that may help users find your project.
Project Value: Please enter the U.S. dollar value (or estimate) of the project. Enter whole dollar values (i.e. $1,200,000); do not use abbreviations (such as $1.2m)
Status: There are three options: Pipeline, In Procurement, or Fulfilled:
Pipeline: a project that is in development. Perhaps the government has announced its intention to build a new port or to upgrade a power plant -- this would be a project in 'the Pipeline.' Information on Pipeline projects is of the greatest utility to U.S. exporters; this is when they may have the best chance to shape the design of a project to enhance their chances of success. In Procurement: formal tenders have been let and potential competitors are submitting bids. Information on projects In Procurement is generally of less value to U.S. firms. Fulfilled: a contract has been awarded or the project has been cancelled. See " Editing a Trade Lead "for more details.
Project Number: Many projects have some type of identifying number. P lease indicate the reference number from the government, bank, etc., associated with the project. If there are two separate funding sources and therefore two different project numbers, please indicate them here.
Primary Funding Source: Choose from one of Development Banks (i.e. a multilateral development bank such as the World Bank or the Asian Development Bank); Government (at any level — national, provincial, local); Private (this will be rare); Self Financed (for example, a State-Owned Enterprise funding a new power station from its own resources); or Other. Additional details of the primary funding source, and any other funding sources, may be entered in the "Post Comments" box.
Information Source: Select from the drop down list. If you are entering a project at an overseas post, select "Post Identified Project." Projects added to BIDS from MDB sites will be identified with the sponsoring bank. Offices in Washington can also enter projects and would select "Washington Identified Project."
Project Description and Bidding Requirements: Include key details of the project description that will help BIDS users understand the project more fully. Include any special or specific bidding requirements that the government may have as well as bid deadline, if one has been established.
Keywords: Please enter any combination of key words that describe the project, e.g., Power, Dam, Hydroelectricity, Renewable, Water, and Environment. Also enter terms that may better define the sector.
Project Announced: When was this project publicly announced? Alternatively, the date entered here may be the date post learned about the project prior to a formal announcement.
Expected Tender Date: Indicate when the project sponsor expects to release a tender for the project. This may need to be updated as new information becomes available. If the project sponsor has announced a bid deadline, that date should be included in the "Project Description and Bidding Requirements" section above.
Borrowing Entity: Please indicate the foreign government agency borrowing money for the project. If none, say "none".
Implementing Entity: Indicate what government ministry or other entity will be responsible for issuing the project documents an overseeing the project.
Project Website: If there is a website link to more information about the project, enter the web address here.
Post Business Tab: In 2012, Posts were instructed to create "Business Tabs" on their public websites; providing the website information here will connect businesses directly to post information on business conditions in the country.
Submitting Officer: Please enter the name of the officer submitting the lead, or the name of the person at post who would be the most appropriate point of contact for follow-up questions from Washington or the private sector.
Submitting Officer Contact: Please enter the e-mail address of the person named in the "Submitting Officer" box. This should be an "@state.gov " address.
Implementing Entity POC(s) and Contact Information: Please include principal and secondary contacts, names, address, email addresses and phone numbers.
Post Comments: Include information that will help the bidders understand the dynamics of the bid. Also, if there will be a Direct Line call, please indicate date, time, number to register and requirements. N.B. BIDS is not designed or authorized to house any classified or sensitive information. You should assume any information you enter here will be available to the general public.
The 'Reset' button will clear any information you've entered including any drop-down box selections.
Once you have entered all the required data and checked to be sure it's all correct, click on "Save" at the bottom of the pop up window. The "Save" button will be grayed out if any required information is missing. When you click save, a pop-up box will confirm that your data has been put in queue for final review and posting to the BIDS website (see The BIDS Clearance and Review Process ). You will also receive an e-mail with the details of your entry; this confirms the entry is ready for final clearance and posting.
In some cases, a post may learn additional details about a project after the project has been entered into BIDS. This may be about a project the post entered locally, or about a project funded by a multilateral development bank. Some changes may be straightforward, such as changes in the project scope, bidding deadlines, or new bidding requirements. Maybe you need to update the point of contact at post. Or perhaps an official of the implementing agency told the post's commercial counselor that the country is particularly interested in U.S. bidders on the project. Any and all of this information may be of great use to U.S. firms in deciding whether to pursue a particular project.
Editing BIDS data is what keeps it fresh, up-to-date, and of utility to U.S. business. To keep data fresh, BIDS will automatically archive any entries that have not been updated in the previous 90 days (or that have reached the Expected Tender Date). BIDS will generate an-email to post ten days before the archive date. If the tender is still active, updating the information about the trade lead will reset the 90 day clock. If post does nothing, then the lead is automatically archived. Post may also archive a project if it learns information (such as cancellation of a project or the award of a tender) using the 'Edit a Lead.' Archived leads are removed from the public BIDS system of active projects, but they do remain permanently in the BIDS database.
Edit a lead can also be used to copy data on two or more similar but distinct projects. Once the first project has been entered into BIDS, post can use "Edit a Lead" to open the entry and edit it to reflect details of the second project. Then click "Save as New Lead" at the bottom of the editing window.
Most edits are minor — revisions to dates, correcting a website address, etc., and can be made immediately. Substantive edits to the Project Description and/or Post Comments, however, are considered major edits, and do require Washington clearance. [N.B.: we will monitor the edits made with an eye to eliminating this review requirement.]
Whenever a lead is edited, BIDS will generate an e-mail to the Post POC as listed in the trade lead notifying him or her of the edit.
To edit a trade lead:
- Select the country, sector and/or any other fields in the Search/Filter panel to find the lead you wish to edit.
- At the bottom of the BIDS screen, click on the Business Leads Bar; the Bar will scroll up to display all the leads matching your selected criteria.
- Click on the lead you wish to edit (the lead will be highlighted).
- Click on the "Edit Entry" icon at the top left of the Business Leads Bar
- The "Add A Lead" window will open containing all the data for that specific lead.
- You can now edit the data by correcting or updating information, or by adding new information. If any required data is missing, that data must be entered before you can save any edits.
- If you have made substantive edits (i.e. beyond correcting spelling errors, etc.) to the Project Description or to the Post Comments , click on the check box indicating "This is a major edit".
- To archive the lead, click the "Archive this Lead" box.
- If you've edited the lead to copy details from a similar but distinct project, click on "Save as New Lead".
- Click on the "Save Edits" button to save your edits.
If you click on the "Cancel" Button in the edit window, any changes you made to the data will be discarded and the window will close.
The left hand panel of the BIDS screen houses the search filters. BIDS Data can be filtered according to Sector, Project Size, Funding Source, and Project Status. You can also search for BIDS entries according to the date the project was announced and by the expected tender date. Finally, the Search panel allows archived data to be retrieved and displayed on the BIDS map (normally, only 'active' — that is, non-archived projects, are displayed). Below is a brief description of each search filter, followed by details of how the search filter operates.
Search for: Primarily intended for keyword searches, this tool will search across all alphanumeric fields (including project title, specific location and country, project description, and keywords)
Select Sector: Check the boxes in the drop-down menu to select one or more specific sectors
Select Funding Source: Check the boxes in the drop-down menu to select one or more funding sources
Announce Date Begin: Click here and a calendar will open; select a date to see only BIDS entries announced on or after that date
Announce Date End : Click here and a calendar will open; select a date to see only BIDS entries announced before or on that date
Tender Date Begin: Click here and a calendar will open; select a date to see only BIDS entries with tender dates matching or after that date
Tender Date End: Click here and a calendar will open; select a date to see only BIDS entries with tender dates before or matching that date
Select Status: Check the boxes in drop down menu to see projects in Pipeline, In Procurement, or Fulfilled.
Select Active: Check the boxes is the drop-down menu to select Active or Archived. Note that active entries appear on the BIDS map by default; if you select Archived , only Archived projects will be displayed.
Search filters can be used individually or in any combination. Each time a filter is applied — that is, each time you click "search" underneath the search filters -- BIDS will refresh to display, both on the map and in the Business Lead List at the bottom of the screen only those projects matching the selected criteria. You can further refine this filtered data by selecting additional criteria and then clicking "search" again.
Example: You want to see all projects being financed by the Asian Development Bank (ADB). In the Search filter panel, use the drop down menu and check the box for Asian Development Bank. When you click "search" the BIDS map and the Business Leads List will show all projects with the ADB listed as the funding source. If you want to narrow this list down to only one or two specific sectors, check the desired boxes in the "Sector" drop-down box and then click "Search".
Each additional filter will further reduce the number of projects displayed; if your search generates no results, then no projects matching your selected criteria exist in BIDS. Removing criteria will expand your search.
To remove all filters from a search, click "Reset" at the bottom of the search panel. All active projects will again be displayed on the BIDS map.
Each dot on the BIDS map represents a project within BIDS; a larger dot indicates more than one project at a specific location. The BIDS map automatically combines projects dots concentrated in an area when zoomed out; when you zoom in, the dots will separate to reflect the location of specific projects.
Example: When looking at the global BIDS map, one large dot on the map indicates 8 projects in India. When you zoom in on India, the dots separate to show individual projects in different regions and cities of India.
When your mouse pointer hovers over a dot, a pop-up box will appear. The box will display the Project Title, the Sector, and the Funding Source (for a single project) or it may display a number of projects in the same location. If you click on the dot or on a specific project, another pop-up box will display additional details to include the Project Title, Country, Sector, Date Added, Funding Source, Project Size, Status, Description, Post Comments, and links to the Project Website, Embassy Website, and a link to contact the Embassy. The "Contact Embassy" link will use your default mail program to open an e-mail addressed to the Submitting Officer listed in the BIDS entry.
Search filters affect the data shown on the map as well as in the Business Leads List at the bottom of the page; only data matching your search criteria are shown on the map and in the Business Leads List.
The Business Leads List includes a few more data points than the pop-up boxes on the map, including keywords. Data in the Business Leads List can be downloaded as a 'comma separated values' (*.csv) file for use on your own computer. Once you have filtered the data to fit your needs, open the Business Leads List by clicking at the bottom of the screen. Click on the "Export to CSV" button at the top left hand corner of the list. The file should download automatically.
One key to the utility of BIDS is speed; U.S. businesses don't need the information we have two weeks from now, they need it now. As such, BIDS is designed to disseminate information quickly. However, to ensure consistency from scores of posts, EB staff will review entries and major edits to guarantee the quality and relevance of BIDS entries.
Entries regarding MDB projects are first reviewed by EB/IFD/ODF staff before being posted to BIDS. Any major edits to those entries made at post will be returned to EB/IFD/ODF for review before being posted.
Post entries will be reviewed by EB/CBA staff before being posted to the BIDS system; major post edits will be similarly reviewed.
BIDS exists on an open platform, meaning that the data is available to anyone able to reach the BIDS.state.gov website. But BIDS is also built to support Application Protocol Interfaces (APIs). This means that other users can build websites that will automatically pull data from BIDS and display it on their websites. (As an example, consider Yahoo pulling news stories from the Associated Press (AP.com) to post on its homepage.) For more information on how to incorporate BIDS data into your website, please contact us at [email protected].
We see BIDS as only one small part of a much broader interagency toolkit that can support U.S. business. Within the Department, BIDS is part of our larger Economic Statecraft toolkit, and should be integrated with Business Tabs, Direct Line, and other programs. We've been working with the Department of Commerce to ensure it will be able to incorporate BIDS information into its systems as well as with OPIC, USTDA, ExIm, BusinessUSA.gov, and others.
We see a future where a U.S. business leader can come into her office, turn on her computer, and get alerts on new projects that are of particular interest to her firm. Imagine a businessperson logging into a website, calling up a U.S. Government webpage that not only provides details on a major infrastructure opportunity, but also has a link to the relevant Country Commercial Guide, contact information for the appropriate USTDA or Ex-Im Bank representative for the project, and even a notice about a Direct Line call about the project next week.
Active: A BIDS entry is considered 'active' if it has not been archived (see below).
Archived: BIDS entries will be archived:
a) if a post edits the entry to indicate it is archived; or
b) 60 days after the project status is set to fulfilled; or
c) if an entry has not been edited or updated in the previous 90 days.
Fulfilled: Fulfilled indicates that a project has been completed.
In Procurement A project is "in procurement" once funding has been approved and tender documents for contractors, subcontractors, and suppliers have been issued, and/or the projects is actively being implemented.
Pipeline: A project is said to be in the 'pipeline' from the earliest point of identification through project preparation, appraisal, and final approval. For a MDB project, 'pipeline' generally refers to any point in the process before the bank's Board of Directors grants final approval. This is the period of time when BIDS is most important -- U.S. companies have their best chance at gaining a contract when they are involved in the pipeline.
The industry sectors in BIDS are selected from the North American Industry Classification System(NAICS). The North American Industry Classification System (NAICS, pronounced Nakes) was developed under the direction and guidance of the Office of Management and Budget (OMB) as the standard for use by Federal statistical agencies in classifying business establishments for the collection, tabulation, presentation, and analysis of statistical data describing the U.S. economy. Use of the standard provides uniformity and comparability in the presentation of these statistical data. NAICS is based on a production-oriented concept, meaning that it groups establishments into industries according to similarity in the processes used to produce goods or services. NAICS replaced the Standard Industrial Classification (SIC) system in 1997.
NAICS is a 2- through 6-digit hierarchical classification system, offering five levels of detail. Each digit in the code is part of a series of progressively narrower categories, and the more digits in the code signify greater classification detail. The first two digits designate the economic sector, the third digit designates the subsector, the fourth digit designates the industry group, the fifth digit designates the NAICS industry, and the sixth digit designates the national industry.BIDS currently only uses two digit codes; if necessary in the future we could disaggregate some data with three digit codes if warranted. We've only included industry groups we think are most appropriate for potential U.S. exporters; if you think there are other industry groups we should include, please contact us at [email protected] .
See the full list of NAICS codes and learn more by visiting .
The Administrative and Support and Waste Management and Remediation Services sector comprises establishments performing routine support activities for the day-to-day operations of other organizations. These essential activities are often undertaken in-house by establishments in many sectors of the economy. The establishments in this sector specialize in one or more of these support activities and provide these services to clients in a variety of industries and, in some cases, to households. Activities performed include: office administration, hiring and placing of personnel, document preparation and similar clerical services, solicitation, collection, security and surveillance services, cleaning, and waste disposal services. The administrative and management activities performed by establishments in this sector are typically on a contract or fee basis. These activities may also be performed by establishments that are part of the company or enterprise. However, establishments involved in administering, overseeing, and managing other establishments of the company or enterprise are classified in Sector 55, Management of Companies and Enterprises. Establishments in Sector 55, Management of Companies and Enterprises normally undertake the strategic and organizational planning and decision making role of the company or enterprise. Government establishments engaged in administering, overseeing, and managing governmental programs are classified in Sector 92, Public Administration.
The Agriculture, Forestry, Fishing and Hunting sector comprises establishments primarily engaged in growing crops, raising animals, harvesting timber, and harvesting fish and other animals from a farm, ranch, or their natural habitats. The establishments in this sector are often described as farms, ranches, dairies, greenhouses, nurseries, orchards, or hatcheries. A farm may consist of a single tract of land or a number of separate tracts which may be held under different tenures. For example, one tract may be owned by the farm operator and another rented. It may be operated by the operator alone or with the assistance of members of the household or hired employees, or it may be operated by a partnership, corporation, or other type of organization. When a landowner has one or more tenants, renters, croppers, or managers, the land operated by each is considered a farm. The sector distinguishes two basic activities: agricultural production and agricultural support activities. Agricultural production includes establishments performing the complete farm or ranch operation, such as farm owner-operators, tenant farm operators, and sharecroppers. Agricultural support activities include establishments that perform one or more activities associated with farm operation, such as soil preparation, planting, harvesting, and management, on a contract or fee basis. Excluded from the Agriculture, Forestry, Fishing and Hunting sector are establishments primarily engaged in agricultural research and establishments primarily engaged in administering programs for regulating and conserving land, mineral, wildlife, and forest use. These establishments are classified in Industry 54171, Research and Development in the Physical, Engineering, and Life Sciences; and Industry 92412, Administration of Conservation Programs, respectively.
The Construction sector comprises establishments primarily engaged in the construction of buildings or engineering projects (e.g., highways and utility systems). Establishments primarily engaged in the preparation of sites for new construction and establishments primarily engaged in subdividing land for sale as building sites also are included in this sector. Construction work done may include new work, additions, alterations, or maintenance and repairs. Activities of these establishments generally are managed at a fixed place of business, but they usually perform construction activities at multiple project sites. Production responsibilities for establishments in this sector are usually specified in (1) contracts with the owners of construction projects (prime contracts) or (2) contracts with other construction establishments (subcontracts). Establishments primarily engaged in contracts that include responsibility for all aspects of individual construction projects are commonly known as general contractors, but also may be known as design-builders, construction managers, turnkey contractors, or (in cases where two or more establishments jointly secure a general contract) joint-venture contractors. Construction managers that provide oversight and scheduling only (i.e., agency) as well as construction managers that are responsible for the entire project (i.e., at risk) are included as general contractor type establishments. Establishments of the "general contractor type" frequently arrange construction of separate parts of their projects through subcontracts with other construction establishments. Establishments primarily engaged in activities to produce a specific component (e.g., masonry, painting, and electrical work) of a construction project are commonly known as specialty trade contractors. Activities of specialty trade contractors are usually subcontracted from other construction establishments, but especially in remodeling and repair construction, the work may be done directly for the owner of the property. Establishments primarily engaged in activities to construct buildings to be sold on sites that they own are known as for-sale builders, but also may be known as speculative builders or merchant builders. For-sale builders produce buildings in a manner similar to general contractors, but their production processes also include site acquisition and securing of financial backing. For-sale builders are most often associated with the construction of residential buildings. Like general contractors, they may subcontract all or part of the actual construction work on their buildings. There are substantial differences in the types of equipment, work force skills, and other inputs required by establishments in this sector. To highlight these differences and variations in the underlying production functions, this sector is divided into three subsectors. Subsector 236, Construction of Buildings, comprises establishments of the general contractor type and for-sale builders involved in the construction of buildings. Subsector 237, Heavy and Civil Engineering Construction, comprises establishments involved in the construction of engineering projects. Subsector 238, Specialty Trade Contractors, comprises establishments engaged in specialty trade activities generally needed in the construction of all types of buildings. Force account construction is construction work performed by an enterprise primarily engaged in some business other than construction for its own account, using employees of the enterprise. This activity is not included in the construction sector unless the construction work performed is the primary activity of a separate establishment of the enterprise. The installation and the ongoing repair and maintenance of telecommunications and utility networks is excluded from construction when the establishments performing the work are not independent contractors. Although a growing proportion of this work is subcontracted to independent contractors in the Construction sector, the operating units of telecommunications and utility companies performing this work are included with the telecommunications or utility activities.
The Educational Services sector comprises establishments that provide instruction and training in a wide variety of subjects. This instruction and training is provided by specialized establishments, such as schools, colleges, universities, and training centers. These establishments may be privately owned and operated for profit or not for profit, or they may be publicly owned and operated. They may also offer food and/or accommodation services to their students. Educational services are usually delivered by teachers or instructors that explain, tell, demonstrate, supervise, and direct learning. Instruction is imparted in diverse settings, such as educational institutions, the workplace, or the home, and through diverse means, such as correspondence, television, the Internet, or other electronic and distance learning methods. The training provided by these establishments may include the use of simulators and simulation methods. It can be adapted to the particular needs of the students, for example sign language can replace verbal language for teaching students with hearing impairments. All industries in the sector share this commonality of process, namely, labor inputs of instructors with the requisite subject matter expertise and teaching ability.
The Finance and Insurance sector comprises establishments primarily engaged in financial transactions (transactions involving the creation, liquidation, or change in ownership of financial assets) and/or in facilitating financial transactions. Three principal types of activities are identified:
1. Raising funds by taking deposits and/or issuing securities and, in the process, incurring liabilities. Establishments engaged in this activity use raised funds to acquire financial assets by making loans and/or purchasing securities. Putting themselves at risk, they channel funds from lenders to borrowers and transform or repackage the funds with respect to maturity, scale, and risk. This activity is known as financial intermediation.
2. Pooling of risk by underwriting insurance and annuities. Establishments engaged in this activity collect fees, insurance premiums, or annuity considerations; build up reserves; invest those reserves; and make contractual payments. Fees are based on the expected incidence of the insured risk and the expected return on investment.
3. Providing specialized services facilitating or supporting financial intermediation, insurance, and employee benefit programs.
In addition, monetary authorities charged with monetary control are included in this sector. The subsectors, industry groups, and industries within the NAICS Finance and Insurance sector are defined on the basis of their unique production processes. As with all industries, the production processes are distinguished by their use of specialized human resources and specialized physical capital. In addition, the way in which these establishments acquire and allocate financial capital, their source of funds, and the use of those funds provides a third basis for distinguishing characteristics of the production process. For instance, the production process in raising funds through deposit-taking is different from the process of raising funds in bond or money markets. The process of making loans to individuals also requires different production processes than does the creation of investment pools or the underwriting of securities. Most of the Finance and Insurance subsectors contain one or more industry groups of (1) intermediaries with similar patterns of raising and using funds and (2) establishments engaged in activities that facilitate, or are otherwise related to, that type of financial or insurance intermediation. Industries within this sector are defined in terms of activities for which a production process can be specified, and many of these activities are not exclusive to a particular type of financial institution. To deal with the varied activities taking place within existing financial institutions, the approach is to split these institutions into components performing specialized services. This requires defining the units engaged in providing those services and developing procedures that allow for their delineation. These units are the equivalents for finance and insurance of the establishments defined for other industries. The output of many financial services, as well as the inputs and the processes by which they are combined, cannot be observed at a single location and can only be defined at a higher level of the organizational structure of the enterprise. Additionally, a number of independent activities that represent separate and distinct production processes may take place at a single location belonging to a multilocation financial firm. Activities are more likely to be homogeneous with respect to production characteristics than are locations, at least in financial services. The classification defines activities broadly enough that it can be used both by those classifying by location and by those employing a more top-down approach to the delineation of the establishment. Establishments engaged in activities that facilitate, or are otherwise related to, the various types of intermediation have been included in individual subsectors, rather than in a separate subsector dedicated to services alone because these services are performed by intermediaries, as well as by specialist establishments, the extent to which the activity of the intermediaries can be separately identified is not clear. The Finance and Insurance sector has been defined to encompass establishments primarily engaged in financial transactions; that is, transactions involving the creation, liquidation, change in ownership of financial assets; or in facilitating financial transactions. Financial industries are extensive users of electronic means for facilitating the verification of financial balances, authorizing transactions, transferring funds to and from transactors' accounts, notifying banks (or credit card issuers) of the individual transactions, and providing daily summaries. Since these transaction processing activities are integral to the production of finance and insurance services, establishments that principally provide a financial transaction processing service are classified to this sector, rather than to the data processing industry in the Information sector. Legal entities that hold portfolios of assets on behalf of others are significant and data on them are required for a variety of purposes. Thus for NAICS, these funds, trusts, and other financial vehicles are the fifth subsector of the Finance and Insurance sector. These entities earn interest, dividends, and other property income, but have little or no employment and no revenue from the sale of services. Separate establishments and employees devoted to the management of funds are classified in Industry Group 5239, Other Financial Investment Activities.
The Health Care and Social Assistance sector comprises establishments providing health care and social assistance for individuals. The sector includes both health care and social assistance because it is sometimes difficult to distinguish between the boundaries of these two activities. The industries in this sector are arranged on a continuum starting with those establishments providing medical care exclusively, continuing with those providing health care and social assistance, and finally finishing with those providing only social assistance. The services provided by establishments in this sector are delivered by trained professionals. All industries in the sector share this commonality of process, namely, labor inputs of health practitioners or social workers with the requisite expertise. Many of the industries in the sector are defined based on the educational degree held by the practitioners included in the industry. Excluded from this sector are aerobic classes in Subsector 713, Amusement, Gambling, and Recreation Industries and nonmedical diet and weight reducing centers in Subsector 812, Personal and Laundry Services. Although these can be viewed as health services, these services are not typically delivered by health practitioners.
The Information sector comprises establishments engaged in the following processes: (a) producing and distributing information and cultural products, (b) providing the means to transmit or distribute these products as well as data or communications, and (c) processing data. The main components of this sector are the publishing industries, including software publishing, and both traditional publishing and publishing exclusively on the Internet; the motion picture and sound recording industries; the broadcasting industries, including traditional broadcasting and those broadcasting exclusively over the Internet; the telecommunications industries; Web search portals, data processing industries, and the information services industries. The expressions ''information age'' and ''global information economy'' are used with considerable frequency today. The general idea of an ''information economy'' includes both the notion of industries primarily producing, processing, and distributing information, as well as the idea that every industry is using available information and information technology to reorganize and make themselves more productive. For the purposes of NAICS, it is the transformation of information into a commodity that is produced and distributed by a number of growing industries that is at issue. The Information sector groups three types of establishments: (1) those engaged in producing and distributing information and cultural products; (2) those that provide the means to transmit or distribute these products as well as data or communications; and (3) those that process data. Cultural products are those that directly express attitudes, opinions, ideas, values, and artistic creativity; provide entertainment; or offer information and analysis concerning the past and present. Included in this definition are popular, mass-produced products as well as cultural products that normally have a more limited audience, such as poetry books, literary magazines, or classical records. The unique characteristics of information and cultural products, and of the processes involved in their production and distribution, distinguish the Information sector from the goods-producing and service-producing sectors. Some of these characteristics are:
1. Unlike traditional goods, an ''information or cultural product,'' such as a newspaper on-line or television program, does not necessarily have tangible qualities, nor is it necessarily associated with a particular form. A movie can be shown at a movie theater, on a television broadcast, through video-on-demand or rented at a local video store. A sound recording can be aired on radio, embedded in multimedia products, or sold at a record store.
2. Unlike traditional services, the delivery of these products does not require direct contact between the supplier and the consumer.
3. The value of these products to the consumer lies in their informational, educational, cultural, or entertainment content, not in the format in which they are distributed. Most of these products are protected from unlawful reproduction by copyright laws.
4. The intangible property aspect of information and cultural products makes the processes involved in their production and distribution very different from goods and services. Only those possessing the rights to these works are authorized to reproduce, alter, improve, and distribute them. Acquiring and using these rights often involves significant costs. In addition, technology is revolutionizing the distribution of these products. It is possible to distribute them in a physical form, via broadcast, or on-line.
5. Distributors of information and cultural products can easily add value to the products they distribute. For instance, broadcasters add advertising not contained in the original product. This capacity means that unlike traditional distributors, they derive revenue not from sale of the distributed product to the final consumer, but from those who pay for the privilege of adding information to the original product. Similarly, a directory and mailing list publisher can acquire the rights to thousands of previously published newspaper and periodical articles and add new value by providing search and software and organizing the information in a way that facilitates research and retrieval. These products often command a much higher price than the original information.
The Manufacturing sector comprises establishments engaged in the mechanical, physical, or chemical transformation of materials, substances, or components into new products. The assembling of component parts of manufactured products is considered manufacturing, except in cases where the activity is appropriately classified in Sector 23, Construction. Establishments in the Manufacturing sector are often described as plants, factories, or mills and characteristically use power-driven machines and materials-handling equipment. However, establishments that transform materials or substances into new products by hand or in the worker's home and those engaged in selling to the general public products made on the same premises from which they are sold, such as bakeries, candy stores, and custom tailors, may also be included in this sector. Manufacturing establishments may process materials or may contract with other establishments to process their materials for them. Both types of establishments are included in manufacturing. The materials, substances, or components transformed by manufacturing establishments are raw materials that are products of agriculture, forestry, fishing, mining, or quarrying as well as products of other manufacturing establishments. The materials used may be purchased directly from producers, obtained through customary trade channels, or secured without recourse to the market by transferring the product from one establishment to another, under the same ownership. The new product of a manufacturing establishment may be finished in the sense that it is ready for utilization or consumption, or it may be semifinished to become an input for an establishment engaged in further manufacturing. For example, the product of the alumina refinery is the input used in the primary production of aluminum; primary aluminum is the input to an aluminum wire drawing plant; and aluminum wire is the input for a fabricated wire product manufacturing establishment. The subsectors in the Manufacturing sector generally reflect distinct production processes related to material inputs, production equipment, and employee skills. In the machinery area, where assembling is a key activity, parts and accessories for manufactured products are classified in the industry of the finished manufactured item when they are made for separate sale. For example, a replacement refrigerator door would be classified with refrigerators and an attachment for a piece of metal working machinery would be classified with metal working machinery. However, components, input from other manufacturing establishments, are classified based on the production function of the component manufacturer. For example, electronic components are classified in Subsector 334, Computer and Electronic Product Manufacturing and stampings are classified in Subsector 332, Fabricated Metal Product Manufacturing. Manufacturing establishments often perform one or more activities that are classified outside the Manufacturing sector of NAICS. For instance, almost all manufacturing has some captive research and development or administrative operations, such as accounting, payroll, or management. These captive services are treated the same as captive manufacturing activities. When the services are provided by separate establishments, they are classified to the NAICS sector where such services are primary, not in manufacturing.
The Mining, Quarrying, and Oil and Gas Extraction sector comprises establishments that extract naturally occurring mineral solids, such as coal and ores; liquid minerals, such as crude petroleum; and gases, such as natural gas. The term mining is used in the broad sense to include quarrying, well operations, beneficiating (e.g., crushing, screening, washing, and flotation), and other preparation customarily performed at the mine site, or as a part of mining activity. The Mining, Quarrying, and Oil and Gas Extraction sector distinguishes two basic activities: mine operation and mining support activities. Mine operation includes establishments operating mines, quarries, or oil and gas wells on their own account or for others on a contract or fee basis. Mining support activities include establishments that perform exploration (except geophysical surveying) and/or other mining services on a contract or fee basis (except mine site preparation and construction of oil/gas pipelines). Establishments in the Mining, Quarrying, and Oil and Gas Extraction sector are grouped and classified according to the natural resource mined or to be mined. Industries include establishments that develop the mine site, extract the natural resources, and/or those that beneficiate (i.e., prepare) the mineral mined. Beneficiation is the process whereby the extracted material is reduced to particles that can be separated into mineral and waste, the former suitable for further processing or direct use. The operations that take place in beneficiation are primarily mechanical, such as grinding, washing, magnetic separation, and centrifugal separation. In contrast, manufacturing operations primarily use chemical and electrochemical processes, such as electrolysis and distillation. However, some treatments, such as heat treatments, take place in both the beneficiation and the manufacturing (i.e., smelting/refining) stages. The range of preparation activities varies by mineral and the purity of any given ore deposit. While some minerals, such as petroleum and natural gas, require little or no preparation, others are washed and screened, while yet others, such as gold and silver, can be transformed into bullion before leaving the mine site. Mining, beneficiating, and manufacturing activities often occur in a single location. Separate receipts will be collected for these activities whenever possible. When receipts cannot be broken out between mining and manufacturing, establishments that mine or quarry nonmetallic minerals, and then beneficiate the nonmetallic minerals into more finished manufactured products are classified based on the primary activity of the establishment. A mine that manufactures a small amount of finished products will be classified in Sector 21, Mining, Quarrying, and Oil and Gas Extraction. An establishment that mines whose primary output is a more finished manufactured product will be classified in Sector 31-33, Manufacturing.
The Professional, Scientific, and Technical Services sector comprises establishments that specialize in performing professional, scientific, and technical activities for others. These activities require a high degree of expertise and training. The establishments in this sector specialize according to expertise and provide these services to clients in a variety of industries and, in some cases, to households. Activities performed include: legal advice and representation; accounting, bookkeeping, and payroll services; architectural, engineering, and specialized design services; computer services; consulting services; research services; advertising services; photographic services; translation and interpretation services; veterinary services; and other professional, scientific, and technical services. This sector excludes establishments primarily engaged in providing a range of day-to-day office administrative services, such as financial planning, billing and recordkeeping, personnel, and physical distribution and logistics. These establishments are classified in Sector 56, Administrative and Support and Waste Management and Remediation Services.
The Public Administration sector consists of establishments of federal, state, and local government agencies that administer, oversee, and manage public programs and have executive, legislative, or judicial authority over other institutions within a given area. These agencies also set policy, create laws, adjudicate civil and criminal legal cases, provide for public safety and for national defense. In general, government establishments in the Public Administration sector oversee governmental programs and activities that are not performed by private establishments. Establishments in this sector typically are engaged in the organization and financing of the production of public goods and services, most of which are provided for free or at prices that are not economically significant. Government establishments also engage in a wide range of productive activities covering not only public goods and services but also individual goods and services similar to those produced in sectors typically identified with private-sector establishments. In general, ownership is not a criterion for classification in NAICS. Therefore, government establishments engaged in the production of private-sector-like goods and services should be classified in the same industry as private-sector establishments engaged in similar activities. As a practical matter, it is difficult to identify separate establishment detail for many government agencies. To the extent that separate establishment records are available, the administration of governmental programs is classified in Sector 92, Public Administration, while the operation of that same governmental program is classified elsewhere in NAICS based on the activities performed. For example, the governmental administrative authority for an airport is classified in Industry 92612, Regulation and Administration of Transportation Programs, while operating the airport is classified in Industry 48811, Airport Operations. When separate records for multi-establishment companies are not available to distinguish between the administration of a governmental program and the operation of it, the establishment is classified in Sector 92, Public Administration. Examples of government-provided goods and services that are classified in sectors other than Public Administration include: schools, classified in Sector 61, Educational Services; hospitals, classified in Subsector 622, Hospitals; establishments operating transportation facilities, classified in Sector 48-49, Transportation and Warehousing; the operation of utilities, classified in Sector 22, Utilities; and the Government Printing Office, classified in Subsector 323, Printing and Related Support Activities.
The Transportation and Warehousing sector includes industries providing transportation of passengers and cargo, warehousing and storage for goods, scenic and sightseeing transportation, and support activities related to modes of transportation. Establishments in these industries use transportation equipment or transportation related facilities as a productive asset. The type of equipment depends on the mode of transportation. The modes of transportation are air, rail, water, road, and pipeline. The Transportation and Warehousing sector distinguishes three basic types of activities: subsectors for each mode of transportation, a subsector for warehousing and storage, and a subsector for establishments providing support activities for transportation. In addition, there are subsectors for establishments that provide passenger transportation for scenic and sightseeing purposes, postal services, and courier services. A separate subsector for support activities is established in the sector because, first, support activities for transportation are inherently multimodal, such as freight transportation arrangement, or have multimodal aspects. Secondly, there are production process similarities among the support activity industries. One of the support activities identified in the support activity subsector is the routine repair and maintenance of transportation equipment (e.g., aircraft at an airport, railroad rolling stock at a railroad terminal, or ships at a harbor or port facility). Such establishments do not perform complete overhauling or rebuilding of transportation equipment (i.e., periodic restoration of transportation equipment to original design specifications) or transportation equipment conversion (i.e., major modification to systems). An establishment that primarily performs factory (or shipyard) overhauls, rebuilding, or conversions of aircraft, railroad rolling stock, or a ship is classified in Subsector 336, Transportation Equipment Manufacturing according to the type of equipment. Many of the establishments in this sector often operate on networks, with physical facilities, labor forces, and equipment spread over an extensive geographic area. Warehousing establishments in this sector are distinguished from merchant wholesaling in that the warehouse establishments do not sell the goods. Excluded from this sector are establishments primarily engaged in providing travel agent services that support transportation and other establishments, such as hotels, businesses, and government agencies. These establishments are classified in Sector 56, Administrative and Support and Waste Management and Remediation Services. Also, establishments primarily engaged in providing rental and leasing of transportation equipment without operator are classified in Subsector 532, Rental and Leasing Services.
The Utilities sector comprises establishments engaged in the provision of the following utility services: electric power, natural gas, steam supply, water supply, and sewage removal. Within this sector, the specific activities associated with the utility services provided vary by utility: electric power includes generation, transmission, and distribution; natural gas includes distribution; steam supply includes provision and/or distribution; water supply includes treatment and distribution; and sewage removal includes collection, treatment, and disposal of waste through sewer systems and sewage treatment facilities. Excluded from this sector are establishments primarily engaged in waste management services classified in Subsector 562, Waste Management and Remediation Services. These establishments also collect, treat, and dispose of waste materials; however, they do not use sewer systems or sewage treatment facilities.