NAICS 3254 - Pharmaceutical and Medicine Manufacturing

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What is NAICS 3254

NAICS code 3254 encompasses the manufacturing of pharmaceuticals and medicines, including medicinal chemicals and botanical products. Businesses operating within this sector produce a wide range of products such as prescription and over-the-counter drugs, vaccines, and biologics. These firms engage in complex processes involving chemical synthesis, biotechnology, and formulation to develop safe and effective medicinal products. Government agencies often contract with these manufacturers to ensure a steady supply of essential medications for public health programs, military readiness, and emergency preparedness.

Breakdown for NAICS 3254

  • Includes manufacturing of prescription and over-the-counter medicines.
  • Covers both chemical and biological pharmaceutical products.
  • Subject to stringent FDA regulatory and quality standards.
  • Typical contract sizes range from small supply orders to multi-million dollar agreements.
  • Key sector for government health programs, defense, and emergency preparedness.

Included Activities for NAICS 3254

  • Chemical synthesis of active pharmaceutical ingredients (APIs).
  • Formulation and packaging of medicinal products.
  • Manufacturing of vaccines and biologic therapies.
  • Quality control and compliance testing.
  • Production of over-the-counter medications.
  • Supply chain management for pharmaceutical distribution.
  • Research and development support for drug manufacturing.
  • Sterile drug manufacturing and aseptic processing.

Business Types for NAICS 3254

  • Large pharmaceutical manufacturers
  • Biotechnology firms producing biologics
  • Generic drug manufacturers
  • Specialty chemical producers for pharmaceuticals
  • Contract manufacturing organizations (CMOs)
  • Small innovative drug development companies

Government Buyers for NAICS 3254

Federal government agencies such as the Department of Veterans Affairs (VA), Department of Defense (DoD), and the Centers for Disease Control and Prevention (CDC) are primary purchasers of pharmaceutical products. They require these medications to support healthcare services for veterans, active-duty military personnel, and public health initiatives including vaccination campaigns and disease control efforts. Additionally, agencies involved in emergency response procure pharmaceuticals for stockpiling to mitigate biological threats or pandemics.

Contract Types & Procurement for NAICS 3254

Contracts in the pharmaceutical manufacturing sector commonly include firm-fixed-price, indefinite delivery/indefinite quantity (IDIQ), and cost-plus contracts, often awarded through competitive bidding or simplified acquisition procedures. Contract values vary widely depending on the scope, ranging from small supply orders to multi-year agreements worth millions of dollars. Procurement methods emphasize compliance with regulatory standards such as FDA approval and quality assurance requirements to ensure product safety and efficacy.

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