NAICS 5417 - Scientific Research and Development Services
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What is NAICS 5417
NAICS code 5417 covers Scientific Research and Development Services, an industry group focused on conducting original investigations and experimental development to advance scientific knowledge and create innovative products or processes. Businesses operating in this sector specialize in systematic research efforts, including modeling, simulation, and applied science, spanning various scientific domains such as biotechnology, engineering, environmental science, and physical sciences. These firms often combine expertise in research methodologies with cutting-edge technology to solve complex problems and develop new technologies. Government agencies contract with these organizations to leverage their specialized knowledge and capabilities, driving innovation in defense, healthcare, energy, and other critical fields. This collaboration supports national priorities by promoting technology advances, enhancing competitiveness, and addressing public needs through research-driven solutions.
Industry Classification for NAICS 5417
This industry group comprises establishments engaged in conducting original investigation undertaken on a systematic basis to gain new knowledge (research) and/or the application of research findings or other scientific knowledge for the creation of new or significantly improved products or processes (experimental development). Techniques may include modeling and simulation. The industries within this industry group are defined on the basis of the domain of research; that is, on the scientific expertise of the establishment.
Breakdown for NAICS 5417
- Encompasses establishments conducting original research and experimental development to create new knowledge or products.
- Industry defined by the scientific domain and expertise of the research establishment.
- Includes both basic research and applied experimental development activities.
- Typical projects involve modeling, simulation, and technology innovation across multiple scientific fields.
- Small businesses and large research firms compete for government contracts in this sector.
Included Activities for NAICS 5417
- Conducting basic and applied scientific research projects.
- Performing experimental development to create new or improved products and processes.
- Developing computer simulations and models to support research hypotheses.
- Providing technical consulting and analysis for government research programs.
- Managing research data and preparing technical reports and publications.
- Supporting prototype development and testing for emerging technologies.
- Collaborating with government labs and agencies on joint R&D initiatives.
- Securing research grants and managing compliance with federal regulations.
Business Types for NAICS 5417
- Independent scientific research laboratories
- University-affiliated research centers
- Technology development firms specializing in applied science
- Consulting firms with expertise in scientific and engineering research
- Small innovative businesses participating in SBIR/STTR programs
- Nonprofit research organizations focused on scientific advancement
Government Buyers for NAICS 5417
Federal government agencies such as the Department of Defense (DoD), National Aeronautics and Space Administration (NASA), Department of Energy (DOE), National Institutes of Health (NIH), and the National Science Foundation (NSF) are primary buyers of scientific research and development services. These agencies require advanced R&D to develop new technologies for national security, space exploration, medical breakthroughs, energy innovations, and environmental sustainability. Additionally, state and local governments may contract for research services related to public health, environmental assessments, and infrastructure development. These agencies rely on external scientific expertise to complement in-house capabilities, accelerate innovation, and meet mission-critical objectives that require specialized research and experimental development.
Contract Types & Procurement for NAICS 5417
Contracts under NAICS 5417 typically include research and development agreements, cost-reimbursement contracts, task orders under indefinite delivery/indefinite quantity (IDIQ) vehicles, and cooperative agreements. Procurement methods often involve competitive bidding, small business set-asides, and grants for research initiatives. Contract values vary widely, from smaller projects under $1 million for specific studies to multi-year, multi-million-dollar contracts supporting extensive research programs. Government agencies favor flexible contract types to accommodate the exploratory and iterative nature of scientific research, enabling adjustments based on findings and technological progress. Subcontracting opportunities are common, especially for specialized tasks within larger research programs.
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