NAICS 22 - Utilities

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Key Terms

electric power generation natural gas distribution steam supply water treatment sewage treatment utility infrastructure renewable energy smart grid wastewater management environmental compliance infrastructure modernization contract bidding government procurement utility maintenance emergency restoration

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Related NAICS Codes for NAICS 22

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NAICS Code Industry Title
221 Utilities

What is NAICS 22

NAICS code 22 covers the Utilities sector, which includes establishments engaged in providing essential utility services such as electric power generation, transmission, and distribution; natural gas distribution; steam supply; water treatment and distribution; and sewage collection, treatment, and disposal. Businesses operating under this sector are critical to the nation’s infrastructure, ensuring reliable delivery of energy and water resources to residential, commercial, and industrial users. The sector’s scope extends from power plants and water treatment facilities to sewer systems and distribution networks. Government agencies contract these services to maintain and upgrade public utility infrastructure, ensure compliance with environmental standards, and support public health and safety initiatives. Reliable utility services are fundamental to economic stability and national security, making this sector a priority for federal, state, and local governments.

Industry Classification for NAICS 22

The Sector as a Whole

The Utilities sector comprises establishments engaged in the provision of the following utility services: electric power, natural gas, steam supply, water supply, and sewage treatment and disposal. 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.

Breakdown for NAICS 22

  • Includes electric power generation, transmission, and distribution services.
  • Covers natural gas distribution and steam supply services.
  • Encompasses water supply treatment and distribution systems.
  • Involves sewage collection, treatment, and waste disposal through sewer systems.
  • Excludes waste management services not utilizing sewer or sewage treatment facilities.
  • Applies to both public utilities and private companies contracted by government agencies.

Included Activities for NAICS 22

  • Generation and transmission of electric power.
  • Distribution of natural gas to consumers.
  • Provision and distribution of steam for heating or industrial use.
  • Treatment and distribution of potable water.
  • Collection and treatment of sewage and wastewater.
  • Maintenance and upgrading of utility infrastructure.
  • Emergency restoration of utility services after disruptions.
  • Implementation of renewable energy and smart grid technologies.

Business Types for NAICS 22

  • Electric power generation companies.
  • Natural gas distribution firms.
  • Water supply and treatment utilities.
  • Sewage treatment and waste disposal services.
  • Engineering and infrastructure maintenance contractors.
  • Renewable energy service providers.

Government Buyers for NAICS 22

Government agencies that typically procure utility services include the Department of Energy, Environmental Protection Agency, Department of Defense, local municipal governments, and water resource management authorities. These agencies require utility services to operate public facilities, military installations, and infrastructure projects reliably and sustainably. Additionally, agencies contract for specialized services such as sewage treatment upgrades, renewable energy integration, and emergency utility restoration after natural disasters. The government’s need to ensure continuous, safe, and environmentally compliant utility operations drives ongoing contracting opportunities in this sector.

Contract Types & Procurement for NAICS 22

Contracts in the Utilities sector often include firm-fixed-price, cost-reimbursement, and indefinite-delivery/indefinite-quantity (IDIQ) agreements. Procurement methods range from competitive bidding to negotiated contracts, depending on the complexity and urgency of the services required. Contract values vary widely, from smaller service agreements for routine maintenance and inspection to large multi-million dollar contracts for infrastructure construction, upgrades, and technology deployment. Long-term contracts for ongoing utility management and operation are also common, reflecting the essential nature and continuous demand for these services.

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