Classifications – UNSPSC®

About this post. The following is another sharing of R|CAT’s afternoons of in real time blogging about activities related to seeking supplier diversity certification. This post is specific to identifying potential business classification codes to fulfill Section 6 of the California’s Department of General Services (DGS) small business certification application.

R|CAT is applying for at least two of the six supplier diversity certifications programs for which R|CAT qualifies. The first application started was for The Supplier Clearinghouse, which required identifying the SIC (Standard Industrial Classification) four digit code.

For the intended second application with DGS, there is a different code required – UNSPSC®, or United Nations Standard Products and Services Code®.

Bottom line. Selecting at least one UNSPSC® is straightforward using the search function. However, seeking to select up to six codes, which is the maximum for DGS’s application and is optional, is more effort. At this time, R|CAT will wait until December, when the DGS on-line process is available, to determine the final codes from those identified below.


UNSPSC®

In addition to SIC and NAICS codes for business classifications, there is the United Nations Standard Products and Services Code®.

main_banner_short_UNSPSC

This is described as follows –

The United Nations Standard Products and Services Code® (UNSPSC®), managed by GS1 US™ for the UN Development Programme (UNDP), is an open, global, multi-sector standard for efficient, accurate classification of products and services. UNSPSC is an efficient, accurate and flexible classification system for achieving company-wide visibility of spend analysis, as well as, enabling procurement to deliver on cost-effectiveness demands and allowing full exploitation of electronic commerce capabilities. Encompassing a five level hierarchical classification codeset, UNSPSC enables expenditure analysis at grouping levels relevant to your needs. You can drill down or up to the codeset to see more or less detail as is necessary for business analysis.

The UNSPSC offers a single global classification system that can be used for:

  • Company-wide visibility of spend analysis
  • Cost-effective procurement optimization
  • Full exploitation of electronic commerce capabilities

– and it is the business classification code system that the Department of General Services requires in Section 6 of its application (.pdf).

DGS - Sec 6_UNSPSC

Section 6.A. provides for up to six codes. Section 6.B. states –

ENTER KEYWORDS WHICH BEST DESCRIBE THE BUSINESS. CONSIDER USING TERMS THAT WILL HELP STATE BUYERS AND POTENTIAL BUSINESS PARTNERS LOCATE YOUR BUSINESS WHEN THEY USE THE STATE’S ONLINE SEARCH ENGINE. YOUR KEYWORDS WILL BE TRUNCATED TO 255 CHARACTERS. CERTIFICATION HOLDERS MAY UPDATE KEYWORDS ONLINE.

(After review of the codes, R|CAT will include specific keywords related to environmental, air quality, power generation, and training related to behavior design, applied improvisation, and leadership.)

Search-Code

Identifying relevant codes begins with the Search-Code feature of the page. Unfamiliar with the codes, R|CAT used keyword searches based on SIC and NAICS descriptions, as a start. That said, “environmental” was the first search.

DGS - UNSPSC - search code

Begin at Search-Code

The keyword “environmental” produces a significantly longer list of eight-digit codes related to environmental. This includes the following possible codes for R|CAT:

    • 77000000 – Environmental services
    • 77100000 – Environmental management
    • 77101500 – Environmental impact assessment
    • 77101504 – Environmental Impact Assessment EIA services
    • 77101600 – Environmental planning
    • 77101700 – Environmental advisory services
    • 94131501 – Environmental non governmental services

Given there is a hierarchy for the codes, 77000000 is the category for Environmental Services, therefore other UNSPSCs with “77” as a start are assumed to be environmental services-related. 94000000 is for “Organizations and Clubs”, therefore, that code would not represent R|CAT.

Hierarchy of Code

The code is composed of a four-level hierarchy (described in wikipedia) –

  1. SEGMENT
  2. FAMILY
  3. CLASS
  4. COMMODITY

– therefore to seek representative, descriptive codes, R|CAT reviewed several segments and families to drill down to possible codes.

Codeset-Download

In addition to using the keyword search feature, R|CAT created an account, became a new user, and downloaded the free, in English (.pdf) CODESET.

UNSPSC-codeset_Download

The Codeset is 6,685 pages. Therefore, R|CAT used a combination of the Search-Code feature and “find” function on the Codeset to determine the possible, relevant two-digit codes, aka SEGMENT,  for R|CAT’s services.

    • 77000000 – Environmental Services
    • 72000000 – Building and Facility Construction and Maintenance Services
    • 80000000 – Management and Business Professionals and Administrative Services
    • 81000000 – Engineering and Research and Technology Based Services
    • 86000000 – Education and Training Services

Long List of Codes for R|CAT

The following presents the select FAMILY, CLASS, and COMMODITY codes for each of the above-listed SEGMENT codes, which would likely describe R|CAT’s services.

Segment 77000000 – Environmental Services
  • 77100000 – Environmental management
    • 77101700 – Environmental advisory services
      • 77101704 – Environmental technology advisory services
      • 77101706 – Environmental law advisory services
        (follow-up if would apply for regulatory advisory)
    • 77102000 – Environmental reporting services
      • 77102001 – Legal compliance certification service (defined as: Service to create certification of compliance with environment related laws and regulations)
      • 77102002 – Emission reporting compliance service (defined as: Service to create reports that provide information on air, water and land emissions required by regulatory agencies)
Segment 72000000 – Building and Facility Construction and Maintenance Services
  • 72120000 – Nonresidential building construction services
    • 72121500 – Industrial plant construction services
      • 72121506 – Power plant construction service (defined as: The building of power plants owned by others)
    • 72151500 – Electrical system services
      • 72151502 – Electric power system construction service (defined as: The installation of electrical power systems owned by others)
      • 72151503 – Cogeneration plant construction service (defined as: The construction of electrical cogeneration plants owned by others)
      • 72151505 – Standby or emergency power installation service (defined as: The installation of standby or emergency electrical power systems owned by others)
Segment 80000000 – Management and Business Professionals and Administrative Services
  • 80100000 – Management advisory services
    • 80101500 – Business and corporate management consultation services
      • 80101501 – New business start up consultation services
        (follow-up if would apply for any business start up that may be subject to environmental regulatory and compliance requirements)
      • 80101504 – Strategic planning consultation services
        (follow-up if would apply to environmental strategic planning)
      • 80101509 – Government affairs and community relations consultation service (defined as: Services associated with consultation regarding government and community relations)
    •  80101600 – Project management
      • 80101601 – Feasibility studies or screening of project ideas
      • 80101602 – Regional or location studies for projects
      • 80101606 – Project monitoring and evaluation (defined as:  Monitoring and evaluation are complementary, monitoring is the process of collecting information on a routine basis for use in decision-making and evaluation of projects, is a process by which we determine the
        impact or effects generated by a project from the comparison between the current state and the state planning provisions. That is, it tries to know how much a project has failed to meet its objectives or how much it possesses the capacity to meet them)
  • 80110000 – Human resources services
    • 80111500 – Human resource development
      • 80111501 – Management development
      • 80111504 – Labor training or development
        (follow-up if would apply to environmental health and safety)
  • 80170000 – Public relations and professional communications services
    • 80171500 – Situation and stakeholder analysis and communications planning services
      • 80171502 – Focus group and public feedback meeting facilitation and analysis (defined as: Public relations consultation services relating to the facilitation of focus group sessions and public meetings to gather feedback on an issue, and associated analysis of data gathered)
        (follow-up if would apply to the subset of environmental and energy project PR)
      • 80171505 – Communication planning (defined as: Public relations consultation services relating to the development of communications plans)
    • 80171900 – Stakeholder management and relations services
      (follow-up if would apply to environmental justice-related, public engagement for public comments, and agency liaison support activities)

      • 80171904 – Cultural and ethnic group relations consultation and engagement (defined as: Public relations consultation services relating to managing stakeholder relations and engagement with cultural or ethnic groups)
      • 80171905 – Indigenous peoples relations consultation and engagement (defined as: Public relations consultation services relating to managing stakeholder relations and engagement with indigenous peoples and cultural groups)
      • 80171906 – Government relations consultation and engagement (defined as: Public relations consultation services relating to managing stakeholder relations and engagement with central, state or local government  agencies or departments)
      • 80171907 – Community relations consultation and engagement (defined as: Public relations consultation services relating to managing stakeholder relations and engagement with the wider community and publics)
Segment 81000000 – Engineering and Research and Technology Based Services
  • 81100000 – Professional engineering services
    (follow-up if is specific to licensed professional engineering services)

    • 81101500 – Civil Engineering(follow-up if this class can be irrespective of being a civil engineer)
      • 81101516 – Energy or utility consulting service (defined as: Contract consulting related to utilities and other energy producing companies)
    • 81102500 – Permitting services
      (follow-up if applies to permit to construct / air quality permitting )

      • 81102502 – Building consent and permit engineering peer review service (defined as: Professional services used to validate a statement supplied by, or on behalf of an applicant for, a building consent, by, or on behalf of a person who has been granted a building consent that a certain work has been or will be carried out in accordance with certain technical specifications)
Segment 86000000 – Education and Training Services
  • 86130000 – Specialized educational services
    • 86132000 – Management education and training services
      • 86132001 – Executive coaching service (defined as: Service provided to executives to improve their interaction with the public, increase the effectiveness of their communication and speaking abilities. Involves coaching, counseling and mentoring)
    • 86132200 – Educational support services
      • 86132201 – Training workshop service (defined as: Training or workshop for skills enhancement and development)

Selection Process of Final Codes

At this time, R|CAT will inquire about select codes (for clarification and applicability) and then use a process of elimination, based on expected percentage of revenue from R|CAT’s business services, to determine the codes for the DGS application.

When did you learn about the UNSPSC®? How did you select your classification codes?

 

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