NAICS 928110 Quarterly Industry Report
National Security
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 928110Sector: Public Administration (92)Updated: Q1 2026
About This Report
This industry profile for National Security (NAICS 928110) draws on data from the Department of Defense[3], Census Bureau[1], and the SBA[4]. Fair Market Value analysts examine defense budget data, military personnel levels, and civilian defense employment specific to NAICS 928110. Additional data is drawn from Bureau of Labor Statistics[5].. Quarterly updates reflect changes in defense spending priorities, force structure, and military installation activity.
Industry Definition & Overview
National Security (NAICS 928110) encompasses government establishments primarily engaged in national defense and security. This classification covers the Department of Defense, military branches (Army, Navy, Air Force, Marine Corps, Space Force), intelligence agencies, and related defense establishments that manage national security operations. Military bases, command headquarters, and defense planning offices all fall within this code, though defense procurement contracting itself is classified under the relevant product or service code.
The Department of Defense is the largest employer in the United States, with approximately 1.3 million active-duty military personnel and over 900,000 civilian employees spread across installations worldwide. Market defense budget exceeded $886 billion in fiscal year 2024, covering personnel costs, operations, maintenance, procurement, and research and development. Intelligence agencies including the National Security Agency, Central Intelligence Agency, and Defense Intelligence Agency add further personnel and classified spending to the national security apparatus.
Defense employment spans military personnel, civilian analysts, logistics specialists, intelligence officers, and administrative staff. The Census Bureau's ASPEP survey[1] tracks federal government employment including defense civilian workers. Most Bureau of Labor Statistics[2] reports occupational data for federal workers across defense occupations. Military installations serve as major economic anchors in communities across all 50 states and numerous overseas locations, generating billions in local economic activity through payroll, construction, and service contracts that support surrounding businesses and population centers.
What's Included in This Industry
- Department of Defense headquarters and command offices
- U.S. Army, Navy, Air Force, and Marine Corps installations
- U.S. Space Force command and operations offices
- National Guard and Reserve component headquarters
- Intelligence agencies (NSA, CIA, DIA, NGA, NRO)
- Defense logistics and supply chain management offices
- Military training command and education institutions
- Pentagon and combatant command headquarters
- Missile defense and strategic deterrence offices
- Defense planning, policy, and budgeting offices
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Sector | Public Administration | 92 |
| Subsector | National Security and International Affairs | 928 |
| Industry Group | National Security and International Affairs | 9281 |
| NAICS Industry | National Security | 92811 |
| National Industry | National Security | 928110 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 928120 | International Affairs | International affairs offices that coordinate with defense establishments on diplomatic security, foreign military assistance, and international coalition operations |
| 927110 | Space Research and Technology | Space research agencies that operate alongside military space programs on satellite systems, missile tracking, and space-based intelligence collection |
| 922120 | Police Protection | Police protection agencies that coordinate with military installations on security, counter-terrorism, and domestic emergency response operations |
| 921110 | Executive Offices | Executive offices that serve as commander-in-chief authority, set defense policy, and propose military budgets through the national security decision-making process |
| 921120 | Legislative Bodies | Legislative bodies that authorize defense spending, declare military actions, confirm senior defense appointments, and provide oversight of military operations |
| 922190 | Other Justice, Public Order, and Safety Activities | Other justice and public safety offices that share intelligence, coordinate on counter-terrorism, and support emergency management alongside defense agencies |
Frequently Asked Questions
Common questions about this industry.
What types of establishments are classified under NAICS 928110?
NAICS 928110 covers all government national defense and security establishments, including the Department of Defense, military branches, intelligence agencies, and defense planning offices. The Census Bureau[8] encompasses the full range of national security administration and operations.
How is the national security establishment structured?
The DOD operates through the Army, Navy, Air Force, Marine Corps, and Space Force, plus unified combatant commands. Intelligence agencies operate under both DOD and the Director of National Intelligence. National Guard units serve under state governors during peacetime and federal command when activated.
Does the SBA set a size standard for NAICS 928110?
No. The SBA[9] does not assign size standards to Sector 92 codes because they cover government entities. Defense contractors use their own NAICS codes, with small business set-asides playing a major role in DOD procurement.
What NAICS codes are closely related to 928110?
Related codes include 928120 (International Affairs), 927110 (Space Research), 922120 (Police Protection), and 921110 (Executive Offices). The Census Bureau[10] places national security in its own subsector within public administration.
What private-sector industries commonly serve national defense?
R&D firms (NAICS 541715), engineering companies (NAICS 541330), IT and cybersecurity firms (NAICS 541512), and electronics manufacturers (NAICS 334511) are among the largest defense contractors. Construction companies, logistics providers, and healthcare firms also serve military installations.
What activities are included under NAICS 928110?
Activities include military operations, intelligence collection, force readiness, weapons systems management, military base operations, strategic planning, logistics management, and military training programs. The Department of Defense[3] coordinates these functions across all branches.
Can defense contractors qualify for SBA loans?
Where are national security establishments concentrated?
The Pentagon is in Arlington, Virginia. Major military installations are located in every state, with large concentrations in Virginia, California, Texas, Florida, and Georgia. Intelligence agencies are headquartered in the Washington, D.C., metro area. Overseas bases span Europe, Asia, and the Middle East.
Sources & References
Government datasets and editorial sources used in this report.
- [1]Census Bureau's ASPEP survey census.gov
- [2]Bureau of Labor Statistics bls.gov
- [3]Department of Defense defense.gov
- [4]SBA sba.gov
- [5]Bureau of Labor Statistics bls.gov
- [6]7(a) loan program sba.gov
- [7]504 loan program sba.gov
- [8]Census Bureau census.gov
- [9]SBA sba.gov
- [10]Census Bureau census.gov
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