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NAICS Newsletter March 20, 2017

NAICS 236220

Commercial and Institutional Building Construction

Government Contract and Procurement Analysis Report

Report Summary

This report, offered by epipeline, contains a brief analysis of the Federal government's procurement practices with regards to purchasing Commercial and Institutional Building Construction.


You will find information on the top federal government agencies that purchase these services, as well as their procurement strategy (i.e. full and open competition, set-asides and more). Finally, there is a review of the top companies that are awarded federal government contracts for Commercial and Institutional Building Construction.


To get a more comprehensive analysis and learn more about how epipeline can help you identify current and future bid opportunities, register for a live Demo.

This report takes an in-depth look at the 'Commercial and Institutional Building Construction' industry, NAICS 236220. epipeline's Contract History Plus* provides you with a broad context and several perspectives that enable you to develop the best positioning and strategy for your company to more effectively compete for government contracts. The following graph illustrates one such perspective: the top Government departments/agencies buying these services over the last four fiscal years.

Top 10 Federal Agencies by % of Total Market FY13 through FY17 for NAICS 236220

WHAT IS NAICS 236220?

This industry comprises establishments primarily responsible for the construction (including new work, additions, alterations, maintenance, and repairs) of commercial and institutional buildings and related structures, such as stadiums, grain elevators, and indoor swimming facilities. This industry includes establishments responsible for the on-site assembly of modular or prefabricated commercial and institutional buildings. Included in this industry are commercial and institutional building general contractors, commercial and institutional building for-sale builders, commercial and institutional building design-build firms, and commercial and institutional building project construction management firms.

Illustrative Examples:

Airport building construction

Office building construction

Arena construction

Parking garage construction

Barrack construction

Prison construction

Farm building construction

Radio and television broadcast studio construction

Fire station construction

Religious building (e.g., church, synagogue, mosque, temple) construction

Grain elevator or bin construction

Restaurant construction

Hospital construction

School building construction

Hotel construction

Shopping mall construction

Indoor swimming facility construction

Warehouse construction (e.g., commercial, industrial, manufacturing, private)Distribution line, sewer and water construction

Cross References:

Establishments primarily engaged in constructing structures that are integral parts of utility systems (e.g., storage tanks, pumping stations) or are used to produce products for these systems (e.g., power plants, refineries)--are classified in Industry Group 2371, Utility System Construction, based on the type of construction project;

Performing specialized construction work on commercial and institutional buildings, generally on a subcontract basis--are classified in Subsector 238, Specialty Trade Contractors; and

Constructing buildings on their own account for rent or lease--are classified in Industry Group 5311, Lessors of Real Estate.

The size standard associated with NAICS 236220 is $36.5 million (effective January 1, 2012), which means that a company, including its affiliates, would be considered a "small business" if their average earnings did not exceed $36.5 million for each of the pay periods for the preceding completed 12 calendar months.

Total reported spending under NAICS 236220 for the period of Fiscal Year 2013 (FY13) through Fiscal Year 2017 (FY17) was approximately $45 billion. Current FY17 reported spending is $1.9 billion for services under NAICS 236220. The chart below illustrates the reported** spending by year for FY13 through FY17.

Reported Contract Spending for NAICS 236220 FY13 through FY17

Source: epipeline's Contract History Plus*

WHO ISSUES THE CONTRACTS?

The Army was the largest procurer of these services for the last five fiscal years (FY13 through FY17) with $13.5 billion in contract spending, comprising 30.1% of the market for NAICS 236220. The Department of Veterans Affairs took the second spot with $7.1 billion in contract dollars and 15.9% of the market, while the State Department took the third spot with $6.1 billion in contract dollars and 13.6% of the market. The General Services Administration’s Public Buildings Service ($5.3 billion), the Navy ($4 billion), the Air Force ($2.1 billion), and the Department of Homeland Security’s Federal Law Enforcement Training Center ($1.1 billion) also bought over $1 billion of requirements. NASA ($622 million), the U. S. Coast Guard ($550 million), and the Smithsonian Institution ($542 million) finished out the top ten with each holding between 1.2% and 1.4% market share. Overall, the top ten agencies accounted for 91.4% of the market.

Top 10 Federal Agencies by % of Total Market FY13 through FY17 for NAICS 236220

Source: epipeline's Contract History Plus*

WHO WINS THE CONTRACTS?

The two charts below identify the top 10 Companies, by market share, for the period of FY13 through FY17. The first chart represents the top 10 companies that were awarded their contracts under ANY type of competition, whether it was full and open, small business set-aside, sole-sourced, etc. This list primarily consists of large businesses. The second chart, however, lists the top 10 companies that won their contracts under RESTRICTED competition. Specifically, epipeline limited this to those contracts awarded under the acquisition strategies listed below. The contract dollars represented on this second chart may not include all contract dollars for the individual contractor.

  • 8(a) Competed
  • 8(a) Small Disadvantaged (SDB) set-aside
  • 8(a) sole-source
  • SDB set-aside
  • SDB, 8(a) with HUBZone
  • Combination HUBZone and 8(a)
  • HUBZone set-aside
  • HUBZone sole-source
  • Service Disabled Veteran-Owned Small Business (SDVOSB) set-aside
  • SDVOSB sole-source
  • Emerging Small Business set-aside
  • Very Small Business set-aside
  • Reserved for Small Businesses ($2501 to $100,000)
  • Total Small Business set-aside

BL Harbert International earned the top spot on the unrestricted competition list with $2.8 billion in contract dollars and 10.3% market share for FY13 to FY17. Caddell Construction ($1.4 billion) and Hensel Phelps Construction ($1.2 billion) took the second and third spots with 5.2% and 4.3% market share. McCarthy Mortenson NBAF JV ($945 million) and Kiewit-Turner JV ($842 million) finished out the top five with 3.5% and 3.1% market share. Clark-McCarthy Healthcare Partners JV ($574 million) and Grunley Construction Company ($543 million) also earned over $500 million in contract spending. Kiewit Phelps ($472 million), Clark Construction Group ($404 million), and M. A. Mortenson Company ($384 million) saw between 1.4% and 1.8% market share. Together, the top ten companies comprised just over one-third of the market, or 35.2%.

PLEASE NOTE: as this is a listing by Company name, rather than PARENT company, some companies may have more than one ranking, which may not be reflected in the chart below.

Top 10 NAICS 236220 Contractors by % of Total Market for FY13 through FY17 - All Acquisition Strategies

Source: epipeline's Contract History Plus*

The combined spending for contracts awarded under "restricted competition," as outlined above, totaled approximately $8.3 billion for FY13 through FY17. Patriot Construction ($199 million) was the only company to earn over 2% market share on the restricted list, with 2.4%. Zieson Construction Company ($158 million), Chugach World Services ($119 million), and At Your Service Heating and Cooling ($100 million) each saw over $100 million in contract spending. Seawolf Construction posted $99.6 million in contract dollars and 1.2% market share. Industrial Maintenance Services ($79 million), Glen/Mar Construction ($76 million), Williams Building Corporation ($75 million), Facility Defense Consultants ($72 million), and Facility Support Services ($72 million) each earned between 0.8% and 0.95% market share.

PLEASE NOTE: as this is a listing by Company name, rather than PARENT company, some companies may have more than one ranking, which may not reflected in the chart below.

Top 10 NAICS 236220 Contractors by % of Total Market for FY13 through FY17 - Restricted Competition

Source: epipeline's Contract History Plus*

HOW ARE THESE CONTRACTS PROCURED?

59% of contract spending reported for the FY13 through FY17 timeframe under NAICS 236220 used full and open (unrestricted, aka "N/A") competition; this equated to $26.4 billion in contract dollars. Small businesses were the second largest sector, taking $6.3 billion in contract dollars and 14.2% of the market, while service-disabled veteran-owned businesses were the third largest sector, with $5.5 billion in contract spending and 12.3% market share. Procurements sole-sourced to 8(a) companies accounted for 6.6% of the market and $3 billion in spending, while competitive 8(a) requirements took 5% of the market with $2.2 billion contract dollars. HUBZone businesses posted $973 million in contract dollars with 2.2% of the market. All other acquisition strategies accounted for 0.76% market share.

Acquisition Breakout under NAICS 236220 for FY13 through FY17

Source: epipeline's Contract History Plus*

WHERE ARE THESE CONTRACTS PERFORMED?

These contracts are being performed across the United States with a reported spending for the FY13 through FY17 period of $44.7 billion.

California had the highest total reported contract spending with $3.7 billion, or 8.2% market share. Maryland came in second with $2.9 billion in contract dollars and 6.4% market share. Washington, DC also saw over $2 billion in contract spending with $2.04 billion. Virginia ($1.9 billion), Texas ($1.8 billion), and Colorado ($1.7 billion) all saw over $1.5 billion in contract dollars, while Kansas saw $1.47 billion. Washington ($1.2 billion), New York ($1.1 billion), and Florida ($1.1 billion) rounded out the top ten with 2.6%, 2.6%, and 2.5% market share. Together, these ten states represented 42.3% of the market. 20.2% of requirements under NAICS 236220 did not report a specific location.

Contract Place of Performance under NAICS 236220 for FY13 through FY17

Source: epipeline's Contract History Plus*

Related Articles:
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epipeline is part of Government Contracts USA, offering a range of services in government contracts, government RFPs, government bids and government procurement systems.

Federal Contracting: epipeline & You epipeline's proprietary research, enables you to effectively identify, qualify, distribute, and manage opportunities at an earlier stage, reducing your costs and providing a competitive advantage.

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