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NAICS Newsletter May 23, 2017

NAICS 423430

Computer and Computer Peripheral Equipment and Software Merchant Wholesalers

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 Computer and Computer Peripheral Equipment and Software Merchant Wholesalers.


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 Computer and Computer Peripheral Equipment and Software Merchant Wholesalers.


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 'Computer and Computer Peripheral Equipment and Software Merchant Wholesalers' industry, NAICS 423430. 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 423430

WHAT IS NAICS 423430?

This industry comprises establishments primarily engaged in the merchant wholesale distribution of computers, computer peripheral equipment, loaded computer boards, and/or computer software.

Cross References:

Merchant wholesale distribution of modems and other electronic communications equipment--are classified in Industry 423690, Other Electronic Parts and Equipment Merchant Wholesalers; and

Selling, planning, and designing computer systems that integrate computer hardware, software, and communication technologies--are classified in U.S. Industry 541512, Computer Systems Design Services.

The size standard associated with NAICS 423430 is 250 employees (effective January 1, 2012), which means that a company, including its affiliates, would be considered a "small business" if their average number of employees did not exceed 250 for each of the pay periods for the preceding completed 12 calendar months.

Total reported spending under NAICS 423430 for the period of Fiscal Year 2013 (FY13) through Fiscal Year 2017 (FY17) was approximately $2.4 billion. Current FY17 reported spending is $141 million for services under NAICS 423430. The chart below illustrates the reported** spending by year for FY13 through FY17.

Reported Contract Spending for NAICS 423430 FY13 through FY17

Source: epipeline's Contract History Plus*

WHO ISSUES THE CONTRACTS?

The Federal Aviation Administration was the largest procurer of these services for the last five fiscal years (FY13 through FY17) with $330 million in contract spending, comprising 13.9% of the market for NAICS 423430. The State Department was close behind in second place with $319 million in contract dollars and 13.5% of the market. The Army took the third spot with $211 million in contract dollars and 8.9% of the market. The Forest Service ($142 million) and the FBI ($110 million) also bought over $100 million of requirements. The USDA’s Office of the Chief Financial Officer ($79 million), United States Special Operations Command ($74 million), Defense Information Systems Agency ($72 million), the Navy ($60 million), and the Transportation Security Administration ($59 million) each held between 2.4% and 3.4% market share. Overall, the top ten agencies accounted for 61.5% of the market.

Top 10 Federal Agencies by % of Total Market FY13 through FY17 for NAICS 423430

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

GTSI Corporation earned the top spot on the unrestricted competition list with $283 million in contract dollars and 12.8% market share for FY13 to FY17. Small Business Consolidated Reporting ($224 million) and CDW Government ($222 million) also saw over $200 million each in contract dollars. immixTechnology ($187 million), En Pointe Gov ($170 million), and Dell Marketing Limited Partnership ($156 million) each held over 7% market share, while Four Points Technology ($143 million), Glacier Technologies ($103 million), and Iron Bow Technologies ($90 million) each held over 4% market share. IBM rounded out the top ten with $65 million in contract dollars and 2.95% market share. Together, the top ten companies comprised almost three-quarters of the market, or 74.1%.

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 423430 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 $402 million for FY13 through FY17. Five of the top ten companies on the restricted competition list also appear on the unrestricted list: Glacier Technologies ($103 million), GTSI Corporation ($25 million), Dell Marketing Limited Partnership ($16 million), Four Points Technology ($12 million), and En Pointe Gov ($9.8 million). Alliance Technology Solutions saw $12.7 million in contracts spending and 3.2% market share, while Gideon Services saw $12.6 million in contract dollars and 3.1% market share. Alliance Technology Group ($8.99 million) and Thundercat Technology ($8.3 million) each held over 2% market share with 2.2% and 2.1%, respectively. Govsmart posted $7.99 million in contract dollars and 1.99% 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 423430 Contractors by % of Total Market for FY13 through FY17 - Restricted Competition

Source: epipeline's Contract History Plus*

HOW ARE THESE CONTRACTS PROCURED?

74.4% of contract spending reported for the FY13 through FY17 timeframe under NAICS 423430 used full and open (unrestricted, aka "N/A") competition; this equated to $1.8 billion in contract dollars. Small businesses were the second largest sector, taking $210 million in contract dollars and 8.9% of the market. Competitive 8(a) requirements took 4.7% of the market and $164 million in spending, while procurements sole-sourced to 8(a) companies took 3.4% of the market with $81 million contract dollars. Competitive contracts awarded to service-disabled veteran-owned businesses accounted for $10 million in contract dollars, while contracts sole-sourced to service-disabled veteran-owned businesses accounted for $7.6 million in contract dollars. HUBZone businesses posted $7.2 million in contract dollars. 6.9% of requirements did not report a set aside, while all other acquisition strategies accounted for 0.7% market share.

Acquisition Breakout under NAICS 423430 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 $2.4 billion.

Virginia had the highest total reported contract spending with $779 million, or 32.3% market share. Washington, D.C. came in second with $380 million in contract dollars and 16% market share. Illinois ($188 million), Texas ($178 million), California ($163 million), and Maryland ($140 million) also saw over $100 million in contract dollars. Missouri ($54 million), South Carolina ($35 million), Alabama ($32 million), and Colorado ($31 million) rounded out the top ten with 2.3%, 1.5%, 1.4%, and 1.3% market share, respectively. Taken together, these ten states represented 83.6% of the market. 3.7% of requirements under NAICS 423430 did not report a specific location.

Contract Place of Performance under NAICS 423430 for FY13 through FY17

Source: epipeline's Contract History Plus*

Related Articles:
Identify, Qualify & Win More Government Contracts for All Computer and Computer Peripheral Equipment and Software Merchant Wholesalers

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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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