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NAICS Newsletter October 7, 2015

NAICS 541330

Engineering Services

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 Engineering Services.


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 Engineering Services.


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 'Engineering Services' industry, NAICS 541330. 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 FY11 through FY15 for NAICS 541330

WHAT IS NAICS 541330?

This industry comprises establishments primarily engaged in applying physical laws and principles of engineering in the design, development, and utilization of machines, materials, instruments, structures, processes, and systems. The assignments undertaken by these establishments may involve any of the following activities: provision of advice, preparation of feasibility studies, preparation of preliminary and final plans and designs, provision of technical services during the construction or installation phase, inspection and evaluation of engineering projects, and related services.

Illustrative Examples:

Civil engineering services

Environmental engineering services

Construction engineering services

Mechanical engineering services

Engineers’ offices

Cross References:

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

Performing surveying and mapping services of the surface of the earth, including the sea floor--are classified in Industry 541370, Surveying and Mapping (except Geophysical) Services;

Gathering, interpreting, and mapping geophysical data--are classified in Industry 541360, Geophysical Surveying and Mapping Services;

Creating and developing designs and specifications that optimize the use, value, and appearance of products--are classified in Industry 541420, Industrial Design Services;

Providing advice and assistance to others on environmental issues, such as the control of environmental contamination from pollutants, toxic substances, and hazardous materials--are classified in Industry 541620, Environmental Consulting Services; and

Both the design and construction of buildings, highways, and other structures or in managing construction projects--are classified in Sector 23, Construction, according to the type of project.

The size standard associated with NAICS 541330 is $15 million (effective January 1, 2012), which means that a company, including its affiliates, would be considered a "small business" if their average earnings do not exceed $15 million for each of the pay periods for the preceding completed 12 calendar months.

Total reported spending under NAICS 541330 for the period of Fiscal Year 2011 (FY11) through Fiscal Year 2015 (FY15) was $96.3 billion. Current FY15 reported spending is $4.9 billion for services under NAICS 541330. The chart below illustrates the reported** spending by year for FY11 through FY15.

Reported Contract Spending for NAICS 541330 FY11 through FY15

Source: epipeline's Contract History Plus*

WHO ISSUES THE CONTRACTS?

The Navy was the largest procurer of these services for the last five fiscal years (FY11 through FY15) with $33.2 billion in contract spending, comprising 34.5% of the market for NAICS 541330. The Army was also a large procurer with $24.99 billion in contract dollars and 25.95% of the market. The Air Force ($12.3 million) bought over $10 million with 12.8% market share. NASA ($6.4 billion) took the fourth spot with 6.7% market share, while the FAA ($5.3 billion) rounded out the top five with 5.5% market share. The GSA’s Federal Acquisition Services ($1.4 billion), FEMA ($1.3 billion), and the Defense Microelectronics Activity ($1.2 billion) each spent over $1 billion with 1.49%, 1.37%, and 1.24% market share, respectively. The Department of Energy ($963 million) and the Coast Guard ($861 million) both reported close to 1% market share. Overall, the top ten agencies represented a large majority, 91.4%, of the market.

Top 10 Federal Agencies by % of Total Market FY11 through FY15 for NAICS 541330

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 FY11 through FY15. 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

Booz Allen Hamilton earned the top spot on the unrestricted competition list with $8.9 billion in contract dollars and 12.3% market share for FY11 to FY15. Lockheed Martin ($8.4 billion) came in a close second with 11.6% market share. Raytheon took the third spot with $5.1 billion in contract dollars and 7.03% market share, while SAIC ($4.6 billion) and Boeing ($4.04 billion) rounded out the top five. The MITRE Corporation ($2.3 billion) also earned over $2 billion in contracts with 3.2% market share. Jacobs Technology ($1.7 billion) and Northrop Grumman ($1.6 billion) each earned between 2.2% and 2.3% market share. BAE Systems ($1.4 billion) and GTSI Corporation ($1.3 billion) each earned between 1.7% and 1.9% market share. Together, the top ten spots comprised just over half (54.1%) of the market.

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 541330 Contractors by % of Total Market for FY11 through FY15 - All Acquisition Strategies

Source: epipeline's Contract History Plus*

The combined spending for contracts awarded under "restricted competition," as outlined above, totaled over $4.3 billion for FY11 through FY15. ASRC Research and Technology Solutions had the largest market share at 6.1%, or $263 million in contract dollars. WareOnEarth Communications had similar activity with 5.4% market share and $231 million in contract dollars, and AI Solutions took the third spot with 4.4% market share and $191 million in contract dollars. Electronic Consulting Services ($148 million), Bowhead Science and Technology ($145 million), and Northstar Technology Systems ($135 million) each garnered between 3.1% and 3.5% market share. Metron ($107 million) also posted over $100 million in contract dollars with 2.5% market share, while Affordable Engineering Services ($90 million) took 2.1% market share. Leonardo Technologies and Innovation Technologies Corporation each earned 1.7% market share, or $70.9 million and $70.8 million in contract dollars, respectively.

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 541330 Contractors by % of Total Market for FY11 through FY15 - Restricted Competition

Source: epipeline's Contract History Plus*

HOW ARE THESE CONTRACTS PROCURED?

92.3% of contract spending reported for the FY11 through FY5 timeframe under NAICS 541330 used full and open (unrestricted, aka "N/A") competition; this equated to $88.85 billion in contract dollars. Small businesses were the second largest sector, making up 3.4% of the market and taking $3.3 billion in contract dollars. 8(a) sole source requirements accounted for 1.15% of the market and $1.1 billion in spending, while competitive 8(a) requirements took 1.13% of the market with $1.09 billion contract dollars. 1.36% of requirements reported no clear set aside; all other strategies accounted for .65% of the marketplace.

Acquisition Breakout under NAICS 541330 for FY11 through FY15

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 FY11 through FY15 period of $150 million.

Virginia had the highest total reported contract spending with $18.9 billion, or 19.6% market share. Maryland came in second with $10.4 billion in contract dollars and 10.8% market share, while California took the third spot with $8.9 billion in spending and 9.2% market share. New Jersey ($5.5 billion) and Washington, D.C. ($4.7 billion) each saw over $4 billion in contracts with 5.7% and 4.9% market share, respectively. Texas ($3.7 billion), Florida ($3.5 billion), South Carolina ($3.3 billion), and Missouri ($3.2 billion) each saw over $3 billion. Arizona rounded out the top ten with $2.9 billion in contract dollars and 3.03% market share. Together, the top ten states represented two-thirds (67.1%) of the market. 6.3% of requirements under NAICS 541330 did not report a specific location.

Contract Place of Performance under NAICS 541330 for FY11 through January 2011

Source: epipeline's Contract History Plus*

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