June 9, 2005

 

epipeline's Eye on Engineering Services, NAICS 541330

 

As the Business Development Manager responsible for creating the business plan for your company, it can be very challenging to gain a perspective of opportunities over the several years; and from that, determine the specific opportunities to pursue.

 

This week we are going to look at the 'Engineering Services' industry, as represented under NAICS 541330. Specifically, comparisons between Fiscal Years 2003 and 2004, asking:

 

  1. Who issues the contracts?
  2. Who wins the contracts?

 

NAICS 541330 is used when the requirements of the contract applies physical laws and principles of engineering in the design, development, and utilization of machines, materials, instruments, structures, processes, and systems. It may include the application of these principles for 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.

  

Who issues the contracts?

 

The United States Navy is the largest buyer of services under NAICS 541330. According to Federal Procurement Data System (FPDS source, epipeline's strategic partner, Eagle Eye), in Fiscal Year 2004, the Navy had over a 46% of market share, which is more than in FY2003, which was just over 42%.  The Army and Air Forcer held the next largest market shares both years, with the Army holding just under 27% of the market share in FY04 and over 18% in FY03 and the Air Force with 18% in FY04 and over 19% in FY03. Rounding out the FY04 top spenders under this code is the Department of Defense, the General Services Administration (specifically, their Federal Technology Service), the Corps of Engineers, and NASA. For both fiscal years, the combined total market share of these agencies was about 95%. The bar chart below illustrates FY03 and FY04 spending under NAICS 541330.

 

Market Share FY04 and FY03 by Agency Under NAICS 541330

 

Source: FPDS information from epipeline's strategic partner, Eagle Eye.

 

 Who wins the contracts?

 

Several companies hold a significant market share of federal spending under NAICS 541330. Notably, Northrop Grumman Corporation and Lockheed Martin Corporation. In FY04, Northrop Grumman held over 11% of the market share, with contract values topping $2.33B. Lockheed was a close second, with over $2.5B in contracts, which translated to almost 11% of the market share. In FY03, their rankings were reversed. Lockheed held the top spot with just over 14.5% of the market share, or over $2.89B and Northrop with over one billion dollars less, at $1.81B, representing over 11% of the market share.

 

The table below lists the top 25 Parent companies, including their FY04 contract dollars as well as their market share. For comparison, a column is included to show the change from the previous fiscal year. Several companies changed their rank from one year to the next, with Bechtel making a large jump from 17th place in FY03 to 3rd in FY04. Aerospace Testing Alliance, LLC made the largest leap, from not even being in the top 100, to 17th place.

 

Market Share

FY04 Rank

Top 25 Companies  For NAICS 541330

FY03 Rank

Company

FY2004 Spending

Market Share FY04

1

2

Northrop Grumman Corp.

$2,338,053,003

11.39%

2

1

Lockheed Martin Corp

$2,252,313,727

10.97%

3

17

Bechtel National Inc

$1,099,458,661

5.36%

4

4

Boeing Company, The

$1,035,103,982

5.04%

5

3

Raytheon Co.

$982,684,483

4.79%

6

6

General Dynamics Corp.

$922,098,456

4.49%

7

5

Science Applications Intl Corp

$648,615,823

3.16%

8

7

Dynkepro LLC (aka CSC)

$602,497,072

2.94%

9

8

BAE Systems Spectral Solutions

$513,563,771

2.50%

10

25

Parsons Corporation

$451,102,896

2.20%

11

19

ARINC, Inc.

$295,405,805

1.44%

12

11

Booz Allen Hamilton Inc

$279,154,307

1.36%

13

10

Anteon Corporation (VA)

$268,290,651

1.31%

14

13

Mitre Corp.

$267,829,310

1.30%

15

15

Titan Corporation, The

$250,403,709

1.22%

16

18

Carlyle Group

$232,715,167

1.13%

17

**

Aerospace Testing Alliance, LLC

$230,304,771

1.12%

18

57

Engineered Support Systems Inc

$218,569,500

1.06%

19

26

L-3 Communications Holdings

$197,729,536

0.96%

20

22

General Electric Company

$195,600,976

0.95%

21

21

URS Corp.

$181,771,333

0.89%

22

16

Mantech International Corp

$169,040,107

0.82%

23

9

Jacobs Engineering Group Inc

$158,093,299

0.77%

24

33

CACI International Inc

$155,447,280

0.76%

25

35

USA Environmental, Inc.

$117,577,548

0.57%

 

Source: FPDS information from epipeline's strategic partner, Eagle Eye.

 

**Aerospace Testing Alliance, LLC's rank in FY03 was over 100.

 

epipeline's Information Technology (IT) and Architecture, Engineering, Construction/ Environmental (AEC) verticals contain a significant number of opportunities which are identified by this NAICS code. In fact, over 30% of IT's Pre-RFP opportunities use NAICS 541330 and over 19% of AEC.

 

To learn more about the NAICS 541330 opportunities or other opportunities that epipeline is tracking today; try the following search in the epipeline application:

 

Find "NAICS 541330, Engineering Services" Opportunities

 

1. Status - Select Pre-RFP;

2. If you prefer IT- or AEC-related opportunities, select

2. NAICS Code(s) - Type 54133 (for best results, drop the last number off a 6-digit code. Ex: 541330 becomes 54133);

3. Click the Search Button (or hit the enter key on your keyboard).

 

 

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