September 28, 2006

epipeline's Eye on "Computer Facilities Management Services," NAICS 541513

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 "Computer Facilities Management Services" industry, as represented under NAICS 541513. To understand this NAICS code better, epipeline has asked the following questions:

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

NAICS 541513 is used when the contract requires contractor-provided on-site management and operation of the Government's computer systems and/or data processing facilities. Firms that provide computer systems or data processing facilities support services are also included under this NAICS. This NAICS code is very similar to NAICS 51821, Data Processing, Hosting, and Related Services, which is for contracts where the contractor provides computer data processing services at their own facility for others.

The size standard associated with this code is $21 Million, which means that a company, including its affiliates, would be considered a "small business" if their average annual gross revenue does not exceed $21 Million for the past three years.

This NAICS was previously represented by Standard Industrial Classification (SIC) code 7376 as it pertained to the following requirements:

• Computer systems facilities (i.e., clients' facilities) management and operation
• Data processing facilities (i.e., clients' facilities) management and operation s
• Facilities (i.e., clients' facilities) management and operation services, compute
• Facilities (i.e., clients' facilities) support services, computer systems or data

Total reported spending under NAICS 541513 in FY03 was almost $900 Million. FY04 saw an increase in spending, to over $1.2 Billion. (source: epipeline's FPDS information, covering fiscal years 2003 and 2004).

Who issues the contracts?

The United States Army is the largest buyer of services under NAICS 541513, with over $600 Million in contract spending during fiscal years 2003, 2004 and 2005*. This equated to a 26% market share. NASA, the Department of Defense, GSA's Federal Technology Service (FTS), and the Air Force round out the top five. These five departments comprise two-thirds of NAICS 541513 spending in FY03-FY05*, which equates to just over $1.5 Billion. The chart below illustrates the market share held by the top ten agencies under NAICS 541690 for FY03, FY04, and FY05* combined.

Source: epipeline's FPDS information, covering FY03-FY05*
*Note: FY05 data may not include all contract expenditures for all quarters.

Who wins the contracts?

The table below lists the top 25 Companies, as ranked by their contract values for FY04. This table is broken out by acquisition strategy.  The columns to the left represent the top 25 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 columns to the left, however, lists the top 25 companies that won their contracts under RESTRICTED competition. Specifically, epipeline limited this to those contracts awarded under the following acquisition strategies:

·         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

NJVC LLC is the top of both lists, with over $160 Million in contract dollars for FY04. NJVC LLC is an 8(a) Alaska Native Corporation (ANC) that is a joint venture between Chenega Technology Services Corporation and ASRC Communications Ltd., which are both qualified as 8(a) ANC on their own. There are five companies, including NJVC LLC, that make both lists (those companies are in red text). Note, as this is a listing by Company name, rather than PARENT company, some companies may have more than one ranking.
 

Source: epipeline's FPDS information, covering fiscal year 2004

The following chart illustrates the market share by acquisition strategy for FY04. During that fiscal year, almost $600 Million contract dollars were awarded to contracts acquired using full and open competition. A significant portion, 21% of the market share, was awarded to 8(a) firms on a sole-source basis. 22% of the market share is undetermined, as the contracting office did not indicate the acquisition strategy used to obtain those  contracts.

Source: epipeline's FPDS information, covering fiscal year 2004

epipeline's application contains many opportunities which are identified by this NAICS code. To learn more about the NAICS 541513 opportunities or other opportunities that epipeline is tracking today; try the following search in the epipeline application:

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