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NAICS Newsletter May 27, 2016

NAICS 722310

Food Service Contractors

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 Food Service Contractors.


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 Food Service Contractors.


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 'Food Service Contractors' industry, NAICS 722310. 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 FY12 through FY16 for NAICS 722310

WHAT IS NAICS 722310?

This industry comprises establishments primarily engaged in providing food services at institutional, governmental, commercial, or industrial locations of others based on contractual arrangements with these type of organizations for a specified period of time. The establishments of this industry provide food services for the convenience of the contracting organization or the contracting organization's customers. The contractual arrangement of these establishments with contracting organizations may vary from type of facility operated (e.g., cafeteria, restaurant, fast-food eating place), revenue sharing, cost structure, to providing personnel. Management staff is always provided by the food service contractors.

Illustrative Examples:

Airline food service contractors

Food concession contractors (e.g., at sporting, entertainment, convention facilities) /p>

Cafeteria food service contractors (e.g., at schools, hospitals, government offices)

Cross References:

Providing food services on a single-event basis--are classified in Industry 722320, Caterers; and

Supplying and servicing food vending machines--are classified in Industry 454210, Vending Machine Operators.

The size standard associated with NAICS 722310 is $38.5 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 $38.5 million for each of the pay periods for the preceding completed 12 calendar months.

Total reported spending under NAICS 722310 for the period of Fiscal Year 2012 (FY12) through Fiscal Year 2016 (FY16) was $1.85 billion. Current FY16 reported spending is $259 million for services under NAICS 722310. The chart below illustrates the reported** spending by year for FY12 through FY16.

Reported Contract Spending for NAICS 722310 FY12 through FY16

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 (FY12 through FY16) with $585 million in contract spending, comprising almost one-third (31.6%) of the market for NAICS 722310. The Army came in a close second with $546 million in contract dollars and 29.5% of the market. The Air Force ($211 million) and the Forest Service ($204 million) also bought over $200 million of requirements. The Coast Guard rounded out the top five with $114 million in contract spending and 6.2% market share. The State Department ($29.6 million), Bureau of Indian Affairs ($29.1 million), Defense Commissary Agency ($27.4 million), Bureau of Public Debt ($22.7 million), and the Federal Prison System ($19.3 million) all held over 1% market share with 1.6%, 1.57%, 1.48%, 1.23%, and 1.04% market share, respectively. Overall, the top ten agencies dominated almost the entirety, 96.6%, of the market.

Top 10 Federal Agencies by % of Total Market FY12 through FY16 for NAICS 722310

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 FY12 through FY16. 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

Sodexho Management earned the top spot on the unrestricted competition list with $469 million in contract dollars and 26.3% market share for FY12 to FY16. The Georgia Department of Labor took the second spot with $142 million in contract spending and 7.9% market share. Goodwill Industries of Southeastern Wisconsin ($73 million) and Professional Contract Services ($53 million) also saw over $50 million in contract dollars. The New Jersey Department of Human Services ($45 million), Missouri Family Support ($44 million), and the Virginia Department for the Blind and Vision Impaired ($40 million) each posted over $40 million, between 2.2% and 2.5% market share. Lakeview Center ($39.99 million) and the Texas Department of Assistive & Rehabilitative Services ($39.8 million) were close behind, while Watson Services rounded out the top ten with $33 million in contract dollars and 1.8% market share. Together, the top ten companies comprised over half (54.8%) 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 722310 Contractors by % of Total Market for FY12 through FY16 - All Acquisition Strategies

Source: epipeline's Contract History Plus*

The combined spending for contracts awarded under "restricted competition," as outlined above, totaled approximately $371 million for FY12 through FY16. Of the top ten restricted competition companies, one also appeared on the top ten unrestricted competition list: Watson Services, with $33 million in contract dollars and 8.9% market share in restricted competition. Big Sky Mobile Catering ($26 million) and R and G Food Service ($23 million) both saw over $20 million in contract spending, while Incident Catering Services ($15 million) and Stewarts Firefighters Food Catering ($15 million) both saw over $15 million in contract spending. For Stars Express ($13 million), Blaggs Food Service ($12 million), Bishop Services ($12 million), Crystal Enterprises ($12 million), and Thunder Mountain Catering ($11 million) all earned between $10 million and $13 million, or between 2.8% and 3.5% 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 722310 Contractors by % of Total Market for FY12 through FY16 - Restricted Competition

Source: epipeline's Contract History Plus*

HOW ARE THESE CONTRACTS PROCURED?

79.8% of contract spending reported for the FY12 through FY16 timeframe under NAICS 722310 used full and open (unrestricted, aka "N/A") competition; this equated to $1.5 billion in contract dollars. Small businesses were the second largest sector, taking $261 million in contract dollars and 14.1% of the market. Procurements sole-sourced to 8(a) companies accounted for 2.1% of the market and $38 million in spending, while competitive 8(a) requirements took 2% of the market with $37 million contract dollars. Procurements set aside for HUBZone businesses garnered 1.9% market share and $35 million in contract spending. Only .07% of requirements reported no clear set aside.

Acquisition Breakout under NAICS 722310 for FY12 through FY16

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 FY12 through FY16 period of $150 million.

California had the highest total reported contract spending with $310 million, or 16.7% market share. North Carolina came in second with $244 million in contract dollars and 13.2% market share, while Georgia took the third spot with $149 million in spending and 8% market share. Texas also saw over $100 million in contract spending with $122 million and 6.6% market share. Illinois ($76 million), Virginia ($58 million), and Arizona ($57 million) each held between 3.1% and 4.1% market share. New Jersey ($49 million), Missouri ($48 million), and Montana ($42 million) each held between 2.2% and 2.7% market share. Together, these ten states represented 62.4% of the market. However, 9.1% of requirements under NAICS 722310 did not report a specific location.

Contract Place of Performance under NAICS 722310 for FY12 through January 2011

Source: epipeline's Contract History Plus*

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