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NAICS Newsletter May 4, 2015

NAICS 332710

Machine Shops

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 Machine Shops.


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 Machine Shops.


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 'Machine Shops' industry, NAICS 332710. 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 332710

WHAT IS NAICS 332710?

This industry comprises establishments known as machine shops primarily engaged in machining metal and plastic parts and parts of other composite materials on a job or order basis. Generally machine shop jobs are low volume using machine tools, such as lathes (including computer numerically controlled); automatic screw machines; and machines for boring, grinding, and milling.

Cross References:

Repairing industrial machinery and equipment--are classified in Industry 811310, Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance; and

Manufacturing parts (except on a job or order basis) for machinery and equipment--are generally classified in the same manufacturing industry that makes complete machinery and equipment.

The size standard associated with NAICS 332710 is 500 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 does not exceed 500 for each of the pay periods for the preceding completed 12 calendar months.

Total reported spending under NAICS 332710 for the period of Fiscal Year 2011 (FY11) through Fiscal Year 2015 (FY15) was $150 million. Current FY15 reported spending is $1.2 million for services under NAICS 332710. The chart below illustrates the reported** spending by year for FY11 through FY15.

Reported Contract Spending for NAICS 332710 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 $59.6 million in contract spending, comprising 39.7% of the market for NAICS 332710. The Army took the second spot with 29.9% market share and $44.9 million in contract dollars. NASA ($16.6 million, 11.1% market share), DLA ($12.6 million, 8.4% market share), and the State Department ($6.2 million, 4.1% market share) rounded out the top five. The Bureau of Reclamation spent over $2 million ($2.04 million) with 1.3% market share. The Smithsonian ($1.5 million), U. S. Coast Guard ($1.4 million), Saint Lawrence Seaway Development Corporation ($1.3 million), and U. S. Mint ($1.2 million) each reported between .79% and 1% market share. Overall, the top ten agencies represented 98.2% of the market.

Top 10 Federal Agencies by % of Total Market FY11 through FY15 for NAICS 332710

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

Unisys Corporation achieved the top spot on the unrestricted competition list with $18.6 million in contract dollars and 14.1% market share for FY11 to FY15. Sikorsky Aircraft Corporation took the second spot with $6.8 million in contract spending and 5.1% market share, and Lockheed Martin took the third spot with $6 million in contract spending and 4.5% market share. $3.6 million (2.7% market share) went to miscellaneous foreign awardees. Rounding out the top five, The Bechdon Company posted $3.1 million in contract dollars and 2.3% market share. In the bottom half of the top ten, The Entwhistle Company ($2.9 million), Dynamic Flowform Corporation ($2.9 million), Hughes Machine Shop ($2.7 million), Quality Tooling ($2.7 million), and Loughmiller Machine, Tool & Design ($2.4 million) each earned between 1.8% and 2.2% market share. Together, the top ten spots comprised under half (38.9%) 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 332710 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 $88.7 million for FY11 through FY15. Five of the top ten small businesses, Unisys Corporation ($18.6 million), The Bechdon Company ($2.9 million), Dynamic Flowform Corporation ($2.9 million), Hughes Machine Shop ($2.7 million), and Loughmiller Machine, Tool & Design ($1.7 million), also placed in the top ten on the unrestricted competition list. The Chesapeake Machine Company also earned over $2 million in contract dollars with 2.4% market share. BCI Construction USA ($1.96 million) and Love Brent ($1.9 million) both reported over 2% market share, with 2.21% and 2.15%, respectively. C and S Machine ($1.6 million) and Integrity PCB Design ($1.6 million) finished up the top ten with 1.82% and 1.81% 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 332710 Contractors by % of Total Market for FY11 through FY15 - Restricted Competition

Source: epipeline's Contract History Plus*

HOW ARE THESE CONTRACTS PROCURED?

58.5% of contract dollars reported for the FY11 through FY5 timeframe under NAICS 332710 was set aside for small businesses; this equated to $87.9 million in contract dollars. Requirements procured under a full and open strategy accounted for 37.3% of the market and $56 million in spending. Requirements set aside for service-disabled veteran-owned companies took 1.4% of the market and $2.1 million in contract dollars. 8(a) requirements took 1.1% of the market with $1.6 million in contract dollars, while requirements sole sourced to 8(a) companies took .65% of the market with $972,171 contract dollars. HUB-Zone businesses ($846,632) and partial small businesses ($87,363) comprised the sixth and seventh largest sectors with .56% and .06% market share. $588,183 in contract dollars (.39% market share) did not include a designated acquisition strategy.

Acquisition Breakout under NAICS 332710 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.

The state with the highest total of reported contract spending was New Jersey with $29.7 million, or 19.78% market share. Rounding out the top five, Indiana ($13.4 million), Maryland ($11.5 million), California ($9.4 million), and Massachusetts ($8.7 million) each also reported over $1 million in contract dollars. Connecticut ($8.5 million), New York ($7 million), Virginia ($6.5 million), Michigan ($6.2 million), and Illinois ($4.8 million) each reported between 3% and 5% market share. Together, the top 10 states represented 70.46 % of the market; 3.66% of requirements under NAICS 332710 did not report a specific location.

Contract Place of Performance under NAICS 332710 for FY11 through January 2011

Source: epipeline's Contract History Plus*

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