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NAICS NewsletterAugust 10, 2009

NAICS 481190

Support Activities for Air Transportation

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 the services of Support Activities for Air Transportation.


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 Support Activities for Air Transportation.


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 'Other Support Activities for Air Transportation' industry, NAICS 481190. To understand the future, one must study the past. epipeline's Contract History Plus* provides you with a broad context and several perspectives that enables 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 FY04 - Q2FY08 for NAICS 481190

WHAT IS NAICS 481190?

NAICS 481190 is used when the contract requires contractor-provided specialized services for air transportation (except air traffic control and other airport operations). The following services are included under NAICS 481190:

  • Aircraft ferrying services
  • Aircraft inspection services
  • Aircraft maintenance and repair services (except factory conversion, factory overhaul, factory rebuilding)
  • Aircraft testing services
  • Fueling aircraft on a contract or fee basis
  • Independent pilot, air (except owner-operators)
  • Inspection services, aircraft
  • Maintenance and repair services, aircraft (except factory conversion, factory overhaul, factory rebuilding)
  • Testing services, aircraft

The size standard associated with NAICS 481190 is $7.0 Million (effective August 22, 2008), which means that a company, including its affiliates, would be considered a "small business" if their average annual gross receipts does not exceed $7.0Million for the past three years. If a company has not been in business for three years, the average weekly revenue for the number of weeks the company has been in business is multiplied by 52 to determine the average annual receipts.

Total reported spending under NAICS 481190 for the period of Fiscal Year 2005 (FY05) through the January 2009 (Q1FY09+) was over $4.75 Billion. With four months reported, FY09 reported spending of $759 Million for services under NAICS 481190. The chart below illustrates the reported** spending by year for FY05 through Q1FY09+.

Reported Contact Spending FY04 - Q2FY08 for NAICS 481190 Source: epipeline's Contract History Plus*
** Note: it is possible that some Defense spending for the more recent fiscal years (FY05 to present) is not as widely reported as earlier years. These numbers will likely increase as more departments and agencies report their contract spending.

WHO ISSUES THE CONTRACTS?

The United States Air Force is the largest buyer of services under NAICS 481190, commanding over 45% of the market share for the last four fiscal years (FY05 through Q1FY09+), with over $2.14 Billion in contract spending. The United States Special Operations Command reported less then half that number, with $1.00 Billion. The United States Navy, the Federal Aviation Administration (FAA), National Aeronautics and Space Administration (NASA), and the United States Army all reported spending above $100 Million for this period.

Top 10 Federal Agencies by % of Total Market FY04 - Q2FY08 for NAICS 481190 Source: epipeline's Contract History Plus*

WHO WINS THE CONTRACTS?

According to the Central Contractor Registry (CCR), there are 1,997 companies registered under NAICS 481190 (source: active registrants, www.ccr.gov as of 07/17/2009). Of this number, 1,343 qualify as small businesses, which includes the following breakout by socioeconomic categories (some companies may qualify under more than one category):

  • 59 SBA Certified 8(a) contractors;
  • 45 SBA Certified HUBZone contractors; and
  • 202 Service Disabled Veteran Owned Small Businesses (SDVOSB).

NOTE, the CCR website states, "As of the July 30, 2008 release (4.08.2), CCR-registered vendors may elect not to display their registration in the CCR/FedReg Public Search." This could mean that there are more active contractors registered with the CCR then the resulting totals above represent.

The two charts below identify the top 10 Companies, by market share, for the period of FY05 through Q1FY09+. 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

L3 Communications holds the top spot on the unrestricted competition list with over $1.04 Billion in contract dollars for FY05-Q1FY09+ and over 21% of the market share. Lockheed Martin is listed twice in the top ten, as Lockheed Martin Corporation in the second spot, and Lockheed Martin Technology Services in the third. The combined reported spending for these two is over $1.2 Billion, and they hold 14.93% and 10.29% of the market share, respectively. DynCorp is also listed multiple times, under DynCorp Technical Services LLC (ranked 4th), just DynCorp (ranked 8th) and DynCorp International LLC (ranked 10th). The first two incarnations of DynCorp reported over $100 Million for the FY05 through January 2009 period, whereas the third version was under that amount, with $74 Million.

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 481190 Contractors by % of Total Market for FY04 - Q2FY08 - All Acquisition Strategies Source: epipeline's Contract History Plus*

King Aerospace Inc. takes the top spot on the following chart, which provides the top ten firms under NAICS 481190 for contracts using restricted competition. King's reported spending of over $42 Million represents 22% of the market share for these restricted acquisition strategy contracts. The other firms that round out the top five: Northwest Florida Facility Management, Consolidated Safety Services, Empire Aircraft Services and United Paradyne Corporation all reported spending above $10 Million for the period of FY05 through January FY09.

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 481190 Contractors by % of Total Market for FY04 - Q2FY08 - RESTRICTED Competition

HOW ARE THESE CONTRACTS PROCURED?

Over 95% of contract spending reported for the FY05 through Q1FY09+ timeframe under NAICS 481190 used full and open (unrestricted aka "N/A") competition. This equated to over $4.55 Billion. Contracts that were set-aside for Small Businesses represented almost 3% of the market share, with over $140 Million. All other acquisition strategies reported contract spending at less than 1% of the market share, with 8a sole source awards' 0.67% equating to $31 Million.

Acquisition Breakout under NAICS 481190 - FY04 through Q2FY08 Source: epipeline's Contract History Plus*

WHERE ARE THESE CONTRACTS PERFORMED?


These contracts are being performed across the continental United States and abroad. The 50 states plus Washington, DC have reported spending for the FY05 through January FY09 period of $4.53 Billion and contracts for locations outside the United States (or unlisted) totaled over $224 Million.

The contracts with a reported place of performance located in Texas reported the highest level of spending under this NAICS, with over $1.2 Billion - or 25.6% of the market share. Kentucky's contracts also reported spending above one billion, with over $1.01 billion in contract spending for this period. Maryland, Mississippi, Connecticut, Florida, California, and Nevada all reported spending over $100 Million. Virginia and 13 other states reported spending over $10 Million for the period of FY05 through Q1FY09+.

Contract Place of Performance under NAICS 481190 (FY04-Q2FY08) Source: epipeline's Contract History Plus*
Identify, Qualify & Win More Government Contracts for Support For Air Transport

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