In this Issue

Minimize or Maximize
NAICS NewsletterJune 10, 2009

NAICS 541513

Computer Facilities Management Services

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 Computer Facilities Management Services.


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 Computer Facilities Management Services.


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 'Computer Facilities Management Services' industry, NAICS 541513. 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 FY05 - January 2009 for NAICS 541513

WHAT IS NAICS 541513?

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 description of NAICS 541513 is further broken out to include these additional specific topics:

  • Computer systems facilities (i.e., clients' facilities) management and operation
  • 7342 = Includes the following services:
  • Data processing facilities (i.e., clients' facilities) management and operations
  • Facilities (i.e., clients' facilities) support services, computer systems or data

The size standard associated with NAICS 541513 is $25.0 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 $25.0Million 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 541513 for the period of Fiscal Year 2005 (FY05) through the January 2009 (Q1FY09+) was over $4.4 Billion. With four months reported, FY09 reported spending of $295 Million for services under NAICS 541513. The chart below illustrates the reported** spending by year for FY05 through Q1FY09+.

Reported Contact Spending FY05 - January 2009 for NAICS 541513 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?

National Aeronautics and Space Administration (NASA) is the largest buyer of services under NAICS 541513, commanding over 27% of the market share for the last four fiscal years (FY05 through Q1FY09+), with over $1.22 Billion in contract spending. The United States Army reported over $661 Million and all but the Centers for Medicare & Medicaid Services (CMS) had reported spending over $100 Million.

Top 10 Federal Agencies by % of Total Market FY05 - January 2009 for NAICS 541513 Source: epipeline's Contract History Plus*

WHO WINS THE CONTRACTS?

According to the Central Contractor Registry (CCR), there are 10,476 companies registered under NAICS 541513 (source: active registrants, www.ccr.gov as of 05/29/2009). Of this number, 8,859 qualify as small businesses, which includes the following breakout by socioeconomic categories (some companies may qualify under more than one category):

  • 1,576 SBA Certified 8(a) contractors;
  • 466 SBA Certified HUBZone contractors; and
  • 1,574 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

Science Applications International Corporation (SAIC) holds the top spot on the unrestricted competition list with over $1.04 Billion in contract dollars for FY05-Q1FY09+ and over 25.8% of the market share. The next three companies on the list, Accenture LLP, Indus Secure Network Solutions, and Lockheed Martin Interated Systems, all reported spending above $100 Million for this same period. The remaining firms in the top ten, along with five other companies had reported spending topping $50 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 541513 Contractors by % of Total Market for FY05 - January 2009 - All Acquisition Strategies Source: epipeline's Contract History Plus*

The third company on the previous chart is the top company on the next chart, which represents spending under NAICS 541513 for contracts using restricted competition, as outlined above. Indus Secure Network Solutions had the highest reported spending with over $139 Million, or 11.25% of the market share for contracts with a restricted acquisition strategy. Adnet Systems Inc. (# 9 on the chart above), SCI Consutling Inc., and Catapult Technology Ltd., all reported spending above $50 Million. The remaining firms in the top ten, along with another twelve companies reported spending above $10 Million for this period.

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 541513 Contractors by % of Total Market for FY05 - January 2009 - RESTRICTED Competition Source: epipeline's Contract History Plus*

HOW ARE THESE CONTRACTS PROCURED?

Over 58% of contract spending reported for the FY05 through Q1FY09+ timeframe under NAICS 541513 used full and open (unrestricted aka "N/A") competition. This equated to over $2.59 Billion. Over 11% of the market share did not include a designated acquisition strategy, which could include contracts awarded using full and open competition, small business set-aside, or any manner of restriction. Small Business set-aside contracts represented 10.77% market share, or over $474 Million in contract spending for this period. Contracts sole sourced to 8(a) firms and those competitively awarded to 8(a) firms combined, reported over 17% of the market share, breaking out to $424 Million and $328 Million, respectively. Contracts set-aside for HUBZone or SDVOSB companies represented a smaller market share, with combined sole source and competitive contracts for these acquisition strategies totaling just over $28 Million for the FY05 - Q1FY09+ period.

Acquisition Breakout under NAICS 541513 - FY05 through January 2009 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 $4.28 Billion and contracts for locations outside the United States (or unlisted) totaled over $128 Million.

A high concentration of work (45% of market share) is performed in the Washington, DC metropolitan area. This geographical area is home to many federal contractors, who are sometimes called "Beltway Bandits" due to their proximity to the headquarters of the Federal Government. Virginia reported the highest contract spending, with over 22.88% of the market share, equating to over $1.0 Billion. Spending in Washington, DC was about $600 Million and Maryland with $377 Million. These locations are listed first, third, and fourth on the chart below. The second spot is held by Alabama, home to NASA's Marshal Space Flight Center (MSFC). NASA was the agency with the highest reported spending for the FY05 through January FY09 period. Georgia, Mississippi and Hawaii all reported spending above $100 Million.

Contract Place of Performance under NAICS 541513 FY05 - January 2009 Source: epipeline's Contract History Plus*
Identify, Qualify & Win More Government Contracts for Computer Facilities

Get a live demo to see how you can:

  • Build a government lead pipeline from current and future bid opportunities
  • Qualify leads with invaluable market intelligence
  • Access procurement history to better understand government agency needs
  • Win federal, state and local bids from government agencies
  • Gain a competitive advantage
Get a live demo Separator

"CMI has been using e-Pipeline for over five years now and I can tell you that it is an extremely useful product that is well-priced and affordable. In fact, I tell people, you cannot afford not to have it in your tool chest as you work through the federal contract maze. Our firm uses it consistently to track and evaluate opportunities for bidding."

A.Abraham
President/CEO

Separator

epipeline is part of Government Contracts USA, offering a range of services in government contracts, government RFPs, government bids and government procurement systems.

Federal Contracting: epipeline & You epipeline's proprietary research, enables you to effectively identify, qualify, distribute, and manage opportunities at an earlier stage, reducing your costs and providing a competitive advantage.