In this Issue

Minimize or Maximize
NAICS NewsletterAugust 27, 2008

NAICS 541519

Other Computer Related 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 the services of Other Computer Related 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 Other Computer Related 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 'Other Computer Related Services' industry, NAICS 541519. 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 buying these services over the last four fiscal year.

Top 10 Federal Agencies by % of Total Market FY04 - Q2FY08 for NAICS 541519

WHAT IS NAICS 541519?

NAICS 541519 represents computer related services, including computer disaster recovery services or software installation services. However, this does not include the following aspects:

  • Custom programming,
  • Systems integration design, and
  • Facilities management services.

This NAICS was previously represented by a single Standard Industrial Classification (SIC) code, 7379.

The size standard associated with NAICS 541519 is $25.0 Million (effective August 18, 2008), which means that a company, including its affiliates, would be considered a "small business" if their average annual gross receipts does not exceed $25.0 Million 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. There is one exception to this size standard, for "Information Technology Value Added Resellers." The size standard for NAICS 541519 as it applies to that function, is 150 employees.

Total reported spending under NAICS 541519 for the period of Fiscal Year 2004 (FY04) through the second quarter (Q2) of Fiscal Year 2003 (FY08 aka Q2FY08) was over $22 Billion. With two quarters reported, FY08 reported spending of $528 Million for services under NAICS 541519. The chart below illustrates the reported** spending by year for FY04 through Q2FY08.

Reported Contact Spending FY04 - Q2FY08 for NAICS 541519 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 Navy was the largest buyer for these services for the last four fiscal years (FY04 through Q2FY08), with over $4.4 Billion in contract spending, comprising over 20% of the market share for NAICS 541519. The United States Army, the United States Air Force, the Defense Information Systems Agency (DISA) all had reported spending over $2 Billion for this period, and GSA's Federal Technology Service (FTS) was just shy of that mark, with $1.99 Billion.

Top 10 Federal Agencies by % of Total Market FY04 - Q2FY08 for NAICS 541519 Source: epipeline's Contract History Plus*

WHO WINS THE CONTRACTS?

According to the Central Contractor Registry (CCR), there are 16,485 companies registered under NAICS 541519 (source: active registrants, www.ccr.gov as of 08/13/2008). Of this number, 13,927 qualify as small businesses, which includes the following breakout by socioeconomic categories (some companies may qualify under more than one category):

  • 1,901 SBA Certified 8(a) contractors;
  • 651 SBA Certified HUBZone contractors; and
  • 1,762 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 FY04 through Q2FY08. 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

Electronic Data Systems (EDS) holds the top spot on the unrestricted competition list, with $2.7 Billion in contract dollars for FY04-Q2FY08 and over 17% of the market share. Accenture LLP is a distant second, with 5.49% of the market share, which equates to over $893 Million. All firms in the top ten had reported spending above $250 Million and another 24 companies held contracts with reported spending over $100 Million for the FY04 to Q2FY08 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 541519 Contractors by % of Total Market for FY04 - Q2FY08 - All Acquisition Strategies Source: epipeline's Contract History Plus*

The combined contract spending for contracts awarded under "restricted competition," as outlined above, totaled over $1.57 Billion for FY04 through Q2FY08. RS Information Systems Inc. (now Wyle Information Systems Group) had the highest reported spending with over $90 Million, or 5.77% of the market share. Indus Secure Network Solutions LLC, iGov Technologies Inc., and Interactive Technology Solutions LLC all reported contract spending above $50 Million for this period. All firms in the top ten were above $20 Million, along with another four companies outside the top ten.

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 541519 Contractors by % of Total Market for FY04 - Q2FY08 - RESTRICTED Competition

HOW ARE THESE CONTRACTS PROCURED?

Over 58% of the contract dollars spend during the FY04 through Q2FY08 timeframe were awarded using full and open competition. This represented over $12.6 Billion for NAICS 541519. Over 34% of contracts during this period did not report their acquisition strategy. These contracts could include those awarded using full and open competition, small business set-aside, or any manner of restriction. This accounted for over $7.4 Billion in contract dollars. Contracts sole sourced to 8(a) firms held 4% of the market share (over $892 Million). Competitive 8(a) contracts were valued at about $600 Million less, with approximately $292 Million in contract spending for this period.

All other acquisition strategies combined were only 0.42% of the market share. The strategy with the highest reported contract spending was "Buy Indian," with over $20 Million.

Acquisition Breakout under NAICS 541519 - 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 of $21.1 Billion and contracts for locations outside the United States total over $841 Million. The map below illustrates the distribution of locations within the United States (only). For example, there are 11 states that are shaded bright yellow. This means that these states have reported contract spending between $260 Million and $8.68 Billion.

The state with the highest total of reported contract spending is Virginia, with $8.67 Billion. Virginia is part of the Washington, DC metropolitan, which also includes Washington, DC ($3.03B ranked 2nd) and Maryland ($2.40B ranked 3rd). Their combined contract values comprise 64% of the market share for NAICS 541519 during the period of FY04 through Q2FY08. 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. Washington, DC, Maryland, and Virginia are the only three that were above the billion-dollar level.

California and Florida rounded out the top five, with $738 Million and $736 Million, respectively.

Contract Place of Performance under NAICS 541519 (FY04-Q2FY08) Source: epipeline's Contract History Plus*
Identify, Qualify & Win More Government Contracts for Other Computer Services

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.