In this Issue

Minimize or Maximize
NAICS NewsletterFebruary 3, 2009

NAICS 541620

Environmental Consulting 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 Environmental Consulting 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 Environmental Consulting 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 'Environmental Consulting Services' industry, NAICS 541620. 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 541620

WHAT IS NAICS 541620?

NAICS 541620 is the primary code when projects require advice and assistance (consulting services) on environmental issues. These issues may include control of environmental contamination from pollutants, toxic substances, and hazardous materials. Firms providing these services identify problems (e.g., inspect buildings for hazardous materials), measure and evaluate risks, and recommend solutions. According to the United States Census Bureau, the work is performed by 'a multi-disciplined staff of scientists, engineers, and other technicians with expertise in areas, such as air and water quality, asbestos contamination, remediation, and environmental law.' This code includes firms that provide sanitation or site remediation consulting services.

The size standard associated with NAICS 541620 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 $7.0 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.

Total reported spending under NAICS 541620 for the period of Fiscal Year 2004 (FY04) through the second quarter (Q2) of Fiscal Year 2008 (FY08 aka Q2FY08) was over $2.59 Billion. With two quarters reported, FY08 reported spending of $46 Million for services under NAICS 541620. The chart below illustrates the reported** spending by year for FY04 through Q2FY08.

Reported Contact Spending FY04 - Q2FY08 for NAICS 541620 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 Army is the largest buyer of services under NAICS 541620, commanding over 32% of the market share for the last four fiscal years (FY04 through Q2FY08), with over $835 Million in contract spending. The Environmental Protection Agency (EPA) is second, with about $300 Million less, and the United States Air Force is another $300 Million less than EPA, holding almost 9% of the market share. The United States Navy and the General Services Administration (GSA)'s Federal Technology Service (FTS) round out the top five.

Top 10 Federal Agencies by % of Total Market FY04 - Q2FY08 for NAICS 541620 Source: epipeline's Contract History Plus*

WHO WINS THE CONTRACTS?

According to the Central Contractor Registry (CCR), there are 11,042 companies registered under NAICS 541620 (source: active registrants, www.ccr.gov as of 01/19/2009). Of this number, 7,507 qualify as small businesses, which includes the following breakout by socioeconomic categories (some companies may qualify under more than one category):

  • 637 SBA Certified 8(a) contractors;
  • 423 SBA Certified HUBZone contractors; and
  • 662 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

Logistics Management Institute (LMI) holds the top spot on the unrestricted competition list with over $161 Million in contract dollars for FY04-Q2FY08 and over 7.6% of the market share. The second company on the list, Booz Allen Hamilton Inc., had over 5.7% of the market share with $121 Million in reported contract spending. Earth Tech, GM Arcadis, and GeoVizcom Inc. round out the top five.

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 541620 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 $412 Million for FY04 through Q2FY08. Tidewater Inc. had the highest reported spending with over $26 Million, or 6.36% of the market share. Perrin Quarles Associates Inc. and Environmental Management Support also reported spending above $20 Million (with $23 Million and $22 Million, respectively). LM Construction Inc., Project Time Cost Inc., STEM International Inc., Engineering Environment Inc., and KIC Development LLC all reported spending above $10 Million for NAICS 541620 between FY04 and Q2FY08.

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 541620 Contractors by % of Total Market for FY04 - Q2FY08 - RESTRICTED Competition Source: epipeline's Contract History Plus*

HOW ARE THESE CONTRACTS PROCURED?

Two-fifths of contract spending reported for the FY04 through Q2FY08 timeframe under NAICS 541620 did not include a designated acquisition strategy. This equated to over $1.06 Billion and could include contracts awarded using full and open competition, small business set-aside, or any manner of restriction. Almost an equal amount of reported contract dollars ($1.05 Billion) indicated full and open (unrestricted) competition. Contracts competitively awarded to 8(a) firms and those sole sourced to 8(a) firms combined, reported almost $230 Million in contract spending, with sole source contracts taking the lion's share. Contracts set-aside for HUBZone or SDVOSB companies represented a significantly smaller market share, with combined sole source and competitive contracts for these acquisition strategies totaling just under $7 Million for the FY04 - Q2FY08 period.

Acquisition Breakout under NAICS 541620 - 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 $2.5 Billion and contracts for locations outside the United States total over $94 Million.

The contracts with a reported place of performance located within Commonwealth of Virginia reported the highest level of spending under this NAICS, with over $570 Million - or 22% of the market share. California held just over half Virginia's market share, at 11.95%, which equated to $310 Million. Maryland, Texas, Massachusetts and Washington, DC all reported spending over $100 Million, with another 26 states over $10 Million in reported contract spending.

Contract Place of Performance under NAICS 541620 (FY04-Q2FY08) Source: epipeline's Contract History Plus*
Identify, Qualify & Win More Government Contracts for Environmental Consulting

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.