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NAICS NewsletterJuly 7, 2009

NAICS 561990

All Other Support 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 All Other Support 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 All Other Support 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 'All Other Support Services' industry, NAICS 561990. 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 by % of Total Market for NAICS 561990 combined FY04 - Q2FY08

WHAT IS NAICS 561990?

NAICS 561990 is used when the contract requires contractor-provided day-to-day business and other organizational support services. Not all day-to-day services are included under this NAICS, as some requirements are identified with their own specific NAICS code or group. These exceptions include the following services: office administrative services, facilities support services, employment services, business support services, travel arrangement and reservation services, security and investigation services, services to buildings and other structures, packaging and labeling services, and convention and trade show organizing services.

The following services are included under NAICS 561990:

  • Auctioneers, independent
  • Bartering services
  • Bottle exchanges
  • Cloth cutting, bolting, or winding for the trade
  • Coin pick-up services, parking meter
  • Coupon processing services
  • Coupon redemption services (i.e., clearinghouse)
  • Diving services on a contract or fee basis
  • Document shredding services
  • Electrical meter reading services, contract
  • Fire fighting services as a commercial activity
  • Flagging (i.e., traffic control) services
  • Float decorating services
  • Gas meter reading services, contract
  • Inventory computing services
  • Inventory taking services
  • License issuing services (except government), motor vehicle
  • Locating underground utility lines prior to digging
  • Lumber grading services
  • Meter reading services, contract
  • Motor vehicle license issuing services, private franchise
  • Printing brokers
  • Private volunteer fire fighting
  • Tape slitting (e.g., cutting plastic or leather into widths) for the trade
  • Textile cutting services
  • Trading stamp promotion and sale to stores
  • Trading stamp redemption services

The size standard associated with NAICS 561990 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 561990 for the period of Fiscal Year 2005 (FY05) through the January 2009 (Q1FY09+) was over $4.8 Billion. With four months reported, FY09 reported spending of $122 Million for services under NAICS 561990. The chart below illustrates the reported** spending by year for FY05 through Q1FY09+.

Reported** Contract Spending for NAICS 561990 FY04 through Q2FY08 (in Billions)

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 561990, commanding over 35% of the market share for the last four fiscal years (FY05 through Q1FY09+), with over $1.72 Billion in contract spending. The United States Navy reported less then half that number, with $711 Million. The United States Air Force, the Defense Commissary Agency (DeCA), the Transportation Security Administration (TSA), the Department of State, the Employment Training Administration, and the United States Agency for International Development all reported spending above $100 Million for this period.

Top 10 by % of Total Market for NAICS 561990 Combined FY04 - Q2FY08 Source: epipeline's Contract History Plus*

WHO WINS THE CONTRACTS?

According to the Central Contractor Registry (CCR), there are 4,217 companies registered under NAICS 561990 (source: active registrants, www.ccr.gov as of 06/18/2009). Of this number, 3,312 qualify as small businesses, which includes the following breakout by socioeconomic categories (some companies may qualify under more than one category):

  • 355 SBA Certified 8(a) contractors;
  • 193 SBA Certified HUBZone contractors; and
  • 581 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

Combat Support Associates (CSA) holds the top spot on the unrestricted competition list with over $836 Million in contract dollars for FY05-Q1FY09+ and over 19% of the market share. CSA was formed by AECOM Government Services (AGS), Inc. (formerly Holmes & Narver Services, Inc.), Research Analysis and Maintenance, Inc. (RAM), and Space Mark (SMI, International)) for the Combat Support Services Contract - Kuwait (CSSC-K). Spending under this contract was reported under multiple NAICS codes, including 561990, so actual spending for the specific contract was significantly higher.

The second company on the list, Unisys, reported less than half of CSA under NAICS 561990, with $378 Million. The remaining firms the top ten all reported spending above $100 Million. Raytheon is actually listed three times in the top ten list (4th, 8th, and 9th), and once outside the top ten (20th). This is due to the method of reported spending - by company name, as opposed to parent company. The combined reported spending for Raytheon for this period was over $411 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 561990 Contractors by % of Total Market (Combined FY04-Q2FY08) - All Acquisition Strategies Source: epipeline's Contract History Plus*

Alutiiq International Solutions takes the top spot on the following chart, which provides the top ten firms under NAICS 561990 for contracts using restricted competition. Alutiiq's reported spending of over $34 Million represents 9% of the market share for these restricted acquisition strategy contracts. All firms in the top ten, except for Global Food Services, reported spending at over $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 561990 Contractors by % of Total Market (Combined FY04-Q2FY08) - RESTRICTED Competition Source: epipeline's Contract History Plus*

HOW ARE THESE CONTRACTS PROCURED?

Over 80% of contract spending reported for the FY05 through Q1FY09+ timeframe under NAICS 561990 used full and open (unrestricted aka "N/A") competition. This equated to over $3.85 Billion. Almost 12% 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 4.84% market share, or over $233 Million in contract spending for this period. Contracts sole sourced to 8(a) firms and those competitively awarded to 8(a) firms combined, reported almost 2.7% of the market share, breaking out to $99 Million and $30 Million, respectively. 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 over $21 Million for the FY05 - Q1FY09+ period.

Acquisition Breakout under NAICS 561990 - 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 $3.49 Billion and contracts for locations outside the United States (or unlisted) totaled over $1.32 Billion.

The contracts with a reported place of performance located in California reported the highest level of spending under this NAICS, with over $713 Million - or 14.8% of the market share. Virginia was a close second, with 14.1% of the market share under NAICS 561990. Alabama, Texas, Arizona, Kansas, and New Hampshire all reported spending over $100 Million, and the remainder of the top ten, along with eight other states reported spending over $50 Million for the period of FY05 through Q1FY09+.

Contract Place of Performance under NAICS 561990 (FY04-Q2FY08) Source: epipeline's Contract History Plus*
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