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NAICS NewsletterJune 7, 2007

NAICS 562910

Remediation 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 Remediation 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 Remediation 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 'Remediation Services' industry, NAICS 562910. 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 years.

Top 10 Federal Agencies by % of Total Market FY03 through FY06 for NAICS 562910

WHAT IS NAICS 562910?

Companies represented by NAICS 562910 provide remediation and cleanup of contaminated buildings, mine sites, soil, or ground water. This code also includes firms that provide integrated mine reclamation activities, including demolition, soil remediation, waste water treatment, hazardous material removal, contouring land, and revegetation. Firms providing asbestos, lead paint, and other toxic material abatement are also included.

This NAICS was previously represented by several Standard Industrial Classification (SIC) codes covering a wide variety of topics, as listed below:

SIC 1799:

  • Asbestos abatement services
  • Asbestos removal contractors
  • Lead paint removal contractors

SIC 4959:

  • Environmental remediation services
  • Lead paint abatement services
  • Mine reclamation services, integrated (e.g., demolition, hazardous material removal)
  • Oil spill cleanup services
  • Remediation and clean up of contaminated buildings, mine sites, soil, or ground water
  • Remediation services, environmental
  • Site remediation services
  • Soil remediation services
  • Toxic material abatement services
  • Toxic material removal contractors

There are two size standards associated with NAICS 562910. For Remediation Services, the size standard is $13.0 Million (effective July 31, 2006), which means that a company, including its affiliates, would be considered a "small business" if their average annual gross revenue does not exceed $13.0 Million for the past three years. However, for Environmental Remediation Services, the size standard is 500 employees. According to the SBA, this size standard is applied to Government Procurement when the "required services are primarily to restore or directly support the restoration of a contaminated environment (such as, preliminary assessment, site inspection, testing, remedial investigation, feasibility studies, remedial design, remediation services, containment, removal of contaminated materials, storage of contaminated materials or security and site closeouts), although the general purpose of the procurement need not necessarily include remedial actions. Also, the procurement must be composed of activities in three or more separate industries with separate NAICS codes or, in some instances (e.g. , engineering), smaller sub-components of NAICS codes with separate, distinct size standards. These activities may include, but are not limited to, separate activities in industries such as: Heavy Construction; Specialty Trade Contractors; Engineering Services; Architectural Services; Management Consulting Services; Hazardous and Other Waste Collection; Remediation Services, Testing Laboratories; and Research and Development in the Physical, Engineering and Life Sciences. If any activity in the procurement can be identified with a separate NAICS code, or component of a code with a separate distinct size standard, and that industry accounts for 50 percent or more of the value of the entire procurement, then the proper size standard is the one for that particular industry, and not the Environmental Remediation Service size standard."

Total reported spending under NAICS 562910 in FY03 was over $1.9 Billion. FY04 saw an increase, to over $2.8 Billion. Spending for FY05 and FY06 are not as widely reported as the previous fiscal years, so those values ($2.4 Billion for FY05 and $2.7 Billion for FY06) may not represent total contract spending for those fiscal years. These numbers may increase as more departments and agencies report their contract spending.

WHO ISSUES THE CONTRACTS?

The Department of Defense (DoD) was the largest buyer for these services for the last four fiscal years (FY03 through FY06), with over $4.7 Billion in contract spending, comprising over 47% of the market share for NAICS 562910. This value may include all components of the Defense Department (Army, Navy, Air Force, DLA, etc.), however, FY05 and FY06 contract dollars have not been as widely reported yet (at least as far as FPDS data). The Department of Energy was a very close second, with $4.6 Billion over the same period. The Environmental Protection Agency (EPA) and the Department of Homeland Security (DHS) were the only other agencies with reported spending over $100 Million, and the Department of Interior, NASA, Department of Commerce, and the United States Department of Agriculture (USDA) were the other agencies with spending over $10 Million.

Top 10 Federal Agencies by % of Total Market FY03 through FY06 for NAICS 562910

WHO WINS THE CONTRACTS?

According to the Central Contractor Registry (CCR), there are 5,523 companies registered under NAICS 562910 (source: active registrants, www.ccr.gov as of 05/31/2007). Of this number, 4,544 qualify as small businesses. The two charts below identify the top 10 Companies, by market share, for the period of FY03 through FY06. 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 following acquisition strategies:

  • 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

Battellle Energy Alliance LLC holds the top spot on the unrestricted competition list, with $1.39 Billion in total contract dollars for FY03 through FY06 - over 14.7% of the market share. The next contractor on the list, Fluor Fernald Inc., is a close second, with 14.5%, or $1.37 Billion. These two contractors are the only ones with total contract values exceeding $1 Billion for this period. CH2M holds two spots in the top ten, as "CH2M*WG Idaho LLC" and "CH2M Hill Mound Inc." CH2M*WG is a joint venture of CH2M Hill and Washington Group International and holds a large contract with the Energy Department for the cleanup effort at the Idaho National Laboratory. CH2M Mound is another joint venture, with Washington Group International and BWX Technologies, and has a large cleanup contract at the DOE facility in Miamisburg, Ohio. Many of the contractors performing services under this NAICS form joint ventures to perform these services.

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 562910 Contractors by % of Total Market for FY03 through FY06 - Unrestricted

The combined contract spending for contracts awarded under "restricted competition" totaled over $1 Billion for FY03 through FY06. Environmental Quality Management takes top honors on the restricted chart, with over 14% of the restricted contract spending, which equates to over $142 Million (they held the 8th spot on the unrestricted list, with over $248 Million). Lata/Parallax Portsmouth LLC holds the second spot with 12% of the market share, which represents $127 Million in reported contract spending for the period of FY03 through FY06 under NAICS 562910. Environmental Chemical Corporation, which appears in the fourth position on this list, is also on the unrestricted Top 10 above, in the 8th spot. All of the Top 10 firms on this restricted list hold contracts with spending total over $15 Million for the FY03 through FY06 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 562910 Contractors by % of Total Market for FY03 through FY06 - RESTRICTED Competition

HOW ARE THESE CONTRACTS PROCURED?

The majority of contract dollars spent during the FY03 through FY06 timeframe under NAICS 562910 were awarded using full and open competition. Businesses of any size and type can compete for these contracts. This accounted for 53% of the market share - over $5.2 Billion in contract dollars. Over one-third of the remaining contracts did not report their acquisition strategy. This could include contracts awarded using full and open competition, small business set-aside, or any manner of restriction. Projects that were 'set-aside' (for Small Businesses, 8(a)s, HUBZones, etc.) accounted for $937 Million of contract dollars for this same period. Sole sourced contracts (to 8(a)s, HUBZones, and SDVOSBs) totaled $164 Million during FY03 through FY06 under NAICS 562910.

The follow chart represents larger picture of the breakout of acquisition strategies, whereas the second and third charts illustrate the specific segments of ”Set-Aside" and "Sole Source" acquisition strategies.

Acquisition Breakout under NAICS 562910 - FY03 through FY06

As noted below, contracts set-aside for small businesses comprise the largest slice of the Set-Aside pie, with contract spending totaling over $800 Million. 8(a) set-asides were a distant second with $77 Million.

Acquisition Breakout set-aside under NAICS 562910 for FY03 through FY06

Those contracts that are sole sourced to 8(a) firms (this may include those sole sourced to Alaska Native Corporations) comprised almost all of the dollars spent on sole sourced contracts. This represented over $160 Million over the FY03-FY06 period. Sole source HUBZone and SDVOSB contracts combined represented less than $360,000 for NAICS 562910 over this same timeframe.

Acquisition Breakout Sole Source under NAICS 562910 for FY03 through FY06
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