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NAICS Newsletter July 16, 2013

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 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. epipeline's Contract History Plus* provides you with a broad context and several perspectives that enable 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 FY09 through FY13 for NAICS 541519

WHAT IS NAICS 541519?

This industry comprises establishments primarily engaged in providing computer related services (except custom programming, systems integration design, and facilities management services). Establishments providing computer disaster recovery services or software installation services are included in this industry.

The description of NAICS 541519 is further broken out to include these additional specific topics:

The size standard associated with NAICS 541519 is $25.5 million (effective January 7, 2013), which means that a company, including its affiliates, would be considered a "small business" if their average annual earnings do not exceed $25,500,000 for each of the pay periods for the preceding completed 12 calendar months.

Total reported spending under NAICS 541519 for the period of Fiscal Year 2009 (FY09) through Fiscal Year 2013 (FY13) was just over $50 billion. Thus far, FY13 reported spending of $3.9 billion for services under NAICS 541519. The chart below illustrates the reported** spending by year for FY09 through FY13.

Reported Contract Spending for NAICS 541519 FY09 through FY13

Source: epipeline's Contract History Plus*

WHO ISSUES THE CONTRACTS?

The Department of the Navy was the largest procurer for these services for the last five fiscal years (FY09 through FY13), with more than $7 billion in contract spending, comprising 14.5% of the market share for NAICS 541519. The Department of Veteran Affairs ($3.4B), the Department of the Army ($3B), DISA ($2.5B), and the Department of State ($2.3B) took the next four spots, respectively, spending a cumulative 22% of the market share. Overall, the top ten agencies comprised just over half of the entire market for NAICS 541519.

Top 10 Federal Agencies by % of Total Market FY09 through FY13 for NAICS 541519

Source: epipeline's Contract History Plus*

WHO WINS THE CONTRACTS?

The two charts below identify the top 10 Companies, by market share, for the period of FY09 through FY13. 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 achieved the top spot on the unrestricted competition list, with $5.2 billion in contract dollars for FY09 to FY13 and 14.1% of the market share. The second and third spots went to Computer Sciences Corporation and Accenture National Security Services, each earning approximately $1.3 billion in contract dollars. One additional firm, IBM, topped $1 billion in contracting dollars ($1.2B), while six additional companies, SRA, World Wide Technology, GTSI Corp, MicroTechnologies, L-3 Communications Titan Corporation, and Energy Enterprise Solutions, topped $600M.

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 be reflected in the chart below.

Top 10 NAICS 541519 Contractors by % of Total Market for FY09 through FY13 - All Acquisition Strategies

Source: epipeline's Contract History Plus*

The combined contract spending for contracts awarded under "restricted competition," as outlined above, totaled over $8 billion for FY09 through FY13. Sword & Shield Enterprise Security takes the top spot, with over $400 million for this period, or just under 5% of the market share. immixTechnology and TKC Communications also secured more than $400 million in contracting dollars for this time period. Four other firms in the top ten, Merlin International, Alvarez & Associates, Buccaneer Computer Systems and Service, and Red River Computer Co., earned between 3% and 4% of the market share for NAICS 541519.

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 FY09 through FY13 - Restricted Competition

Source: epipeline's Contract History Plus*

HOW ARE THESE CONTRACTS PROCURED?

Almost 75% of contract spending reported for the FY09 through FY13 timeframe under NAICS 541519 used full and open (unrestricted aka "N/A") competition. This equated to over $37 billion. Contracts that were set aside for small businesses reported spending of over $5 billion, or just over 10% of the market share. Contracts whose acquisition strategies were not reported covered 5.6% of the market for NAICS 541519, or $2.8B.

Acquisition Breakout under NAICS 541519 for FY09 through FY13

Source: epipeline's Contract History Plus*

WHERE ARE THESE CONTRACTS PERFORMED?

These contracts are being performed across the United States with a reported spending of $50.3 billion for the FY09 through FY13 period.

The state with the highest total of reported contract spending Virginia, with almost $17 billion, or 33.8% of the market share for NAICS 541519. DC ($8.8 billion) and Maryland ($6.4 billion) took the second and third spots. Together, the remaining top ten states, Louisiana, Florida, California, Texas, Colorado, Ohio, and Illinois, represent 18.5% of the market under NAICS 541519. All states in the top ten posted over $750 million contract dollars.

Contract Place of Performance under NAICS 541519 for FY09 through FY13

Source: epipeline's Contract History Plus*

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