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NAICS Newsletter January 31, 2019

NAICS 541712

Research and Development in the Physical, Engineering and Life Sciences

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 Research and Development in the Physical, Engineering and Life Sciences.


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 Research and Development in the Physical, Engineering and Life Sciences.


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 'Research and Development in the Physical, Engineering and Life Sciences' industry, NAICS 541712. 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 FY15 through FY19 for NAICS 541712

WHAT IS NAICS 541712?

This U.S. industry comprises establishments primarily engaged in Research and Development in the Physical, Engineering and Life Sciences Engineering, and Life Sciences (except Biotechnology)

Cross References:

Establishments primarily engaged in manufacturing guided missiles and space vehicles are classified in U.S. Industry 336414, Guided Missile and Space Vehicle Manufacturing;

Establishments primarily engaged in the repair of aircraft (except overhauling, conversion, and rebuilding) are classified in Industry 488190, Other Support Activities for Air Transportation; and

Research and development establishments primarily engaged in aircraft R&D (except prototype production) are classified in U.S. Industry 541712, Research and Development in the Physical, Engineering and Life Sciences Engineering, and Life Sciences (except Biotechnology).

The size standard associated with NAICS 541712 is 1,000 employees (effective January 1, 2012), which means that a company, including its affiliates, would be considered a "small business" if their average number of employees does not exceed 1,000 for each of the pay periods for the preceding completed 12 calendar months.

Total reported spending under NAICS 541712 for the period of Fiscal Year 2015 (FY15) through Fiscal Year 2019 (FY15) was $65.7 billion. Last year, FY15 reported spending was $838 million for services under NAICS 541712. The chart below illustrates the reported** spending by year for FY15 through FY19.

Reported Contract Spending for NAICS 541712 FY15 through FY19

Source: epipeline's Contract History Plus*

WHO ISSUES THE CONTRACTS?

NASA was the largest procurer of these services for the last five fiscal years (FY15 through FY15) with $20 billion in contract spending, comprising 30.58% of the market for NAICS 541712. The Air Force ($13.97 billion, 21.28 % market share) and the Army ($6.13 billion, 9.34% market share) were the only other agencies with over thirteen billion in procurement spending. The Missile Defense Agency did spend over $5 billion ($ 5.99 billion) with 9.12 % market share. Rounding out the top ten, the NAVY ($5.9 billion), the Department of Energy ($2.9 billion), the National Institute of Health ($2.7 billion), Federal Acquisition Service ($1.45 billion), Defense Information Systems Agency ($1.27 billion), and DARPA ($1 billion ) each reported between 1.53% and 8.38 % market share. Overall, the top ten agencies represented 94% of the market.

Top 10 Federal Agencies by % of Total Market FY15 through FY19 for NAICS 541712

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 FY15 through FY19. 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

The California Institute of Technology achieved the top spot on the unrestricted competition list with $7.76 billion in contract dollars and 14.37 % market share for FY15 to FY19. The Boeing Company ($3.68 billion) took the second spot with 6.81 % market share. Booz Allen Hamilton Inc ($2.62 billion) Jacobs Technology Inc. ($2.49 billion) both garnered over 4.6 % market share, while Brookhaven Science Associates, LLC ($2.47 billion) and Raytheon Company ($1.8 billion) % market share. All companies in the top ten, including those taking spots seven through ten—Johns Hopkins University ($1.79 billion), Bechtel Marine Propulsion Corp. ($1.62 billion), The Aerospace Corporation ($1.48 billion), and Lockheed Martin Corporation ($1.48 billion)— recorded over $1 billion in contract dollars. Together, the top ten companies comprised over fifty percent of the market.

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 541712 Contractors by % of Total Market for FY15 through FY19- All Acquisition Strategies

Source: epipeline's Contract History Plus*

The combined spending for contracts awarded under "restricted competition," as outlined above, totaled $8.82 billion for FY15 through FY19. Colsa Corporation took the largest percentage of market share with 5.84%, or $515.5 million in reported contract dollars. ASRC Aerospace Corporation also earned over $510.2 million with 5.78 % market share. Taking the third, fourth, and fifth spots, Science Systems Applications ($455.4 million), ATA Aerospace LLC ($393.8 million), and Odyssey Systems Consulting Group Limited ($391.6 million) all earned over $250 million. Analytical Mechanics Associate ($285.38 million), Barros Technology Limited ($231.69 million), and Adnet Systems Incorporated ($192.55 million) each garnered between 2% and 3% market share. Linquest Corporation ($184.23 million) as well as Zin Technologies ($170.59 million) rounded out the top ten with 2.09 % and 1.93% market share.

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 541712 Contractors by % of Total Market for FY15 through FY19- Restricted Competition

Source: epipeline's Contract History Plus*

HOW ARE THESE CONTRACTS PROCURED?

74.47% of contract spending reported for the FY15 through FY19 timeframe under NAICS 541712 used full and open (unrestricted, aka "N/A") competition; this equated to $48.89 billion in contract dollars. Procurements set aside for small businesses accounted for 15.28% of the market and $10 billion in spending. Requirements awarded to competitive 8(a) companies took 1.57% of the market and $1 billion in contract dollars, while contracts awarded as partial small business set-asides took ..53 % of the market with $349 million in contract dollars. 8a sole source contracts ($60.76 million) and women owned small business contracts ($12.64 million) comprised the other largest sectors with .019% and .093% market share. $5.2 billion in contract dollars (7.91 % market share) did not include a designated acquisition strategy.

Acquisition Breakout under NAICS 541712 for FY15 through FY19

Source: epipeline's Contract History Plus*

WHERE ARE THESE CONTRACTS PERFORMED?

These contracts are being performed across the United States with a reported spending for the FY15 through FY19period of $64.65 billion.

The state with the highest total of reported contract spending was California with $13.9 billion, or 21.18 % market share. Alabama ($7.6 billion) and Maryland ($11.06 billion) also reported over $7 billion in contract dollars with over 11% market share, while Virginia ($6.83 billion), New York ($3 billion), and Ohio ($2.7 billion) each reported over $2 billion with 10.41%, 5.54%, and 4.59% market share. Massachussetts ($2.57 billion), Pennsylvania ($2.47 billion), and Florida ($ 2 billion) each held over 3% market share. Together, the top 10 states represented 79.35% of the market; 5.54% of requirements under NAICS 541712 did not report a specific location.

Contract Place of Performance under NAICS 541712 for FY15 through January 2019

Source: epipeline's Contract History Plus*

Related Articles:
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