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NAICS Newsletter September 15, 2016

NAICS 561320

Temporary Help 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 Temporary Help 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 Temporary Help 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 'Temporary Help Services' industry, NAICS 561320. 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 FY12 through FY16 for NAICS 561320

WHAT IS NAICS 561320?

This industry comprises establishments primarily engaged in supplying workers to clients' businesses for limited periods of time to supplement the working force of the client. The individuals provided are employees of the temporary help service establishment. However, these establishments do not provide direct supervision of their employees at the clients' work sites.

Illustrative Examples:

Help supply services

Model supply services

Labor (except farm) contractors (i.e., personnel suppliers)

Temporary employment or temporary staffing services

Manpower pools

Cross References:

Providing human resources and human resource management services to clients--are classified in Industry 561330, Professional Employer Organizations;

Supplying farm labor--are classified in U.S. Industry 115115, Farm Labor Contractors and Crew Leaders;

Providing operating staff to perform a combination of services to support operations within a client's facilities--are classified in Industry 561210, Facilities Support Services;

Listing employment vacancies and referring or placing applicants for employment--are classified in U.S. Industry 561311, Employment Placement Agencies; and

Representing models, entertainers, athletes, and other public figures as their agent or manager--are classified in Industry 711410, Agents and Managers for Artists, Athletes, Entertainers, and Other Public Figures.

The size standard associated with NAICS 561320 is $27.5 million (effective January 1, 2012), which means that a company, including its affiliates, would be considered a "small business" if their average earnings did not exceed $27.5 million for each of the pay periods for the preceding completed 12 calendar months.

Total reported spending under NAICS 561320 for the period of Fiscal Year 2012 (FY12) through Fiscal Year 2016 (FY16) was approximately $3.5 billion. Current FY16 reported spending is $516 million for services under NAICS 561320. The chart below illustrates the reported** spending by year for FY12 through FY16.

Reported Contract Spending for NAICS 561320 FY12 through FY16

Source: epipeline's Contract History Plus*

WHO ISSUES THE CONTRACTS?

The Department of Veterans Affairs was the largest procurer of these services for the last five fiscal years (FY12 through FY16) with just over $1 billion in contract spending, comprising 29% of the market for NAICS 561320. The National Institutes of Health took the second spot with $552 million in contract dollars and 16% of the market, while the Indian Health Service took the third spot with $364 million in contract dollars and 10.5% of the market. The Navy bought over $200 million of requirements ($241 million), taking 6.97% market share; the Army ($180 million) and the Air Force ($113 million) each bought over $100 million of requirements with 5.2% and 3.3% market share, respectively. U.S. Immigration and Customs Enforcement ($94 million), the Federal Prison System ($72 million), the Department of Homeland Security’s Office of Procurement Operations ($70 million), and the Forest Service ($52 million) each held between 1.5% and 3% market share. Overall, the top ten agencies accounted for 79.4% of the market.

Top 10 Federal Agencies by % of Total Market FY12 through FY16 for NAICS 561320

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 FY12 through FY16. 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

Kelly Home Care Services earned the top spot on the unrestricted competition list with $484 million in contract dollars and 16.98% market share for FY12 to FY16. CHG Companies ($129 million), Anderson and Bates Staffing Solutions ($118 million), and Loyal Source Government Services ($115 million) all earned over 4% market share, with 4.52%, 4.13%, and 4.05%, respectively; Spectrum Security Services ($96 million) and Medical Doctor Associates ($89 million) both earned over 3% market share, with 3.37% and 3.12%, respectively. Astrix Software Technology ($75 million), Versar ($73 million), and Staff Care ($70 million) all saw over $70 million in contract dollars, while Career Management Association of Iowa ($51 million) rounded out the top ten with 1.8% market share. Together, the top ten companies comprised almost half (45.6%) 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 561320 Contractors by % of Total Market for FY12 through FY16 - All Acquisition Strategies

Source: epipeline's Contract History Plus*

The combined spending for contracts awarded under "restricted competition," as outlined above, totaled approximately $995 million for FY12 through FY16. The first, second, and eighth companies on the restricted completion list, Loyal Source Government Services ($49 million), Career Management Association of Iowa ($42 million), and Anderson and Bates Staffing Solutions ($21 million), also appeared on the unrestricted competition list. Coastal Management Solutions ($35 million), Ethical Personnel Services ($28 million), and TBD Communications ($27 million) all earned over $25 million in contract dollars with 3.5%, 2.8%, and 2.7% market share, respectively. Quantell ($22 million), Enterprise Resource Planning International ($22 million), and Symtech Corporation ($21 million) each earned over 2% market share, posting 2.24%, 2.14%, and 2.13%, respectively.

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 561320 Contractors by % of Total Market for FY12 through FY16 - Restricted Competition

Source: epipeline's Contract History Plus*

HOW ARE THESE CONTRACTS PROCURED?

63.4% of contract spending reported for the FY12 through FY16 timeframe under NAICS 561320 used full and open (unrestricted, aka "N/A") competition; this equated to $2.2 billion in contract dollars. Small businesses were the second largest sector, taking $808 million in contract dollars and 23.4% of the market. Procurements sole-sourced to 8(a) companies accounted for 5.4% of the market and $187 million in spending, while competitive 8(a) requirements took 3.2% of the market with $112 million in contract dollars. Service-disabled veteran-owned small businesses took in $36 million, or 1.03% of the market. 2.6% of requirements did not report an acquisition strategy.

Acquisition Breakout under NAICS 561320 for FY12 through FY16

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 FY12 through FY16 period of $150 million.

Michigan had the highest total reported contract spending with $487 million, or 14.1% market share. California came in second with $365 million in contract dollars and 10.6% market share, while Washington, D.C. took the third spot with $354 million in spending 10.3% market share. Maryland also saw over $200 million in contract spending with $224 million, while Arizona ($183 million), Texas ($173 million), and Virginia ($169 million) each saw over $150 million in contract dollars. Florida ($145 million), Georgia ($131 million), and New Mexico ($98 million) rounded out the top ten with 4.2%, 3.8%, and 2.9% market share. Together, these ten states represented 67.5% of the market. 3.5% of requirements under NAICS 561320 did not report a specific location.

Contract Place of Performance under NAICS 561320 for FY12 through January 2011

Source: epipeline's Contract History Plus*

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