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NAICS Newsletter July 25, 2012

NAICS 517110

Wired Telecommunications Carriers

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 Wired Telecommunications Carriers.


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 Wired Telecommunications Carriers.


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 'Wired Telecommunications Carriers' industry, NAICS 517110. 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 FY08 through FY12 for NAICS 517110

WHAT IS NAICS 517110?

This industry comprises establishments primarily engaged in operating and/or providing access to transmission facilities and infrastructure that they own and/or lease for the transmission of voice, data, text, sound, and video using wired telecommunications networks. Transmission facilities may be based on a single technology or a combination of technologies. Establishments in this industry use the wired telecommunications network facilities that they operate to provide a variety of services, such as wired telephony services, including VoIP services; wired (cable) audio and video programming distribution; and wired broadband Internet services. By exception, establishments providing satellite television distribution services using facilities and infrastructure that they operate are included in this industry.

The description of NAICS 517110 is further broken out to include these additional specific topics:

  • Broadband Internet service providers, wired (e.g. cable, DSL)
  • Local telephone carriers, wired
  • Cable television distribution services
  • Long-distance telephone carriers, wired
  • Closed circuit television (CCTV) services
  • VoIP service providers, using own operated wired telecommunications infrastructure
  • Direct-to-home satellite system (DTH) services
  • Telecommunications carriers, wired
  • Satellite television distribution systems
  • Multichannel multipoint distribution services (MMDS)

The size standard associated with NAICS 517110 is 1,500 employees (effective November 5, 2010), which means that a company, including its affiliates, would be considered a "small business" if their average number of employees does not exceed 1,500 for each of the pay periods for the preceding completed 12 calendar months.

Total reported spending under NAICS 517110 for the period of Fiscal Year 2008 (FY08) through Fiscal Year 2012 (FY12) was nearly $14 billion. FY12 reported spending of $767.1 million for services under NAICS 517110. The chart below illustrates the reported** spending by year for FY08 through FY12.

Reported Contract Spending for NAICS 517110 FY08 through FY12

Source: epipeline's Contract History Plus*

WHO ISSUES THE CONTRACTS?

The Department of the Army was the largest procurer for these services for the last five fiscal years (FY08 through FY12), with more than $4.4 billion in contract spending, comprising 32.1% of the market share for NAICS 517110. The Air Force took the second spot, with $3.4 billion in reported spending for this period. The Defense Information Systems Agency and the Navy took third and fourth places, respectively, making up a combined market share of 17.5% for all spending in NAICS 517110.

NASA and Customs and Border Protection spent $453 million and $417 million respectively during this time period with the rest of the top ten reporting spending just over $1.1 billion for NAICS 517110.

Top 10 Federal Agencies by % of Total Market FY08 through FY12 for NAICS 517110

Source: epipeline's Contract History Plus*

WHO WINS THE CONTRACTS?

According to the Central Contractor Registry (CCR), there are 4,735 companies registered under NAICS 517110 (source: active registrants, www.ccr.gov as of 11/28/2011). Of this number, 3,281 qualify as small businesses, which includes the following breakout by socioeconomic categories (some companies may qualify under more than one category):

  • 341 SBA Certified 8(a) contractors;
  • 90 SBA Certified HUBZone contractors; and
  • 499 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 than the resulting totals above represent.

The two charts below identify the top 10 Companies, by market share, for the period of FY08 through FY12. 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

General Dynamics Information Technology Inc achieved the top spot on the unrestricted competition list, with over $1.1 billion in contract dollars for FY08 to FY12 and more than 8.1% of market share. World Wide Technology Inc landed over $849 million in contract dollars with Litton Systems Inc earning roughly $787 million. SAIC and Telos Corporation round out the top five with $747 and $634 million, respectively. Three additional firms, SI International, Netco Government Services Inc, ATT, each topped $500 million in contracting dollars for this same time 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 be reflected in the chart below.

Top 10 NAICS 517110 Contractors by % of Total Market for FY08 through FY12 - All Acquisition Strategies

Source: epipeline's Contract History Plus*

The combined contract spending for contracts awarded under "restricted competition," as outlined above, totaled over $2 billion for FY08 through FY12. SI International takes the top spot, with reported spending of over $569 million for this period, or almost 28% of market share. Chenega Technology Services Corp also secured more than $253 million in contracting dollars for this time period. Three other firms in the top ten, STG Inc, Abacus Technology Corporation, and Indyne Inc, also exceeded $100 million in reported spending for NAICS 517110.

It should be noted that SI International, and Chenega Technology Services Corp are both found in both the top ten contractors using unrestricted competition as well as restricted competition with almost $1 billion in combined contract dollars for FY08 through FY12.

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 517110 Contractors by % of Total Market for FY08 through FY12 - Restricted Competition

Source: epipeline's Contract History Plus*

HOW ARE THESE CONTRACTS PROCURED?

80.4% of contract spending reported for the FY08 through FY12 timeframe under NAICS 517110 used full and open (unrestricted aka "N/A") competition. This equated to over $11 billion. Contracts that did not indicate their acquisition strategy (which means they could represent any acquisition strategy) reported contract spending of more than $333 million. Contracts that were small business set-aside reported spending of over $1.6 billion. The combined value of contracts representing all other acquisition strategies was more than $757 million, or about 17% of the market.

Acquisition Breakout under NAICS 517110 for FY08 through FY12

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 FY08 through FY12 period of $12.7 billion.

The highest total of reported contract spending is reported for Virginia, with $5.3 billion. Massachusetts ($901 million) and Colorado ($866 million) took the second and third spots. Together, the top five states represent almost 60% of market under NAICS 517110. Besides those in the top ten, an additional 9 states (Arizona, Florida, Texas, South Carolina, New York, New Jersey, Pennsylvania, Hawaii, & Ohio) reported at least $100 million for NAICS 517110 during this time period.

Contract Place of Performance under NAICS 517110 for FY08 through January 2011

Source: epipeline's Contract History Plus*

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