January 25, 2007

epipeline's Eye on Wired Telecommunications Carriers, NAICS 517110


As the Business Development Manager responsible for creating the business plan for your company, it can be very challenging to gain a perspective of opportunities over the several years; and from that, determine the specific opportunities to pursue.


This week we are going to look at the opportunities for Wired Telecommunications Carriers (NAICS 517110). To understand this NAICS code better, epipeline has asked the following questions:


         Who issues the contracts?

         Who wins the contracts?


NAICS 517110 is used when establishments engaged in (1) operating and maintaining switching and transmission facilities to provide point-to-point communications via landlines, microwave, or a combination of landlines and satellite linkups or (2) furnishing telegraph and other non-vocal communications using their own facilities.


This NAICS covers many specific topics as they relate to research and development. NAICS 517110 is the current, 2002 version of the NAICS code. The 1997 version was NAICS 513310. It was also previously represented by the following Standard Industrial Classification (SIC) codes:

         4813 Telephone Communications, Except Radiotelephone (except resellers)

         4822 Telegraph and Other Message Communications


The size standard associated with NAICS 517110 is 1,500 employees.


Total reported spending under NAICS 517110 in FY03 was over $1.7 Billion. FY04 saw an increase, to just over $2.0 Billion. (Source: epipeline's FPDS information, covering fiscal years 2003 and 2004).



Who issues the contracts?


The Department of Defense (DoD) was by far the largest buyer for these services in FY04, with over $1.2 Billion in contract spending, comprising over 61% of the market share. The Army was a distant second, with over $400 Million and over 20% of the market share. Within the top ten, the Department of Defense and its components (Army, Air Force, and Navy), combined contract dollars topped $1.8 Billion, which equated to over 90% of all spending under NAICS 517110 in FY04.


Who wins the contracts?


According to the Central Contractor Registry (CCR), there are 2,053 companies registered under NAICS 517110 (source: active registrants, www.ccr.gov as of 4/28/06). 1,683 of those are small businesses. The two charts below identify the top 10 Companies, by market share, for FY04. 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


SAIC holds the top spot on the unrestricted competition list, with almost $500 Million in contract dollars for FY04 and almost 25% of the market share. The second spot is held by "Unknown" firm(s). This data is provided to epipeline by FPDS (Federal Procurement Data System) and some fields are simply missing on many of the contract action entries. For example not every action has a Contractor specified, so you may see millions of dollars in business summarized under a "blank" Contractor name. This is not a single contractor that is missing, this is the aggregate of all entries that do not have a contractor name. This "Unknown" contractor equates to over $160 Million. General Dynamics Network Systems holds the third spot, with over $107 Million. EDS Corporation and Siemens Enterprise Networks LLC round out the top five. FY04 listed over 30 companies holding contracts with at least $10 Million in contract dollars, with another 80 having $1 Million or more. PLEASE NOTE: as this is a listing by Company name, rather than PARENT company, some companies may have more than one ranking, which is not reflected in the chart below.



The combined contract spending for contracts awarded under "restricted competition" totaled over $340 Million in FY04. Chenega Technology Services Corporation tops this list with over 20% of the restricted contract spending in FY04, which equates to over $70 Million. Chenega, and Indyne appear on both the "unrestricted" top 10 as well as the "restricted" top 10. All firms in the top 10 have over $9 Million each, from Indyne's $58 Million to Halifax's $9.3 Million. There were over 22 firms hold contracts with at least $1 Million or more in FY04. PLEASE NOTE: as this is a listing by Company name, rather than PARENT company, some companies may have more than one ranking, which is not reflected in the chart below.



Full and Open (unrestricted) competition was the primary acquisition strategy under NAICS 517110 in FY04, with over $1.5 Billion in contract spending. Contracts that were small business set-aside had a respectable 12.5% of the market share. The combined spending for 8(a) sole source and competitive requirements reached almost $100 Million in FY04. HUBZone set-aside contracts totaled $100,000 in FY04, and, while not included in the pie chart below, was the only other measurable procurement strategy in FY04 under this code. Procurements for Small Disadvantaged Businesses (SDB) and  Service-Disabled Veteran-Owned Small Businesses (SDVOSB) were listed with zero dollars in contract spending in FY04. 


 epipeline's application contains a number of opportunities that are identified by this NAICS code. To learn more about the NAICS 517110 opportunities or other opportunities that epipeline is tracking today; try the following search in the epipeline application:


Find NAICS 517110, "Wired Telecommunications Carriers" Opportunities

1. After logging in, select Researched Opportunities

2. NAICS Code(s) - Type 517110 (or, try using the SIC field, with 4813, 4822);

3. Click Search


Find NAICS 517110, "Wired Telecommunications Carriers" Opportunities

1. After logging in, select FPDS Contract History

2. Type 517110 in the NAICS field

3. Click Search


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