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February 8, 2007

epipeline's Eye on Other Computer Related Services, NAICS 541519


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 Other Computer Related Services (NAICS 541519). To understand this NAICS code better, epipeline has asked the following questions:


         What is NAICS 541519?

         Who issues the contracts?

         Who wins the contracts?

         How are these contracts procured?


Please note, the information in the following sections is pulled from epipeline's Contract History Plus feature, which sourced by the Federal Procurement Data System (FPDS). Please note, the contract spending for fiscal years 2005 and 2006 have not been widely reported, especially by the Department of Defense. The total values reflect only reported spending, not necessarily actual spending.



What is NAICS 541519?


NAICS 541519 is used for providers of computer related services, including those firms that provide computer disaster recovery services or software installation services. However, this code does not include the following services, which are represented by other codes: custom programming, systems integration design, and facilities management services.


This NAICS was previously represented by Standard Industrial Classification (SIC) code 7379, as it related to computer disaster recovery services and software installation services for computers.


The size standard associated with NAICS 541519 is $23.0 Million (effective July 31, 2006), which means that a company, including its affiliates, would be considered a "small business" if their average annual gross revenue does not exceed $23.0 Million for the past three years.


Total reported spending under NAICS 541519 in FY03 was over $7.7 Billion. FY04 saw an increase, to over $7.8 Billion. Spending for FY05 and FY06 are not as widely reported as the previous fiscal years, so those values are significantly lower ($4.0 Billion for FY05 and $2.1 Billion for FY06). This does not necessarily mean those years saw decreased spending, rather, it indicates that many agencies have not reported all of their contract data to the FPDS yet.



Who issues the contracts?


The Department of Defense (DoD) was by far the largest buyer for these services for the last four fiscal years (FY02 through FY06), with almost $10.5 Billion in contract spending, comprising almost half of the market share for NAICS 541519. This value may include all components of the Defense Department (Army, Navy, Air Force, DLA, etc.), however, FY05 and FY06 contract dollars have not been reported yet (at least as far as FPDS data).


The General Services Administration (GSA) was a distant second, with almost $4.0 Billion and over 17% of the market share. The Department of Treasury, Department of Homeland Security (DHS), and the Department of Health and Human Services (HHS aka DHSS) rounded out the top five.



Who wins the contracts?


According to the Central Contractor Registry (CCR), there are 16,263 companies registered under NAICS 541519 (source: active registrants, www.ccr.gov as of 02/02/2007). Of this number, 14,630 qualify as 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


EDS holds the top spot on the unrestricted competition list, with over $1.9 Billion in total contract dollars for FY02 through FY06 - over 15% of the market share. The second spot is held by Accenture. Their contract dollars for the same period was over $1.0 Billion. CSC, SAIC, and Anteon Corporation hold the remaining spots in the top five.


The combined contract spending for this period (FY02 through FY06) listed over 20 companies holding contracts with at least $100 Million in contract dollars. 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 $1.5 Billion for FY02 through FY06. Swales and Associates tops this list with just over 7% of the restricted contract spending, which equates to over $82 Million. DUCOM is a close second, with $77 Million and almost 6.7% of the market share. 36 firms have over $10 Million each.
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.


How are these contracts procured?


A significant percentage of contracts with spending during the FY02 through FY06 timeframe under NAICS 541519 did not report their acquisition strategy. This could include contracts awarded using full and open competition, small business set-aside, or any manner of restriction. This accounted for over 65% of the market share - over $14 Billion in contract dollars. Full and Open (unrestricted) competition held 29% of the market share, equating to over $6 Billion. Businesses of any size and type can compete for these contracts. By comparison, contract dollar totals for this period for all other acquisition strategies combined, was only $1.1 Billion. The breakout of this segment of reported acquisition strategies is described in the second pie chart below.



Over 44% of contract dollars (from the 'All Other Strategies' described in the chart above) were sole sourced to 8(a) firms - this may include those that were to Alaska Native Corporations. This represented over $500 Million in reported contract spending over the FY02-FY06 period. One-fourth of the market share was held by contracts that were small business set-aside. 8(a) competitive procurements, contracts that were partially small business set-aside and "Buy Indian" contracts all held at least 1% of the market share - over $10 Million in contract dollars.



epipeline's application contains a number of opportunities that are identified by this NAICS code. To learn more about the NAICS 541519 opportunities or other opportunities that epipeline is tracking today; try the following search in the epipeline application:


Find NAICS 541519, "Other Computer Related Services" Opportunities

1. After logging in, select Researched Opportunities

2. NAICS Code(s) - Type 541519 (or, try using the SIC field, with 7379);

3. Click Search


Find NAICS 541519, "Other Computer Related Services" Opportunities

1. After logging in, select Contract History or Contract History Plus

2. Type 541519 in the NAICS field

3. Click Search


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