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NAICS NewsletterMay 1, 2008

NAICS 541611

Administrative Management and General Management Consulting

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 the services of Administrative Management and General Management Consulting.


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 Administrative Management and General Management Consulting.


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 'Administrative Management and General Management Consulting Services' industry, NAICS 541611. To understand the future, one must study the past. epipeline's Contract History Plus* provides you with a broad context and several perspectives that enables 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 buying these services over the last four fiscal years.

Top 10 Federal Agencies by % of Total Market FY04 - FY07 for NAICS 541611

WHAT IS NAICS 541611?

Companies represented by NAICS 541611 provide operating advice and assistance to businesses and other organizations on administrative management issues, such as financial planning and budgeting, equity and asset management, records management, office planning, strategic and organizational planning, site selection, new business startup, and business process improvement. These companies also include general management consultants that provide a full range of administrative; human resource; marketing; process, physical distribution, and logistics; or other management consulting services to clients.

The description of NAICS 541611 is further broken out to include these additional specific topics:

  • Administrative management consulting services
  • Business management consulting services
  • Business start-up consulting services
  • Financial management consulting (except investment advice) services
  • General management consulting services
  • Medical office management consulting services or consultants
  • Records management consulting services
  • Reorganizational consulting services
  • Site location consulting services
  • Site selection consulting services
  • Strategic planning consulting services

NAICS 541611 has remained the same through all versions of the NAICS - 1997, 2002, and 2007. It was previously represented by SIC 8742. The size standard for NAICS 541611 the size standard is $6.5 Million (effective October 1, 2007), which means that a company, including its affiliates, would be considered a "small business" if their average annual gross receipts does not exceed $6.5 Million for the past three years. If a company has not been in business for three years, the average weekly revenue for the number of weeks the company has been in business is multiplied by 52 to determine the average annual receipts.

Total reported spending under NAICS 541611 for the period of FY04 through FY07 was over $16 Billion. The highest level of reported spending was in FY04, with $5.30 Billion. FY05 saw that number decrease to $3.65 Billion. Spending for FY06 dipped further, to $3.31 Billion and FY07 had $3.72 Billion in reported contract spending. Note, it is possible that some Defense spending for the more recent fiscal years (FY05 to present) is not as widely reported as earlier years. These numbers will likely increase as more departments and agencies report their contract spending.

WHO ISSUES THE CONTRACTS?

The Department of Defense (DoD) was the largest buyer for these services for the last four fiscal years (FY04 through FY07), with over $8.02 Billion in contract spending, comprising over 50% of the market share for NAICS 541611. This value includes all components of the Defense Department (Army, Navy, Marine Corps, Air Force, DLA, etc.). This amount could grow even more, as there are some gaps in reported DOD spending (FY05 and later). The Department of Homeland Security (DHS), was a distant second, with 11% of the market share, equating to approximately $1.80 Billion. The remaining Departments/Agencies in the top ten all reported spending over $200 Million for the FY04-FY07 period.

Top 10 Federal Agencies by % of Total Market FY04 - FY07 for NAICS 541611

WHO WINS THE CONTRACTS?

According to the Central Contractor Registry (CCR), there are 20,801 companies registered under NAICS 541611 (source: active registrants, www.ccr.gov as of 04/24/2008). Of this number, 16,574 qualify as small businesses.

The two charts below identify the top 10 Companies, by market share, for the period of FY04 through FY07. 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

Science Applications International Corporation (SAIC) holds the top spot on the unrestricted competition list, with over $902 Million in total contract dollars for FY04 through FY07 - or 8.3% of the market share. The next two firms, Cooperative Personnel Services and Boeing Service have reported spending over $400 Million for that period, with $479 Million and $451 Million, respectively. The remaining firms in the top ten, along with additional two companies have reported spending over $200 Million.

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 541611 Contractors by % of Total Market for FY04 - FY07 - Unrestricted

The combined contract spending for contracts awarded under "restricted competition" totaled over $1.10 Billion for FY04 through FY07. Exceed Corporation takes top honors for contracts with reported acquisition strategies associated with small businesses. Their 5.79% of the market share equates to contract dollars exceeding $64 Million. TKC Communications LLC took the second spot with their 4.45% of the market share, which represented just under $50 Million in contract spending. The remaining firms in the top ten, along with twelve other companies that fall outside the top ten all had contracts with spending reported for that period exceeding $10 Million.

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 541611 Contractors by % of Total Market for FY04 - Q2FY08 - RESTRICTED Competition

HOW ARE THESE CONTRACTS PROCURED?

Over 56% of the contract dollars spend during the FY04 through FY07 timeframe were awarded using full and open competition. This represented over $9.0 Billion for NAICS 541611. Over 34% of contracts during this period did not report their acquisition strategy. These contracts could include those awarded using full and open competition, small business set-aside, or any manner of restriction. This accounted for over $5.4 Billion in contract dollars. Contracts that were sole sourced to 8(a) firms totaled $640 Million for this period, whereas competitively awarded contracts set aside for 8(a)s totaled $269 Million. Reported spending for small business set-aside contracts had a total reported value of $464 Million.

Acquisition Breakout under NAICS 541611 - FY04 through FY07

WHERE ARE THESE CONTRACTS PERFORMED?


These contracts are being performed across the continental United States and abroad. The 50 states plus Washington, DC have reported spending of $16 Billion and contracts for locations outside the United States total over $1.07 Billion. The map below illustrates the distribution of locations within the United States. For example, there are 11 states that are shaded deep red. This means that these states have reported contract spending between $140 Million and $4.98 Billion.

The state with the highest total of reported contract spending is Virginia, with over $4.97 Billion. The District of Columbia (Washington, DC) has the second largest reported amount, with over $3.35 Billion. Maryland also had contract spending for the FY04-FY07 period exceeding $1 Billion - with over $1.59 Billion. Virginia, Maryland, and DC form the "Beltway Bandits" geographical zone, where many government contractors have offices. Texas and California have spending reported over $500 Million for NAICS 541611.

Contract Place of Performance under NAICS 541611 FY04-FY07

Source: epipeline's Contract History Plus*

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