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NAICS NewsletterApril 5, 2007

NAICS 541990

All Other Professional, Scientific, and Technical 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 the services of All Other Professional, Scientific, and Technical 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 All Other Professional, Scientific, and Technical 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 'All Other Professional, Scientific, and Technical Services' industry, NAICS 541990. 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 FY03 through FY06 for NAICS 541990

WHAT IS NAICS 541990?

NAICS 541990 is the primary code when projects require professional, scientific, or technical services. These professional, scientific, or technical services do not include the following types of work: legal services; accounting, tax preparation, bookkeeping, and related services; architectural, engineering, and related services; specialized design services; computer systems design and related services; management, scientific, and technical consulting services; scientific research and development services; advertising and related services; market research and public opinion polling; photographic services; translation and interpretation services; and veterinary services.

This NAICS was previously represented by several Standard Industrial Classification (SIC) codes. These codes covered a wide variety of topics, as listed below:

  • 4499 - Marine surveyor (i.e., ship appraiser) services

  • 7299 - Consumer credit counseling services; Credit repair (i.e., counseling) services, consumer

  • 7389 - Includes the following types of work:

    • Appraisal (except real estate) services
    • Arbitration and conciliation services (except by attorney, paralegal)
    • Business brokers (except real estate brokers)
    • Commodity inspection services
    • Estate assessment (i.e., appraisal) services
    • Handwriting analysis services
    • Handwriting expert services
    • Mediation product services (except by lawyer, attorney, paralegal offices, family
    • Outplacement services
    • Patent broker services (i.e., patent marketing services)
    • Patrolling (i.e., visual inspection) of electric transmission or gas lines
    • Pipeline inspection (i.e., visual) services
    • Power line inspection (i.e., visual) services
    • Quantity surveyor services

  • 8999 Meteorological services; Weather forecasting services

The size standard associated with NAICS 541990 is $6.5 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 $6.5 Million for the past three years.

Total reported spending under NAICS 541990 in FY03 was over $3.7 Billion. FY04 saw a slight increase, to over $3.9 Billion. Spending for FY05 and FY06 are not as widely reported as the previous fiscal years, so those values are lower ($3.1 Billion for FY05 and $2.6 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. These numbers may 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 (FY03 through FY06), with almost $8.0 Billion in contract spending, comprising almost 60% of the market share for NAICS 541990. 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 as widely reported yet (at least as far as FPDS data).

The Department of Homeland Security (DHS) was a distant second, with just under $1.4 Billion over the same period. NASA followed closely behind in third place, with over $1.2 Billion and just over 9% of the market share. The United States Agency for International Development (AID aka USAID) and the Department of Health and Human Services (HHS aka DHHS) rounded out the top five.

Top 10 Federal Agencies by % of Total Market FY05 through FY09 for NAICS 541990

WHO WINS THE CONTRACTS?

According to the Central Contractor Registry (CCR), there are 13,907 companies registered under NAICS 541990 (source: active registrants, www.ccr.gov as of 03/29/2007). Of this number, 11,373 qualify as small businesses. The two charts below identify the top 10 Companies, by market share, for the period of FY03 through FY06. 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

Massachusetts Institute Of Technology (MIT) holds the top spot, by a significant margin, on the unrestricted competition list, with over $1.3 Billion in total contract dollars for FY03 through FY06 - almost 13% of the market share. The next six contractors on the list: Boeing North American Inc., the Institute For Defense Analyses, The Mitre Corporation, Shaw Environmental Inc, Army Fleet Support LLC, and Bechtel National Inc., all have contract dollars totaling over $500 Million for the same period under this NAICS. Another 15 firms' reported contract dollars was at least $100 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 541990 Contractors by % of Total Market for FY03 through FY06 - Unrestricted

The combined contract spending for contracts awarded under "restricted competition" totaled over $305 Million for FY03 through FY06. San Diego Research Center Inc., takes top honors on the restricted chart, with over 7% of the restricted contract spending, which equates to over $22 Million. KUK Construction LLC, Myriad Development Inc., Wincomp LLC, and Jorge Scientific Corporation all have contract dollars for this timeframe exceeding $10 Million. The remaining five contractors in the top ten, along with another five firms are all over $5 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 541990 Contractors by % of Total Market for FY03 through FY06 - RESTRICTED Competition

HOW ARE THESE CONTRACTS PROCURED?

Over half of the contract dollars spend during the FY03 through FY06 timeframe used unrestricted (full and open) competition to award their contracts, equating to over $7 Billion. Businesses of any size and type can compete for these contracts. Another 44% (almost $6 Billion) 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. By comparison, contract dollar totals for this period for all other acquisition strategies combined, was only about 3% of the market share. The breakout of this segment of reported acquisition strategies is described in the second pie chart below.

Acquisition Breakout under NAICS 541990 - FY03 through FY06

Over half of contract dollars (from the 'All Other Strategies' described in the chart above) were set-aside for small businesses. This represented over $210 Million in reported contract spending over the FY03-FY06 period. Almost one-third of the market share was sole sourced to 8(a) firms (this may include those sole sourced to Alaska Native Corporations). Competitive 8(a) and HUBZone requirements, along with those partially set-aside for small businesses, all held at least 1% of the market share. Unless otherwise indicated, the acquisition strategies listed below were competitive requirements.

Acquisition Breakout other than Full and Open under NAICS 541990 for FY03 through FY06

Source: epipeline's Contract History Plus*

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