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NAICS NewsletterOctober 16, 2008

NAICS 236220

Commercial and Institutional Building Construction

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 Commercial and Institutional Building Construction.


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 Commercial and Institutional Building Construction.


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 'Commercial and Institutional Building Construction' industry, NAICS 236220. 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 - Q2FY08 for NAICS 236220

WHAT IS NAICS 236220?

NAICS 236220 is used when the requirements of the contract involve planning the construction (including new work, additions, alterations, maintenance, and repairs) of commercial and institutional buildings and related structures, such as stadiums, grain elevators, and indoor swimming pools. This industry includes establishments responsible for the on-site assembly of modular or prefabricated commercial and institutional buildings. Included in this industry are commercial and institutional building general contractors, commercial and institutional building operative builders, commercial and institutional building design-build firms, and commercial and institutional building project construction management firms.

This NAICS was previously represented by several Standard Industrial Classification (SIC) codes. These codes, as well as the specific topics they represented are now all rolled under the single NAICS code 236220:

  • General SIC Category 15 = Addition, alteration and renovation, industrial warehouse; Addition, alteration and renovation, commercial and institutional building; Addition, alteration and renovation, commercial warehouse; Addition, alteration and renovation, hotel and motel; Commercial building construction; Institutional building construction; Laboratory construction; Recreational facility building construction.

  • SIC 1522 = Barrack construction; Bunkhouse construction; Dormitory construction; Addition, alteration and renovation general contractors, hotel and motel; Hotel construction; Motel construction.

  • SIC 1531 = Addition, alteration and renovation operative builders, industrial warehouse; Addition, alteration and renovation operative builders, commercial and institutions; Addition, alteration and renovation operative builders, commercial warehouse; Addition, alteration and renovation operative builders, hotel and motel; Commercial building construction operative builders; Institutional building construction operative builders; Operative builders (i.e., building on own land, for sale), commercial and institutions; Speculative builders (i.e., building on own land, for sale), commercial and institutions.

  • SIC 1541 = Warehouse construction (e.g., commercial, industrial, manufacturing, private); Addition, alteration and renovation general contractors, industrial warehouse; Cold storage plant construction; Dry cleaning plant construction; Grain elevator construction; Storage elevator construction; Warehouse, industrial, construction; Addition, alteration and renovation general contractors, commercial warehouse; Public warehouse construction; Warehouse, commercial and institutional, construction.

  • SIC 1542 = Addition, alteration and renovation general contractors, commercial and institutions; Administration building construction; Airport building construction; Airport terminal construction; Amusement facility construction; Animal shelter and clinic construction; Arena construction; Armory construction; Athletic court, indoor, construction; Auditorium construction; Bank building construction; Barber shop construction; Beauty salon construction; Broadcasting station construction; Bus shelter construction; Bus terminal construction; Casino construction; Cinema construction; Civic center construction; Clinic construction; Commercial building construction general contractors; Educational building construction; Farm building construction; Fire and flood restoration of commercial and institutional buildings; Fire station construction; Garage and service station, commercial, construction; Handyman construction service, commercial and institutional building; Hangar construction; Health and athletic club construction; Hospital construction; Ice rink, indoor, construction; Institutional building construction general contractors; Jail construction; Library construction; Logging camp construction; Mausoleum (i.e., building) construction; Monument (i.e., building) construction; Museum construction; Office building construction; Parking garage construction; Penitentiary construction; Post office construction; Prefabricated commercial building erection; Prefabricated institutional building erection; Prison construction; Radio and television broadcast studio construction; Radio station construction; Railway station construction; Religious building (e.g., church, synagogue, mosque, temple) construction; Restaurant construction; Salon construction; School building construction; Service station construction; Shopping center construction; Shopping mall construction; Silo construction; Stadium and arena construction; Store construction; Television station construction; Tennis court, indoor, construction; Theater construction; Truck terminal construction.

  • SIC 1799 = Indoor swimming pool construction; Swimming pool, indoor, construction.

  • SIC 8741 = Construction management, commercial and institutional building.

The size standard associated with NAICS 236220 is $33.5 Million (effective August 22, 2008), which means that a company, including its affiliates, would be considered a "small business" if their average annual gross receipts does not exceed $33.5 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 236220 for the period of Fiscal Year 2004 (FY04) through the second quarter (Q2) of Fiscal Year 2008 (FY08 aka Q2FY08) was over $38 Billion. With two quarters reported, FY08 reported spending of $736 Million for services under NAICS 236220. The chart below illustrates the reported** spending by year for FY04 through Q2FY08.

Reported Contact Spending FY04 - Q2FY08 for NAICS 236220 Source: epipeline's Contract History Plus*
** 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 United States Army is the largest buyer of services under NAICS 236220, commanding over 45% of the market share for the last four fiscal years (FY04 through Q2FY08), with over $17.2 Billion in contract spending. The Army's Corps of Engineers provides services across the country and across other agencies under this NAICS.

The United States Navy, the General Services Administration (GSA)'s Public Buildings Service (PBS), and the State Department all hold about 10% of the market share apiece - with the Navy's reported contract spending for the FY04-Q2FY08 period just over $4 Billion and PBS and State just under. The Department of Veterans Affairs (VA aka DVA) and the United States Air Force also cracked the $1 Billion mark, with over $2 Billion each.

Top 10 Federal Agencies by % of Total Market FY04 - Q2FY08 for NAICS 236220 Source: epipeline's Contract History Plus*

WHO WINS THE CONTRACTS?

According to the Central Contractor Registry (CCR), there are 17,863 companies registered under NAICS 236220 (source: active registrants, www.ccr.gov as of 09/22/2008). Of this number, 14,331 qualify as small businesses, which includes the following breakout by socioeconomic categories (some companies may qualify under more than one category):

  • 1,967 SBA Certified 8(a) contractors;
  • 1,656 SBA Certified HUBZone contractors; and
  • 1,812 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 then the resulting totals above represent.

The two charts below identify the top 10 Companies, by market share, for the period of FY04 through Q2FY08. 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

Bill Harbert International holds the top spot on the unrestricted competition list, with $1.2 Billion in contract dollars for FY04-Q2FY08 and over 4.6% of the market share. Caddell Construction Company, Hensel Phelps Construction, and Fluor International all hold in the 3% market share range, with $938 Million, $888 Million and $795 million, respectively. SPSA LLC and Perini also were over $500 Million in reported contract spending for that period. All firms in the top ten had reported spending above $375 Million and another 57 companies held contracts with reported spending over $100 Million for the FY04 to Q2FY08 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 reflected in the chart below.

Top 10 NAICS 236220 Contractors by % of Total Market for FY04 - Q2FY08 - All Acquisition Strategies Source: epipeline's Contract History Plus*

The combined contract spending for contracts awarded under "restricted competition," as outlined above, totaled over $3.9 Billion for FY04 through Q2FY08. Ahtna Government Services Corporation had the highest reported spending with over $218 Million, or 5.5% of the market share. Alutiiq is listed three times in the top ten: in the second spot as part of the Chugach Alutiiq JV, in the third spot under Alutiiq International Solutions LLC, and in the seventh spot as Alutiiq Fluor Constructors. The combined reported spending for these three companies exceeds $227 Million for this contract period. All firms in the top ten, except for CCI Inc. of Alaska, reported spending above $50 Million for this period, and CCI Inc. of Alaska fell just short of that number, with $49.9 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 236220 Contractors by % of Total Market for FY04 - Q2FY08 - RESTRICTED Competition

HOW ARE THESE CONTRACTS PROCURED?

Over 73% of the contract dollars spend during the FY04 through Q2FY08 timeframe were awarded using full and open competition. This represented over $28.2 Billion for NAICS 236220. Over 8% 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 $3.3 Billion in contract dollars. Contracts sole sourced to 8(a) firms held 8.5% of the market share (over $3.2 Billion). Competitive 8(a) contracts was about $2 Billion below that number, at $1.3 Billion.

All other acquisition strategies combined were only 1.43% of the market share. The strategy with the highest reported contract spending was Service Disabled Veteran Owned Small Businesses (SDVOSBs), with over $256 Million.

Acquisition Breakout under NAICS 236220 - FY04 through Q2FY08 Source: epipeline's Contract History Plus*

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 $28.5 Billion and contracts for locations outside the United States total over $9.6 Billion. The state with the highest total of reported contract spending is California, with $2.04 Billion. Texas also exceeded the $2 Billion mark, with $2.02 Billion for the FY04-Q2FY08 period. Maryland, Georgia, North Carolina, Virginia, New York, Washington, DC, and Florida all reported spending above $1 Billion. Kentucky, along with another ten states outside the top ten reported spending above $500 Billion for this same period.

Contract Place of Performance under NAICS 236220 (FY04-Q2FY08)

Source: epipeline's Contract History Plus*

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