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NAICS Newsletter May 14, 2018

NAICS 541512

Computer Systems Design 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 Computer Systems Design 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 Computer Systems Design 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 'Computer Systems Design Services' industry, NAICS 541512. epipeline's Contract History Plus* provides you with a broad context and several perspectives that enable 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/agencies buying these services over the last five fiscal years.

Top 10 Federal Agencies by % of Total Market FY14 through FY18 for NAICS 541512

WHAT IS NAICS 541512?

This U.S. industry comprises establishments primarily engaged in planning and designing computer systems that integrate computer hardware, software, and communication technologies. The hardware and software components of the system may be provided by this establishment or company as part of integrated services or may be provided by third parties or vendors. These establishments often install the system and train and support users of the system.

Illustrative Examples:

Computer systems integration design consulting services

Local area network (LAN) computer systems integration design services

Information management computer systems integration design services

Office automation computer systems integration design services

Cross References:

Selling computer hardware or software products and systems from retail-like locations, and providing supporting services, such as customized assembly of personal computers--are classified in U.S. Industry 443142, Electronics Stores; and

Merchant wholesaling computer hardware or software products and providing supporting services, such as customized assembly of personal computers--are classified in Industry 423430, Computer and Computer Peripheral Equipment and Software Merchant Wholesalers.

The size standard associated with NAICS 541512 is $27.5 million (effective January 1, 2017), which means that a company, including its affiliates, would be considered a "small business" if their earnings did not exceed $27.5 million for each of the pay periods for the preceding completed 12 calendar months.

Total reported spending under NAICS 541512 for the period of Fiscal Year 2014 (FY14) through Fiscal Year 2018 (FY18) was approximately $59.7 billion. FY18 reported spending was $1.8 billion for services under NAICS 541512. The chart below illustrates the reported** spending by year for FY14 through FY18.

Reported Contract Spending for NAICS 541512 FY14 through FY18

Source: epipeline's Contract History Plus*

WHO ISSUES THE CONTRACTS?

The GSA’s Federal Acquisition Service was the largest procurer of these services for the last five fiscal years (FY14 through FY18) with $8.7 billion in contract spending, comprising 14.5% of the market for NAICS 541512. The Department of Veterans Affairs held the second spot with $8.9 billion in contract dollars and 11.5% of the market, and the Centers for Medicare and Medicaid Services held the third spot with $6.5 billion in contract dollars and 10.8% of the market. The State Department ($2.6 billion), the Navy ($2.5 billion), and the Army ($2.5 billion) each saw over $2 billion in contract spending. The Air Force ($1.96 billion), NASA ($1.95 billion), the National Institutes of Health ($1.9 billion), and the Federal Aviation Administration ($1.4 billion) each held between 2.3% and 3.3% market share. These ten agencies accounted for just over three-fifths of the market, or 61.7%.

Top 10 Federal Agencies by % of Total Market FY14 through FY18 for NAICS 541512

Source: epipeline's Contract History Plus*

WHO WINS THE CONTRACTS?

The two charts below identify the top 10 Companies, by market share, for the period of FY14 through FY18. 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

Booz Allen Hamilton earned the top spot on the unrestricted competition list with $4.7 billion in contract dollars and 9.8% market share for FY14 to FY18. SAIC ($3.5 billion), SRA ($3.3 billion), and Electronic Data Systems ($2.9 billion) all saw over 6% market share and $2 billion in contract spending. Lockheed Martin ($1.9 billion) saw over 4% market share, while Accenture ($1.9 billion), Deloitte Consulting ($1.6 billion), and Systems Made Simple ($1.4 billion) saw over 3% market share. Motorola ($1.21 billion) and Unisys Corporation ($1.17 billion) rounded out the top ten with 2.53% and 2.45% market share, respectively. Together, these ten companies comprised just under half, or 49.4%, of the market.

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 be reflected in the chart below.

Top 10 NAICS 541512 Contractors by % of Total Market for FY14 through FY18 - All Acquisition Strategies

Source: epipeline's Contract History Plus*

The combined spending for contracts awarded under "restricted competition," as outlined above, totaled approximately $12.5 billion for FY14 through FY18. ActioNet held the top spot with $1.1 billion in contract dollars and 8.7% market share. Digital Management took the second spot with $510 million in contract dollars and 4.1% market share, while Phacil took the third spot with $407 million in contract dollars and 3.3% market share. By Light, Professional IT Services ($288 million), Buchanan and Edwards ($272 million), Ventech Solutions ($270 million), Attain ($266 million), T-Rex Consulting Corporation ($256 million), and NES Associates ($253 million) all saw between 2% and 2.4% market share. Ace Info Solutions ($233 million) finished out the top ten restricted companies competition with 1.9% market share.

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 541512 Contractors by % of Total Market for FY14 through FY18 - Restricted Competition

Source: epipeline's Contract History Plus*

HOW ARE THESE CONTRACTS PROCURED?

66.96% of contract spending reported for the FY14 through FY18 timeframe under NAICS 541512 used full and open (unrestricted, aka "N/A") competition; this equated to $39.99 billion in contract dollars. Small businesses held the second largest market share (14.4%) with $8.6 billion in contract dollars. Competitive 8(a) projects took 8.5% of the market with $5.1 billion in spending, while projects sole-sourced to 8(a) companies took 2.5% of the market with $1.5 billion in spending. Requirements set aside for service-disabled veteran-owned business saw $1.7 billion in contract dollars. 3.9% of requirements did not report a set-aside.

Acquisition Breakout under NAICS 541512 for FY14 through FY18

Source: epipeline's Contract History Plus*

WHERE ARE THESE CONTRACTS PERFORMED?

These contracts are being performed across the United States with a reported spending for the FY14 through FY18 period of $59.7 billion.

Virginia had the highest total reported contract spending with $17.99 billion, or 30.1% market share. Maryland came in second with $12.99 billion in contract dollars and 21.8% market share, while Washington, D.C. took the third sport with $11.6 billion in contract dollars and 19.4% market share. Florida ($1.97 billion), Texas ($1.6 billion), California ($1.3 billion), and Georgia ($1.3 billion) also saw over $1 billion in contract spending. Colorado ($864 million), New York ($761 million), and West Virginia ($627 million) all held between 1% and 2.2% market share. Taken together, these ten states represented 85.4% of the market. 4.03% of requirements under NAICS 541512 did not report a specific location.

Contract Place of Performance under NAICS 541512 for FY14 through FY18

Source: epipeline's Contract History Plus*

Related Articles:
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