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NAICS Newsletter February 18, 2013

NAICS 541511

Custom Computer Programming 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 Custom Computer Programming 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 Custom Computer Programming 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 'Custom Computer Programming Services' industry, NAICS 541511. 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 four fiscal years.

Top 10 Federal Agencies by % of Total Market FY09 through FY13 for NAICS 541511

WHAT IS NAICS 541511?

This U.S. industry comprises establishments primarily engaged in writing, modifying, testing, and supporting software to meet the needs of a particular customer.

The size standard associated with NAICS 541511 is $25 million (effective November 5, 2010), which means that a company, including its affiliates, would be considered a "small business" if their average annual earnings do not exceed $25,000,000 for each of the pay periods for the preceding completed 12 calendar months.

Total reported spending under NAICS 541511 for the period of Fiscal Year 2009 (FY09) through Fiscal Year 2013 (FY13) was over $22 billion. FY13 reported spending of $399 million for services under NAICS 541511. The chart below illustrates the reported** spending by year for FY09 through FY13.

Reported Contract Spending for NAICS 541511 FY09 through FY13

Source: epipeline's Contract History Plus*

WHO ISSUES THE CONTRACTS?

The Army was the largest procurer for these services for the last five fiscal years (FY09 through FY13), with more than $4.7 billion in contract spending, comprising 21% of the market share for NAICS 541511. The Navy and the Air Force each exceeded $1 billion, with a combined market share of over 14%. Five other agencies, Veterans Affairs, Defense Information Systems Agency, Federal Technology Service, US Customs and Border Control, and the Office of Procurement Operations, exceed $500 million (17.3%).

Top 10 Federal Agencies by % of Total Market FY09 through FY13 for NAICS 541511

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 FY09 through FY13. 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

Litton Systems Inc achieved the top spot on the unrestricted competition list, with over $956 million in contract dollars for FY09 to FY13 and more than 5% of market share. Three additional firms, International Business Machines, TRW, and Lockheed Martin Corporation, exceeded $500 million (conbined 10% market share). SAIC, Electronic Data Systems, and Artel Inc each exceeded $400 million. The remainder of the top ten, Boozallen and Hamilton Incl, Catapult Technology LTD, and Raytheon Technical Services Company, all exceeded $300 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 be reflected in the chart below.

Top 10 NAICS 541511 Contractors by % of Total Market for FY09 through FY13 - All Acquisition Strategies

Source: epipeline's Contract History Plus*

The combined contract spending for contracts awarded under "restricted competition," as outlined above, totaled over $2.9 billion for FY09 through FY13. Digital Management Inc takes the top spot, with reported spending of over $156 million for this period, or over 5% of market share. Ace Info Solutions and Catapult Technology LTD each exceeded $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 541511 Contractors by % of Total Market for FY09 through FY13 - Restricted Competition

Source: epipeline's Contract History Plus*

HOW ARE THESE CONTRACTS PROCURED?

76% of contract spending reported for the FY09 through FY13 timeframe under NAICS 541511 used full and open (unrestricted aka "N/A") competition. This equated to over $17 billion. Contracts that did not indicate their acquisition strategy (which means they could represent any acquisition strategy) reported contract spending of almost $1.4 billion. Competitive 8a and 8a Sole Source set-aside procurements both topped $1 billion.

Acquisition Breakout under NAICS 541511 for FY09 through FY13

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 FY09 through FY13 period of $22.3 billion.

The highest total of reported contract spending is reported for Virginia, with $7.2 billion. The District of Columbia ($3.6 billion), Maryland ($2.3 billion), and California ($1.3 billion) all exceeded $1 billion. Together, the top three states represent almost 60% of market under NAICS 541511. Three additional states, Texas, Georgia, and Alabama, reported at least $600 million for NAICS 541511 during this time period.

Contract Place of Performance under NAICS 541511 for FY09 through January 2011

Source: epipeline's Contract History Plus*

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