In this Issue

Minimize or Maximize
NAICS Newsletter November 19, 2012

NAICS 518210

Data Processing, Hosting, and Related 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 Data Processing, Hosting, and Related 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 Data Processing, Hosting, and Related 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 'Data Processing, Hosting, and Related Services' industry, NAICS 518210. 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 FY08 through FY12 for NAICS 518210

WHAT IS NAICS 518210?

This industry comprises establishments primarily engaged in providing infrastructure for hosting or data processing services. These establishments may provide specialized hosting activities, such as web hosting, streaming services or application hosting; provide application service provisioning; or may provide general time-share mainframe facilities to clients. Data processing establishments provide complete processing and specialized reports from data supplied by clients or provide automated data processing and data entry services.

The size standard associated with NAICS 518210 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 518210 for the period of Fiscal Year 2008 (FY08) through Fiscal Year 2012 (FY12) was over $5 billion. FY12 reported spending of almost $1 billion for services under NAICS 518210. The chart below illustrates the reported** spending by year for FY08 through FY12.

Reported Contract Spending for NAICS 518210 FY08 through FY12

Source: epipeline's Contract History Plus*

WHO ISSUES THE CONTRACTS?

The Federal Technology Service was the largest procurer for these services for the last five fiscal years (FY08 through FY12), with more than $500 million in contract spending, comprising 9.6% of the market share for NAICS 518210. The Army took the second spot, with $453 million in reported spending for this period. Centers for Medicare and Medicaid Services, and the Department of Education took third and fourth places, respectively, making up a combined market share of over 13% for all spending in NAICS 518210.

The FBI and VA spent over $500 million during this time period with the rest of the top ten reporting spending just under $800 million for NAICS 518210.

Top 10 Federal Agencies by % of Total Market FY08 through FY12 for NAICS 518210

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 FY08 through FY12. 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

Electronic Data Systems achieved the top spot on the unrestricted competition list, with over $1.1 billion in contract dollars for FY08 to FY12 and more than 20% of market share. Apptis Technology Solutions, LLC landed over $300 million in contract dollars with Perot Systems Government Services Inc, and BAE Systems Information Technology each earning over $250 million. Lockheed Martin Technology Services, Cingular Wireless, Safeguard Services LLC, & Safari Land LTD Inc all earned over $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 be reflected in the chart below.

Top 10 NAICS 518210 Contractors by % of Total Market for FY08 through FY12 - All Acquisition Strategies

Source: epipeline's Contract History Plus*

The combined contract spending for contracts awarded under "restricted competition," as outlined above, totaled over $700 million for FY08 through FY12. Buccaneer Computer Systems Services Inc takes the top spot, with reported spending of over $86 million for this period, or over 11% of market share. Indyne Inc and Rolling Bay, LLC each secured more than $50 million in contracting dollars for this time 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 518210 Contractors by % of Total Market for FY08 through FY12 - Restricted Competition

Source: epipeline's Contract History Plus*

HOW ARE THESE CONTRACTS PROCURED?

75% of contract spending reported for the FY08 through FY12 timeframe under NAICS 518210 used full and open (unrestricted aka "N/A") competition. This equated to over $4.2 billion. Contracts that did not indicate their acquisition strategy (which means they could represent any acquisition strategy) reported contract spending of over $628 million. Competitive 8a and 8a sole source set-aside procurements both topped $250 million.

Acquisition Breakout under NAICS 518210 for FY08 through FY12

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 FY08 through FY12 period of $5.6 billion.

The highest total of reported contract spending is reported for Virginia, with $1.3 billion. The District of Columbia ($984 million) and Maryland ($851 million) took the second and third spots. Together, the top five states represent over 66% of market under NAICS 518210. Seven of the states in the top ten reported at least $100 million for NAICS 518210 during this time period.

Contract Place of Performance under NAICS 518210 for FY08 through January 2011

Source: epipeline's Contract History Plus*

Related Articles:
Identify, Qualify & Win More Government Contracts for All Other Misc Waste Mgmt Svcs

Get a live demo to see how you can:

  • Build a government lead pipeline from current and future bid opportunities
  • Qualify leads with invaluable market intelligence
  • Access procurement history to better understand government agency needs
  • Win federal, state and local bids from government agencies
  • Gain a competitive advantage
Get a live demo Separator

"epipeline’s sales, support, and research staff have been incredibly responsive and professional. Easy to use tracking and management tools elevate their product in a crowded field. The Contract History and Market Intelligence functions have increased my ability to analyze our competitors and target opportunities that will provide a greater PWin. "

Ahsha Miranda
C-Port Marine Services, LLC

Separator

epipeline is part of Government Contracts USA, offering a range of services in government contracts, government RFPs, government bids and government procurement systems.

Federal Contracting: epipeline & You epipeline's proprietary research, enables you to effectively identify, qualify, distribute, and manage opportunities at an earlier stage, reducing your costs and providing a competitive advantage.