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NAICS Newsletter April 26, 2011

NAICS 541620

Environmental Consulting 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 Environmental Consulting 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 Environmental Consulting 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 'Environmental Consulting Services' industry, NAICS 541620. 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 FY07 through FY11 for NAICS 541620

WHAT IS NAICS 541620?

This industry comprises establishments primarily engaged in providing advice and assistance to businesses and other organizations on environmental issues, such as the control of environmental contamination from pollutants, toxic substances, and hazardous materials. These establishments identify problems (e.g., inspect buildings for hazardous materials), measure and evaluate risks, and recommend solutions. They employ a multidisciplined staff of scientists, engineers, and other technicians with expertise in areas, such as air and water quality, asbestos contamination, remediation, and environmental law. Establishments providing sanitation or site remediation consulting services are included in this industry.

The description of NAICS 541620 is further broken out to include these additional specific topics:

  • Environmental consulting services
  • Sanitation consulting services
  • Site remediation consulting services

Please be aware that environmental remediation is classified under NAICS 562910, Remediation Services; and providing environmental engineering services is classified under NAICS 541330, Engineering Services.

The size standard associated with NAICS 541620 is $7.0 Million (effective November 5, 2010), which means that a company, including its affiliates, would be considered a "small business" if their average annual gross receipts does not exceed $7.0 Million for the past three years.

Total reported spending under NAICS 541620 for the period of Fiscal Year 2007 (FY07) through Fiscal Year 2011 (FY11) was over $3.8 billion. FY11 reported spending of more than $55.6 million for services under NAICS 541620. The chart below illustrates the reported** spending by year for FY07 through FY11.

Reported Contract Spending for NAICS 541620 FY07 through FY11

Source: epipeline's Contract History Plus*

** Note: it is possible that some Defense spending for the more recent fiscal years (FY06 to present) is not as widely reported as earlier years. These numbers will likely increase as more departments and agencies report their current and historic contract spending.

WHO ISSUES THE CONTRACTS?

The Environmental Protection Agency was the largest procurer for these services for the last five fiscal years (FY07 through FY11), with over $778.7 million in contract spending, comprising over 20% of the market share for NAICS 541620. The Department of the Army took the second spot, with over $734.6 million in reported spending for this period. The Department of the Air Force and the Bureau of Reclamation took third and fourth places, respectively, making up a combined market share of 21.34% for all spending in NAICS 541620.

The Department of Energy and National Oceanic and Atmospheric Administration spent $158.4 and $152.5 million respectively during this time period with the rest of the top ten reporting spending just over $429.1 million for NAICS 541620.

Top 10 Federal Agencies by % of Total Market FY07 through FY11 for NAICS 541620

Source: epipeline's Contract History Plus*

WHO WINS THE CONTRACTS?

According to the Central Contractor Registry (CCR), there are 15,320 companies registered under NAICS 541620 (source: active registrants, www.ccr.gov as of 4/25/2011). Of this number, 10,417 qualify as small businesses, which includes the following breakout by socioeconomic categories (some companies may qualify under more than one category):

  • 814 SBA Certified 8(a) contractors;
  • 507 SBA Certified HUBZone contractors; and
  • 1,129 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 than the resulting totals above represent.

The two charts below identify the top 10 Companies, by market share, for the period of FY07 through FY11. 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 achieved the top spot on the unrestricted competition list, with over $291.8 million in contract dollars for FY07 to FY11 and over 9.5% of the market share. SAIC (Science Applications International Corporation) landed $157.2 million in contract dollars with Logistics Management Institute earning almost $153.8 million. ICF Incorporated and Team Intergrated Engineering Inc round out the top five with $112.1 and $77.6 million, respectively. Six additional firms, MWH Global, Tetra Tech Nus Inc, Portage Environmental Inc, Associates In Rural Development, Eastern Research Group Inc and Earth Tech, each topped $50 million in contracting dollars for the same 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 be reflected in the chart below.

Top 10 NAICS 541620 Contractors by % of Total Market for FY07 through FY11 - All Acquisition Strategies

Source: epipeline's Contract History Plus*

The combined contract spending for contracts awarded under "restricted competition," as outlined above, totaled over $519.3 million for FY07 through FY11. Project Time Cost Inc takes the top spot, with reported spending of over $37.8 million for this period, or 7.28% of market share. Environmental Management Support Inc also secured over $28.6 million in contracting dollars for this time period. One other firm in the top ten, Perrin Quarles Associates Inc, also exceeded $20 million in reported spending for NAICS 541620.

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 541620 Contractors by % of Total Market for FY07 through FY11 - Restricted Competition

Source: epipeline's Contract History Plus*

HOW ARE THESE CONTRACTS PROCURED?

Over 76% of contract spending reported for the FY07 through FY11 timeframe under NAICS 541620 used full and open (unrestricted aka "N/A") competition. This equated to over $2.9 billion. Contracts that did not indicate their acquisition strategy (which means they could represent any acquisition strategy) reported contract spending of more than $255.7 million. Contracts that were small business set-aside reported spending of over $263.2 million. The combined value of contracts representing all other acquisition strategies was nearly $394.9 million, or approximately 10.35% of the market.

Acquisition Breakout under NAICS 541620 for FY07 through FY11

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 for the FY07 through FY11 period of $3.6 billion and contracts for locations outside the United States (or unlisted) totaled almost $215.8 million.

The highest total of reported contract spending is reported for Virginia, with $608.6 million. California ($469.5 million) and Texas ($321.5 million) took the second and third spots. Together, the top five states represent 50.04% of market under NAICS 541620. Besides those in the top ten, an additional 6 states reported at least $50 million for NAICS 541620 during this time period.

Contract Place of Performance under NAICS 541620 for FY07 through January 2011

Source: epipeline's Contract History Plus*

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