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NAICS NewsletterMarch 16, 2010

NAICS 561210

Facilities Support 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 the services of Facilities Support 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 Facilities Support 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 'Facilities Support Services' industry, NAICS 561210. 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/agencies buying these services over the last four fiscal years.

Top 10 Federal Agencies by % of Total Market FY05 through FY09 for NAICS 561210

WHAT IS NAICS 561210?

NAICS 561210 is the primary code when projects require a combination of three or more separate activities in the areas of services or "specialty trade contractors" industries.

Typical services include janitorial; maintenance; trash disposal; guard and security; mail routing; reception; laundry; and related services to support operations within facilities. Contractors would provide the staff to perform these services, but are not involved with or responsible for the core business or activities of the government site.

Specialty Trade Contractors, such as plumbing, painting, carpentry, etc., are considered part of "Building and Property Specialty Trade Services," which is covered by NAICS 238990 (aka All Other Specialty Trade Contractors). This code would be considered "one service" and so two other services would be required to assign NAICS 561210.

If any the three services or specialty trade contractors accounts for more than 50 percent of the value of the entire contract, then that NAICS should be used in lieu of 561210.

The ideal project under NAICS 561210 would be a Base Operations Support (BOS) contract.

This NAICS was previously represented by a single Standard Industrial Classification (SIC) code, 8744. This code covered a several topics, as listed below:

  • Base facilities operation support services
  • Correctional facility operation on a contract or fee basis
  • Facilities (except computer operation) support services
  • Government base facilities operation support services
  • Jail operation on a contract or fee basis
  • Jails, privately operated

The size standard associated with NAICS 561210 is $35.5 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 $35.5 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 561210 for the period of Fiscal Year 2005 (FY05) through the Fiscal Year 2009 (FY09) was over $110.9 Billion. FY09 reported spending of $22.6 Billion for services under NAICS 561210. The chart below illustrates the reported** spending by year for FY05 through FY09.

Reported Contract Spending for NAICS 561210 FY05 through FY09

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 current and historic contract spending.

WHO ISSUES THE CONTRACTS?

The Department of Energy (DOE) was the largest buyer for these services for the last five fiscal years (FY05 through FY09), with over $51.0 Billion in contract spending, comprising over 43% of the market share for NAICS 561210. Their number one position is largely due to the Management and Operations (M&O) contracts, which are worth billions of dollars. However, those contracts are not always issued under NAICS 561210. Some projects are issued using NAICS 541712 (Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)) or 541330 (Engineering Services), so Energy's position in the top spot may fluctuate. The United States Army took the second spot, with over $33 Billion in reported spending for this period.

The United States Air Force and the Department of State reported spending above the $5 Billion mark for this period, and all other contracting agencies within the top ten reported spending above $1 Billion.

Top 10 Federal Agencies by % of Total Market FY05 through FY09 for NAICS 561210

Source: epipeline's Contract History Plus*

WHO WINS THE CONTRACTS?

According to the Central Contractor Registry (CCR), there are 10,996 companies registered under NAICS 561210 (source: active registrants, www.ccr.gov as of 03/03/2010). Of this number, 8,120 qualify as small businesses, which includes the following breakout by socioeconomic categories (some companies may qualify under more than one category):

  • 1,463 SBA Certified 8(a) contractors;
  • 632 SBA Certified HUBZone contractors; and
  • 1,758 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 FY05 through FY09. 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

Kellogg, Brown & Root Services holds the top spot on the unrestricted competition list, with $22.7 Billion in contract dollars for FY05-FY09 and over 21% of the market share. The majority of the remaining contractors in the top ten hold Management and Operation (M&O) contracts for the Department of Energy. These large companies form joint ventures to provide the myriad services required for these complex contracts. As mentioned previously, as some M&O contracts expire, their follow-ons are using alternative NAICS codes. This may lead to the decrease in Energy's market share. Along with all the companies in the top ten, there are eight additional firms that are/were holding contracts with at least $1 Billion in contract dollars, with another 56 firms having $100 Million or more.

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 561210 Contractors by % of Total Market for FY05 through FY09 - All Acquisition Strategies

Source: epipeline's Contract History Plus*

The combined contract spending for contracts awarded under "restricted competition," as outlined above, totaled over $6.87 Billion for FY05 through FY09. The Chugach Alutiiq Joint Venture holds the top spot, with reported spending of $446 Million for this period. Chugach is listed two more times in the top ten, in the second spot as Chugach McKinley Inc. ($254 Million) and the fourth spot as Chugach Management Services ($214 Million). All of the remaining firms in the top ten cracked the $100 Million mark, along with six other companies outside the top ten. 100 other companies held contracts with reported spending above $10 Million for this 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 561210 Contractors by % of Total Market for FY05 through FY09 - Restricted Competition

Source: epipeline's Contract History Plus*

HOW ARE THESE CONTRACTS PROCURED?

Over 62% of contract spending reported for the FY05 through FY09 timeframe under NAICS 561210 used full and open (unrestricted aka "N/A") competition. This equated to over $72 Billion. Contracts that did not indicate their acquisition strategy (which means they could represent any acquisition strategy) reported contract spending of over $36 Billion. Contracts that were small business set-aside reported spending over $3.4 Billion. The combined value of contracts awarded to 8a firms (sole source and competitive) was over $4 Billion. Many of the contracts awarded on an 8(a) sole source basis were awarded to Alaska Native Corporations, as evident by the top 10 companies on restricted competition chart above.

Acquisition Breakout under NAICS 561210 for FY05 through FY09

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 FY05 through FY09 period of $82.5 Billion and contracts for locations outside the United States (or unlisted) totaled approximately $36.7 Billion.

The state with the highest total of reported contract spending is Tennessee, with $15.1 Billion. New Mexico ($11.9 Billion) and South Carolina ($9.2 Billion) took the second and third spots. All three states are home to the large Energy M&O contracts. In all, 16 states reported spending for the FY05-FY09 period above $1.0 Billion. Another 20 states and Washington, DC were above $100 Million.

Contract Place of Performance under NAICS 561210 for FY05 through January 2009

Source: epipeline's Contract History Plus*

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