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NAICS Newsletter May 27, 2011

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 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. 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 561210

WHAT IS NAICS 561210?

This industry comprises establishments primarily engaged in providing operating staff to perform a combination of support services within a clients facilities. Establishments in this industry typically provide a combination of services, such as janitorial, maintenance, trash disposal, guard and security, mail routing, reception, laundry, and related services to support operations within facilities. These establishments provide operating staff to carry out these support activities; but are not involved with or responsible for the core business or activities of the client. Establishments providing facilities (except computer and/or data processing) operation support services and establishments providing private jail services or operating correctional facilities (i.e., jails) on a contract or fee basis are included in this industry.

The description of NAICS 561210 is further broken out to include these additional specific topics:

  • 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

Please be aware that establishments primarily engaged in providing only one of the support services (e.g., janitorial services) that establishments in this industry provide are classified in the appropriate industry according to the service provided; establishments primarily engaged in providing management and operating staff for the complete operation of a clients establishment, such as a hotel, restaurant, mine, or hospital, are classified according to the industry of the establishment operated; establishments primarily engaged in providing on-site management and operation of a clients computer systems and/or data processing facilities are classified in U.S. Industry 541513, Computer Facilities Management Services; and governmental correctional institutions are classified in Industry 922140, Correctional Institutions.

The size standard associated with NAICS 561210 is $35.5 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 $35.5 million for the past three years.

Total reported spending under NAICS 561210 for the period of Fiscal Year 2007 (FY07) through Fiscal Year 2011 (FY11) was nearly $89.7 billion. FY11 reported spending of more than $2.2 billion for services under NAICS 561210. The chart below illustrates the reported** spending by year for FY07 through FY11.

Reported Contract Spending for NAICS 561210 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 Department of Energy was the largest procurer for these services for the last five fiscal years (FY07 through FY11), with close to $38.9 billion in contract spending, comprising over 43% of the market share for NAICS 561210. The Department of the Army took the second spot, with over $25.7 billion in reported spending for this period. The Department of the Air Force and the Department of State took third and fourth places, respectively, making up a combined market share of 10.34% for all spending in NAICS 561210.

The Department of the Navy and NASA spent $3.2 and $2.8 billion respectively during this time period with the rest of the top ten reporting spending just shy of $5.7 billion for NAICS 561210.

Top 10 Federal Agencies by % of Total Market FY07 through FY11 for NAICS 561210

Source: epipeline's Contract History Plus*

WHO WINS THE CONTRACTS?

According to the Central Contractor Registry (CCR), there are 13,347 companies registered under NAICS 561210 (source: active registrants, www.ccr.gov as of 4/26/2011). Of this number, 9,806 qualify as small businesses, which includes the following breakout by socioeconomic categories (some companies may qualify under more than one category):

  • 1,698 SBA Certified 8(a) contractors;
  • 734 SBA Certified HUBZone contractors; and
  • 2,145 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

Kellogg Brown and Root Services achieved the top spot on the unrestricted competition list, with over $14.9 billion in contract dollars for FY07 to FY11 and close to 18% of the market share. Los Alamos National Security landed $9.2 billion in contract dollars with UT Battelle earning almost $5.8 billion. Savannah River Nuclear Solutions, LLC and BWXT Y 12 round out the top five with $3.8 and $3.5 billion, respectively. Eight additional firms, Dyncorp International LLC, Honeywell International Inc, BWXT Pantex, Saic Frederick, National Security Technologies, Bechtel Jacobs Company, Fluor Hanford, and Carothers Construction, each topped $1 billion 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 561210 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 $6.09 billion for FY07 through FY11. Chugachalutiiq Jv takes the top spot, with reported spending of almost $616.9 million for this period, or 10.13% of market share. Chugach Management Services Jv also secured nearly $284.9 million in contracting dollars for this time period. Seven other firms in the top ten, Arctic Slope Technical Services Inc, The Cube Corporation, Chugach Mckinley Inc, Enterprise Advisory Services Inc, Kira Inc, Medico Industries Inc, Chenega Technology Services Corp, also exceeded $100 million in reported spending for NAICS 561210.

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 FY07 through FY11 - Restricted Competition

Source: epipeline's Contract History Plus*

HOW ARE THESE CONTRACTS PROCURED?

68.76% of contract spending reported for the FY07 through FY11 timeframe under NAICS 561210 used full and open (unrestricted aka "N/A") competition. This equated to over $61.67 billion. Contracts that did not indicate their acquisition strategy (which means they could represent any acquisition strategy) reported contract spending of close to $21.07 billion. Contracts that were small business set-aside reported spending of over $2.97 billion. The combined value of contracts representing all other acquisition strategies was more than $3.98 billion, or approximately 4.44% of the market.

Acquisition Breakout under NAICS 561210 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 $63 billion and contracts for locations outside the United States (or unlisted) totaled $27 billion.

The highest total of reported contract spending is reported for Tennessee, with $11.3 billion. New Mexico ($10.9 billion) and South Carolina ($6.6 billion) took the second and third spots. Together, the top five states represent 39.97% of market under NAICS 561210. Besides those in the top ten, an additional three states reported at least $1 billion for NAICS 561210 during this time period.

Contract Place of Performance under NAICS 561210 for FY07 through January 2011

Source: epipeline's Contract History Plus*

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