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NAICS NewsletterAugust 11, 2008

NAICS 561210

Facility 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 Facility 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 Facility 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 'Facility 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 buying these services over the last four fiscal years.

Top 10 Federal Agencies by % of Total Market FY04 - Q2FY08 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 $32.5 Million (effective March 11, 2008), which means that a company, including its affiliates, would be considered a "small business" if their average annual gross receipts does not exceed $32.5 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.

ATTENTION: Effective August 18, 2008, the size standard for NAICS 561210 increases to $35.5 Million. Solicitations issued prior to this date are subject to the $32.5 Million standard - even if the solicitation doesn't close until after that date. Solicitations issued on or after August 18, 2008 will use the new size standard of $35.5 Million. (View the final ruling on the SBA Website: http://www.sba.gov/idc/groups/public/documents/sba_homepage/inflation_adjust_fr_.htm).

Total reported spending under NAICS 561210 for the period of Fiscal Year 2004 (FY04) through the second quarter (Q2) of Fiscal Year 2003 (FY08 aka Q2FY08) was over $72 Billion. With two quarters reported, FY08 reported spending of $5.0 Billion for services under NAICS 561210. The chart below illustrates the reported** spending by year for FY04 through Q2FY08.

Reported Contact Spending FY04 - Q2FY08 for NAICS 561210 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 contract spending.

WHO ISSUES THE CONTRACTS?

The Department of Energy was the largest buyer for these services for the last four fiscal years (FY04 through Q2FY08), with almost $35.0 Billion in contract spending, comprising over 48% 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 (formerly NAICS 541712 in 2002 version - 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 almost $20 Billion in reported spending for this period.

The United States Air Force, NASA, United States Navy, the Department of Labor's Education and Training Administration (DOLETA), the National Institutes of Health (NIH), and the Bureau of Prisons, while holding a significantly smaller market share then the Army or DOE, still reported spending of over $1 Billion for the FY04-Q2FY08 period. DOLETA will likely not remain in the top ten in coming years, as their contracts originally awarded under NAICS 561210 for operation of their Job Corps Centers, are now awarded under NAICS 611519, Other Technical and Trade Schools.

Top 10 Federal Agencies by % of Total Market FY04 - Q2FY08 for NAICS 561210 Source: epipeline's Contract History Plus*

WHO WINS THE CONTRACTS?

According to the Central Contractor Registry (CCR), there are 7,978 companies registered under NAICS 561210 (source: active registrants, www.ccr.gov as of 06/26/2008). Of this number, 5,484 qualify as small businesses, which includes the following breakout by socioeconomic categories:

  • 1,342 SBA Certified 8(a) contractors;
  • 769 SBA Certified HUBZone contractors; and
  • 1,134 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 then the resulting totals above represent.

The two charts below identify the top 10 Companies, by market share, for the period of FY04 through Q2FY08. 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 $14.2 Billion in contract dollars for FY04-Q2FY08 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 four 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 FY04 - Q2FY08 - All Acquisition Strategies Source: epipeline's Contract History Plus*

The combined contract spending for contracts awarded under "restricted competition," as outlined above, totaled over $4.37 Billion for FY04 through Q2FY08. Chugach Alutiiq Joint Venture is the only one of the firms on this restricted list to crack the $500 Million mark for spending during this period. Their $520 Million translates to almost 12% of the market share. Chugach is listed two more times in the top ten: in the second spot as Chugach McKinley and the sixth spot as Chugach Management Services. The combined value of contract spending for their three entities exceeds $839 Million - almost 20% of the market share under NAICS 561210 for this time period.

The top seven companies on this list all have reported contract spending over $100 Million for this period. 80 additional companies are over the $10 Million mark.

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 FY04 - Q2FY08 - RESTRICTED Competition

HOW ARE THESE CONTRACTS PROCURED?

Over 48% of the contract dollars spend during the FY04 through Q2FY08 timeframe were awarded using full and open competition. This represented over $34.7 Billion for NAICS 561210. Over 45% of contracts during this period did not report their acquisition strategy. These contracts could include those awarded using full and open competition, small business set-aside, or any manner of restriction. This accounted for over $32.7 Billion in contract dollars. Contracts set-aside for small businesses and those sole sourced to 8(a) firms also cracked the $1 Billion mark, with $2.1 Billion and $1.5 Billion, respectively. 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 - FY04 through Q2FY08 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 of $53.8 Billion and contracts for locations outside the United States total over $18.4 Million. The map below illustrates the distribution of locations within the United States (only). For example, there are 12 states that are shaded dark red. This means that these states have reported contract spending between $1.1 Billion and $10.3 Billion.

The state with the highest total of reported contract spending is Tennessee, with $10.2 Billion. South Carolina ($6.3 Billion) and New Mexico ($4.5 Billion) took the second and third spots. All three states are home to the large Energy M&O contracts. In all, 14 states reported spending for the FY04-Q2F08 period above $1.0 Billion. Another 20 states were above $100 Million.

Contract Place of Performance under NAICS 561210 (FY04-Q2FY08)

Source: epipeline's Contract History Plus*

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