March 24, 2005

 

epipeline's Eye on 'All Other Professional, Scientific, and Technical Services,' NAICS 541990

 

As the Business Development Manager responsible for creating the business plan for your company, it can be very challenging to gain a perspective of opportunities over the several years; and from that, determine the specific opportunities to pursue.

 

This week we are going to look at the opportunities for 'All Other Professional, Scientific, and Technical Services,'  (NAICS 541990). To understand this NAICS code better, epipeline has asked the following questions:

 

1.  Who issues the contracts?

2.  Who wins the contracts?

 

NAICS 541990 is the primary code when projects require professional, scientific, or technical services. These professional, scientific, or technical services do not include the following types of work: legal services; accounting, tax preparation, bookkeeping, and related services; architectural, engineering, and related services; specialized design services; computer systems design and related services; management, scientific, and technical consulting services; scientific research and development services; advertising and related services; market research and public opinion polling; photographic services; translation and interpretation services; and veterinary services.

 

This NAICS was previously represented by several Standard Industrial Classification (SIC) codes. These codes covered a wide variety of topics, as listed below:

        4499 - Marine surveyor (i.e., ship appraiser) services

        7299 - Consumer credit counseling services; Credit repair (i.e., counseling) services, consumer

        7389 - Includes the following types of work:

o       Appraisal (except real estate) services

o       Arbitration and conciliation services (except by attorney, paralegal)

o       Business brokers (except real estate brokers)

o       Commodity inspection services

o       Estate assessment (i.e., appraisal) services

o       Handwriting analysis services

o       Handwriting expert services

o       Mediation product services (except by lawyer, attorney, paralegal offices, family

o       Outplacement services

o       Patent broker services (i.e., patent marketing services)

o       Patrolling (i.e., visual inspection) of electric transmission or gas lines

o       Pipeline inspection (i.e., visual) services

o       Power line inspection (i.e., visual) services

o       Quantity surveyor services

        8999 Meteorological services; Weather forecasting services

 

 

Who issues the contracts?
 

Three branches of the military, Army, Navy, and Air Force, are the three largest buyers for these services, with almost 60% of market share the over fiscal years 2001 through 2003, combined, according to Federal Procurement Data System (FPDS - source, epipeline's strategic partner, Eagle Eye). The Agency for International Development (AID), NASA, and the Defense Logistics Agency also have significant shares, combining to almost 20% of the market share. The break down of these six agencies (departments) is depicted in the pie chart below.

 

Market Share (FY01-FY03) by Agency

 

Source: FPDS information from epipeline's strategic partner, Eagle Eye.

 

 

While the Air Force had the largest market share over FY01-FY03, the Army and the Navy spent more of their contract funds on small businesses, which include 8(a)s and HUBZones. The bar graph below illustrates the differences of funds spend over these three military branches, based on the total contract spending for fiscal years 2001, 2002, and 2003. The Army and Navy are ranked first and second, respectively, for small business spending, whereas the Air Force is sixth, behind GSA's Public Buildings Service (PBS) and Federal Technology Service (FTS) and AID.

 

 

Agency Contract Spending (FY01-FY03)

Small Businesses (including Minority-owned) vs. Other Businesses (Large, etc.)

 

Source: FPDS information from epipeline's strategic partner, Eagle Eye.

 

 

Who wins the contracts?

 

Several companies hold a significant market share of federal spending under NAICS 541990, either on their own or through joint ventures. According to the FPDS data (through Eagle Eye), the Massachusetts Institute of Technology (MIT) holds the largest market share for FY01 through FY03, with over 12%. Lockheed, Mitre, Boeing and Northrop Grumman round out the top five with all between 4% and 6.5% of the market share. The table below represents the top five parent companies under this NAICS.

 

Top 5 Contractors by Market Share (FY01-03) for NAICS 541990

 

Rank

Parent Company

Contract Spending

Market Share

FY01-FY03

FY01-FY03

FY2003

1

Massachusetts Inst of Tech

$1,177,040,552

$495,902,552

12.07%

2

Lockheed Martin Corp

$626,557,533

$133,438,318

6.42%

3

Mitre Corp.

$579,772,751

$188,720,751

5.94%

4

Boeing Co.

$497,057,848

$302,084,848

5.10%

5

Northrop Grumman Corp.

$407,400,955

$150,185,213

4.18%

 

Source: FPDS information from epipeline's strategic partner, Eagle Eye.

 

 

The top five small businesses by market share (FY01-FY03) are listed in the table below. Settles Association and Aviation & Missile Solutions are ranked 16th and 17th, respectively, on the top contractor list (any business size).

 

Top 5 Small Businesses by Market Share (FY01-03) for NAICS 541990

 

Rank

Parent Company

Contract Spending

Market Share

FY01-FY03

FY01-FY03

FY2003 (Only)

1

Settles Associates Inc

$112,057,558

$7,558

6.33%

2

Aviation & Missile Solutions

$99,605,204

$43,968,204

5.63%

3

Tec-Masters Inc

$71,650,452

$51,640,452

4.05%

4

NLX, LLC

$67,442,227

$29,658,227

3.81%

5

Westar Corporation

$42,600,862

$19,421,862

2.41%

 

Source: FPDS information from epipeline's strategic partner, Eagle Eye.

 

epipeline's Information Technology (IT) vertical contain a significant number of opportunities which are identified by this NAICS code. To learn more about the NAICS 541990 opportunities or other opportunities that epipeline is tracking today; try the following search in the epipeline application:

 

Or, Find "NAICS 541990, All Other Professional, Scientific, and Technical Services" Opportunities

 

1. Status - Select Pre-RFP;

2. NAICS Code(s) - Type 541990;

3. Click the Search Button (or hit the enter key on your keyboard).

 

 

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