July 15, 2005

epipeline's Eye on Office Administrative Services, NAICS 561110

 

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 'Office Administrative Services' industry, as represented under NAICS 561110. Specifically, comparisons between Fiscal Year 2004 versus Fiscal Year 2003, asking:

 

  1. Who issues the contracts?
  2. Who wins the contracts?

 

NAICS 561110 is used when the contract requires a range of day-to-day office administrative services, such as financial planning; billing and recordkeeping; personnel; and physical distribution and logistics for others on a contract or fee basis. These establishments do not provide operating staff to carry out the complete operations of a business.

 

This NAICS was previously represented by the Standard Industrial Classification (SIC) codes, 8741. This code covered several specific topics, as listed below:

        Administrative management services

        Business management services

        Executive management services

        Hotel management services (except complete operation of client's business)

        Management services (except complete operation of client's business)

        Managing offices of dentists

        Managing offices of physicians and surgeons

        Managing offices of professionals (e.g., dentists, physicians, surgeons)

        Medical office management services

        Motel management services (except complete operation of client's business)

        Office administration services

        Office management services

 

 

Who issues the contracts?

 

The United States Army is the largest buyer of services under NAICS 561110 in Fiscal Year 2004, with over $473 Million in contract spending, which equates to just over 52% of the market share (according to Federal Procurement Data System -- our FPDS source is epipeline's strategic partner, Eagle Eye).

 

In the period of FY01 through FY03, the Department of Energy held the largest market share of NAICS 561110, with over 41%, equating to almost $600 Million, whereas the Army was just over 16%. In FY04, Energy dropped to a 1.9% market share, with contract spending approximately $17 Million (note, this may be due to clerical error in FPDS, where the Brookhaven contract was previously listed under NAICS 561110 in FY01-FY03, but not in FY04. Read more about this below, in the 'Who Wins These Contracts section).

 

The bar chart below illustrates FY04 spending for the top 7 agencies under NAICS 561110 compared to those same agencies' market share for FY01 through FY03. Of note is the significant 'other' category for FY01-FY03. This includes several agencies from the Department of Health and Human Services, as well as NASA and the State Department.

 

Market Share FY04 and FY01-FY03 by Agency Under NAICS 561110

 

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

 

 

Who wins the contracts?

 

Combat Support Associates holds the largest FY04 market share under NAICS 561110, with almost 24%. This company is actually comprised of several firms, AECOM Government Services (AGS), Inc. (formerly Holmes & Narver Services, Inc.), Research Analysis and Maintenance, Inc. (RAM), and Space Mark (SMI, International)). They hold the Combat Support Services Contract-Kuwait (CSSC-K), which was awarded in 1999. This contract has a ten-year total contract term (see epipeline program code CSSC-K).

 

The table below lists the top 25 Parent companies, including their FY04 contract dollars as well as their market share. For comparison, a column is included to show the change from the previous fiscal year. Several companies changed their rank from one year to the next or were not even ranked in FY03.

 

The top ranked company from FY2003 is actually not even listed on this ranking due to a clerical error in FPDS reporting. The contract held by Brookhaven Science Associates (contract # AC0298CH10886, a.k.a. DE-AC0298CH10886) is the top ranked Parent Company for FY03 contract spending. This non-profit organization operates the Brookhaven National Laboratory, and has averaged about $400,000 per year. In FY2003 and earlier, it is listed under NAICS 561110. In FY04, the contract had NAICS code assigned to it in the FPDS database. While not a common occurrence, this is not unusual to the FPDS, as the information is provided by the contracting office and is subject to human error.

 

Market Share

FY04 Rank

Top 25 Companies  For NAICS 561110

FY03 Rank

Company

FY2004 Spending

Market Share FY04

1

2

Combat Support Associates

$214,870,091

23.81%

2

7

Johnson Controls, Inc.

$48,440,315

5.37%

3

4

Dynkepro LLC (CSC)

$33,211,184

3.68%

4

**

Titan Corporation, The

$30,185,598

3.34%

5

15

American Soc For Engrg Edcton

$26,644,209

2.95%

6

6

Science Applications Intl Corp

$23,042,196

2.55%

7

17

ITT Industries

$22,616,982

2.51%

8

12

Day & Zimmermann, Inc.

$22,589,334

2.50%

9

**

Kashiwabara Token Kogyo KK

$22,550,801

2.50%

10

9

Northrop Grumman Corp.

$22,081,521

2.45%

11

20

L-3 Communications Holdings

$17,017,981

1.89%

12

22

Cherokee Information Services,

$15,517,810

1.72%

13

69

CACI International Inc

$14,709,095

1.63%

14

**

Fred Pang Assoc

$14,442,949

1.60%

15

5

Chugach Industries Incorporate

$13,739,462

1.52%

16

10

Westat Inc

$11,508,141

1.28%

17

99

Circle/Physician Placement Inc

$9,931,932

1.10%

18

29

Goodwill Of Long Beach And South

$9,347,727

1.04%

19

23

Americorp Inc

$9,145,449

1.01%

20

8

Beta Analytics

$7,465,267

0.83%

21

**

Sycoleman Corporation

$6,577,126

0.73%

22

53

Resource Consultants, Inc. (Now Serco)

$6,382,667

0.71%

23

75

Lifecare Management Partners

$5,864,770

0.65%

24

45

TMIManagement Systems, Inc

$5,745,226

0.64%

25

43

B 3 H Corporation

$5,636,623

0.62%

 

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

 

**These firms' rank in FY03 was either over 100 or not listed.

 

epipeline's application contains a significant number of opportunities which are identified by this NAICS code. To learn more about the NAICS 561110 opportunities or other opportunities that epipeline is tracking today; try the following search in the epipeline application:

 

Find "NAICS 561110, Office Administrative Services" Opportunities

 

1. Status - Select Pre-RFP;

2. NAICS Code(s) - Type 561110 (or, try using the SIC field, with 8741);

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

 

 

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