December 2, 2005


epipeline's Eye on "Computer Systems Design Services," NAICS 541512


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 "Computer Systems Design Services" industry, as represented under NAICS 541512. To understand this NAICS code better, epipeline has asked the following questions:
 

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


NAICS 541512 is used when the contract requires contractor-provided planning and designing computer systems that integrate computer hardware, software, and communication technologies. The hardware and software components of the system may be provided by this establishment or company as part of integrated services or may be provided by third parties or vendors. These establishments often install the system and train and support users of the system.

The size standard associated with this code is $21 Million, which means that a company, including its affiliates, would be considered a "small business" if their average annual gross revenue does not exceed $21 Million for the past three years.

This NAICS was previously represented by two different Standard Industrial Classification (SIC) codes, as they pertained to the following requirements:

         SIC 7373: Computer Integrated Systems Design

o       CAD (computer-aided design) systems integration design services

o       CAE (computer-aided engineering) systems integration design services

o       CAM (computer-aided manufacturing) systems integration design services

o       Computer systems integration analysis and design services

o       Computer systems integrator services

o       Computer-aided design (CAD) systems integration design services

o       Computer-aided engineering (CAE) systems integration design services

o       Computer-aided manufacturing (CAM) systems integration design services

o       Information management computer systems integration design services

o       Local area network (LAN) computer systems integration design services

o       Network systems integration design services, computer

o       Office automation computer systems integration design services

o       Systems integration design consulting services, computer

o       Systems integration design services, computer

         SIC 7379: Computer Related Services

o       Computer hardware consulting services or consultants

o       Computer software consulting services or consultants

o       Computer systems integration design consulting services

 
Total reported spending under NAICS 541512 in FY03 was over $4.4 Billion. FY04 saw a decrease in spending, to over $3.5 Billion. (Source: epipeline's FPDS information, covering fiscal years 2003 and 2004).


Who issues the contracts?


The United States Army is the largest buyer of services under NAICS 541512, with over $2.8 Billion in contract spending over the last 10 years (does not include FY01 & FY02 funding). This equated to a 17% market share. GSA's Federal Technology Service (FTS), the United States Navy, the United States Air Force, and NASA round out the top five. These five departments comprise two-thirds of NAICS 541512 spending in FY03-FY05*, which equates to just over $11 Billion.


The Navy had top honors in FY04 with just over $700 Million in contract spending under that NAICS, with the Army a very close second, with only about $1.5 Million less.


The chart below illustrates the market share held by the top ten agencies under NAICS 541512 for FY96 through FY05** combined.

 

Source: epipeline's FPDS information, covering FY03-FY05*
**Note: This information includes FY96 through FY00 and FY03 through FY05.
FY01 and FY02 data is currently unavailable and FY05 data may not include all contract expenditures for all quarters.


Who wins the contracts?


The two charts below identify the top 10 Companies, by market share, for FY04. 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 following acquisition strategies:


        
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


DynCorp (this FPDS report did not signify "which" DynCorp) is the top of the unrestricted competition list, with almost $150 Million in contract dollars for FY04. SAIC was a close second, with just over $140 Million. The total contract value for FY04 was over $3.5 Billion. PLEASE NOTE: as this is a listing by Company name, rather than PARENT company, some companies may have more than one ranking, which is not reflected in the chart below.

QSS Group, Inc., tops the "restricted" competition chart (limited to small businesses). Their FY04 contracts were valued at almost $40 Million. The total contract value for FY04 - for contracts using restricted (small business-related) competition) was over $303 Million. PLEASE NOTE: as this is a listing by Company name, rather than PARENT company, some companies may have more than one ranking, which is not reflected in the chart below.


Source: epipeline's FPDS information, covering fiscal year 2004


epipeline's application contains many opportunities which are identified by this NAICS code. To learn more about the NAICS 541512 opportunities or other opportunities that epipeline is tracking today; try the following search in the epipeline application:

 

Find "NAICS 541512, Computer Facilities Management Services" Opportunities

 

1. After logging in, select Researched Opportunities

2. Status - Select Pre-RFP;

3. NAICS Code(s) - Type 541512 (or, try using the SIC field, with 7373 or 7379);

4. Click Search

 

Find "NAICS 541512, Computer Facilities Management Services" Contract Spending

1. After logging in, select FPDS Contract History

2. Type 541512 in the NAICS field

3. Click Search

 

 

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