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NAICS Newsletter August 15, 2013

NAICS 722310

Food Service Contractors

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 Food Service Contractors.


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 Food Service Contractors.


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 'Food Service Contractors' industry, NAICS 722310. 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 FY09 through FY13 for NAICS 722310

WHAT IS NAICS 722310?

This industry comprises establishments primarily engaged in providing food services at institutional, governmental, commercial, or industrial locations of others based on contractual arrangements with these type of organizations for a specified period of time. The establishments of this industry provide food services for the convenience of the contracting organization or the contracting organization's customers. The contractual arrangement of these establishments with contracting organizations may vary from type of facility operated (e.g., cafeteria, restaurant, fast-food eating place), revenue sharing, cost structure, to providing personnel. Management staff is always provided by the food service contractors.

The description of NAICS 722310 is further broken out to include these additional specific topics:

  • Airline food service contractors
  • Food concession contractors (e.g., at sporting, entertainment, convention facilities)
  • Cafeteria food service contractors (e.g., at schools, hospitals, government offices)

The size standard associated with NAICS 722310 is $35.5 million (effective January 7, 2013), which means that a company, including its affiliates, would be considered a "small business" if their average earnings do not exceed $35.5 million for each of the pay periods for the preceding completed 12 calendar months.

Total reported spending under NAICS 722310 for the period of Fiscal Year 2009 (FY09) through Fiscal Year 2013 (FY13) was nearly $4 billion. Current FY13 reported spending is $68.9 million for services under NAICS 722310. The chart below illustrates the reported** spending by year for FY09 through FY13.

Reported Contract Spending for NAICS 722310 FY09 through FY13

Source: epipeline's Contract History Plus*

WHO ISSUES THE CONTRACTS?

The Department of the Army was the largest procurer for these services for the last five fiscal years (FY09 through FY13), with more than $1.6 billion in contract spending, comprising 42.5% of the market share for NAICS 722310. The Navy took the second spot, with $1.2 billion in reported spending for this period. The Air Force and Coast Guard took third and fourth places, respectively, making up a combined market share of almost 6% for all spending in NAICS 722310.

The Forest Service and Federal Prison System spent $82 million and $55 million respectively during this time period with the rest of the top ten reporting spending just over $80 million for NAICS 722310.

Top 10 Federal Agencies by % of Total Market FY09 through FY13 for NAICS 722310

Source: epipeline's Contract History Plus*

WHO WINS THE CONTRACTS?

The two charts below identify the top 10 Companies, by market share, for the period of FY09 through FY13. 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

Sodexho Management achieved the top spot on the unrestricted competition list, with over $775 million in contract dollars for FY09 to FY13 and more than 20% of market share. Goodwill Industries of Southeastern Wisconsin landed over $310 million in contract dollars with Georgia Department of Labor earning roughly $212 million. Department of Assistive and Rehabilitative Services was the final firm to exceed $100 million. Six other firms, Missouri Family Support Divis, SPSA LLC, Lakeview Center, South Carolina Commission, Rehabilitative Services, & the Commonwealth of Kentucy, each topped $80 million in contracting dollars for this 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 722310 Contractors by % of Total Market for FY09 through FY13 - All Acquisition Strategies

Source: epipeline's Contract History Plus*

The combined contract spending for contracts awarded under "restricted competition," as outlined above, totaled over $432 million for FY09 through FY13. Watson Services Inc takes the top spot, with reported spending of over $37 million for this period, or almost 9% of market share. Austin Associates & Superior Janitorial Services Inc each exceeded $20 million in earnings, totaling a combined 11% in market share. Five other firms in the top ten, M B Catering Inc, R G Food Service, K C A Corporation, Ganaayoo Services Corporation, & Wolf Management Services, also exceeded $10 million in reported spending for NAICS 722310.

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 722310 Contractors by % of Total Market for FY09 through FY13 - Restricted Competition

Source: epipeline's Contract History Plus*

HOW ARE THESE CONTRACTS PROCURED?

88.4% of contract spending reported for the FY09 through FY13 timeframe under NAICS 722310 used full and open (unrestricted aka "N/A") competition. This equated to over $3.4 nillion. Contracts that were small business set-aside reported spending of over $200 million. The combined value of contracts representing all other acquisition strategies was more than $242 million, or about 6.25% of the market.

Acquisition Breakout under NAICS 722310 for FY09 through FY13

Source: epipeline's Contract History Plus*

WHERE ARE THESE CONTRACTS PERFORMED?

These contracts are being performed across the United States with a reported spending for the FY09 through FY13 period of $3.8 billion.

The highest total of reported contract spending is reported for California, with $546 million. North Carolina ($443 million) and Texas ($328 million) took the second and third spots. Together, the top five states represent almost 50% of market under NAICS 722310. Seven of the top ten states (California, North Carolina, Texas, Illinois, Georgia, Virginia, & Missouri) reported at least $100 million for NAICS 722310 during this time period.

Contract Place of Performance under NAICS 722310 for FY09 through January 2011

Source: epipeline's Contract History Plus*

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