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NAICS NewsletterOctober 21, 2009

NAICS 561110

Office Administrative 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 Office Administrative 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 Office Administrative 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 'Office Administrative Services' industry, NAICS 561110. 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/agencies buying these services over the last four fiscal years.

Top 10 Federal Agencies by % of Total Market FY05 through January 2009 for NAICS 561110

WHAT IS NAICS 561110?

NAICS 561110 is assigned 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. The following services are included under NAICS 561110:

  • 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

The size standard associated with NAICS 561110 is $7.0 Million (effective August 22, 2008), which means that a company, including its affiliates, would be considered a "small business" if their average annual gross receipts does not exceed $7.0Million 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.

Total reported spending under NAICS 561110 for the period of Fiscal Year 2005 (FY05) through the Fiscal Year 2009 (FY09) was over $8.65 Billion. FY09 reported spending of $2.08 Billion for services under NAICS 561110. The chart below illustrates the reported** spending by year for FY05 through FY09.

Reported Contact Spending FY05 through January 2009 for NAICS 561110 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 United States Army is the largest buyer of services under NAICS 561110, commanding over 34.31% of the market share for the last four fiscal years (FY05 through FY09), with over $2.96 Billion in contract spending. The Department of Energy was a close second, reporting $2.94 Billion for the same time period. The United States Air Force reported over $500 Million in contract spending, and all but HHS's Office Of Asst Secretary For Health Except National Centers and DHS's Bureau of Citizenship reported over $100 Million. They reported $98 Million and $78 Million, respectively.

Top 10 Federal Agencies by % of Total Market FY05 through January 2009 for NAICS 561110 Source: epipeline's Contract History Plus*

WHO WINS THE CONTRACTS?

According to the Central Contractor Registry (CCR), there are 8,668 companies registered under NAICS 561110 (source: active registrants, www.ccr.gov as of 10/04/2009). Of this number, 6,870 qualify as small businesses, which includes the following breakout by socioeconomic categories (some companies may qualify under more than one category):

  • 1,005 SBA Certified 8(a) contractors;
  • 333 SBA Certified HUBZone contractors; and
  • 1,471 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 FY05 through FY09. 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

Brookhaven Science Associates holds the top spot on the unrestricted competition list with over $2.77 Billion in contract dollars for FY05-FY09 and over 34% of the market share. Combat Support Associates has 23% of the market share, or over $1.91 Billion reported contract spending under NAICS 561110. MPRI, US Investigations Services, CSC, American Society For Engineering Education and Titan Systems all reported spending over $100 Million. The remaining firms in the top ten all had reported spending above $80 Million. Sixty-one companies outside the top ten reported spending above $10 Million.

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 561110 Contractors by % of Total Market for FY05 through January 2009 - All Acquisition Strategies Source: epipeline's Contract History Plus*

All firms in the top ten of the restricted acquisition strategy chart below, along with five other companies outside the top ten, reported spending above $15 Million for the FY05 through FY09 period. Diversified Global Resources JV held the top spot, with over $96 Million, representing 9.15% of the market share. Alutiiq International Solutions LLC reported spending above $62 Million. These two firms were also listed on the unrestricted/any acquisition strategy chart above, in the 8th and 10th spots, respectively.

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 561110 Contractors by % of Total Market for FY05 through January 2009 - RESTRICTED Competition

HOW ARE THESE CONTRACTS PROCURED?

Over 84% of contract spending reported for the FY05 through FY09 timeframe under NAICS 561110 used full and open (unrestricted aka "N/A") competition. This equated to over $7.23 Billion. Contracts set-aside for 8a firms - competitive and sole sourced, combined to represent over $814 Million in contract spending, with sole source contracts taking the lion's share. Contracts that were set-aside for Small Businesses represented 3.211% of the market share, equating to over $277 Million. Contracts that did not indicate their acquisition strategy (which means they could represent any acquisition strategy) reported contract spending of over $247 Million. .

Acquisition Breakout under NAICS 561110 - FY05 through January 2009 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 for the FY05 through FY09 period of $5.89 Billion and contracts for locations outside the United States (or unlisted) totaled over $2.76 Billion.

The contracts with a reported place of performance located in New York reported the highest level of spending under NAICS 561110, with over $2.81 Billion - or 32% of the market share.

A relatively high concentration of work (18.6% of market share) is performed in the Washington, DC metropolitan area. This geographical zone is the site of many federal agency headquarters. Many government contractors make this area their home base due to this proximity. These contractors are sometimes referred to as "Beltway Bandits," after the highway that circles Washington, DC. Virginia reported the highest contract spending, with over 7.5% of the market share, equating to over $650 Million. Spending in Washington, DC was about $513 Million and Maryland at about $454 Million. These locations are listed second through fourth on the chart below.

Texas, Mississippi, and Kentucky all reported spending above $100 Million for this same time period. The remaining states in the top ten, along with three other states, reported spending over $50 Million.

Contract Place of Performance under NAICS 561110 for FY05 through January 2009

Source: epipeline's Contract History Plus*

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