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NAICS NewsletterDecember 4, 2009

NAICS 621111

Offices of Physicians
(except Mental Health Specialists)

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 Offices of Physicians (except Mental Health Specialists).


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 Offices of Physicians (except Mental Health Specialists).


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 'Offices of Physicians (except Mental Health Specialists)' industry, NAICS 621111. 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 FY09 for NAICS 621111

WHAT IS NAICS 621111?

According to the official description of NAICS 621111, this code represents "establishments of health practitioners having the degree of M.D. (Doctor of Medicine) or D.O. (Doctor of Osteopathy) primarily engaged in the independent practice of general or specialized medicine (except psychiatry or psychoanalysis) or surgery. These practitioners operate private or group practices in their own offices (e.g., centers, clinics) or in the facilities of others, such as hospitals or HMO medical centers." The description of NAICS 621111 is further broken out to include these additional specific topics:

  • Acupuncturists' (MDs or DOs) offices (e.g., centers, clinics)
  • Allergists' offices (e.g., centers, clinics)
  • Anesthesiologists' offices (e.g., centers, clinics)
  • Cardiologists' offices (e.g., centers, clinics)
  • Clinical pathologists' offices (e.g., centers, clinics)
  • Dermatologists' offices (e.g., centers, clinics)
  • Doctors of osteopathy (DOs, except mental health) offices (e.g., centers, clinics)
  • DOs' (doctors of osteopathy, except mental health) offices (e.g., centers, clinics)
  • Family physicians' offices (e.g., centers, clinics)
  • Forensic pathologists' offices
  • Gastroenterologists' offices (e.g., centers, clinics)
  • Gynecologists' offices (e.g., centers, clinics)
  • Health screening services in physicians' offices
  • Immunologists' offices (e.g., centers, clinics)
  • Internists' offices (e.g., centers, clinics)
  • MDs' (medical doctors, except mental health) offices (e.g., centers, clinics)
  • Medical doctors' (MDs, except mental health) offices (e.g., centers, clinics)
  • Neurologists' offices (e.g., centers, clinics)
  • Neuropathologists' offices (e.g., centers, clinics)
  • Obstetricians' offices (e.g., centers, clinics)
  • Oncologists' offices (e.g., centers, clinics)
  • Ophthalmologists' offices (e.g., centers, clinics)
  • Orthopedic physicians' offices (e.g., centers, clinics)
  • Orthopedic surgeons' offices (e.g., centers, clinics)
  • Osteopathic physicians' (except mental health) offices (e.g., centers, clinics)
  • Otolaryngologists' offices (e.g., centers, clinics)
  • Pathologists' (except oral, speech, voice) offices (e.g., centers, clinics)
  • Pathologists', forensic, offices (e.g., centers, clinics)
  • Pathologists', neuropathological, offices (e.g., centers, clinics)
  • Pathologists', surgical, offices (e.g., centers, clinics)
  • Pediatricians' (except mental health) offices (e.g., centers, clinics)
  • Physicians' (except mental health) offices (e.g., centers, clinics)
  • Plastic surgeons' offices (e.g., centers, clinics)
  • Proctologists' offices (e.g., centers, clinics)
  • Pulmonary specialists' offices (e.g., centers, clinics)
  • Radiologists' offices (e.g., centers, clinics)
  • Surgeons' (except dental) offices (e.g., centers, clinics)
  • Surgical pathologists' offices (e.g., centers, clinics)
  • Urologists' offices (e.g., centers, clinics)
  • Walk-in physicians' offices (e.g., centers, clinics)

The size standard associated with NAICS 621111 is $10.0 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 $10.0Million 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 621111 for the period of Fiscal Year 2005 (FY05) through the Fiscal Year 2009 (FY09) was almost $5.4 Billion. FY09 reported spending of $1.6 Billion for services under NAICS 621111. The chart below illustrates the reported** spending by year for FY05 through FY09.

Reported Contact Spending FY05 through FY09 for NAICS 621111 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 Department of Veterans Affairs (VA) is the largest buyer of services under NAICS 621111, commanding over 35% of the market share for the last four fiscal years (FY05 through FY09), with over $1.9 Billion in contract spending. The United States Army also reported spending above $1 Billion for the same time period. The TRICARE Management Activity (part of the DOD's Military Health System) was just under that mark, with $950 Million. The United States Air Force, the Indian Health Service, and the Social Security Administration (SSA), all reported spending above $100 Million.

Top 10 Federal Agencies by % of Total Market FY05 through FY09 for NAICS 621111 Source: epipeline's Contract History Plus*

WHO WINS THE CONTRACTS?

According to the Central Contractor Registry (CCR), there are 4,775 companies registered under NAICS 621111 (source: active registrants, www.ccr.gov as of 11/19/2009). Of this number, 3,003 qualify as small businesses, which includes the following breakout by socioeconomic categories (some companies may qualify under more than one category):

  • 79 SBA Certified 8(a) contractors;
  • 19 SBA Certified HUBZone contractors; and
  • 204 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 than 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

Johns Hopkins Medical Services holds the top spot on the unrestricted competition list with over $578 Million in contract dollars for FY05-FY09 and over 13.24% of the market share. Spectrum Healthcare Resources is a distant second, with reported spending approximately $216 Million for the FY05 through FY09 period. Logistics Health Inc., Staff Care, CompHealth, Sterling Medical Associates, and CR Associates all reported spending above $100 Million for this same timeframe, and the remaining three companies in the top ten reported spending above $80 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 621111 Contractors by % of Total Market for FY05 through FY09 - All Acquisition Strategies Source: epipeline's Contract History Plus*

The eighth company on the above list, RLM Services Inc., is listed as the first company on the restricted acquisition strategy chart below. Their total reported spending for contracts with a restricted acquisition strategy was over $93 Million, representing a market share of 12.97%. All remaining firms in the top ten reported spending for the FY05 through FY09 period 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 621111 Contractors by % of Total Market for FY05 through FY09 - RESTRICTED Competition

HOW ARE THESE CONTRACTS PROCURED?

About 75% of contract spending reported for the FY05 through FY09 timeframe under NAICS 621111 used full and open (unrestricted aka "N/A") competition. This equated to over $4.08 Billion. Contracts that were small business set-aside reported spending over $701 Million. Contracts that did not indicate their acquisition strategy (which means they could represent any acquisition strategy) reported contract spending of over $489 Million. Sole source 8a contracts was the only other acquisition strategy category that held above 1.0% of the market share. Their 1.33% market share equated to almost $75 Million in contract spending.

Acquisition Breakout under NAICS 621111 - FY05 through FY09 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 $5.24 Billion and contracts for locations outside the United States (or unlisted) totaled just under $150 Million.

The contracts with a reported place of performance located in Maryland reported the highest level of spending under NAICS 621111, with over $938 Million - or 17.38% of the market share. Major defense and civilian healthcare agencies/facilities are located in Maryland. Texas and Virginia reported spending above $400 Million. California and Washington, DC reported spending above $200 Million. The five remaining states in the top ten, along with another four, reported spending above $100 Million for this time period.

Contract Place of Performance under NAICS 621111 for FY05 through FY09

Source: epipeline's Contract History Plus*

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