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NAICS NewsletterAugust 24, 2010

NAICS 541519

Other Computer Related 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 Other Computer Related 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 Other Computer Related 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 'Other Computer Related Services' industry, NAICS 541519. 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 FY06 through FY10 for NAICS 541519

WHAT IS NAICS 541519?

NAICS 541519 encompasses organizations capable of providing computer related services, excluding custom programming, systems integration design, and facilities management services.

The description of NAICS 541519 is further broken out to include these additional specific topics:

  • Computer disaster recovery services
  • Software installation services, computer

This NAICS was previously represented by a single Standard Industrial Classification (SIC) code, 7379.

The size standard associated with NAICS 541519 is $25.0 Million (effective August 18, 2008), which means that a company, including its affiliates, would be considered a "small business" if their average annual gross receipts does not exceed $25.0 Million 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. There is one exception to this size standard, for "Information Technology Value Added Resellers." The size standard for NAICS 541519 as it applies to that function, is 150 employees.

Total reported spending under NAICS 541519 for the period of Fiscal Year 2006 (FY06) through the Fiscal Year 2010 (FY10) was over $39 billion. FY10 reported spending of $4.3 billion for services under NAICS 541519. The chart below illustrates the reported** spending by year for FY06 through FY10.

Reported Contract Spending for NAICS 541519 FY06 through FY10

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 current and historic contract spending.

WHO ISSUES THE CONTRACTS?

The United States Navy was the largest procurer for these services for the last five fiscal years (FY06 through FY10), with over $5.8 billion in contract spending, comprising just over 15% of the market share for NAICS 541519. The United States Air Force took the second spot, with over $3.2 billion in reported spending for this period. The United States Army and the Defense Information Systems Agency took third and fourth places, respectively, making up a combined market share of over 13% for all spending in NAICS 541519.

The U.S. Department of Veterans Affairs and the U.S. Special Operations Command each spent over $1.5 billion during this time period with the rest of the top ten reporting spending over $1 billion for NAICS 541519.

Top 10 Federal Agencies by % of Total Market FY06 through FY10 for NAICS 541519

Source: epipeline's Contract History Plus*

WHO WINS THE CONTRACTS?

According to the Central Contractor Registry (CCR), there are 21,036 companies registered under NAICS 541519 (source: active registrants, www.ccr.gov as of 08/22/2010). Of this number, 17,912 qualify as small businesses, which includes the following breakout by socioeconomic categories (some companies may qualify under more than one category):

  • 2,129 SBA Certified 8(a) contractors;
  • 509 SBA Certified HUBZone contractors; and
  • 2,540 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 FY06 through FY10. 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

Electronic Data Systems achieves the top spot on the unrestricted competition list, with $4.1 billion in contract dollars for FY06 to FY10 and nearly 15% of the market share; it is worth noting that only $100 million of this total was awarded in FY10. L3 Communications landed $973 million in contract dollars with Energy Enterprise Solutions LLC earning $795 million. International Business Machines and Computer Sciences round out the top five with $666 million and $665 million, respectively. Two additional firms, Accenture LLP and GTSI Corp, each topped $500 million in contracting dollars for the 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 reflected in the chart below.

Top 10 NAICS 541519 Contractors by % of Total Market for FY06 through FY10 - All Acquisition Strategies

Source: epipeline's Contract History Plus*

The combined contract spending for contracts awarded under "restricted competition," as outlined above, totaled over $3.3 billion for FY06 through FY10. Eventure Technologies LLC takes the top spot, with reported spending of $273 million for this period, or 8.2% of market share. Merlin International, Inc. also secured over $100 million in contracting dollars for this time period. The remaining firms in the top ten, as well as another four companies, exceeded $50 million in reported spending for NAICS 541519.

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 541519 Contractors by % of Total Market for FY06 through FY10 - Restricted Competition

Source: epipeline's Contract History Plus*

HOW ARE THESE CONTRACTS PROCURED?

Over 82% of contract spending reported for the FY06 through FY10 timeframe under NAICS 541519 used full and open (unrestricted aka "N/A") competition. This equated to over $32 billion. Contracts that did not indicate their acquisition strategy (which means they could represent any acquisition strategy) reported contract spending of over $2.9 billion. Contracts that were small business set-aside reported spending over $1.8 million. The combined value of contracts awarded to 8a firms (sole source and competitive) was over $1.87 billion, representing just over 4.7% of the market.

Acquisition Breakout under NAICS 541519 for FY06 through FY10

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 FY06 through FY10 period of $38 billion and contracts for locations outside the United States (or unlisted) totaled approximately $993 million.

The state with the highest total of reported contract spending is Virginia, with $12.4 billion. The District of Columbia ($6 billion) and Maryland ($4.3 billion) took the second and third spots. Together the top five states represent over 67% of market under NAICS 541519. Besides those in the top ten, an additional three states reported at least $500 million for NAICS 541519 during this time period.

Contract Place of Performance under NAICS 541519 for FY06 through January 2010

Source: epipeline's Contract History Plus*

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