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NAICS NewsletterApril 17, 2008

NAICS 811219

Other Electronic and Precision Equipment Repair and Maintenance

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 Other Electronic and Precision Equipment Repair and Maintenance.


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 Electronic and Precision Equipment Repair and Maintenance.


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 Electronic and Precision Equipment Repair and Maintenance' industry, NAICS 811219. 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 buying these services over the last four fiscal years.

Top 10 Federal Agencies by % of Total Market FY03 - FY06 for NAICS 811219

WHAT IS NAICS 811219?

Companies represented by NAICS 811219 provide repair and maintenance (without retailing) to electronic and precision equipment. This equipment includes medical diagnostic imaging equipment, measuring and surveying instruments, laboratory instruments, and radar and sonar equipment. It does not include consumer electronics, computers and office machines, and communications equipment.

The description of NAICS 811219 is further broken out to include these additional specific topics:

  • Dental equipment repair and maintenance services
  • Diagnostic imaging equipment repair and maintenance services
  • Electrical measuring instrument repair and maintenance services
  • Laboratory instrument repair and maintenance services
  • Measuring instrument repair and maintenance services
  • Medical and surgical equipment repair and maintenance services
  • Meteorological instrument repair and maintenance services
  • Navigational instruments (e.g., radar, sonar) repair and maintenance services
  • Optical instrument repair and maintenance services (e.g. microscopes, telescopes)
  • Precision equipment calibration
  • Radar and sonar equipment repair and maintenance services
  • Surgical instrument repair and maintenance services
  • Surveying instrument repair and maintenance services
  • Weighing equipment (e.g., balance, scales) repair and maintenance services

NAICS 811219 has remained the same through all versions of the NAICS - 1997, 2002, and 2007. It was previously represented by SIC 7629 and 7699. The size standard for NAICS 811219 the size standard is $6.5 Million (effective October 1, 2007), which means that a company, including its affiliates, would be considered a "small business" if their average annual gross revenue does not exceed $6.5 Million for the past three years.

Total reported spending under NAICS 811219 in FY03 was $378 Million. FY04 saw that number increase to $432 Million. Spending for FY05 and FY06 are not as widely reported as the previous fiscal years, so those values ($292 Million for FY05 and $81 Million for FY06) do not represent total contract spending for those fiscal years. These numbers will increase as more departments and agencies report their contract spending.

WHO ISSUES THE CONTRACTS?

The Department of Defense (DoD) was the largest buyer for these services for the last four fiscal years (FY03 through FY06), with over $1.02 Billion in contract spending, comprising over 86% of the market share for NAICS 811219. This value includes all components of the Defense Department (Army, Navy, Marine Corps, Air Force, DLA, etc.), however, FY05 and FY06 contract dollars have not been as widely reported yet (at least as far as FPDS data), so that total will increase as more information is reported. The Department of Veterans Affairs (VA aka DVA) was a distant second, with only 6% of the market share, equating to approximately $76 Million. The Department of Commerce (DOC), Department of Homeland Security (DHS), Department of Health and Human Services (HHS aka DHHS) and the Department of Interior (DOI) were the only other departments to have over $10 Million in reported spending for this period.

Top 10 Federal Agencies by % of Total Market FY03 - FY06 for NAICS 811219

WHO WINS THE CONTRACTS?

According to the Central Contractor Registry (CCR), there are 2,862 companies registered under NAICS 811219 (source: active registrants, www.ccr.gov as of 03/21/2008). Of this number, 2171 qualify as small businesses.

The two charts below identify the top 10 Companies, by market share, for the period of FY03 through FY06. 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

Lockheed Martin Corporation holds the top spot on the unrestricted competition list, with over $195.9 Million in total contract dollars for FY03 through FY06 - or 18.8% of the market share. Lockheed also holds the fifth spot on this list, under the name, "Lockheed Martin Services Inc. In fact, various sectors of Lockheed hold positions outside the top ten, too. Many larger corporations hold their contracts under unique company names, often depending upon the type of work provided.

Northrop Grumman Systems Corporation is just outside of the top spot on the list, with 18.42% of the market share, or approximately $192 Million contract dollars. The remaining top ten, along with two additional firms ranked 11th and 12th all have reported contract spending for this 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 811219 Contractors by % of Total Market for FY03 - FY06 - Unrestricted

The combined contract spending for contracts awarded under "restricted competition" totaled over $30 Million for FY03 through FY06. The Bionetics Corporation takes top honors for contracts with reported acquisition strategies associated with small businesses. Their 22% of the market share equates to contract dollars exceeding $6.8 Million. The two firms, K-Mar Industries Inc., and Science and Management Resources, are the only other two firms that have contract totals under this NAICS exceeding $1.0 Million. With the exception of the tenth firm on this list (Chromal Pating Co Inc.), the remaining firms in the top ten all have contact spending totals over $500,000 during the FY03-FY06 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 811219 Contractors by % of Total Market for FY03 - FY06 - RESTRICTED Competition

HOW ARE THESE CONTRACTS PROCURED?

Over 60% of the contract dollars spend during the FY03 through FY06 timeframe were awarded using full and open competition. This represented over $718 Million for NAICS 811219. Over 36% of contracts during this period did not report their acquisition strategy. These contracts could include those awarded using full and open competition, small business set-aside, or any manner of restriction. This accounted for over $430 Million in contract dollars. Contracts set aside for small businesses totaled $31 Million for this period. The only other strategy to crack the $1 Million mark for spending under this period, are those contracts that were reported as sole source 8(a) awards. These contracts represented over $2.8 Million and about 0.24% of the market share.

Acquisition Breakout under NAICS 811219 - FY03 through FY06

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 of $1.13 Billion and contracts for locations outside the United States total over $52 Million. The map below illustrates the distribution of locations within the United States. For example, there are 13 states that are shaded bright yellow. This means that these states have reported contract spending between $15 Million and $196 Million.

The state with the highest total of reported contract spending is California, with over $195 Million. The State of New Jersey has the second largest reported amount, with over $185 Million. Florida also has reported contract dollars for the FY03 through FY06 period of over $100 Million. Texas, Michigan, Maryland, and Virginia all have reported spending over $50 Million under NAICS 811219 for the FY03 through FY06 period.

Contract Place of Performance under NAICS 811219 FY03-FY06

Source: epipeline's Contract History Plus*

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