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NAICS NewsletterMay 30, 2008

NAICS 541690

Other Scientific and Technical Consulting 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 Other Scientific and Technical Consulting 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 Scientific and Technical Consulting 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 Scientific and Technical Consulting Services' industry, NAICS 541690. 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 FY04 - Q2FY08 for NAICS 541690

WHAT IS NAICS 541690?

NAICS 541690 is used when the contract requires advice and assistance to businesses and other organizations on scientific and technical issues. This does not include environmental issues, which falls under NAICS 541620.

NAICS 541690 has remained the same through all versions of the NAICS - 1997, 2002, and 2007. This NAICS was previously represented by two different Standard Industrial Classification (SIC) codes, 0781, 7819, 8748, and 8999. They are described below, as they relate to this specific NAICS:

SIC 0781: Horticultural consulting services
SIC 7819 Motion picture consulting services
SIC 8748: Business Consulting Services

  • Agricultural consulting services
  • Agrology consulting services
  • Agronomy consulting services
  • Biological consulting services
  • Dairy herd consulting services
  • Economic consulting services
  • Energy consulting services
  • Hydrology consulting services
  • Livestock breeding consulting services
  • Radio consulting services
  • Safety consulting services
  • Security consulting services

SIC 8999: Services
  • Chemical consulting services
  • Entomology consulting services
  • Geochemical consulting services
  • Nuclear energy consulting services
  • Physics consulting services

The size standard for NAICS 541690 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 receipts does not exceed $6.5 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.

Total reported spending under NAICS 541690 for the period of Fiscal Year 2004 (FY04) through the second quarter (Q2) of Fiscal Year 2003 (FY08 aka Q2FY08) was over $4.87 Billion. With two quarters reported, FY08 reported spending of almost $1.12 Billion for services under NAICS 546190. The chart below illustrates the reported** spending by year for FY04 through Q2FY08.

Reported Contact Spending FY04 - Q2FY08 for NAICS 541690 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 Defense (DoD) was the largest buyer for these services for the last four fiscal years (FY04 through Q2FY08), with over $1.43 Billion in contract spending, comprising almost 30% of the market share for NAICS 541690. This value includes all components of the Defense Department (Army, Navy, Marine Corps, Air Force, DLA, etc.). This amount could grow even more, as there are some gaps in reported DOD spending (FY05 and later). The Department of Energy (DOE) was not too far behind, with $1.31 Billion over the same period. The remaining departments/agencies did not crack the one billion dollar mark, though the next five were over $100 Million (HHS aka DHHS, NASA, USAID, DOC, and DOI).

Top 10 Federal Agencies by % of Total Market FY04 - Q2FY08 for NAICS 541690 Source: epipeline's Contract History Plus*

WHO WINS THE CONTRACTS?

According to the Central Contractor Registry (CCR), there are 34,257 companies registered under NAICS 541690 (source: active registrants, www.ccr.gov as of 05/21/2008). Of this number, 27,516 qualify as small businesses.

The two charts below identify the top 10 Companies, by market share, for the period of FY04 through Q2FY08. 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

Bechtel Nevada holds the top spot on the unrestricted competition list by a large margin, with over $1.09 Billion in total contract dollars for FY04 through Q2FY08 - or 25.7% of the market share. Hamilton Sundstrand is a distant second with their 6.5% of the market share, which equates to almost $280 Million. The next two firms, Westat and Ares Corporation both crack the $100 Million mark for this period under NAICS 541690.

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 541690 Contractors by % of Total Market for FY04 - Q2FY08 - Unrestricted Source: epipeline's Contract History Plus*

The combined contract spending for contracts awarded under "restricted competition" totaled over $488 Million for FY04 through Q2FY08. Ares Corporation (listed fourth on the chart above) is the only one of the firms on this restricted list to crack the $100 Million mark for spending during this period. Their $107 Million translates to 22% of the market share. The next two firms have over $32 Million reported contract dollars for this timeframe: IM Systems Group Inc., and CP Leasing Inc. The remaining companies in this top ten have spending reported over $8 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 541690 Contractors by % of Total Market for FY04 - Q2FY08 - RESTRICTED Competition

HOW ARE THESE CONTRACTS PROCURED?

Over 55% of the contract dollars spend during the FY04 through Q2FY08 timeframe were awarded using full and open competition. This represented over $2.6 Billion for NAICS 541690. Over 34% 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 $1.6 Billion in contract dollars. Contracts set-aside for small businesses comprised 6.4% of the market share. Sole source awards added up to $135 Million, or 2.7% of the market share. The majority of the sole source contracts were 8(a) sole source awards (over $133 Million of the $135 Million).

Acquisition Breakout under NAICS 541690 - FY04 through Q2FY08 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 of $4.38 Billion and contracts for locations outside the United States total over $482 Million. The map below illustrates the distribution of locations within the United States (only). For example, there are 15 states that are shaded bright yellow. This means that these states have reported contract spending between $40 Million and $1.12 Billion.

The state with the highest total of reported contract spending is Nevada, with $1.11 Billion. This is largely due to Bechtel Nevada's contract with the Department of Energy. Their contract, # DE-AC08-96NV11718, was for Management and Operations of the Nevada Test Site (NTS) and its related facilities and laboratories. This contract expired in 2006 and a new contract was awarded to National Security Technologies, LLC (Contract # DE-AC52-06NA25946). Contract spending under this new contract is reported to FPDS under a different NAICS code (561210), so any reported spending for that contract is not included in this report.

Georgia had the second largest reported amount, with over $95 Million. New Jersey, Massachusetts, Ohio, and Pennsylvania all reported contract spending for the FY04-Q2FY08 period over $50 Million.

Contract Place of Performance under NAICS 541690 FY04 - Q2FY08

Source: epipeline's Contract History Plus*

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