NAICS Code 238220 - Plumbing, Heating, and Air-Conditioning Contractors - epipeline Industry Report
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NAICS Newsletter November 27, 2017

NAICS 238220

Plumbing, Heating, and Air-Conditioning Contractors

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 Plumbing, Heating, and Air-Conditioning Contractors.


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 Plumbing, Heating, and Air-Conditioning Contractors.


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 'Plumbing, Heating, and Air-Conditioning Contractors' industry, NAICS 238220. epipeline's Contract History Plus* provides you with a broad context and several perspectives that enable 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 five fiscal years.

Top 10 Federal Agencies by % of Total Market FY13 through FY17 for NAICS 238220

WHAT IS NAICS 238220?

This industry comprises establishments primarily engaged in installing and servicing plumbing, heating, and air-conditioning equipment. Contractors in this industry may provide both parts and labor when performing work. The work performed may include new work, additions, alterations, maintenance, and repairs.

Illustrative Examples:

Cooling tower installation

Heating, ventilation, and air-conditioning (HVAC) contractors

Duct work (e.g., cooling, dust collection, exhaust, heating, ventilation) installation

Lawn sprinkler system installation

Fire sprinkler system installation

Mechanical contractors

Fireplace, natural gas, installation

Refrigeration system (e.g., commercial, industrial, scientific) installation

Furnace installation

Sewer hookup and connection, building

Cross References:

Installing electrical controls for HVAC systems--are classified in Industry 238210, Electrical Contractors and Other Wiring Installation Contractors;

Duct cleaning--are classified in Industry 561790, Other Services to Buildings and Dwellings; and

Installing septic tanks--are classified in Industry 238910, Site Preparation Contractors.

The size standard associated with NAICS 238220 is $15 million (effective January 1, 2012), which means that a company, including its affiliates, would be considered a "small business" if their earnings did not exceed $15 million for each of the pay periods for the preceding completed 12 calendar months.

Total reported spending under NAICS 238220 for the period of Fiscal Year 2013 (FY13) through Fiscal Year 2017 (FY17) was approximately $2.4 billion. Current FY17 reported spending is $303 million for services under NAICS 238220. The chart below illustrates the reported** spending by year for FY13 through FY17.

Reported Contract Spending for NAICS 238220 FY13 through FY17

Source: epipeline's Contract History Plus*

WHO ISSUES THE CONTRACTS?

The GSA’s Public Buildings Service was the largest procurer of these services for the last five fiscal years (FY13 through FY17) with $520 million in contract spending, comprising 21.6% of the market for NAICS 238220. The Department of Veterans Affairs came in second place with $433 million in contract dollars and 18% of the market, while the Navy took the third spot with $344 million in contract dollars and 14.3% of the market. The Army also saw over $200 million in spending with $205 million, while the Air Force and the Centers for Disease Control each saw over $100 million in spending with $128 million and $100 million, respectively. The National Park Service ($61 million), the Federal Aviation Administration ($59 million), NASA ($57 million), and the State Department ($54 million) ranged between 2.2% and 2.6% market share. These top ten agencies accounted for over three-quarters, or 81.5%, of the market.

Top 10 Federal Agencies by % of Total Market FY13 through FY17 for NAICS 238220

Source: epipeline's Contract History Plus*

WHO WINS THE CONTRACTS?

The two charts below identify the top 10 Companies, by market share, for the period of FY13 through FY17. 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

Four Seasons Environmental earned the top spot on the unrestricted competition list with $100 million in contract dollars and 6% market share for FY13 to FY17. KCorp Technology Services held the second spot with 2.8% market share and $46 million in contract dollars, while Hensel Phelps Construction ($43 million) and Mesa Energy Systems ($35 million) also held over 2% of the market. Sergent S. Mechanical Systems ($30 million) and Urban Services Group ($27 million) both saw over $25 million in contract spending. Innovative Support Solutions ($24 million), IAP World Services ($24 million), Koniag Technology Solutions ($23 million), and Olsson Industrial Electric ($23 million) all held between 1.35% and 1.45% market share. Together, the top ten companies comprised under one-quarter of the market, or 22.5%.

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 be reflected in the chart below.

Top 10 NAICS 238220 Contractors by % of Total Market for FY13 through FY17 - All Acquisition Strategies

Source: epipeline's Contract History Plus*

The combined spending for contracts awarded under "restricted competition," as outlined above, totaled approximately $1.1 billion for FY13 through FY17. The top five restricted procurement companies (KCorp Technology Services, Urban Services Group, Sergent S. Mechanical Systems, Innovative Support Solutions, and Koniag Technology Solutions) also appeared on the unrestricted list. Here, their contract dollars ranged from approximately $22 million to $44 million. Enovity took the sixth spot on the restricted competition list with $18.8 million in contract spending and 1.8% market share, while CMC & Maintenance and Dunbar Mechanical Contractors each saw $16.1 million in contract dollars. Trademasters Service ($15.9 million) and North State Mechanical ($15.6 million) held 1.48% and 1.45% market share, 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 238220 Contractors by % of Total Market for FY13 through FY17 - Restricted Competition

Source: epipeline's Contract History Plus*

HOW ARE THESE CONTRACTS PROCURED?

40.2% of contract spending reported for the FY13 through FY17 timeframe under NAICS 238220 used full and open (unrestricted, aka "N/A") competition; this equated to $969 million in contract dollars. Small business held the second largest market share (20.9%) with $503 million in contract dollars. Projects sole-sourced to 8(a) companies took 17.6% of the market with $424 million in spending, while competitive 8(a) projects took 3.4% of the market with $81 million in spending. Requirements set aside for service-disabled veteran-owned businesses accounted for $341 million in contract spending and 14.2% market share. Contracts held by HUBZone businesses totaled $56 million in contract spending and 2.3% market share. 0.2% of requirements did not report a set-aside.

Acquisition Breakout under NAICS 238220 for FY13 through FY17

Source: epipeline's Contract History Plus*

WHERE ARE THESE CONTRACTS PERFORMED?

These contracts are being performed across the United States with a reported spending for the FY13 through FY17 period of $30.4 billion.

California had the highest total reported contract spending with $257 million, or 10.7% market share. Washington, D.C. came in second with $178 million in contract dollars and 7.4% market share. Georgia ($135 million) and Florida ($119 million) each saw over 4% of the market, while Maryland ($92 million) and North Carolina ($85 million) each saw over 3.5% of the market. Ohio ($79 million), Pennsylvania ($77 million), Texas ($76 million), and Illinois ($59 million) all held between 2.4% and 3.4% market share. Taken together, these ten states represented 48% of the market. 15.2% of requirements under NAICS 238220 did not report a specific location.

Contract Place of Performance under NAICS 238220 for FY13 through FY17

Source: epipeline's Contract History Plus*

Related Articles:
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