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NAICS NewsletterDecember 21, 2009

NAICS 562910

Remediation 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 Remediation 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 Remediation 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 'Remediation Services' industry, NAICS 562910. 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 562910

WHAT IS NAICS 562910?

Companies represented by NAICS 562910 provide remediation and cleanup of contaminated buildings, mine sites, soil, or ground water. This code also includes firms that provide integrated mine reclamation activities, including demolition, soil remediation, waste water treatment, hazardous material removal, contouring land, and revegetation. Firms providing asbestos, lead paint, and other toxic material abatement are also included. The description of NAICS 562910 is further broken out to include these additional specific topics:

  • Asbestos abatement services
  • Asbestos removal contractors
  • Environmental remediation services
  • Lead paint abatement services
  • Lead paint removal contractors
  • Mine reclamation services, integrated (e.g., demolition, hazardous material removal, soil remediation)
  • Oil spill cleanup services
  • Remediation and clean up of contaminated buildings, mine sites, soil, or ground water
  • Remediation services, environmental
  • Site remediation services
  • Soil remediation services
  • Toxic material abatement services
  • Toxic material removal contractors

The size standard associated with NAICS 562910 is $14.0 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 $14.0Million 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 562910 for the period of Fiscal Year 2005 (FY05) through the Fiscal Year 2009 (FY09) was over $21.0 Billion. FY09 reported spending of $5.6 Billion for services under NAICS 562910. The chart below illustrates the reported** spending by year for FY05 through FY09.

Reported Contact Spending FY05 through FY09 for NAICS 562910 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 Energy is the largest buyer of services under NAICS 562910, commanding over 41% of the market share for the last four fiscal years (FY05 through FY09), with over $8.8 Billion in contract spending. This was over $4.0 Billion more then the next largest spender for this same period, the United States Air Force. The United States Army, the Environmental Protection Agency (EPA), and United States Navy also all reported spending above $1.0 Billion.

Top 10 Federal Agencies by % of Total Market FY05 through FY09 for NAICS 562910 Source: epipeline's Contract History Plus*

WHO WINS THE CONTRACTS?

According to the Central Contractor Registry (CCR), there are 8,397 companies registered under NAICS 562910 (source: active registrants, www.ccr.gov as of 12/07/2009). Of this number, 6,838 qualify as small businesses, which includes the following breakout by socioeconomic categories (some companies may qualify under more than one category):

  • 872 SBA Certified 8(a) contractors;
  • 514 SBA Certified HUBZone contractors; and
  • 931 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

Many of the companies listed on the unrestricted competition chart below were formed for specific contracts with the Department of Energy. The first four companies on the list hold single contracts that represent all the contract dollars they've received under NAICS 562910. Specifically:

  • CH2M*WG Idaho holds contract # DEAC0705ID14516 for Idaho Cleanup, $2.6 Billion reported for FY05-FY09;
  • CH2M Hill Plateau Remediation Company holds contract # DEAC0608RL14788 for continued remediation of select portions of the Hanford Site, $1.9 Billion reported for FY05-FY09;
  • Washington Closure Hanford, LLC holds contract # DEAC0605RL14655 for the Columbia River Closure Project, $1.1 Billion reported for FY05-FY09; and
  • Fluor Fernald Inc., held contract # DEAC2401OH20115 for the Fernald Closure Project, $994 Million reported for FY05-FY09.

The remaining companies in the top ten, along with another 33 companies all reported spending above $100 Million for this same timeframe.

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 562910 Contractors by % of Total Market for FY05 through FY09 - All Acquisition Strategies Source: epipeline's Contract History Plus*

The top two companies on the restricted acquisition strategy chart below both reported contract spending above $400 Million for the FY05 through FY09 period. Paducah Remediation Services LLC held contracts with reported values at about $414 Million and Lata-Merrick Engineering Environment, LLC (listed eighth on the above chart) reported approximately $400 Million. Sevenson Environmental Services reported $230 Million, and the next five companies on the list were above $100 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 562910 Contractors by % of Total Market for FY05 through FY09 - RESTRICTED Competition Source: epipeline's Contract History Plus*

HOW ARE THESE CONTRACTS PROCURED?

Over 72% of contract spending reported for the FY05 through FY09 timeframe under NAICS 562910 used full and open (unrestricted aka "N/A") competition. This equated to over $15.2 Billion. Contracts that did not indicate their acquisition strategy (which means they could represent any acquisition strategy) reported contract spending of over $2.4 Billion. Contracts that were small business set-aside reported spending over $2.3 Billion. Sole source 8a contracts was the only other acquisition strategy category that held above 1.0% of the market share. Their 2.96% market share equated to about $622 Million in contract spending. Even though it was under 1% of the market share, contracts that were procured as competitive 8a or competitive Service Disabled Veteran-Owned Small Business (SDVOSB) set-asides still reported spending above $100 Million.

Acquisition Breakout under NAICS 562910 - 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 $18.1 Billion and contracts for locations outside the United States (or unlisted) totaled approximately $2.9 Billion.

The contracts with a reported place of performance located in Washington (State) reported the highest level of spending under NAICS 562910, with over $3.38 Million - or 16.08% of the market share. Idaho and Ohio both reported spending above $2 Billion. These states are sites of very large DOE remediation programs. California was the only other state with reported contract spending that cracked the $1 Billion mark, with $1.4 Billion. The six remaining states in the top ten reported spending above $500 Million for this time period.

Contract Place of Performance under NAICS 562910 for FY05 through FY09

Source: epipeline's Contract History Plus*

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