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NAICS Newsletter March 7, 2016

NAICS 541712

Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

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 Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology).


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 Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology).


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 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)' industry, NAICS 541712. 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 four fiscal years.

Top 10 Federal Agencies by % of Total Market FY12 through FY16 for NAICS 541712

WHAT IS NAICS 541712?

This U.S. Industry comprises establishments primarily engaged in conducting research and experimental development (except biotechnology research and experimental development) in the physical, engineering, and life sciences, such as agriculture, electronics, environmental, biology, botany, computers, chemistry, food, fisheries, forests, geology, health, mathematics, medicine, oceanography, pharmacy, physics, veterinary and other allied subjects.

Cross References:

Providing physical, chemical, or other analytical testing services (except medical or veterinary)--are classified in Industry 541380, Testing Laboratories;

Providing medical laboratory testing for humans--are classified in U.S. Industry 621511, Medical Laboratories;

Conducting research and experimental development in biotechnology--are classified in U.S. Industry 541711, Research and Development in Biotechnology; and

Providing veterinary testing services--are classified in Industry 541940, Veterinary Services.

The size standard associated with NAICS 541712 is 500 employees (effective January 1, 2012), which means that a company, including its affiliates, would be considered a "small business" if their average number of employees did not exceed 500 for each of the pay periods for the preceding completed 12 calendar months.

Total reported spending under NAICS 541712 for the period of Fiscal Year 2012 (FY12) through Fiscal Year 2016 (FY16) was $54.3 billion. Current FY16 reported spending is $1.6 billion for services under NAICS 541712. The chart below illustrates the reported** spending by year for FY12 through FY16.

Reported Contract Spending for NAICS 541712 FY12 through FY16

Source: epipeline's Contract History Plus*

WHO ISSUES THE CONTRACTS?

NASA was the largest procurer of these services for the last five fiscal years (FY12 through FY16) with $15.9 billion in contract spending, comprising almost one-third (29.2%) of the market for NAICS 541712. The Air Force took the second spot with $8.5 billion in contract dollars and 15.6% of the market, while the Missile Defense Agency ($7.2 billion), the Navy ($6.2 billion), and the Army ($5.4 billion) also bought over $5 billion of requirements. The National Institutes of Health ($3.1 billion), the Defense Information Systems Agency, or DISA ($1.8 billion), and the Department of Energy ($1.4 billion) all held over 2% market share with 5.6%, 3.3%, and 2.6% market share, respectively. The Federal Aviation Administration ($888 million) and the Defense Advanced Research Projects Agency, or DARPA ($745 million) rounded out the top ten with 1.6% and 1.4% market share. Overall, the top ten agencies dominated almost the entirety, 93.96%, of the market.

Top 10 Federal Agencies by % of Total Market FY12 through FY16 for NAICS 541712

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 FY12 through FY16. 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

California Institute of Technology earned the top spot on the unrestricted competition list with $6.6 billion in contract dollars and 15.2% market share for FY12 to FY16. Raytheon Company took the second spot and earned over $3 billion in contract spending ($3.5 billion) with 8.1% market share. The Boeing Company ($2.6 billion), The Aerospace Corporation ($2.5 billion), and Johns Hopkins University ($2 billion) also posted over $2 billion in contract dollars. Jacobs Technology ($1.9 billion), Booz Allen Hamilton ($1.8 billion), Bechtel Marine Propulsion Corporation ($1.6 billion), Lockheed Martin ($1.6 billion), and SGT ($1.1 billion) made up the second half of the top ten with 4.3%, 4.2%, 3.8%, 3.6%, and 2.5% market share, respectively. Together, the top ten companies comprised near half (57.9%) of the market.

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 541712 Contractors by % of Total Market for FY12 through FY16 - All Acquisition Strategies

Source: epipeline's Contract History Plus*

The combined spending for contracts awarded under "restricted competition," as outlined above, totaled approximately $5.6 billion for FY12 through FY16. ASRC Aerospace Corporation ($357 million) took the top spot with 6.4% market share. Science Systems Applications ($345 million) came in second with 6.2% market share, while Analytical Mechanics Associate had the next largest market share at 4.1%, or $230 million in contract dollars. COLSA Corporation ($229 million) and Columbus Technologies and Services ($209 million) both earned over $200 million in contract spending. ADNET Systems ($165 million), Barrios Technology ($163 million), InfoPro Corporation ($145 million), Vantage Partners ($143 million), and DMD ($134 million) all earned over 2% market share with 2.95%, 2.91%, 2.58%, 2.56%, and 2.39%, 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 541712 Contractors by % of Total Market for FY12 through FY16 - Restricted Competition

Source: epipeline's Contract History Plus*

HOW ARE THESE CONTRACTS PROCURED?

84.1% of contract spending reported for the FY12 through FY16 timeframe under NAICS 541712 used full and open (unrestricted, aka "N/A") competition; this equated to $45.7 billion in contract dollars. Small businesses were the second largest sector, taking $6.9 billion in contract dollars and 12.7% of the market. Competitive 8(a) requirements accounted for 1.7% of the market and $902 million in spending, while requirements sole-sourced to 8(a) companies took 0.2% of the market with $99 million contract dollars. Requirements partially set aside for small businesses made up 1.1% of the market. Only .2% of requirements reported no clear set aside.

Acquisition Breakout under NAICS 541712 for FY12 through FY16

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 FY12 through FY16 period of $150 million.

California had the highest total reported contract spending with $12.95 billion, or 23.8% market share. Maryland came in second with $6.5 billion in contract dollars and 11.9% market share, while Alabama and Virginia took the third and fourth spots with $5.6 billion and $4.9 billion in spending and 10.3% and 9% market share. Massachusetts ($2.6 billion) and Pennsylvania ($2.4 billion) also saw over 4% market share with 4.8% and 4.4%, respectively. Colorado ($2 billion), Arizona ($1.9 billion), Texas ($1.7 billion), and New York ($1.5 billion) rounded out the top ten with 3.7%, 3.7%, 3.1%, and 2.8% market share. Together, the top ten states represented over three-quarters (77.5%) of the market. However, 4.2% of requirements under NAICS 541712 did not report a specific location.

Contract Place of Performance under NAICS 541712 for FY12 through January 2011

Source: epipeline's Contract History Plus*

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