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NAICS Newsletter October 28, 2016

NAICS 517410

Satellite Telecommunications

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 Satellite Telecommunications.


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 Satellite Telecommunications.


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 'Satellite Telecommunications' industry, NAICS 517410. 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 517410

WHAT IS NAICS 517410?

This industry comprises establishments primarily engaged in providing telecommunications services to other establishments in the telecommunications and broadcasting industries by forwarding and receiving communications signals via a system of satellites or reselling satellite telecommunications.

Cross References:

Establishments primarily engaged in providing direct-to-home satellite television services to individual households or consumers are classified in Industry 517110, Wired Telecommunications Carriers.

The size standard associated with NAICS 517410 is $32.5 million (effective January 1, 2012), which means that a company, including its affiliates, would be considered a "small business" if their average earnings did not exceed $32.5 million for each of the pay periods for the preceding completed 12 calendar months.

Total reported spending under NAICS 517410 for the period of Fiscal Year 2012 (FY12) through Fiscal Year 2016 (FY16) was approximately $2.4 billion. Current FY16 reported spending is $284 million for services under NAICS 517410. The chart below illustrates the reported** spending by year for FY12 through FY16.

Reported Contract Spending for NAICS 517410 FY12 through FY16

Source: epipeline's Contract History Plus*

WHO ISSUES THE CONTRACTS?

The Defense Information Systems Agency (DISA) was the largest procurer of these services for the last five fiscal years (FY12 through FY16) with $1 billion in contract spending, comprising 41.4% of the market for NAICS 517410. The Navy took the second spot with $400 million in contract dollars and 16.5% of the market. The Air Force ($287 million) and the Army ($224 million) also bought over $200 million of requirements. The GSA’s Federal Acquisition Service ($89 million), USSOCOM ($87 million), and the Broadcasting Board of Governors ($85 million) accounted for 3.7%, 3.6%, and 3.5% of the market, respectively. The U.S. Coast Guard ($54 million), the Federal Aviation Administration ($32 million), and the Federal Emergency Management Agency ($31 million) each held between 1.2% and 2.3% market share. Overall, the top ten agencies accounted for 94.6% of the market.

Top 10 Federal Agencies by % of Total Market FY12 through FY16 for NAICS 517410

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

Iridium Satellite earned the top spot on the unrestricted competition list with $255 million in contract dollars and 10.6% market share for FY12 to FY16. Intelsat General Corporation took the second spot with $195.33 million in contract spending, and The Boeing Company took the third spot with $195.31 million; each company held 8.09% market share. Technical and Management Services ($194.3 million) and Raytheon Company ($193.6 million) were close behind with 8.05% and 8.02% market share, respectively. Americom Government Services ($143.7 million) and Comtech Mobile Datacom Corporation ($104.2 million) also saw over $100 million in contract dollars, while World Wide Technology ($90 million), DRS Systems ($67.9 million), and Segovia ($67.5 million) all saw over $50 million in contract dollars. Together, the top ten companies comprised almost two-thirds of the market, or 62.4%.

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 517410 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 $157 million for FY12 through FY16. Caprock Government Solutions had the largest stake with $31 million in contract spending and 19.8% market share. ADCI of Delaware ($27 million) took the second spot with 17.3% market share, while By Light, Professional IT Services ($18 million) took the third spot with 11.6% market share. UltiSat ($15 million), AIS Engineering ($13 million), and Knight Sky Consulting and Associates ($9.9 million) all saw over 5% market share, with 9.4%, 8.5%, and 6.4%, respectively. Global Technical Services ($4.7 million) and E&E Enterprises Global ($4.5 million) saw over 2% market share, with 3% and 2.9%. Glacier Technologies ($2.4 million) and In the Zone Communications Company ($2.2 million) each earned over 1% market share, posting 1.6% and 1.4%.

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 517410 Contractors by % of Total Market for FY12 through FY16 - Restricted Competition

Source: epipeline's Contract History Plus*

HOW ARE THESE CONTRACTS PROCURED?

93.2% of contract spending reported for the FY12 through FY16 timeframe under NAICS 517410 used full and open (unrestricted, aka "N/A") competition; this equated to $2.3 billion in contract dollars. Small businesses were the second largest sector, taking $125 million in contract dollars and 5.2% of the market. Competitive 8(a) requirements accounted for 0.64% of the market and $15.5 million in spending, while procurements sole-sourced to 8(a) companies took 0.61% of the market with $14.8 million contract dollars. 0.23% of requirements did not report an acquisition strategy.

Acquisition Breakout under NAICS 517410 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 $2.4 billion.

Virginia had the highest total reported contract spending with $579 million, or 23.92% market share. Maryland came in second with $483 million in contract dollars and 19.97% market share, while Massachusetts took the third spot with $193 million in spending and 7.99% market share. Colorado, Washington, D.C., and Washington also saw over $150 million in contract spending with $179 million, $167 million, and $157 million, respectively. Florida ($91 million) and New Jersey ($86 million) both saw over $50 million in contract dollars. California ($40 million) and Illinois ($32 million) rounded out the top ten with 1.66% and 1.34% market share. Together, these ten states represented 82.97% of the market. 11.37% of requirements under NAICS 517410 did not report a specific location.

Contract Place of Performance under NAICS 517410 for FY12 through January 2011

Source: epipeline's Contract History Plus*

Related Articles:
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epipeline is part of Government Contracts USA, offering a range of services in government contracts, government RFPs, government bids and government procurement systems.

Federal Contracting: epipeline & You epipeline's proprietary research, enables you to effectively identify, qualify, distribute, and manage opportunities at an earlier stage, reducing your costs and providing a competitive advantage.

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