NAICS 541712 - Research and Development

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NAICS 541712
Research and Development in the Physical,
Engineering, and Life Sciences (except
Biotechnology)

Government Contract and Procurement Analysis Report

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.

WHAT IS NAICS 541712?
NAICS 541712 encompasses 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.
The description of NAICS 541712 is further broken out to include these additional specific topics:
Agriculture research and development laboratories or services (except biotechnology research
and development)
Bacteriological research and development laboratories or services (except biotechnology
research and development)
Biology research and development laboratories or services (except biotechnology research and
development)
Botany research and development laboratories or services (except biotechnology research and
development)

Chemical research and development laboratories or services (except biotechnology research and
development)
Computer and related hardware research and development laboratories or services
Dental research and development laboratories or services
Electronic research and development laboratories or services
Engineering research and development laboratories or services
Entomological research and development laboratories or services (except biotechnology
research and development)
Environmental research and development laboratories or services (except biotechnology
research and development)
Experimental farms
Fisheries research and development laboratories or services
Food research and development laboratories or services (except biotechnology research and
development)
Forestry research and development laboratories or services
Genetics research and development laboratories or services (except biotechnology research and
development)
Geological research and development laboratories or services
Guided missile and space vehicle engine research and development
Guided missile and space vehicle parts (except engines) research and development
Health research and development laboratories or services (except biotechnology research and
development)
Industrial research and development laboratories or services (except biotechnology research and
development)
Life sciences research and development laboratories or services (except biotechnology research
and development)
Mathematics research and development laboratories or services
Medical research and development laboratories or services (except biotechnology research and
development)
Observatories, research institutions
Oceanographic research and development laboratories or services
Physical science research and development laboratories or services (except biotechnology
research and development)
Physics research and development laboratories or services
Veterinary research and development laboratories or services (except biotechnology research
and development)
Please be aware that 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 biothechnology--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 November 5, 2010),
which means that a company, including its affiliates, would be considered a "small business" if it does
not exceed an average of 500 employees annually.

Total reported spending under NAICS 541712 for the period of Fiscal Year 2007 (FY07) through Fiscal
Year 2011 (FY11) was over $22.2 billion. FY11 reported spending of more than $458 million for
services under NAICS 541712. The chart below illustrates the reported** spending by year for FY07
through FY11.

Source: epipeline's Contract History Plus*
** Note: it is possible that some Defense spending for the more recent fiscal years (FY06 to present) is
not as widely reported as earlier years. These numbers will likely increase as more departments and
agencies report their current and historic contract spending.
WHO ISSUES THE CONTRACTS?
The Department of the Army was the largest procurer for these services for the last five fiscal years
(FY07 through FY11), with over $4 billion in contract spending, comprising over 18% of the market
share for NAICS 541712. The Missile Defense Agency took the second spot, with over $3.9 billion in
reported spending for this period. The Department of the Air Force and the Department of the Navy
took third and fourth places, respectively, making up a combined market share of 30.1% for all
spending in NAICS 541712.
The Department of Energy and NASA spent $1.8 and $1.7 billion respectively during this time period
with the rest of the top ten reporting spending just under $2.97 billion for NAICS 541712.


Source: epipeline's Contract History Plus*
WHO WINS THE CONTRACTS?
According to the Central Contractor Registry (CCR), there are 15,769 companies registered under
NAICS 541712 (source: active registrants, www.ccr.gov as of 3/18/2011). Of this number, 11,922
qualify as small businesses, which includes the following breakout by socioeconomic categories (some
companies may qualify under more than one category):
725 SBA Certified 8(a) contractors;
256 SBA Certified HUBZone contractors; and
967 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 FY07 through
FY11. 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 Marine Propulsion Corporation achieves the top spot on the unrestricted competition list, with
close to $2.3 billion in contract dollars for FY07 to FY11 and nearly 14% of the market share. The
Boeing Company landed $1.0 billion in contract dollars with TRW earning over $729 million.
Raytheon Systems and Lockheed Martin Corporation round out the top five with $690.1 and $687.9
million, respectively. Four additional firms, Mcdonnell Douglas, Northrop Grumman Systems, Saic and
Sherikon, each topped $200 million in contracting dollars for the same time period.
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.



Source: epipeline's Contract History Plus*
The combined contract spending for contracts awarded under "restricted competition," as outlined
above, totaled over $2.42 billion for FY07 through FY11. Intelligent Software Solutions Inc takes the
top spot, with reported spending of over $138 million for this period, or 5.72% of market share. DMD
LLC also secured over $134.6 million in contracting dollars for this time period. Two other firms in the
top ten, Eoir Technologies Inc and Fibertek Inc, also exceeded $100 million in reported spending for
NAICS 541712.
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.


Source: epipeline's Contract History Plus*
HOW ARE THESE CONTRACTS PROCURED?
Over 82% of contract spending reported for the FY07 through FY11 timeframe under NAICS 541712
used full and open (unrestricted aka "N/A") competition. This equated to over $18 billion. Contracts
that did not indicate their acquisition strategy (which means they could represent any acquisition
strategy) reported contract spending of more than $30 million. Contracts that were small business set-
aside reported spending of over $3.7 billion. The combined value of contracts representing all other
acquisition strategies was nearly $211.6 million, or approximately .95% of the market.


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 FY07 through FY11 period of $21.6 billion and
contracts for locations outside the United States (or unlisted) totaled approximately $601 million.
The highest total of reported contract spending is reported for California, with $3.1 billion. Virginia
($2.9 billion) and Pennsylvania ($2.7 billion) took the second and third spots. Together, the top five
states represent 56.32% of market under NAICS 541712. Besides those in the top ten, an additional 8
states reported at least $200 million for NAICS 541712 during this time period.

Source: epipeline's Contract History Plus*