Tag: 336414

Top 10 Industry NAICS codes for IDV Contracts in 2020

Posted on by Eric Coffie

For service contracts (and some products), the government has shifted almost entirely towards Indefinite Delivery Vehicles (IDVs).

IDVs separate large businesses from small, as small businesses in socio-economic categories are often prioritized. Although competition is intense, this is still an opportunity that you shouldn’t miss. 

The ultimate goal in bidding for IDV contracts, and in government contracting, in general, is to win. Having a small business certificate won’t be enough, you need to earn your spot on this bus. 

If you haven’t earned the right on the bus, you can’t even see the task and delivery orders. So how do you secure your spot? Start by knowing the industry and your competitors. 

IDV contract opportunities are found in all industries, but not all succeed. Some industries do better than others, here are 10 industries that have successfully made their way through winning IDV contracts in 2020.

1. 325412 

Pharmaceutical preparation manufacturing is the industry wherein establishments manufacture in-vivo diagnostic substances and pharmaceutical preparations (except biological). They are the makers of tablets, capsules, ointments, etc.

Federal IDV contracts under this code were actually worth about $2 billion in 2020, making it first on this list.

2. 325414 

Biological product (except diagnostic) manufacturing is the manufacturing of vaccines, toxoids, blood fractions, and culture media of plant or animal origin (except diagnostic). This comes second, with a government spending of $1.7 billion for IDV contracts.

3. 481212 

This code is for establishments in the nonscheduled chartered freight air transportation industry wherein they provide air transportation of cargo, without transporting passengers, with no regular routes and regular schedules.

When it comes to the government’s cumulative spending, specifically on IDV contracts, this industry is worth $1.6 billion.

4. 541712 

This code is all about research and development in the physical, engineering and life sciences engineering, and life sciences (except Biotechnology).

They conduct research and experimental developments in the field of science and mathematics. In 2020, the federal government has invested $1 billion in this industry for IDV contracts.

Note: The NAICS Code 541712, however, is no longer valid. The NAICS Code that should be used instead is 541715. Unless the requirement is dealing with nanotechnology, in that case, code 541713 should be used. 

5. 325411 

The medicinal and botanical manufacturing industry, worth $900 million in IDV contracts, manufactures uncompounded medicinal chemicals and their derivatives (i.e., generally for use by pharmaceutical preparation manufacturers). They are also responsible for grading, grinding, and milling uncompounded botanicals.

6. 541711 

Ever wondered why the NAICS code 541712 / 541715 excluded biotechnology? Here’s why. 

This code conducts biotechnology research and experimental development. They use micro-organisms and cellular and biomolecular processes to develop or alter living or non-living materials. 

They contribute to the development of new biotechnology processes used by various industries, which explains why the U.S. government has spent over $812 million in this industry, for IDV contracts alone.

7. 336414 

Guided missile and space vehicle manufacturing businesses manufacture complete guided missiles and space vehicles and/or develop and make prototypes of guided missiles or space vehicles. 

NASA is known to be the largest procurer of these services, followed by the Air Force and the Missile Defense Agency. More than $599 million was put into this industry, specifically for IDV contracts.

8. 541512 

Computer systems designs services plan and design computer systems that integrate computer hardware, software, and communication technologies.  Federal IDV contracts, in this industry, have a cumulative spending amount of $567 million.

9. 561210 

Facilities support services provide operating staff to perform a combination of support services within a client’s facilities. The staff, however, are not involved with or responsible for the core business of the client. The government invested $468 million worth of IDV contracts on this industry for 2020.

10. 541330 

This code is for establishments that offer engineering services which include civil engineering services, environmental engineering services, and mechanical engineering services. 

This industry is wide-ranging, as it pertains to any business that applies physical laws and principles of engineering in their design, development, and utilization of systems. The cumulative federal spending for these establishments is $410 million for IDV contracts.

RESOURCES

The list of industry NAICS codes from this article was taken from usaspending.gov, wherein federal awards for IDV contracts in 2020 were categorized by their NAICS codes and were listed from highest to lowest, according to their respective cumulative amount obligated by the government.

If you want to know the benefits of IDIQs and IDVs and how to prepare your company for these opportunities, then be sure to click the links below:

Are you ready to win a contract, prepare your corporation for success using IDV

https://www.youtube.com/watch?v=kqs1D_TKZIg

Multiple year contract award (IDIQ) explained in simple terms – Eric Coffie

https://www.youtube.com/watch?v=WgVtj-Iv7yI

To also learn more about all things NAICS, you can check out the website here.

Top 10 Industry NAICS Codes for Contracts in 2020

Posted on by Eric Coffie

The government spends millions, every year, on products and services, from office supplies and airplanes to machinery and even fitness equipment. 

Each business opportunity is assigned to at least one North American Industry Classification System (NAICS) code which allows these contracts to be tracked for research and reportable data in the future.

Being well versed with the NAICS Codes for Contracts in    2021 can help you in building a good working relationship with the government as it gives your business more visibility. Would you want to be seen? 

It’s always good to know how you measure against your competitors. Given the numerous industries, you can narrow down the list by knowing which industries have been prospering in the federal marketplace.  

With this in mind, here’s the top 10 industries that have won contracts in 2020.

1. 336411 

Number one on our list is the aircraft manufacturing industry. They are responsible for manufacturing, modification and restoration of engines of different aircraft, space vehicles, guided missiles, and propulsion units. 

Although the manufacturers of this industry depend heavily on the international market for their sales, they have a combined annual revenue of about $68 billion in 2020 for federal contracts. 

2. 541330

Establishments that offer engineering services, design, develop and utilize machines and systems through applying physical laws and principles of engineering. 

The U.S. engineering services industry includes about 65,000 establishments. They had a combined annual revenue of $39 billion from contract awards with the federal government alone.

3. 336611 

The ship building and repairing establishments are engaged in operating a shipyard. They construct, repair, convert and alter, and produce prefabricated ship and barge sections. The cumulative amount obligated by the U.S. government in this industry is about $31 billion.

4. 561210 

Facilities support services provide operating staff to perform a combination of support services within the client’s facilities. The support services being referred to are wide-ranging, from janitorial to guard and security, and then laundry.

Often forgotten and little recognized, they have always worked behind the scenes to keep facilities going and running at an optimal level. Contracts awards in 2020 under this code are worth around $30 billion. 

5. 541512 

Establishments that offer computer system design services are those who plan and design computer systems. Services that they offer include software support, computer systems design, and data processing facilities management. The combined annual revenue for government contract awards in this industry is $26 billion. 

6. 236220 

People in this industry are primarily responsible for the construction of commercial and institutional buildings and related structures, such as stadiums, grain elevators, and indoor swimming facilities. 

The United States is one of the largest construction markets worldwide. Their spending on private and public construction continued to grow in 2020. More specifically, federal contract awards in businesses under this code in that year reached $24 billion.

7. 541715 

This code is for the world of Research and Development. This pertains to businesses who conduct research and experimental development (except nanotechnology and biotechnology) in the fields of physical, engineering, and life sciences.

The federal government also invested about $24 billion in this industry. Although their research outputs have no guarantee for extension to product commercialization or final application, they are considered essential, as they increase the ‘knowledge base’ available to companies. 

8. 336414 

Guided missile and space vehicle manufacturing applies to establishments that manufacture complete guided missiles and space vehicles. They develop and make prototypes of guided missiles or space vehicles.

The demand for guided missiles is dependent on the government spending on defense. The government spending for contracts under this code last year was worth $22 billion.

9. 541519 

Other computer related services, from the name itself, provide other computer related services that are not offered by establishments under 541512 (Computer Systems Designs Services). 

More specifically, the services include computer disaster recovery and software installation services. This industry won $20 billion worth of federal contracts in 2020.

10. 541712 

Last but not the least, as it is worth $19 billion in the federal marketplace, we have the industry that is all about research and development in the physical, engineering and life sciences engineering, and life sciences (except Biotechnology). 

Businesses under this code conduct research and experimental developments in the  field of science and mathematics. 

Note: The NAICS Code 541712, however, is no longer valid. The NAICS Code that should be used instead is 541715. Unless the requirement is dealing with nanotechnology, in that case, the code 541713 should be used. 

RESOURCES

The list of the top 10 Industry NAICS Codes for Contracts from this article was taken from usaspending.gov, wherein federal awards in 2020 were listed from highest to lowest, according to their NAICS code and their respective cumulative amount obligated by the federal government.

To also learn more about all things NAICS, you can check out the website here.