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Note: The NAICS Code 541712, however, is no longer valid.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.