Top 10 Industry NAICS codes in 2019

If you’re a small business owner and you’re wondering why you don’t see federal opportunities for your company, maybe we can help.

Opportunities, oftentimes, don’t come to you, it’s you who finds them. When searching for opportunities, you need to use specific criteria to filter your search, this is where the NAICS codes come in.

Do you know yours? Many businesses use NAICS codes to find upstream suppliers and downstream markets. Government agencies even post-contract bids and offer tax incentives within a given NAICS code.

Before you go out there and start finding business opportunities, get to know first the federal market and the industries that have been successful in winning contracts. If they can do it, you can too!

With this in mind, here’s the Top 10 Industry NAICS codes that prospered in 2019.

1. 336411 

This industry code is on top of the list with a cumulative government spending of almost $50 billion in 2019. This comprises establishments involving aircraft manufacturing. 

They are those who manufacture or assemble complete aircraft. They also develop aircraft prototypes and do aircraft conversions, such as major modifications to systems and complete aircraft overhaul and rebuilding.

2. 541330

Coming in at second place, establishments in this industry provide engineering services. They apply physical laws and principles of engineering in the design, development, and utilization of their machines and systems. 

Businesses under this code may offer the provision of advice, preparation of feasibility studies, and preparation of preliminary and final plans and designs. 

3. 561210 

Services offered by this industry are often overlooked but are necessary for us to function. They are the establishments that offer facilities support services. These businesses provide operating staff to carry out a combination of support activities; but are not involved with or responsible for the core business or activities of the client. 

The mentioned combination of services include janitorial, maintenance, trash disposal, guard and security, mail routing, reception, laundry, and related services to support operations within facilities. 

4. 541512 

This code is for businesses offering computer system design services engaged in planning and designing computer systems that integrate computer hardware, software, and communication technologies. In 2019, this industry is worth about $24 billion in the federal market. 

5. 336611 

At the top five, we have the ship building and repairing industry. They are the people who operate a shipyard, which are fixed facilities with drydocks and fabrication equipment for building ships.

Activities of shipyards include the construction of ships, their repair, conversion, and alteration, the production of prefabricated ship and barge sections, and specialized services, such as ship scaling.

6. 236220 

Under this code are people responsible for the construction of commercial and institutional buildings and related structures, such as stadiums, grain elevators, and indoor swimming facilities. 

General contractors, commercial and institutional building for-sale builders, commercial and institutional building design-build firms, and commercial and institutional building project construction management firms are included in this industry.

7. 541715 

This is for establishments that involve research and experimental development (except nanotechnology and biotechnology research and experimental development) in physical, engineering, and life sciences.

Businesses under this code conduct research and experimental developments in the field of science and mathematics, all essential for economic growth, which is probably why the government invested around $20 billion in this industry.  

8. 541712 

Similar to NAICS code 541715, this code is also for establishments in the research and development in the physical, engineering, and life sciences engineering and life sciences (except Biotechnology) industry. This code covers a wide spectrum of fields, from biology to chemistry to veterinary.

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. 

9. 336414 

This code is for the guided missile and space industry, which manufactures complete guided missiles and space vehicles and/or develops and makes prototypes of guided missiles or space vehicles. 

Although it is second to the last, the government spending on this industry is worth about $19 billion, which is still a huge amount.  

10. 541519 

Last but not the least, with a cumulative government spending of almost $17 billion, we have the industry that provides other computer related services. 

The services offered are all computer related services except those that were provided for by NAICS code 541512 (computer systems designs services).  

RESOURCES

The ranking from this article was taken from usaspending.gov, wherein Industry NAICS codes in 2019 were ranked from highest to lowest, according to the cumulative amount obligated by the government to each respective industry.

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

Cecil Whitlock: Did You Know that You Can PURCHASE an 8a Company?

Did you know that you can purchase an 8a company? Let’s answer this question together with Cecil Whitlock!

BUYING AN 8A COMPANY

Cecil Whitlock started his career in the federal market by working with different large companies.

He was then hired at the J2 Engineering, Inc. when the company is close to graduating in the 8a program because the company already outgrows the necessary numbers that small businesses can leverage. 

Then, at some point, he bought the company when the owner approached him about buying it because he chose to go back to law school. 

As the new owner, he still needed to make sure that the company continued working even after the program, so he went and bid on some MATOC and SATOC contracts on top of the sole source contracts that the company was already working on. 

Whitlock highly recommends these to 8a companies as these contracts last for over five years and even if you graduate from the 8a program, you can still keep these contracts and continue bidding on it. 

“I suggest that, you know, everybody, especially 8as, learn how to bid these contracts… and once you learn how to do them and get involved into them, you see that it’s a great thing.”

Apart from that, the company also leveraged the partnerships that they have with some of the largest corporations, including AECOM.

They continued bidding and winning on different million dollar worth of contracts until they had tapped out on their bonding and Whitlock decided to sell the company to a much larger firm in 2015. 

WORKING FOR THE MIAMI NATIONS

After selling the company and retiring, Whitlock decided to work again and in this instance, as the Managing Director of the 8a tribally-owned company, Miami Nations Enterprises. 

When he came in, Miami Nations wasn’t even formed yet, so there are things that they should do in order to keep the business afloat. 

In this case, Whitlock brought not just sole source work, but also IDIQ contracts because he knew that going after sole source contracts is not enough to sustain the whole company. 

“You need these IDIQ contracts. I think those are the easiest way to grow and it limits your competition.”

Currently, the company is involved in a handful of million dollar contracts with different teaming partners in order to get more past performance bonding for the company. 

ADVICE FOR SMALL BUSINESSES

1. Offer value. 

Consider that Miami Nations has a handful of teaming partners and these companies offer value in the contracts that they’re going after. 

Not because you’re an 8a or a tribally-owned company, someone will already give you a contract opportunity. This market doesn’t work that way. 

So, what are you bringing to the table? 

“I don’t give people business. I team and we work together on getting business or I’m out there getting business myself.”

2. Team with other companies.

Aside from being able to go after million dollar worth of contracts with a teaming partner, this could also help you in getting your past performance. 

Consider that when you team with someone, even if you only provided twenty thousand worth of work and the whole work is worth a million, you can still say that you did a million dollar job and you can also use that in your future projects. 

“I can’t stress how much past performance does for you. If you’re out there and you don’t have any past performance, if you team with somebody, you get that past performance for that… So, that’s pretty nice.”

3. Take advantage of the SBA. 

The Small Business Administration (SBA) is a helpful organization, but you need to use their services to your advantage. 

You should not just wait for them to do the work because if you think that the SBA is just going to give you a sole source project, you’re going to be sitting at home with no money on hand. 

Rather, you should prepare everything needed for them to do their job. 

“I like all the SBA people that I work with. They do a very good job, but you’ve got to help direct them to do the job for you.”

RESOURCES

If you want to learn more on how Cecil Whitlock bought an 8a company, then be sure to click the resources below.

You can also visit the GovCon Giant website or the new GovCon Edu where you learn everything about government contracting!

Did you know that you can PURCHASE an 8a company? with Cecil and Eric

https://www.youtube.com/watch?v=tZgQ1o3t_f0&t=343s

Dec. 10 CA: Collins Engineers Inc Lands $30M IDIQ A/E Contract

Collins Engineers Inc., Chicago, Illinois, is awarded a firm-fixed-price, indefinite-delivery/indefinite-quantity, architect-engineering contract with a maximum amount of $30,000,000 for multi-discipline architect-engineering services in support of small waterfront projects primarily in the Hampton Roads area of Virginia in the Naval Facilities Engineering Systems Command (NAVFAC) Mid-Atlantic (MIDLAND) area of operations (AO). The work to be performed provides for comprehensive architect-engineering services for waterfront planning, design, construction, evaluation of new construction, and renovation projects located primarily within the NAVFAC MIDLAND AO, and the Hampton Roads area of Virginia, but may also include work worldwide. An initial task order for the minimum guarantee is being awarded at $5,000. Work on this contract will be performed at various Navy and Marine Corps facilities and other government facilities within NAVFAC MIDLAND AO primarily in the Hampton Roads area of Virginia. The term of the contract is not to exceed 60 months with an expected completion date of November 2025. Fiscal 2021 operation and maintenance (Navy) (O&M, N) contract funds in the amount of $5,000 are obligated on this award and will expire at the end of the current fiscal year. Future task orders will be primarily funded by military construction (Navy); and O&M, N. This contract was competitively procured via the Navy Electronic Commerce Online website with five proposals received. NAVFAC MIDLAND, Norfolk, Virginia, is the contracting activity (N40085-20-D-0007).

Collins Engineers, Incorporated provides engineering services. The Company offers structural and transportation analysis and design, and underwater engineering services. Collins Engineers operates in the United States. (www.bloomberg.com)

Proposal writing, responding to a beta.sam RFP, RFQ

We get it! You are a small business just getting started in the federal market. And you just put up with your first gigantic proposal that is quite overwhelming especially if you’ve never seen a federal Request for Proposals (RFP) or Request for Quotes (RFQ) before.

However, you don’t have to worry as in this article. We’ll take a look at the solicitation structure and on how we can make it easier for you to navigate and determine whether or not you should proceed with pursuing the RFP/RFQ.

THE SOLICITATION STRUCTURE

Today, we’ll be breaking down the solicitation structure into four parts. However, please be advised that although this applies to the majority of solicitation, it’s not a one-size-fits-all solution. 

But with the majority of RFPs out there, especially if you go on Fedbizopps or any other bids sites that you are looking for actual solicitation. This will be an informative and helpful guide to know where to look and what each element means.

With that said, let’s start off with part one of the actual solicitation schedule. Again, the solicitation is broken into four parts.

The first part is called the Schedule. This where you’re going to have several sections that correspond to a specific element. These sections are:

 

  • Section A is the actual solicitation. 
  • Section B talks about the price and Fee Schedule.
  • Section C is the scope of work.
  • Section D packaging and marketing.
  • Section E is about inspection acceptance.
  • Section F is for deliverables or performance.
  • Section G is for your contract administration data, 
  • Section H special contract requirements.
  • Section I is for Contract Clauses
  • Section J is for List of Attachments
  • Section K is Representations, Certifications
  • Section L is Instructions, Conditions, and Notices to Offerors
  • Section M is Evaluation Factors for Award 

Don’t worry, we’re going to touch base on every single one of these sections later on. However, let’s continue with the other parts.

Part two in the solicitation is going to cover your Actual Contract Clauses. Part three is your list of documents, attachments, exhibits. And part four is about representations and certifications. 

Section A – Actual Solicitation and Contract Form

So let’s talk about part one section A, the actual solicitation and contract form. This is the very first page that you’re going to see when you pull down one of these monstrous or lengthy Requests for Proposals/RFPs.

When you look at the first page it may include the actual solicitation. It’s gonna have on it the details on whoever placed the offer up. This will include the agency’s name, their address, and contact information

If you are the one who submitted the RFP, you will find there the standard boxes that are going to ask for your information and you’re gonna have to fill those out.

It will also include the signature page where you sign the delivery location, the proposal due date, and other requirements.

Section B –  Price and Fee Schedule

Section B is typically found right after the first page. Depending on how long Section A is, what immediately follows should be the prices and fee schedule.

Most of us are familiar with Section B because we go straight away to this part as we’d want to know what the government’s price cap is. What they’d do on the government’s or on the federal side, they’d refer to these prices as CLIN or Contract Line Item Numbers.

A CLIN is a line that simply means that the lists of the services and products to be delivered must not exceed a particular price. 

Also, Section B is where you’re going to find a brief description of the actual supplies and the services along with that clin number.

And others usually tell you about the quantity in terms of units and then the price per unit they’d want. And when you add it together, it’ll give you a total and then you sum that total for a number of CLIN.

Section C – Scope of Work

Here in Section C, this where the RFP will have the scope of work description, specs, things like that. It usually fits a small section that doesn’t require an attachment. But if it’s a larger spec section let’s say 30, 40, 50, pages long.

They may take it and create a separate document and it is just referenced that they read for attachment.

To clarify, this Section C is where you’re gonna find exactly what it is that the government wants you to do. And what is it that they’re looking for.

We want to point out that Section C can be confusing. Because when you’re looking through this section, the samples you’ll find on the internet will differ from the actual words on the a proper RFP.Be mindful that sometimes it’s not going to just pop out like it’s not bold or all uppercase letters or underline the actual section header is a smaller font and it’s less. And it might be  a lot of you guys out there you may find when you’re scrolling through all this stuff you don’t notice where the sections start and end.

The sections will just kind of intertwine with previous sections and if you’re not careful you won’t even notice where they start and stop.

Section D – Packaging and Marking

This section is typically not used but that’s what it covers are special instructions for packaging and markings. There’s nothing much to discuss on this part.

Section E – Inspection Acceptance

Section E is a very important section because this part will talk about the quality requirements. Basically, this is where the government specifies what they are looking for in the materials in order to approve your payment.

Equate inspection acceptance to money. If you do meet the criteria specified in this part. The products you deliver to the government will be rejected and when it does, you won’t get paid.

So you have to make sure that when you’re negotiating the prices from your suppliers or vendors. They must follow and ensure that they meet the minimum requirements so when your products have been inspected. It will be approved or accepted and so that you guys can get paid.

This is usually the part where you talk about the notice of completing task orders. You have to tell them where they’re gonna be delivered and how it’s going to be delivered and things like that.

Section F – Deliveries or Performance

This section talks about the place of performance or where it is going to be done, the period of performance or the timeframe. Also, this will also mention any liquidated damages/.

If you don’t know what liquidated damages are. It’s like when you delay the project, the government charges you with a penalty.If you delay the project with the government, this section will cover how they may charge you a thousand dollars a day, or five hundred dollars a day for the delays.

So that’s liquidated damages. It tells you the scope of what triggers stop work orders and then it also tells you that if it’s the other way around. And the government happens to delay you. The implications will also be included on how you can recoup your lost time, money, efforts.

Section G – Contract AdministrationThis part covers information on accounting data, so for example, let’s say when you get the project. Section G will cover how you will receive your payment.  It can discuss whether you are gonna do invoicing. Or if you can do credit card payments.

To keep it simple, it will provide the terms and mode of payment that you can expect.

Section H – Special Contract Requirements

In this section, it will talk about safety regulations, fire protection, energy conservation and the like. You must make sure that you have fulfilled the insurance requirements and liability before you bid on this project.

Why? For those who are starting out. This section is a great way to assess your company.This is where you can look at what type of things you need to have in place if you are looking to pursue this project.

And again, this section is one way to find out whether you are ready or eligible to participate in these solicitations.

Section I – Contract Clauses 

This is standard stuff but to give you an example. If you have a product that needs to be imported from another country. You have to make sure that the clause doesn’t preclude or exclude that country like a “Do not Buy Lists”.

Section J – List of Attachments

For us, this section is gonna be one of the most important part as this will include the Department of Labor wage determination or also known as the Davis-Bacon wage act.

This particular section states how we’re supposed to pay the people who work on that job site. This is very important in essence because we need to know if our subcontractors get this particular wage rate.

So when they’re doing their payroll and they’re paying their people. They must comply with the government’s minimum standards.

Section K – Representation and Certifications

To be entirely honest, we don’t know why the federal government contracting continues this particular section in their projects.

This section can be confusing at times as it can be twenty to thirty pages long. But at the very beginning when you read the instructions carefully.

It says if you are registered in Sam then there’s no reason to include your reps and certs. So again when you’re reading through a proposal when you’re getting ready to submit make sure that you clearly understand what are the requirements for this project.

Because sometimes, they’ll tell you that it’s not needed if you’re already registered and Sam. But in most instances, if you are already registered in Sam then you don’t need to include this particular section.

Section L – Instructions, Conditions and Notices to Offerors

Section L is super important. This is your instructions, condition, and notices to offerors. Basically, this is talking about how the government is going to determine the best value of your approach and submissions.

 

Section M – Evaluation Factors for Awards

Just to share, whenever we get one of these RFPs and are getting ready to bid. The first two sections we look at are Section L and M.

Why? 

This is because we want to know if there’s an actual upcoming bid or meetings that we can go to in order to see the project. Because, we would hate to pool our resources on a project that we may have already gotten late. 

Because maybe, by the time we got wind of this project. A week has already passed by. However, visiting Section L, can help you determine the pre-proposal date. 

This is why we jump immediately to sections L and M because we want to know first of all when it’s the pre-bid date or pre-proposal date.

The other thing is that we want to know the criteria that the government is going to use to determine whether or not someone a company is eligible to participate. And that is the most important factor when you’re starting this thing out. Whether or not one is eligible.

DO YOU MEET THE MINIMUM REQUIREMENT?

Is your team eligible? Is your company eligible to participate? Do you meet the minimum requirements that the government’s asking for in order to be deemed acceptable to submit a bid or proposal on this?

Now, the government will not tell you whether or not you’re accepted but what they’re gonna tell you is how they rate the companies.

And so, if you’re rating isn’t high on this. Then it may be time for you to decide to make this one a “no- goal” and then spend your time doing another particular type of proposal.

But what we’d like for you to avoid is that. Others will go through the entire piece of this project first. They start getting prices and negotiate with their vendors but at the very end because this section is towards the very end. They’ll realize that they were not eligible in the first place to actually even bid the job.

So what you need to do before doing all those technicalities, is to find out immediately if you are eligible. 

Because for example, the government may ask for two years of past performance of doing this task. They might ask for you to show your history, your project size experience and more.

And if it’s historical, they may want to show you work in a historical venue. Or if it’s something like filming they want to make sure you use these types of cameras, this type of equipment.

So again, you’re gonna have to demonstrate your past history. And this is helpful as form the very beginning, you can determine if you have this particular eligibility.

So do we have this on our team? If not, then All right!Do we want to bring in a subcontractor that has this requirement, yes or no?Do we want to partner with another company and form an arrangement, yes or no?

Do we have someone on our side that has this requirement?

So again and knowing this information up front is tremendously valuable for everyone. As opposed to spending a whole lot of time putting together numbers and requesting bids from our subcontractors or suppliers or vendors but one isn’t even able to meet the requirements.

And so Sections, L and M is a very highly productive use of your energy and time when deciding to pursue a bid.

CONCLUSION

To recap the key elements of the solicitation. Section C, which is your performance work statement. Section L, proposal instructions and evaluation criteria.

Also make sure you check out any other sections for requirements, a lot of times they’ll have on their supplemental documents and the actual packages on other areas.

Lastly, if you decide that you’re going to do this. Your proposal outline must follow exactly the letter of the law that they’ve stated in Section M.

When you’ve put together a proposal and they say you have to format them in A, B, C, D, E. Make sure you write A, B, C, D, E.

If they want 1, 2, 3, 4, 5, make sure you write 1, 2, 3, 4, 5.Treat them as if they’re a bunch of robots. If they don’t see in there they’re the things that they’re laid out in the exact format that they’ve explicitly stated. Then it can disqualify you or you’re going to score really low on their rankings.

But, the federal government does this because if you look at it from their standpoint. They are evaluating tens of proposals and what better way to properly understand them is when they are all uniformed and consistent.

So do not stray away from the format that they explicitly state they want because it’s going to make it harder or more difficult for them to read.

As a parting note, remember Section M and section L, these sections are your friends. When you get one of these things and you pull it down make sure you understand and comply with these two sections before you go any further.

Wesley Ross: 16 Year Old Military Contractor

Age is not a requirement in the federal marketplace. As long as you establish yourself and your business, you will certainly land into various contracting opportunities. To give you an inspiration, here is Wesley Ross, the 16 year old military contractor!

BACKGROUND

Just recently Wesley Ross has been featured in different news outlets in the United States. He thought of only selling out his stocks of Personal Protective Equipments but this in turn gave him an opportunity to be featured as a young government contractor. 

Wesley Ross is a young business-minded individual who started selling ever since at a young age on things such as bracelets, handmade soaps, clothes, shoes, electronic parts, and auto parts on both online and offline. 

Then, at the age of 16, he already has two businesses: SpeedLabs which is a car accessories and electronics business and NorthStar Dynamics, a government contracting company. 

“Ever since I was in the seventh grade, I always knew that I wanted to live my dreams and goals at an early age.”

STARTING IN THE FEDERAL MARKETPLACE

Wesley Ross didn’t know anything about government contracting until he saw the movie, War Dogs, for the second time and then attentively took note of the things about the said topic.

Then, he started making his business legitimate. He stayed up late until four or five in the morning just to make sure that NorthStar Dynamics is a registered business in SAM.gov and has the qualifying codes after looking for contracting opportunities in FedBizOpps. 

“Hard work and dedication is what’s gonna actually bring money in on the table, so staying up ‘till four or five in the morning was no issue for me if knowing what the potential could be too.”

STRUGGLES AS A YOUNG CONTRACTOR

When Ross started in the federal marketplace, he lacked money to get his first contract even with the income that he gained in his previous endeavors. 

As a way to supply it, he organized the Minnesota Auto Show and used the Internet to make sure that a huge number of people will be there at the event.

Another thing that also bugged him is being underage because he’s still unqualified for getting government loans and credits as well as not being taken seriously by others. 

However, he was able to gain the public trust by showing them the process and things that he had already done.

ADVICE FOR OTHER TEENAGERS

Currently, Ross has already won contracts, performed various projects, and gained public recognition for being a young entrepreneur and government contractor. When he was asked what could be his message if he will be given a chance to do a 2020 commencement speech, he stressed the importance of finding yourself and what you want with your life. 

Consider that you only have one chance of living and you have a lot of things that you want to do with it, so don’t let anything or anyone hold you back. 

“Follow your dream and let nothing stand in your way because the only person who will hold you back from what you want to do on this road, on what you want to do with your life, is you.”

RESOURCES

If you want to watch the full video with the 16 year old military contractor, Wesley Ross, then be sure to click the links below.

Wesley Ross the 16 year old military contractor

https://www.youtube.com/watch?v=IFVrRAfwq7Q

Build a Target Market List using the Federal Procurement Data System (FPDS)

In this blog, we’re gonna discuss three things: what is FPDS, what kind of things can you do at FPDS, and how to build your target market list. 

WHAT IS FPDS?

The Federal Procurement Data System (FPDS) is a huge database of all the government contract awards.

This is where you go to search for your competitors, your customers, and the people that want to buy your products and services.

HOW TO BUILD A TARGET MARKET LIST?

In building your target market list, you can go to the FPDS database and start doing an easy search. With this, you can just type your NAICS code and hit enter. 

Afterwards, it will reveal results with information including the top 10 department names, top 10 agencies, top 10 vendors, and then it shows you account symbols. 

Of all that information, we’re going to actually go to  contract and agency names, and then vendor names. These are actually self-explanatory as FPDS provide results of people who have received the most contract awards for that particular NAICS code under their system. 

For instance, if you click a contract agency under the top 10 contracting agency name, then you will see that the Department of Air force might have given 10, 000 worth of contracts, the Navy gave 7,000 contracts, and so forth.

What I usually do is I click on an agency name and look for their top 10 vendors. Then, I went to my Excel sheet, typed in for instance, Department of Army, and then put in the top 10 vendors of that agency. I also put other agency’s vendors in my Excel spreadsheet and so forth. 

So, what I’ve done is, I’m building up a target market list of both competitors and contracting agencies that I can use to solicit business from.

I will then check more information about these vendors and contact them if they would like to give some parts of the contract that they can’t do. 

RESOURCES

Now, those are the ways that I use FPDS to build a target market list. You can just do it without even registering, so it’s a good introduction for all of you out there. 

“It’s just an introduction, but it’s the first step to learning who your competitors are, who your clients are, and who’s going to buy your products and services.”

With this in mind, if you want to learn more about the tips and tricks in winning government contracts, then join us here at GovCon Giants.

Just visit our website and other social media platforms or check the new GovCon Edu where you learn everything about government contracting!

You can also check these resources below to learn more about the topic above:

Build a Target Market List using FPDS -Federal Procurement Data System

https://youtu.be/gUbTyb2h7as

https://govcongiants1.wpengine.com/wp-content/uploads/2018/11/Build-a-Target-Market-List-using-FPDS-Federal-Procurement-Data-System-1.pdf