Tag: government spending

Top 10 Agencies for SAP in 2020

Posted on by Eric Coffie

If you’re a small business trying to get into the federal marketplace, you might find yourself competing with major companies that are more established, and we all know that they have an unfair advantage.

Don’t get discouraged! There is a secret to success for small businesses and that is simplified acquisition procedures (SAP). 

Although this procedure is limited only to contracts under $150,000, It’s still an opportunity that you should take advantage of. It’s the simplest way to bid on any government contract. 

For SAP contracts, agencies don’t need to go through the formal process, which means less paperwork and lower cost. It’s a win-win for both the government and the small business. 

According to the Bureau of the Fiscal Service, the United States government spent approximately $1.1 trillion in 2020 on contractual services and supplies. Ever wondered which agencies spent the most?

With that in mind, we present to you the top 10 agencies in 2020 that have invested the most in contracts, more specifically, contracts that were completed under SAP. 

1. Defense Logistics Agency (DLA)

The Defense Logistics Agency is responsible for nearly every consumable item used by the U.S. military forces worldwide. They have spent about $4.4 billion on contracts completed under SAP, making it first on the list.

The DLA has nine supply chains that contract a wide variety of products such as food, textiles, energy products, medical material and equipment, construction material, etc. 

2. Department of the Army (USA)

The United States Department of the Army comes in second, with an accumulative government spending of $2.1 billion. They are the Military Department within the United States Department of Defense. 

There are five U.S. army buying commands, each acquires its own specified products or services, which range from combat systems to civil works to medical research and health sciences to base operations to research and development.

3. Department of Veterans Affairs (VA)

The Department of Veterans Affairs provides vital services to America’s veterans such as health care services, benefits programs, and access to national cemeteries to former military personnel and their dependents. They have invested about $ 1.4 billion in contracts completed under SAP.

The products and services they acquire are for a nationwide system of hospitals, clinics, Veterans Integrated Service Networks (VISN), data processing centers, and National Cemeteries.

4. Department of the Navy (USN)

The Department of the Navy’s primary mission is to protect the country by effective prosecution of the war at sea. The USN’s SAP contract procurements in 2020 were worth $1.3 billion.

The contracting functions of this agency are decentralized which means your market research should extend beyond the geographical bounds of your city, state, and region. Each Navy or Marine Corps major buys its own supplies and services that support its own mission.

A Small Business Professional is assigned to each buying activity. This person could be your focal point for upcoming procurements and source of information on small business matters.

5. Department of the Air Force (USAF)

The Department of the Air Force has spent $958 million in SAP contracts in 2020, earning their fifth place on the list. They are the agency responsible for defending the country through the control and exploitation of air and space. 

If you are interested in working with the Air Force, they have small business specialists around the country who can help your company identify and respond to every type of procurement opportunity the Air Force offers.

6. US Census Bureau

The U.S. Census Bureau provides current facts and figures about the country’s people, places, and economy. For 2020, their cumulative spending on contracts completed under SAP is $749 million.

They usually work with the Information Technology Directorate (ITD) industry, as there is a growing need for the management of data collection and processing. This agency, like most, if not all, government agencies, aims towards giving small business owners more business opportunities.

7. Department of State (DOS)

Next on the list is the Department of State, with a cumulative government spending of $531 million. The DOS oversees America’s international interactions, which include business relations, official federal government initiatives, individual travel, and immigration. 

The top industries that were awarded contracts for SAP in 2020 were administrative management and consulting services, furniture manufacturing, facilities support services, computer systems design services, and other computer-related services.

8. United States Mint (US MINT)

The United States Mint is responsible for producing coinage for the country, as well as controlling the movement of bullion. SAP contracts in this industry in 2020 were worth  $515 million.

Small businesses are given the maximum practicable opportunity by the Treasury Department to participate as subcontractors in the contracts awarded, as it is part of their policy to provide them in its acquisitions.

9. Federal Aviation Administration (FAA)

The Federal Aviation Administration has a cumulative spending amount of $462 million on SAP contracts in 2020. This agency issues and enforces regulations involving manufacturing, operating, and maintaining aircraft. 

For them to function as an organization, they rely on equipment, systems, supplies, services, and construction provided by commercial, educational, and non-profit businesses.

10. Forest Service (FS)

Last but not the least, with SAP contracts amounting to a total of $362 million, we have the Forest Service. They manage the U.S. national forests and grasslands. 

The products and services that they purchase from vendors are wide-ranging. They acquire natural resource and conservation services, construction of structures and facilities, maintenance of property, fire and aviation support service, the list goes on.

RESOURCES

The list found in this article and their respective ranking was taken from usaspending.gov, wherein federal agencies were ranked from highest to lowest, according to their cumulative government spending in 2020 for contracts completed under SAP.

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.