NAICS 561720 Janitorial Services

Government Contract and Procurement Analysis Report

This report takes an in-depth look at the 'Janitorial Services' industry, NAICS 561720. 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 561720?

This industry comprises establishments primarily engaged in cleaning building interiors, interiors of transportation equipment (e.g., aircraft, rail cars, ships), and/or windows. The description of NAICS 561720 is further broken out to include these additional specific topics: Aircraft janitorial services Building cleaning services, interior Building cleaning services, janitorial Cleaning homes Cleaning offices Cleaning shopping centers Custodial services Deodorant servicing of rest rooms Deodorizing services Housekeeping services (i.e., cleaning services) Janitorial services Janitorial services, aircraft Maid services (i.e., cleaning services) Office cleaning services Residential cleaning services

Rest room cleaning services Restaurant kitchen cleaning services Service station cleaning and degreasing services Washroom sanitation services Window cleaning services

Please be aware that establishments primarily engaged in cleaning building exteriors (except sandblasting and window cleaning) or chimneys are classified in Industry 561790, Other Services to Buildings and Dwellings; and establishments primarily engaged in sandblasting building exteriors are classified in Industry 238990, All Other Specialty Trade Contractors. The size standard associated with NAICS 561720 is $16.5 Million (effective November 5, 2010), which means that a company, including its affiliates, would be considered a "small business" if their average annual gross receipts does not exceed $16.5 Million for the past three years. Total reported spending under NAICS 561720 for the period of Fiscal Year 2007 (FY07) through Fiscal Year 2011 (FY11) was nearly $4.2 billion. FY11 reported spending of $284.9 million for services under NAICS 561720. 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 Public Buildings Service was the largest procurer for these services for the last five fiscal years (FY07 through FY11), with just under $997.6 million in contract spending, comprising 23.8% of the market share for NAICS 561720. The Department of the Army took the second spot, with almost $794.9 million 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 21.83% for all spending in NAICS 561720. The Department of Veterans Affairs and Social Security Administration spent $204.4 and $99.3 million respectively during this time period with the rest of the top ten reporting spending over $322.4 million for NAICS 561720.

Source: epipeline's Contract History Plus*

WHO WINS THE CONTRACTS?

According to the Central Contractor Registry (CCR), there are 9,895 companies registered under NAICS 561720 (source: active registrants, www.ccr.gov as of 7/29/2011). Of this number, 8,598 qualify as small businesses, which includes the following breakout by socioeconomic categories (some companies may qualify under more than one category): 706 SBA Certified 8(a) contractors; 429 SBA Certified HUBZone contractors; and 1,324 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

Chugach Mckinley Inc achieved the top spot on the unrestricted competition list, with over $127.0

million in contract dollars for FY07 to FY11 and over 4.4% of the market share. Fedcap Rehabilitation Svcs landed more than $91.8 million in contract dollars with Chimes District Of Columbia earning roughly $52.3 million. Melwood Job Line and Integrity National Corp round out the top five with $51.0 and $50.4 million, respectively. No other firms in the top ten exceeded $50 million in contract dollars for FY07 through FY11 but six additional firms, Davis Memorial Goodwill Industries, Goodwill Industries of North Georgia, Spsa LLC, Hospital Klean Of Texas Inc, JXM Incmbm Inc Joint Venture and The Chimes, each topped $40 million in contracting dollars for this 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 nearly $893.1 million for FY07 through FY11. Integrity National Corp takes the top spot, with reported spending of just under $45.1 million for this period, or 5.05% of market share. Ahtna Government Services Corporation also secured over $25 million in contracting dollars for this time period. Two other firms in the top ten, Prestige Maintenance Inc and Accent Service Company Inc, also exceeded $20 million in reported spending for NAICS 561720. It should be noted that Integrity National Corp can also be found in the list of the top ten contractors using unrestricted competion with $50.4 million in contract dollars for FY07 through FY11. 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 65% of contract spending reported for the FY07 through FY11 timeframe under NAICS 561720

used full and open (unrestricted aka "N/A") competition. This equated to over $2.7 billion. Contracts that did not indicate their acquisition strategy (which means they could represent any acquisition strategy) reported contract spending of nearly $322.7 million. Contracts that were small business setaside reported spending of almost $338.4 million. The combined value of contracts representing all other acquisition strategies was more than $800.4 million, or approximately 19.07% 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 $3.4 billion and contracts for locations outside the United States (or unlisted) totaled $807.3 million. The highest total of reported contract spending is reported for California, with $351.4 million. Texas ($317.2 million) and The District of Columbia ($260.5 million) took the second and third spots. Together, the top five states represent 32.38% of market under NAICS 561720. Besides those in the top ten, an additional 10 states reported at least $50 million for NAICS 561720 during this time period.

Source: epipeline's Contract History Plus*