Top 10 NAICS Code for Set-Aside Spending this 2021

There will always be an unfair advantage in government contracting for big companies when they are in competition with smaller ones.

Big businesses, most likely, already have all the necessary requirements needed to win a contract such as complete equipment, full staff, and even cheaper services.

Winning big contracts, however, isn’t always beyond small businesses. The size of a business shouldn’t be seen as a disadvantage. In fact, use it to navigate your place in the industry!

If you are a small business that is struggling to compete with larger companies, make use of the government set-asides. This allows you to compete at an even playing field. These contracts are specifically meant for businesses that operate in disadvantaged locations or businesses owned by minorities or women.

There are always opportunities waiting for you, you just have to know where to look. To help you get started, it’s always good to know the industries that the federal government is investing in. 

Here’s a list of the top 10 NAICS codes that have conquered set-aside spending this 2021.

1. 541512 

The Computer Design Services are those establishments primarily engaged in planning and designing computer systems that integrate computer hardware, software, and communication technologies.

Think of the people who are behind your company’s tech system. They are the masterminds. They train and support the users of the system, as well.

2. 541519 

For every system design, there will always be the need for software installation and computer disaster recovery to make sure that it works and will continue to work in the future.

This industry is labeled as “other computer related services,” and it’s exactly that. These are establishments that provide computer related services, except those that are provided for by the computer design services.

3. 236220 

This industry is quite self explanatory, as it is described to be commercial and institutional building construction

This refers to the construction of commercial and institutional buildings and related structures, such as stadiums, grain elevators, and indoor swimming facilities. Building general contractors, builders, and project construction management firms are part of this industry.

4. 541715 

Under this code are those who conduct research and experimental development  in the physical, engineering, and life sciences (except nanotechnology and biotechnology).

This industry is diverse as it covers agriculture, electronics, environmental, biology, botany, computers, chemistry, food, fisheries, forests, geology, health, mathematics, medicine, oceanography, pharmacy, physics, veterinary and other allied subjects.

5. 561210 

Facility support services provide operating staff that perform a combination of support services within a client’s facilities. They, however, are not involved with or responsible for the core business processes or activities of the client.

The combination of support services, mentioned, are janitorial, maintenance, trash disposal, guard and security, mail routing, reception, and laundry.

6. 541330 

This code covers most, if not all, businesses that provide engineering services. This pertains to establishments that make use of the principles of engineering in their design and development processes.

These establishments may involve any of the following activities: provision of advice, preparation of feasibility studies, preparation of preliminary and final plans and designs, provision of technical services during the construction or installation phase, inspection and evaluation of engineering projects, and related services.

7. 541611 

Administrative management and general management consulting services provide and operate advice and assistance to businesses and other organizations.

This is the industry for general management consultants, since they provide a full range of management consulting services to their clients. These services include, administrative, human resource, marketing, process, physical distribution, and logistics.

8. 541712 

In this industry, the establishments are primarily engaged in Research and Development in the Physical, Engineering and Life Sciences Engineering, and Life Sciences (except Biotechnology). This code, however, has been replaced by 541715.

Note: The NAICS Code that should be used instead (effective January 1, 2017) is 541715 unless the requirement is dealing with nanotechnology. In that case, the NAICS Code 541713 should be used. 

9. 541511

This code is similarly related to 541512-Computer Design services. The difference, however, is that this industry provides custom computer programming services.  

It focuses more on writing, modifying, testing, and supporting software to meet the needs of a particular customer, hence the term custom was used.

10. 561440

Collection agencies are establishments primarily engaged in collecting payments for claims and remitting payments collected to their clients.

They are used by lenders or creditors to recover funds that are past due or from accounts that are in default. Often, a creditor will hire a collection agency after it has made multiple failed attempts to collect its receivables.

RESOURCES

The list of NAICS codes from this article was taken from usaspending.gov, wherein federal awards for set-aside spending in 2021 was categorically ranked from highest to lowest, according to each industry’s collective spending amount.

If you have grown an interest in set-aside contracts and are curious about finding set-aside awards, check out this video entitled, “Finding set-aside awards on USAspending.gov,” to find opportunities waiting for you.

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

Donnie Harris: Retired Contracting Officer with an Unlimited Warrant to Write Billions in Contract Actions

Navigate the government contracting market with retired military contracting officer Donnie Harris.

BACKGROUND

Donnie Harris is a retired military contracting officer who served two decades for the Coast Guard Office of Chief Counsel, Procurement Law Division, and the Clerk of the Court/Paralegal for the Coast Guard Court of Military Appeal.

Throughout his tenure, Harris participated on various radio shows and trained thousands of military and civilian personnel on topics ranging from preparing a statement of work to updates on the FAR.

Over the course of these years, he managed complex and high-profile procurements totaling $1.2 billion from the acquisition to the pre-award phase. 

After retiring, he was employed by numerous companies that wanted to utilize his procurement experience. 

CONTRACTOR PURCHASING SYSTEM REVIEW AUDIT

What that audit means is when you’re dealing with a cost reimbursable contract, you have to have an approved purchasing system that is approved by the government.

Huge companies like Booz Allen Hamilton use this process in order to ensure that everything, from the reqs and certs to the subcontractor agreements, are dated and signed correctly.

The reason is that if you fail too many audits, then that’s going to go into your past performance.

You may have an outstanding technical solution, but because you’re not able to pass an audit and it is reflected in your past performance, then you’re probably not going to win.

This is why Harris worked with a whole department in Booz Allen that was strictly dedicated to doing this audit. 

SUBCONTRACTING GOALS

Under the subcontracting goal, huge companies that do federal works need to subcontract a certain percentage of their work to small businesses. 

For instance, you’re not going to get a small business who can build a $3 billion bridge. The reasons may include the fact that they don’t have the infrastructure, the resources, and the technical knowledge and expertise to build a bridge.

Still, these small businesses can do some of the legwork, like dirt removal, concrete, and other of the small jobs. This is where the subcontracting goals come into place. 

However, depending upon the requirements, there are firms that really don’t have to adhere to the subcontracting goals, especially if there’s no subcontractors out there that can perform that type of work.

This happens when the vendor or the offerors have done their market research and found that no small business can fulfill the requirements.  

SMALL BUSINESSES ARE MISINFORMED

In Harris’ experience, he had to disqualify a lot of small businesses because they did not even maintain the basic requirements needed. 

For example, in putting solicitations online, they use keywords that only certain companies know. Why? Because this shows the level of expertise that that company has.

Apart from that, contracting officers have specific requirements depending on the contract. So, if you don’t follow any of these, then you can certainly be disqualified. 

For instance, if it is written that you need to use an 8 1/2 X 11 size of paper, then you need to really send your proposal using this size.

These are just the little things people on the government side uses in order to eliminate companies that could really not fulfill the requirements.

THE CONTRACTING PROCESS

The government usually receives two proposals: the technical proposal and the pricing proposal. 

The technical proposal is going to address how you are going to match or apply the requirements. Within this, the agency usually asks for your resumes, technical capabilities, resources, and past performance. 

Meanwhile, the pricing proposal is how are you going to price it. This includes what labor rates you are going to use and what labor categories you are going to use to accommodate these requirements.

Now, let’s say your technical proposal and your price proposal are both acceptable and you won a single award. Then, you will move to the negotiation, the final offer, and the kick off meeting about certain requirements. Lastly, you will start working.  

On the other hand, if it is going to be a multiple award, that’s when the agency will issue different task orders or requests for quotes towards you and other companies in the pool. 

What will happen in this kind of award is that you will price every time there’s a task order and that agency will choose the lowest bidder.  

RESOURCES

If you want to learn more on how to navigate the government contracting market with retired military contracting officer Donnie Harris, 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!

011: Donnie Harris – Unlimited Warrant to Write Billions in Contract Actions

https://www.youtube.com/watch?v=R_H15m0jKgY

SOURCES SOUGHT: General Services Administration (GSA) seeks to lease the following office space in Raleigh NC (7NC2166)

The U.S. Government currently occupies office and related space in a building under lease in Raleigh NC (7NC2166), that will be expiring. The Government is considering alternative space if economically advantageous. The agency will consider, the availability of alternative space that potentially can satisfy the requirements, as well as costs likely to be incurred through relocating, such as physical move costs, replication of tenant improvements and telecommunication infrastructure, and non-productive agency downtime.

The Government will consider space located in an existing building or new construction. A minimum of 7,200 of American National Standards Institute/Building Owners and Managers Association (ANSI/BOMA) Office Area (ABOA) square feet (SF) consisting of approximately (6,400 ABOA SF of contiguous office space and 800 ABOA SF of nearby securable storage space) to a maximum of 7,560 ABOA SF of contiguous office space and 840 ABOA SF nearby securable storage space within the Area of Consideration set forth below.

  • Original Set Aside:
  • Product Service Code: X1AA – LEASE/RENTAL OF OFFICE BUILDINGS
  • NAICS Code: 531120 – Lessors of Nonresidential Buildings (except Miniwarehouses)
  • Place of Performance: Raleigh, NC USA
  • Updated Response Date: Jun 04, 2021 05:00 pm EDT
  • Full details via beta.sam.gov

    govcon logo Check out our RESOURCES page for a sample letter that we use in response to government market research.

SOURCES SOUGHT: US GOVERNMENT SEEKS SOURCES FOR LEASED RETAIL AND RELATED SPACE

The U.S. Government currently occupies retail/office and related space in a shopping center under lease in Huntsville, Texas, that will be expiring. The Government is considering alternative space if economically advantageous and is seeking to lease between a minimum of 2400 SF and a maximum of 2800 SF gross square feet of existing Class A or B retail space, in Huntsville, Texas, specifically in state zip code, 77340. In making this determination, the Government will consider, among other things, the availability of alternative space that potentially can satisfy the Government’s requirements, as well as costs likely to be incurred through relocating, such as physical move costs, replication of tenant improvements, and telecommunication infrastructure and non-productive agency downtime.

  • Original Set Aside:
  • Product Service Code: X1AA – LEASE/RENTAL OF OFFICE BUILDINGS
  • NAICS Code: 531120 – Lessors of Nonresidential Buildings (except Miniwarehouses)
  • Place of Performance: Huntsville, TX 77340 USA
  • Original Response Date: May 31, 2021 05:00 pm CDT
  • Full details via beta.sam.gov

    govcon logo Check out our RESOURCES page for a sample letter that we use in response to government market research.

 

Bell Boeing Joint Program Office awarded $143.1M contract N00383-19-D-U501 for the logistics and repair support of MV-22B, CMV-22 (Navy) and CV-22 (Air Force) Osprey components

Bell Boeing Joint Program Office, California, Maryland, is awarded $143,198,723 for a delivery order (N00383-21-F-0U51) under previously awarded performance-based logistics requirements contract N00383-19-D-U501 for the logistics and repair support of MV-22B, CMV-22 (Navy), and CV-22 (Air Force) Osprey components. All work will be performed in Fort Worth, Texas. Work is expected to be completed by December 2025. Fiscal 2021 working capital funds (Navy) in the full amount of $143,198,723 will be obligated at the time of award and funds will not expire at the end of the current fiscal year. One source was solicited for this non-competitive requirement pursuant to the authority set forth in 10 U.S. Code 2304 (c)(1), in accordance with Federal Acquisition Regulation 6.302-1, with one offer received. Naval Supply Systems Command Weapon Systems Support, Philadelphia, Pennsylvania, is the contracting activity.

Bell Boeing Joint Project Office was founded in 1981. The Company’s line of business includes the manufacturing and assembling of complete aircraft. (www.bloomberg.com)

 

SOURCES SOUGHT: US National Sectéra vIPer Universal Secure Phone

Based on the responses to these sources sought notice/market research, this requirement may be set aside for small businesses or procured through full and open competition, and multiple awards may be made for US National Sectéra vIPer. Telephone inquiries will not be accepted or acknowledged, and no feedback or evaluations will be provided to companies regarding their submissions.

Submission Instructions: Interested parties who consider themselves qualified, as detailed in Appendix 1, are invited to submit a response to this Sources Sought Notice by May 19, 2021.

  • Original Set Aside:
  • Product Service Code:
  • NAICS Code: 541519 – Other Computer Related Services
  • Place of Performance:  Albuquerque, NM 87185 USA
  • Original Response Date: May 27, 2021, 12:00 pm MDT
  • Full details via beta.sam.gov

    govcon logo Check out our RESOURCES page for a sample letter that we use in response to government market research.

Narjis Ali: Pakistani Immigrant turned award-winning IT security company

Learn how Narjis Ali, a Pakistani immigrant, built an award-winning IT security company!

BACKGROUND

Narjis Ali fled from Pakistan to the United States alone, before being followed by her three children. 

She then founded Sure Secure Solutions in 2004 to optimize the IT atmosphere and to provide information and security to the government and the private sector.

Today, the company is known as an Information Technology security company providing services including cloud computing, web development, cybersecurity, content and information management, and data analytics. 

Due to all of her hard work, Narjis Ali received numerous awards dating back in 2012, including the 2016 SBA Small Business of the Year award, the 2016 and 2017 NASA Small Business Prime Contractor of the Year, and the 2017 Small Business Prime Contractor of the Year at NASA HQ and NSSC. 

Apart from managing her company as the President and CEO, she is also doing volunteer work and is helping organizations across the globe in promoting entrepreneurship.

“I think that diversity adds so much more weight… You’re walking, talking ambassadors of your people and you become good examples of where you are and where you’ve been. I think that’s so important to me to hear people’s stories from, coming from different backgrounds.”

NAVIGATING THE FEDERAL MARKETPLACE

When Narjis Ali immigrated to the U.S., she needed to start her life all over again. She worked in companies related and unrelated to software programming and development and architecture.

Then, after a couple of years fearing the unknown, she started her own company. It took her awhile, but when she hired more employees, that’s when it dawned on her that she had a company.

In 2010, that’s when she made a strategic change to her company. She brought in more partners to get diverse skills in the company.  

One key person was the late John Michael Lounge, a former astronaut, who played a role in helping her with the company’s business development.

She also joined the 8(a) program that same year and was approved on February 8, 2011. 

However, navigating the federal marketplace is different and because she didn’t have much resources and knowledge, she faced difficult challenges at that time.

“For anyone starting your business with the intent to work with the government, it’s a whole different world. I mean, you have to know and you have to know how to navigate through the system.”

Fortunately, she was able to gain success in the following years and was able to learn how to navigate the federal market. 

“The advantage I had was, which I feel till today, is the relationships that I’ve built with my customers. When I say customers, it just doesn’t mean the customer who you’re selling the product or services to. I’m talking about customers in the way of the environment that allows you to be there and create those relationships with coworkers, colleagues, other companies, and the customer.”

ADVICE FOR SMALL AND LARGE BUSINESSES

1. Have familiarity with your target customers. 

Not all opportunities are meant for your company. Some of these are in your domain and some aren’t, so you need to learn how to filter these opportunities and focus mainly on where you want to be. 

This way, you will be able to really learn about what your customers need and place your company in a position where you are seen as knowledgeable. 

“It’s very important to filter out very quickly where you want to focus. It’s better to focus on a few agencies and be persistent and get to know that very well.”

2. Sit on the backseat.

As company owners, you want to really be the one to lead your company in everything it does, but you should not be the one doing it directly. Learn to sit on the backseat and see what’s happening. 

“Almost six years of my 8(a), I was a billable resource… But you know what it took away from me… is that you’ll have to sit on a back seat where you have limited interaction. You do have interaction with customers, but, you know, you don’t spend all your time there because you will not be able to grow the company that way.”

3. Find a resource with technical capabilities.

In building your company, you need good people with technical skills and expertise. You don’t have to be the one facing your customers all the time, you can hire good people to do it instead. 

“There have been times in my company where we’ve had to cut back on management expenses so much and yet we want to keep the people that are providing good value to us so that they can stick around… We feel that these are people that are the most valuable resources the company has.”

2. Be proactive in helping others.

There’s a handful of resources where people can learn about government contracts, but the best resources are the people who have already been in the marketplace for years.

“I would say, just work with a lot of other companies that have gone through things and find out what worked for them, what didn’t, because those lessons are not recorded anywhere.”

So, if you are the latter, why not help new companies? Be a good resource and help them learn how to navigate this lucrative marketplace. 

RESOURCES

If you want to learn more about Narjis Ali, the Pakistani immigrant who built an award-winning IT security company, then check the resources below.

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

001: Narjis Ali launched a NASA award winning IT security company

https://www.youtube.com/watch?v=PIy1d2r0xBI&t=551s

https://govcongiants1.wpengine.com/podcast/2019/05/07/01-2/

Raytheon Technologies awarded $88.8M contract under solicitation SPE7MX-20-R-0130 for various consumable electronic components

Raytheon Technologies, Fairdale, Kentucky (SPE7MX-21-D-0057, $88,800,000); and Raytheon Technologies, Indianapolis, Indiana (SPE7MX-21-D-0058, $24,000,000), have each been awarded a firm-fixed-price, indefinite-delivery/indefinite-quantity contract under solicitation SPE7MX-20-R-0130 for various consumable electronic components. These were sole-source acquisitions using justification 10 U.S. Code 2304 (c)(1), as stated in Federal Acquisition Regulation 6.302-1. They are three-year base contracts with one three-year option period and one four-year option period. Locations of performance are Kentucky and Indiana, with April 1, 2024, ordering period end date. Using customers are Air Force, Army, Coast Guard, Navy, and foreign military services worldwide. The type of appropriation is fiscal 2021 through 2024 defense working capital funds and foreign military sales. The contracting activity is the Defense Logistics Agency Land and Maritime, Columbus, Ohio. (Awarded April 1, 2021)

Raytheon Technologies Corporation operates as an aircraft manufacturing company. The Company focuses on technology offerings and engineering teams to deliver innovative solutions such as aerostructures, avionics, interiors, mechanical systems, mission systems, aircraft engines, power and control systems, radars, software, and other products. (www.bloomberg.com)

SOURCES SOUGHT: Consolidated Application Development & Maintenance and IT Specialty Services

This is the notification that Headquarters Army Sustainment Command intends to consolidate two information technology requirements that are currently being performed by Small Business Administration 8(a) Program participants into a single unified 8(a) requirement. This single requirement would combine the requirements of the following contracts W52P1J-16-C-4009 ASC Application Development & Maintenance and W52P1J-17-C-0043 Information Technology Specialized Services (non-C4IM). The current performance work statements for both requirements have been attached to provide interested parties with the necessary information to determine if they have the capability to perform this combined requirement. HQ ASC intends to award one (1)
combination Firm-Fixed-Priced (FFP) and Labor-Hour (L/H) type contract consisting of one (1) thirty (30) day transition period, one eleven (11) month base year with four (4) twelve (12) month option years, and one (1) six (6) month option to extend. The Information Technology Specialized Services portion of the contract will be Firm-Fixed- Price, while the Application Development & Maintenance portion of the contract will be Labor-Hour.

  • Original Set Aside: 8(a) Set-Aside (FAR 19.8)
  • Product Service Code: DA01 – IT AND TELECOM – BUSINESS APPLICATION/APPLICATION DEVELOPMENT SUPPORT SERVICES (LABOR)
  • NAICS Code: 541519 – Other Computer Related Services
  • Place of Performance: Rock Island, IL 61299 USA
  • Original Response Date: May 20, 2021 01:00 pm CDT
  • Full details via beta.sam.gov

    govcon giants logo Check out our RESOURCES page for a sample letter that we use in response to government market research.

SOURCES SOUGHT: Power Africa Healthcare Facility Electrification Activity (HFE)

USAID/Power Africa is exploring opportunities to invest and attract private capital investment in health facility electrification to support short- and long-term response efforts in collaboration with private sector partners. This Alliance can include companies, non-governmental organizations, foundations, governments, and other relevant parties committed to promoting health facility modernization (electricity, telecommunications, and water) across SSA.

The Alliance would be created to build on existing Power Africa and USAID health programming efforts to enhance private sector participation in health facility electrification in the SSA region through sustainable, clean generation measures. Our goal is to help improve health services and COVID-19 vaccine distribution by providing reliable, sustainable, and affordable electricity. To achieve long-term success, the Alliance may seek sustainable ways to finance and electrify health facilities on a large scale to be replicated and scaled upon throughout the years of implementation. Innovative solutions to governance, financing and delivery challenges are welcome to solve this development challenge. More information on USAID Alliance Building can be found at: https://www.usaid.gov/gda

  • Original Set Aside:
  • Product Service Code:
  • NAICS Code: 541611 – Administrative Management and General Management Consulting Services
  • Place of Performance: USA
  • Updated Response Date: May 17, 2021 05:00 pm EDT
  • Full details via beta.sam.gov

    govcon logo Check out our RESOURCES page for a sample letter that we use in response to government market research.