Category: Industry News

Imagine a military without fasteners, it would just fall apart.

Fasteners are an integral part of the U.S. Military; in fact every soldier’s daily life depends on the availability and reliability of them.  Each time a military unit deploys they pack up a myriad of equipment and supplies for the purpose of not only supporting the mission at hand but to provide every imaginable item to support daily life.  These supplies and equipment are completely consumed, maintained, repaired or reused and many of them would not exist without fasteners.

Lets look at the different ways the Defense Department consumes fasteners.

Repair and Maintenance

Every piece of equipment has a lifetime which may be extended with scheduled maintenance.  This maintenance can be performed by the military or through an appointed government contractor.  Billions of dollars worth of government equipment are in some state of repair or overhaul at any given time. Repair or maintenance can occur on site, at local depots, or be shipped to one of the 20 major DOD repair depots in the U.S.

Figure 1.  This diagram (part of a much larger technical manual) is used to illustrate the parts breakdown for a very specific piece of equipment. Each labeled item has a very specific set of rules, such as which are to be repaired or replaced.  There are 24 unique fasteners listed in this illustration which are used on other assemblies.  The NSN 5305-00-725-2317 in this list is used on 15 other vehicles including the HMMWV model M1045A1.  General guidance for maintenance and repair of military equipment are described in technical manuals.

When items are overhauled, parts are either refurbished or replaced.  One way the military supplies parts is in kit form.  For example the NSN 2590-01-305-2166 is a parts kit for a winch, it contains 9 different types of screws, 6 different nuts and washers and two different types of cotter pins.  The kit sells for $7,350 each.  Repairs at military depots may use these kits or pull from a much larger local stock of fasteners kept in their stock bins.

Department of Defense

The four major agencies operating under the Department of Defense have a constant need for hardware such as screws, nuts, bolts, washers and rivets.  Agencies included are the Defense Logistics Agency, Air Force, Army and Navy (which includes the Marines).  There are currently 1,438 contracting offices which issue solicitations through these 4 agencies.

The  Defense Logistics Agency (DLA) is the top agency for purchasing fasteners, issuing the majority of the solicitations.  Typically DLA buys are shipped to one of their 25 distribution sites located around the world or direct to the end user.  Repair depots (the actual consumers of these items) can then replenish their stock by sending requisitions to the DLA pulling from these distribution centers.  Sometimes the depot or base will create and post a solicitation for the item.

To find DLA solicitations, set up searches using standard classifications such as the Federal Supply Class (FSC) .  Classes of interest for fasteners are 5305, 5306, 5307, 5310, 5325, which are screws, bolts, studs, nuts & washers and fastening devices respectively.

Prime Manufacturers

Although the Defense Department issues millions of solicitations direct to vendors for needed parts, for major systems they prefer to buy through prime manufacturers. These companies will subcontract to thousands of vendors, that supply the parts needed to make and support aircraft, engines, ships, tanks, vehicles and communications equipment.  Familiar names like, Boeing, Lockheed, Motorola and Pratt & Whitney are all prime defense contractors.

These companies are prime targets for people who wish to sell to the defense department, but abhor the bureaucracy of government sales.  Prudent contractors can search DOD procurement history to find systems that contain components which they can supply.  Vendors can contact prime contractors directly and offer their products.  Many fastener suppliers already possess skills and familiarity with specifications of hardware used in major military systems or equipment.

Some companies who sell through prime contractors may also sell spares directly to the military.  A company may have produced a screw for Lockheed, who in turn used that screw in an end item sold to the military.  When the Defense Department orders more of that screw, it may appear under a Lockheed part number, not the original manufacturer’s.  This is useful information when searching for solicitations to sell directly to the DOD.

Direct Sales to End User

There are military bases everywhere, and sometimes demand for items arise, which must be purchased immediately.  These are designated as a emergency buys.  There are currently over three million government/military personnel who possess a government credit card which allow them the ability to purchase items without issuing a public solicitation under the right circumstances.

How They Buy

There are a number of ways parts can be purchased by the military.

Direct Procurement – The Defense Department issues a request for competitive quotes directly from manufacturers.  This can be issued through the Defense Logistics Agency, or from the individual agency with the requirement. Contractors can search for these solicitations, determine if they can manufacture the parts competitively and submit a bid.

Prime Contracts – Parts are purchased through the prime contractors, which are often supplied by subcontractors.

Credit Card – For urgent purchases, agencies can use a credit card to buy parts directly from manufacturers or distributors.

Knowing who and how they buy is the first step toward selling to the Defense Department.  Companies can register to sell directly to the DOD, or sell to companies who have already won defense contracts.  Either way, the government can be a consistent source of business for U.S. companies.

Other Sales Opportunities

Foreign Military Sales (FMS) is a program where U.S. Defense systems and services are sold to ‘friendly’ countries.  Brokers both foreign and domestic are constantly sourcing items (part numbers /NSN’s) for many of these older legacy systems.  Seeking out these suppliers or advertising your capabilities can also help increase your fasteners sales.

BidLink.net is a provider of defense industry information for contractors worldwide.  This data includes millions of defense contracts, procurement history, part numbers and vendor details.  This unique combination of resources allows BidLink to monitor and extract important information for the defense contracting industry.  BidLink.net, based in Washington, D.C., provides bid consolidation, searching and notification services, as well as part number (NSN) lookup to many military activities and thousands of private companies around the world.

This article was written exclusively for Fastener Journal.  http://www.fastenerjournal.com

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Despite a weak economy, U.S. Defense Department demand for tubing has been stable over the past five years with annual purchases totaling nearly $50 million.  Metallic tube and pipe is an integral part of the military and all its divisions.  Aircraft,  navy ships and vehicles would not exist without the use tube and pipe.  Construction of barracks, repair and maintenance of large and small equipment are also included. All types and sizes from simple dimensional stock to custom assemblies are consumed by the military. Numerous types of distributive systems on-board navy ships use piping everywhere to deliver drinking water, provide fire suppression, compressed air, steam, and hydraulic fluid. The typical aircraft carrier spans over 1000 feet in length and uses a lot of pipe.

An analysis of the competitive landscape exposes Sikorsky Aircraft as the top contractor by number of contracts with just shy of 1,480.  Several of the major players are aerospace suppliers, showing the importance of tubing and piping to the aerospace industry.  Sikorsky Aircraft is based out of Stratford, Ct with 17,457 employees and annual revenues of over $5 Billion.

Prime Manufacturer Sikorsky won the largest award in 2010, long-term contract # SPM4AX09D9404. It covered many parts including a 1/2 inch metal tube assembly (NSN: 4710-01-095-6934) made from aluminum alloy 5052.   The contract  was originally awarded to the company on July 8th 2005 under contract number SPM400-05-D-9413.  It has a base period of one year with options to extend (both bilateral and unilateral) for up to 10 years.  The total contract amount for the base period of one year was an estimated value of $74,805,917.23, and covered dozens of different parts.   It contains several National Stock Numbered items sole source to Sikorsky.  The contract is currently in its 5th year.  It also includes a performance fee which gives the contractor the ability to earn an extra 14% to 25% by exceeding the contract requirements for on time delivery during their evaluation period.

Prime manufacturers typically have subcontractors produce many of the components used in their end items, such as the Black Hawk helicopter manufactured by Sikorsky.  The U.S. Government is always searching for additional suppliers of items that they consume, especially items which have only one source or sometimes no source.  Companies interested in increasing their government sales will typically seek out these “sole source items” as the competition is limited, therefore potential profit margins could be high.  The process many companies use in becoming an additional source is as follows:  Determine which items are worth pursuing, obtain the actual part from the government or data if available, reverse engineer the item and become an approved source; possibly the only source.

An analysis of annual sales reveals a different picture with GE Aviation taking the number one spot.  Much of this is awarded through long-term contracts, where a vendor will win a bid to supply a list of parts to the Defense Department over several years.  The Government will issue periodic delivery orders against these long-term contracts, reducing the need for a competitive bid every time they stock up.   Periodically, these contracts will expire, allowing prudent contractors to take the business for themselves.

BidLink.net is a provider of defense industry information for contractors worldwide.  This data includes millions of defense contracts, procurement history, part numbers and vendor details.  This unique combination of resources allows BidLink to monitor and extract important information for the defense contracting industry.  BidLink.net, based in Washington, D.C., provides bid consolidation, searching and notification services, as well as part number (NSN) lookup to many military activities and thousands of private companies around the world.

This article was written exclusively for TPJ – The Tube & Pipe Journal.
http://www.fma-communications.com/tpj/

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Companies that manufacture batteries for the U.S. Defense Department are experiencing some good times.  In 2010, the Defense Logistics Agency purchased  $127.59 million worth of batteries, 14.4% more than in 2009.  Currently, the military purchases 7,208 different types of batteries from 226 companies.

At BidLink, we have been mining over 500 million records of defense industry data looking for trends of interest for defense contractors,  and are finding that there is money to be made supplying seemingly common items.  While attention is generally directed toward big ticket buys like aircraft and weapons systems, the Department of Defense (DOD) is spending quite a bit of money on replacement parts called spares. We draw attention to this because there is opportunity for U.S. companies, who might be struggling during the Great Recession.  With retail sales in decline, the DOD can provide some stability for vendors. This week, we focus on the battery industry.

With portable technology as the foundation of the modern military, batteries have become an essential, recurring need.  From AAA to D, fuel cells to rechargeable, the defense department runs on batteries.  We examined several supply classes (FSC) for this study:

TOP SUPPLIERS

The leader in battery sales by number of contracts is Exide Technologies with 2,468.  Exide technologies is a for profit corporation located in Milton, Georgia and manufactures batteries as well as motor vehicle supplies.  They have over 1,500 employees and  annual sales of approximately $2.4 Billion. They were followed closely by Enersys Energy Products with 1,924 contracts.

As for sales volume, Enersys Energy Products is the clear leader with almost $32 Million in annual battery sales to the Defense Department for 2010.  Their most popular item by far was a storage battery used on vehicles including COUGAR and MRAP, National Stock Number 6140-01-485-1472, of which they sold 1,830 to DOD at  $305 each.  Most of their sales were through long term contracts, where the defense department agrees to purchase a quantity over time.  Once won by competitive bid, these contracts can sometimes last for years. The defense department issues periodic delivery orders against the contract when they need more supplies.  Armed with the right information, prudent contractors can win these contracts for themselves.

BidLink.net is a provider of defense industry information for contractors worldwide.  This data includes millions of defense contracts, procurement history, part numbers and vendor details.  This unique combination of resources allows BidLink to monitor and extract important information for the defense contracting industry.  BidLink.net, based in Washington, D.C., provides bid consolidation, searching and notification services, as well as part number (NSN) lookup to many military activities and thousands of private companies around the world.

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The U.S. Defense Department has been steadily increasing its purchases of fasteners and hardware.  At BidLink, we have studied government buying activity for screws, bolts, studs, nuts, washers, nails & rivets over the past five years and found that hardware is a growth industry.  In 2009, the Defense Logistics Agency, the primary procurement arm of the Defense Department purchased $233 Million worth of fasteners.

Although all of the numbers are not in yet, we predict 2010 will be down slightly, closer to $200 million.  Even in the face of major cuts to defense spending, purchases for fasteners are still strong.   Recent austerity measures at the defense department are slashing major purchases of new systems. This creates a growing need to support existing equipment with replacement parts.  As we study various industries, we are seeing a familiar pattern.  U.S. companies that make common items like batteries, safety equipment, electric motors, and hardware can make a lot of money selling to the government.

An analysis of the competition in this industry reveals that Herndon Products has won the most contracts with almost 6,000 in 2009.   The company supplied 3,310 different types of items to the defense department in that year.  The most popular was a National Stock Number 5310-01-097-8010, NUT,PLAIN,ASSEMBLED with 49 delivery orders in 2009.  These purchases were made through a long-term contract (see delivery order) , where once they win the bid, the defense department requests regular orders against the contract.   The above delivery order  for $9,126.02 is #575 against the master contract.  These types of contracts can last many years, but when they expire, prudent contractors can win them.

By sales, the winner is Columbia Nut and Bolt, with almost $17 Million in 2009.  Their headquarters is in Moonachie, New Jersey.   They are a wholesaler of hardware 500-750 employees, which primarily sells to the government. They are followed closely by Herndon Products with nearly $16 Million.

The Defense Logistics Agency buys over 185,000 different kinds of fasteners, screws, nuts, bolts and rivets.  The total number of contracts in 2009 jumped 15% over the 2008 tally to 51,150.

BidLink.net is an aggregator of defense industry information for contractors worldwide.  This data includes millions of defense contracts, procurement history, part numbers and vendor details.  This unique combination of resources allows BidLink to monitor and extract important information for the defense contracting industry.  BidLink.net, based in Washington, D.C., provides bid consolidation, searching and notification services, as well as part number (NSN) lookup services to many military activities and thousands of private companies around the world.

(Exculsive article to the American Fastener Journal)

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Pentagon demand for electric motors has been stable over the last five years, with Defense Logistics Agency (DLA) annual purchasing at around $26 Million.  Many industries studied by BidLink have shown the same pattern of a significant increase in sales from 2006-2007, then stabilization.  In September 2010, defense secretary Robert Gates called for $100 Billion in cuts to the Defense Department budget over the next five years.  Fortunately for companies that make replacement parts, this means more business as many of these cuts could affect large projects like the F35 aircraft, while not affecting the process of repairing and restocking, and technologically upgrading the military.   The Defense department has expressed their commitment to cut waste without reducing capabilities.

We examined the competition in this industry for FY 2009, since at the time of this article, 2010 had not yet ended.  Honeywell International (CAGE code 70210) is the clear leader by number of contracts, winning 450% more than the second place holder, Arc Systems (67245).

This follows a similar pattern that we have seen in other industries analyzed by BidLink.  It seems that each industry has a clear leader, winning significantly more contracts than the other competitors.  Much of this business comes from long term contracts, which are periodically re-awarded.   Opportunity exists for savvy competitors.

By sales volume, Honeywell (70210) almost tripled the sales of GE Avation Systems (81039) in 2009. The other eight competitors were almost evenly matched.  The largest contract for 2009 was 296 AC Control Motors, NSN: 6105-00-938-8503 at $6.102.17 each for a total contract value of $1,806,242.32 (see contract).

BidLink.net is a provider of defense industry information for contractors worldwide.  This data includes millions of defense contracts, procurement history, part numbers and vendor details.  This unique combination of resources allows BidLink to monitor and extract important information for the defense contracting industry.  BidLink.net, based in Washington, D.C., provides bid consolidation, searching and notification services, as well as part number (NSN) lookup to many military activities and thousands of private companies around the world.

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It’s  been a while since we published an update of new features.  We have been working quietly on a few upgrades that let you do more with BidLink..net.  In a few weeks, we will be releasing this new upgrade, but you can get a sneak preview by clicking here, or going to test.bidlink.net.

Don’t worry, we haven’t changed the site so much that you will not recognize it.  Most of the changes are improvements to existing features, and we’ve added a few new features too.

Information Center

A new addition to BidLink is the information center.  This is your one-stop shopping for help, reference, videos and information.  It even has a vast resource of DOD documents and specifications, just a click away.  You can get to it almost anywhere on the site, by clicking on the icon wherever you see it, or clicking on areas with a highlighted background.   It’s also in the left navigation under Help and Information.  Feel free to explore it’s greatness.  There is a video describing the information center here.

New Bid Search

The bid search underwent a major overhaul.  The interface has been simplified, although it is even more powerful.  It provides easy access to “not” searches, which help you to refine your results by removing unwanted bids before you see them.  This can save quite a bit of time.  More help on the New Bid Search is here.

Quick Search

We have added the quick search to more areas of the site, and fixed some bugs.  It can now search more databases, including Mil-Specs.  Unlike before, where BidLink would send a request to the Government for a mil-spec, we now serve them from our own network.  BidLink has almost 200,000 mil-spec documents, comprising much of the DOD’s library.  A video on the Quick Search is here.

Beyond features, there’s more data.  Lots more.  We now host a library of contract actions, which are procurement history that doesn’t fall under DOD’s NIIN based indexing system.  These may include GSA contracts, DD350 and more.  Look for contract actions when you search a company in the vendor lookup tool. We have also added more procurement history from hard to get sources like Navy and TACOM.

We’ve expanded our vendor data area with more information on companies and their activity.  NSN lookup has more part numbers, including replaced NSNs.  Forecast data offers the DOD’s predictions on future buying activity; ML-C tells you the unit price in case there is no procurement history.  NSN status has also been added.

We hope you enjoy the new BidLink.net, and value your comments.  The next few weeks will be polishing the new system .   If you find any bugs, or have suggestions, use the contact area in the information center to drop us a note.

-Tom Gerbe

BidLink Development Staff

The U.S. Defense Department purchased 22.2% more antennae in FY 2010 than in 2009.  The charts below analyze the  buying activity of the U.S. Defense Department’s Defense Logistics Agency for Antennas and Antenna equipment; Federal Supply Class 5985.  An analysis of  projected purchases for 2011 indicate demand similar to that of FY 2010.

Federal Supply Class 5985 includes Antennas, waveguides, and related equipment; Aerials; Masts; Tower Equipment; Attenuators; Couplers; Transmission Lines, but excludes Tower Structures.

At BidLink.net, we have over 500,000,000 records of defense contracting data, including an archive of purchasing activity dating back to 1985.   For this study, we analyzed 2010 buying activity for Antennae by both total number of contracts and total sales volume.

By contract volume, the leader is Harris RF Communication (CAGE 14304), with 314 total contracts in 2010.  Harris RF Communication is a division of  Harris Corporation located in Rochester, NY.  The company is a manufacturer with over 1,500 employees.  Their primary focus is radio and television broadcasting equipment, communications equipment and electronic components including antennas.  They are certified to manufacture over 16,500 parts for the U.S. Military.

By sales volume, Harris Corporation is the clear leader, with $9,666,106 in sales for 2010.  Aviatech corporation (CAGE code 54520) is in second place with less than half the sales of Harris at $4.2 million.  The largest antenna delivery order for Harris RF Communication in 2010 was SPM7M9-11-F-0001 awarded on October 7  for $512,000.  They produced a total quantity of 400 antennae, National Stock Number 5985-01-559-0074 at $1,280 each.  This is part of a larger GSA contract (GS-35F-0163N) which was awarded on December 9, 2002 and expires on December 8, 2012.  The GSA contract covers 555 different line items.

As with the other industries we have analyzed, many of these companies have long term contracts with the defense department.  This is where the defense department awards a contract to a single company, which may last for years.  The government issues periodic delivery orders against this contract award until it runs out.  This cuts down on the need to request quotes for every order, therefore reducing bureaucracy.  Prudent companies can monitor the expiration of these long term contracts, and with sufficient information they can submit competitive bids and possibly win the contract for themselves.

BidLink.net is an aggregator of defense industry information for contractors worldwide.  This data includes millions of defense contracts, procurement history, part numbers and vendor details.  This unique combination of resources allows BidLink to monitor and extract important information for the defense contracting industry.  BidLink.net, based in Washington, D.C., provides bid consolidation, searching and notification services, as well as part number (NSN) lookup services to many military activities and thousands of private companies around the world.

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We examined buying activity from the Federal Procurement Data System, in order to obtain a list of the top five defense contractors.  After reviewing the federal budget, DLA buying activity, and many other sources, we found discrepancies in the data that encouraged us to perform a complete analysis of all purchases in the FPDS.  BidLink.net keeps up to date records of all FPDS transactions.  Below is a list of 21 agencies operating under the Department of Defense who have reported consolidated data on their contractors by dollar value for the fiscal year 2009.  The charts below show the top five contractors by dollar value for each agency.

2009 Top Contractors

Federal

Company	Total actions	Total dollars
Lockheed Martin Corporation	21,174	$38,512,401,433.23
The Boeing Company	11,468	$21,956,065,368.89
Northrop Grumman Corporation	22,009	$19,654,882,647.82
General Dynamics Corporation	17,988	$16,432,366,120.40
Raytheon Company	10,480	$16,106,903,431.28

Department of Defense

Company	Total actions	Total dollars
Lockheed Martin Corporation	17,762	$31,348,453,590.56
The Boeing Company	10,799	$20,604,690,106.84
Northrop Grumman Corporation	19,627	$18,293,375,394.47
General Dynamics Corporation	16,261	$15,662,063,160.18
Raytheon Company	9,697	$15,332,423,921.76

Department of the Navy

Company	Total actions	Total dollars
Lockheed Martin Corporation	4,610	$12,420,762,609.78
Northrop Grumman Corporation	9,844	$8,668,835,819.63
General Dynamics Corporation	6,396	$8,005,594,096.52
Raytheon Company	2,656	$5,095,808,653.19
The Boeing Company	1,607	$4,993,553,179.45

Department of the Army

Company	Total actions	Total dollars
General Dynamics Corporation	4,268	$6,520,702,472.61
Raytheon Company	3,036	$6,386,829,395.31
Oshkosh Truck Corporation	613	$6,002,056,462.20
The Boeing Company	1,272	$5,199,869,571.68
KBR  Inc.	677	$4,637,091,616.01

Department of the Air Force

Company	Total actions	Total dollars
Lockheed Martin Corporation	4,992	$12,721,684,392.24
The Boeing Company	3,094	$8,328,512,802.70
Northrop Grumman Corporation	4,381	$5,697,914,434.55
L-3 Communications Holdings  Inc.	2,415	$2,506,614,057.32
Raytheon Company	2,261	$2,364,176,372.56

Tricare Management Activity (TMA)

Company	Total actions	Total dollars
Humana Inc.	257	$3,389,680,098.90
Health Net  Inc.	136	$2,818,236,858.39
Triwest Healthcare Alliance Corp.	128	$2,650,851,737.67
Anthem Health Of Indiana Inc.	1	$750,304,988.85
Sierra Military Health Services LLC	1	$527,348,655.04

Defense Threat Reduction Agency (DTRA)

Company	Total actions	Total dollars
SAIC Inc.	179	$131,231,178.89
Raytheon Company	78	$123,228,271.33
Northrop Grumman Corporation	61	$74,314,286.05
Bechtel Group Inc.	37	$70,181,269.80
Applied Research Associates Inc.	168	$48,317,931.00

Defense Contract Management Agency (DCMA)

Company	Total actions	Total dollars
L-3 Communications Holdings Inc.	423	$160,727,353.44
United Technologies Corporation	336	$127,187,015.51
Rolls-Royce Group PLC	139	$96,846,374.23
Northrop Grumman Corporation	574	$29,925,319.56
Raytheon Company	309	$19,705,598.28

Defense Microelectronics Activity (DMEA)

Company	Total actions	Total dollars
Northrop Grumman Corporation	107	$166,653,880.00
Raytheon Company	108	$128,127,696.00
BAE Systems PLC	38	$61,856,490.00
Lockheed Martin Corporation	41	$33,815,997.00
General Dynamics Corporation	26	$21,897,026.00

USTRANSCOM

Company	Total actions	Total dollars
FedEx Corporation	1,198	$1,506,090,850.42
Evergreen International Airlines Inc.	1,137	$1,322,675,791.37
United Parcel Service Inc.	464	$305,502,933.10
American Auto Logistics LP	18	$202,080,529.00
EP Investments LLC	50	$140,092,877.72

Defense Advanced Research Projects Agency (DARPA)

Company	Total actions	Total dollars
Lockheed Martin Corporation	52	$160,110,727.00
SAIC Inc.	53	$63,866,621.03
Raytheon Company	33	$41,592,859.63
General Atomic Technologies Corporation	13	$39,645,859.00
Hopkins Johns University	59	$38,422,044.00

Defense Information Systems Agency (DISA)

Company	Total actions	Total dollars
SAIC Inc.	573	$383,239,379.39
Northrop Grumman Corporation	670	$317,452,963.16
Apptis Inc.	400	$263,178,140.07
Artel Inc.	232	$261,362,109.11
Computer Sciences Corporation	339	$198,826,087.16

Defense Logistics Agency

Company	Total actions	Total dollars
Agility	24,090	$1,913,213,109.55
Royal Dutch Shell PLC	12	$1,893,210,329.86
The Bahrain Petroleum Company B.S.C.	6	$1,754,451,969.04
BP P.L.C.	28	$1,684,285,999.43
Amerisourcebergen Corporation	64,715	$1,258,838,905.31

Defense Security Cooperation Agency

Company	Total actions	Total dollars
Charles E Collier	14	$8,163,431.67
Integrated Resource Technologies	14	$7,707,247.09
Information Gateways  Inc.	3	$6,598,800.00
Events Unlimited Inc.	53	$4,736,407.84
Culmen International LLC	17	$3,700,905.00

Defense Commissary Agency (DECA)

Company	Total actions	Total dollars
Kraft Foods Inc.	52,672	$462,530,049.60
Tyson Foods Inc.	57,473	$399,900,586.39
The Procter & Gamble Company	6,453	$312,987,601.32
PepsiCo Inc.	22,856	$210,064,462.15
General Mills Inc.	13,757	$207,429,487.40

Defense Finance and Accounting Service (DFAS)

Company	Total actions	Total dollars
Lockheed Martin Corporation	123	$59,849,620.17
Computer Sciences Corporation	40	$46,039,582.90
Electronic Data Systems Corporation	62	$42,525,030.67
Booz Allen Hamilton Inc.	108	$27,565,533.00
PricewaterhouseCoopers LLP	16	$17,582,793.93

Defense Media Center (DMC)

Company	Total actions	Total dollars
Innovative Technologies Inc.	27	$17,319,763.74
Taft Broadcasting Company LLC	18	$7,967,929.16
Towne Group Inc.	7	$5,999,071.46
Omnitec Solutions Inc.	22	$4,656,841.63
Film House Inc.	16	$3,499,993.38

Department of Defense Education Activity (DODEA)

Company	Total actions	Total dollars
SKE Technischer Service GMBH	54	$27,755,917.30
Dell Inc.	46	$22,655,101.06
Pearson PLC	650	$17,574,464.41
Audax Reisen Gesellschaft Mit Beschraenkter Haftung	81	$11,935,032.08
Town of Lincoln	2	$10,192,190.00

Washington Headquarters Services (WHS)

Company	Total actions	Total dollars
Hensel Phelps Construction Co.	12	$208,627,478.00
General Dynamics Corporation	21	$73,953,096.26
Catapult Technology Ltd.	7	$19,756,695.64
Scitor Corporation	32	$19,057,261.13
Dmjm/Parsons A Joint Venture	10	$16,246,022.72

Uniformed Services University of the Health Sciences (USUHS)

Company	Total actions	Total dollars
The Henry M Jackson Foundation for the Advancement of Milita	56	$17,422,548.16
Onconova Therapeutics Inc.	1	$4,274,446.00
Corbin Company	343	$3,482,840.02
Concurrent Technologies Corporation	4	$1,022,000.00
World Wide Technology Holding Co. Inc.	1	$966,782.78

Missile Defense Agency (MDA)

Company	Total actions	Total dollars
The Boeing Company	44	$1,663,936,105.00
Lockheed Martin Corporation	262	$1,326,609,630.63
Raytheon Company	209	$978,990,087.97
Northrop Grumman Corporation	669	$681,660,706.67
Computer Sciences Corporation	137	$214,351,162.60

U.S. Special Operations Command (USSOCOM)

Company	Total actions	Total dollars
L-3 Communications Holdings Inc.	3,553	$781,680,577.20
The Boeing Company	82	$114,830,024.25
M A Federal Inc.	157	$105,376,236.89
ITT Corporation	49	$102,623,504.53
Raytheon Company	142	$91,306,439.18

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With the Pentagon preparing for spending cuts, BidLink is looking for opportunities for American companies to prosper.  Declines in spending on new weapons systems means more replacement parts for aging equipment.  Many are common items, which can be made by companies who might be struggling due to softening consumer demand.

If you’re in the business of making bushings, rings, shims or spacers for the defense department, business is good.  Purchasing activity for these items from federal supply class (FSC) 5365 have been stable even through the depths of the great recession.

Looking at spending in this area over the past four years, we see relatively stable purchasing volume.  This is what we often find when analyzing the manufacture of what are commonly known in the military as “spares”.  The dramatic increase from 2006 likely relates to a transfer of buying activity from the old DOD procurement system to BSM (Business System Modernization).  An analysis of projected buying activity for 2011 shows that DOD is planning to purchase approximately $30,000,000 worth of bushings, rings, shims and spacers.

In an analysis of the industries top players by sales volume, GE Aviation (99207) leads, but also holds the third place spot (CAGE 07482). Their top contract from 2009 for this supply class was for 127  ring, bearing seals (NSN 5365-00-042-7344) at $1,384.70 each, totaling $175,856 (see contract).

A breakdown of the top 10 defense suppliers in 2009, looking at total sales in dollars.

We also looked at the most popular items purchased within this supply class.

Stock Number	Contracts	Item Name	Cage	Company
5365-01-246-8281	380	SUPPORT ASSEMBLY	02769	LOCKHEED MARTIN
5365-00-511-3133	272	SPACER,RING	73030	HAMILTON SUNDSTRAND
5365-00-310-5808	213	BUSHING,TAPERED	73030	HAMILTON SUNDSTRAND
5365-01-144-7377	162	SPACER,SLEEVE	45152	OSHKOSH
5365-01-223-3631	158	SPACER,SLEEVE	78286	SIKORSKY AIRCRAFT
5365-01-223-3628	141	SPACER,SLEEVE	78286	SIKORSKY AIRCRAFT
5365-01-471-8147	135	RING,BALL JOINT	45152	OSHKOSH
5365-00-550-5070	131	SPACER,RING	73030	HAMILTON SUNDSTRAND
5365-01-180-2369	127	PLUG,MACHINE THREAD	78500	MERITOR HEAVY VEHICLE
5365-01-246-9548	122	SHIM	78286	SIKORSKY AIRCRAFT

This information was discovered using BidLink.net’s comprehensive database of DLA procurement history for 2009. It also includes analysis from the NSN database and the central contractor registry. For 14 days of free access to BidLink.net, click here.

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In a review of the latest data of Government contractors currently registered with the U.S. Government having an active CAGE code; the data shows that the District of Columbia ranks number one with the state of New York showing the lowest percentage of Government contractors per capita.

According to the most recent data tabulated by BidLink.net,  the associated chart represents the percentage of “Government contractors” (based on the number of CAGE codes) per state verses the population of the given state. The state populations used in these calculations are from the most recent extract of population estimates from U.S. census data based on state on residents 18 years or older.

Over 1.6 million organizations in the United States are currently active in the Governments database with an active CAGE code. Basically any company or organization wishing to do business with the U.S. Government, specifically military agencies such as the DoD, Army, Navy, Air Force, and Marines will have a CAGE code.

A CAGE code is a five (5) position alphanumeric code used to identify organizations that provide, manufacture, or control the design of items supplied to U.S. Government Military agencies. The CAGE code is an integral part of the military cataloging system and is shared with many of the automated data processing (ADP) systems throughout the military.

According to the Federal Acquisition Regulation (FAR) and the Defense Federal Acquisition Regulation (DFAR) any organizations wishing to conduct business resulting in an contract award or any type of purchasing agreement must have their CAGE code active in the Central Contractor Registry (CCR). CCR registration must be updated on an annual basis to remain in the system. Currently a little over a third of the total organizations active in the CAGE database are active in the CCR database.

There are two basic types of CAGE codes Manufacturers and Non-manufacturers.

Of the total active U.S. CAGE codes only 11% of them are classified and Manufactures and 89% of them are Non-manufacturers.

The basic CAGE code data contains contact information such as phone and address information. There is a myriad of other relative data which is associated to a single CAGE code. Information such as part numbers and National Stock Numbers (NSN’s) manufactures, sources, contract numbers, procurement history etc.

BidLink.net provides vital information to defense contractors by mining its enormous and comprehensive database.  This data includes millions of defense contracts, procurement history, part numbers and vendor information.  This unique combination of resources allows BidLink to monitor and extract important information for the defense contracting industry.  BidLink.net, based in Washington, D.C., provides bid consolidation, searching and notification services, as well as part number (NSN) lookup services to many military activities and thousands of private companies around the world.

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