OCONUS Spending: What's Taking Place Overseas?

Published: June 18, 2019

USAFAFMCARMYUSACEContracting TrendsDEFENSEDISAUSMCNAVFACNAVY

The Department of Defense (DOD) and U.S. military services, including the Army, Air Force, Navy, and Marine Corps, allocate a large budget and issue a fair amount of projects that take place overseas. The Contracting Offices issue requirements which are listed in the Place of Performance as “OCONUS,” which stands for Outside the Continental United States.  Any country or place beyond the CONUS (Continental United States), Alaska, Hawaii, and the U.S territories are considered OCONUS and overseas. 

In this blog, we will discuss OCONUS spending trends, including highlights pertaining to Agency, NAICS, and Competition and Primary Types. A breakdown of which agencies and countries have the largest amounts of spending will also be provided.

Agency Trends

GovWin has identified upwards of 303 upcoming OCONUS opportunity reports in the Forecast-RFP and Pre-RFP phases for OCONUS requirements with an estimated total value of over $72 billion. Of these reports, Defense agencies hold approximately 25%, Army with roughly 25%, Air Force has around 29%, Navy has around 19%, and Marine Corps reporting with less than 1%. Within the Department of Defense, the Defense Information Systems Agency (DISA) reflects its top ranking position as the procuring agency in 37% of the opportunity reports and is followed by the United States Combatant Commands with 22%. The Defense Logistics Agency (DLA) makes up roughly 21%. In the Department of Army, the Army Corps of Engineers has the majority with roughly 32%, followed by the Assistant Secretary of the Army for Acquisition, Logistics and Technology (ASA (ALT)) with 22%, followed by the Army Material Command with 15%. Within the United States Air Force, the Air Force Material Command holds the top positon with roughly 33%, followed by the Pacific Air Forces with 18% and the Air Combat Command with 17%.  The Department of Navy’s command sub-agencies, the Navy Facilities Engineering Command, Naval Supply Systems Command, and Naval Sea Systems Command, comprise well over 73% of Navy’s OCONUS requirements. When we look at the total value amount of the OCONUS requirements, Army holds the top position with close to $25 billion, followed by Air Force with roughly $22 billion, Defense agencies with $20 billion, Navy with $3.5 billion, and Marine Corps with $112 million.

Outlined in the below chart are Forecast RFP and Pre-RFP OCONUS opportunity reports that Deltek is tracking in GovWin, which include DOD, Army, Air Force, Navy, and Marine Corps:

NAICS

The primary NAICS Code is for 541330- Engineering Services with roughly 17%, account for a total estimated value of $7 billion. This is followed by 517410-Satellite Telecommunications with approximately 8%; 561210- Facilities Support Services with 4%; 541990- Professional Services with 4%, 541611- Administrative Management and General Management Consulting Services with 3%, and other NAICS codes make up the rest of the data. However, NAICS Code 517110- Wired Telecommunications Carriers holds the largest value with $13.7 billon, followed by Software Publishers at $13 billion.

Within the Department of Defense, NAICS Code 517410- Satellite Communications holds the overwhelming majority with 29% with an estimated total value of $3 billion. For the Department of Army, United States Air Force, and Department of Navy, NAICS Code 541330-Engineering Services, holds the majority for these military services with 26%, 15%, and 30%, respectively.

The chart below shows the top five NAICS Codes currently in Forecast Pre-RFP and Pre-RFP statuses for OCONUS requirements, which include DOD, Army, Air Force, Navy, and Marine Corps:

Competition Type/Primary Requirement

The GovWin tool lists “Undetermined” and Full and Open Competition/Unrestricted as the primary competition types for OCONUS projects. Accounting to close to 79% of the total competition type for OCONUS projects. The “Undetermined” competition type leads the way with approximately 40%, followed by Full and Open Competition/Unrestricted with 39%.  Small Business makes up about 18% of the competition type. Within DOD, the top ranking competition type belongs to Full and Open Competition/Unrestricted, with approximately 47%, followed by “Undetermined” at 27%, and Small Business with 21%. In the Department of Army, “Undetermined” accounts for 47% of the competition type while Full and Open Competition/Unrestricted is listed at approximately at 34%. For the United States Air Force, Full and Open Competition/Unrestricted leads the way with 42% follow closely by “Undetermined” at 41%. Small Business accounts for 15%. In the Department of Navy, “Undetermined” is the majority with approximately with 44%, followed by Full and Open Competition/Unrestricted with 33%, and Small Business at 19%.

The chart below shows the top five competition types currently in Forecast Pre-RFP and Pre-RFP statuses for OCONUS requirements, which include DOD, Army, Air Force, Navy, and Marine Corps:

Professional Services, the primary requirement, leads the way with OCONUS projects at roughly 41%. Some other professional services is as follows:

  • Information Technology - 25%
  • Operations & Maintenance (O&M) - 13%
  • IT Services - 12%
  • Architecture Engineering and Construction (AEC) - 11%
  • Administrative, Logistics & Management – 9%

The chart below shows the top five primary requirements currently in Forecast Pre-RFP and Pre-RFP statuses for OCONUS requirements, which include DOD, Army, Air Force, Navy, and Marine Corps:

OCONUS - Overseas Spending

According to Deltek’s Agency Profiles, Defense has allocated approximately $1,831,675 billion to OCONUS spending to date in 2019. The country who leads the way with OCONUS spending is The United Arab Emirates (UAE) with approximately $458,083, accounting for 25%. This is followed by the Republic of Korea at roughly $195,312 million, accounting for 11%, and Japan with approximately 150,505, accounting for 8%.  Here is the breakdown of the overseas regions who make up OCONUS and overseas spending within DOD:

  • The Middle East and Central Asia – Approximately $773,279 million
  • The Asian-Pacific realm (including Southeast Asia, Australia & New Zealand) – Approximately $509,975 million
  • Europe-  Approximately $331,115 million
  • Africa - Approximately $127,493 million
  • South America- Approximately $5,598 million
  • North America (excluding the United States and including Caribbean & Central America)- $138,074 million

The table below shows the Defense OCONUS spending from FY15-FY19:

Army

According to Deltek’s Agency Profiles, the Army has allocated approximately $4,454,400 billion to OCONUS spending to date in 2019. Afghanistan holds the top position with OCONUS spending with approximately $1,254,584 billion, accounting for roughly 28% of all OCONUS spending. Following Afghanistan, Kuwait accounts for approximately $652,756 million, making up roughly 15% of spending. Iraq comes in third with approximately $539,731 million, making up about 12% of spending. Here is the breakdown of the overseas regions who make up OCONUS and overseas spending within ARMY:

  • The Middle East/Central Asia – Approximately $2,807,476 billion
  • The Asian - Pacific realm (including Southeast Asia, Australia & New Zealand) – Approximately $444,905 million
  • Europe - approximately $677,220 million
  • Africa - Approximately $357,716
  • South America - Showed a negative - $745,000 (thousands)
  • North America (excluding the United States and including Caribbean & Central America) -  Approximately $105,765 million

The table below shows the Army OCONUS spending from FY15-FY19:

Air Force

According to Deltek’s Agency Profiles, the Air Force has allocated approximately $1,348,478 billion to OCONUS spending to date in 2019. The country who leads the way with OCONUS spending is Kuwait with approximately $182,988 million, accounting roughly for 14% of spending. This is followed by Saudi Arabia at roughly $159,048 million, accounting for 12%, Afghanistan with $130,289 million, accounting for 10%, Qatar at $120,715 million, making up 9%, and Iraq with $103,242 million, accounting for approximately 8%.  Here is the breakdown of the overseas regions who make up OCONUS and overseas spending within the United States Air Force:

  • The Middle East and Central Asia - Approximately $739,975 million
  • The Asian-Pacific realm (including Southeast Asia, Australia & New Zealand) - Approximately $174,854 million
  • Europe - Approximately $197,426 million
  • Africa - Approximately $75,155 million
  • South America  - Approximately $460,000 (thousands)
  • North America (excluding the United States and including Caribbean & Central America) - Approximately $69,543 million

The table below shows the Air Force OCONUS spending from FY15-FY19:

Navy

According to Deltek’s Agency Profiles, the Navy has allocated approximately $1,225,332 billion to OCONUS spending to date in 2019. The United Kingdom holds the top position with OCONUS spending with approximately $226,015 million, accounting for approximately 18% of spending. Japan is next with about $198,932 million in spending, making up about 16% of spending. A surprise, Zimbabwe, holds the third position with approximately $98,494 million in spending, accounting for roughly 8% of spending. Here is the breakdown of the overseas regions who make up OCONUS and overseas spending within the Department of Navy:

  • The Middle East and Central Asia - Approximately $91,759 million
  • The Asian-Pacific realm (including Southeast Asia, Australia & New Zealand) - Approximately $259,834
  • Europe - Approximately $456,065 million
  • Africa - Approximately $185,158
  • South America - Approximately $1,788 million
  • North America (excluding the United States and including Caribbean & Central America) - Approximately $135,507 million

The table below shows the Navy OCONUS spending from FY15-FY19:

Marine Corps

According to Deltek’ s Agency Profiles, the Marine Corps has been allocated the lowest amount in OCONUS spending to date in 2019 at approximately $80,574 million. Canada was awarded the most OCONUS spending in 2019 to date with approximately $37,290 million, accounting for roughly 47%. This was followed by Japan with $37,290 million making up about 46%, with Zimbabwe at third with about $9,527 million, representing 12% of OCONUS Spending. Here is the breakdown of the overseas regions who make up OCONUS and overseas spending within the Marine Corps:

  • The Middle East and Central Asia - Showed a negative -$7,786,000 million
  • The Asian-Pacific realm (including Southeast Asia, Australia & New Zealand) - Approximately $39,066 million
  • Europe - Approximately $1,42 million
  • Africa - Approximately $9,948 million
  • South America - There is no reported spending in South America in FY19
  • North America (excluding the United States and including Caribbean & Central America) -  Approximately $37,775 million

The table below shows the Marine Corps OCONUS spending from FY15-FY19:

The OCONUS spending shows us that the Army has an overwhelming majority and leads the way in FY19 spending for projects in OCONUS. This is followed up by DOD, United States Air Force, Navy, and Marine Corps. The Middle East and Central Asia regions leads the way in OCONUS spending within DOD, Army and Air Force, while the Asian-Pacific Realm holds the most OCONUS spending for the Department of Navy.

The numbers show Defense spending was at its peak in 2015 with $6,407,045, then slipped in the subsequent years, only to slightly increase again in 2018 to a little over $5 billion. Army’s spending increased each and every fiscal year from 2015 onwards and is the only agency to hit the double digit mark (in billions) in OCONUS spending. The United States Air Force has held steady at around the $3 billion range from FY15-FY18. The Department of Navy was generally in the $2-$3 billion range from FY15-17, but was able to hit the $3 billion mark in FY18. Lastly, the Marine Corps has traditionally been the lowest of all the government agencies in terms of OCONUS spending, generally in the range of $100-$200 million.

Please note: The figures reported are an estimate of the countries and regions which vary on how and where they are located. Also note that FY19 spending has not been completed and the numbers shown are what has been reported thus far; these will increase when all spending has been reported for the fiscal year at a later time

The table below are some of the OCONUS projects we are tracking in GovWin, which include DOD, Army, Air Force, Navy, and Marine Corps:

Opp ID

Agency

Program Name

Status

Value ($K)

NAICS

Primary Requirement

Competition Type

138630

ARMY

Information Technology Enterprise Solutions Software 2 (ITES-SW2)

Pre-RFP

13,000,000

511210

Information Technology, Software

Full and Open/Unrestricted

170684

DEFENSE

DLA J6 Enterprise IT Solutions (JETS)

Forecast Pre-RFP

*6,014,8044

541519

Other Computer Related Services

Full and Open/Unrestricted

171389

DEFENSE

US CENTCOM AOR Rotary Wing Airlift

Forecast Pre-RFP

*2,212,242

481211

Nonscheduled Chartered Passenger Air Transportation

Full and Open / Unrestricted

176557

DEFENSE

Trans-Africa Airlift Support Contract (TASC)

Forecast Pre-RFP

*2,208,474

481211

Nonscheduled Chartered Passenger Air Transportation

Full and Open / Unrestricted

146122

ARMY

USACE AEC Utility Monitoring and Control Systems For Heating, Venting, and Air Conditioning Systems (UMCS V) (HVAC)

Pre-RFP

2,100,000

541512

Computer Systems Design Services

Small Business Set-Aside/ Full and Open / Unrestricted

172699

DEFENSE

Maintenance, Repair, and Operations (MRO) Tailored Logistics Support (TLS) Prime Vendor contract for the Pacific Region

Pre-RFP

1,500,000

333999

All Other Miscellaneous General Purpose Machinery Manufacturing

Full and Open / Unrestricted

162314

AIR FORCE

Eglin Operations Maintenance Services (E-OMS)

Forecast Pre-RFP

*1,114,383

541330

Engineering Services

Full and Open / Unrestricted

172261

NAVY

Air Traffic Control Engineering, Technical, and Operational Total System Delivery Support

Pre-RFP

1,000,000

541330

Engineering Services

Undetermined

161109

AIR FORCE

AEC Architect Engineer Services for Traditional I, Title II, and other Services (AE DCS NEXT)

Pre-RFP

1,000,000

541330

Engineering Services

Undetermined

179256

ARMY

USACE AEC Medical Repair and Renewal (MPR)

Forecast Pre-RFP

*990,000

236220

Commercial and Institutional Building Construction

8(a) Set-Aside/ Full and Open / Unrestricted

* Deltek estimate and these values are subject to change.

In a recap, GovWin has identified upwards of 303 upcoming OCONUS opportunity reports in the Forecast-RFP and Pre-RFP phases for OCONUS requirements with an estimated total value of over $72 billion. The largest amount of spending for NAICS is NAICS Code 541330- Engineering Services and the largest OCONUS spending category for competition type were “Undetermined” and Full and Open Competition/Unrestricted. Professional Services was the primary requirement for these OCONUS projects with roughly 41%. Army led the way in FY2019 spending for projects in OCONUS, clearly surpassing the other agencies by a wide margin. As shown in the charts, the Middle East and Central Asia regions continues to lead OCONUS spending within the majority of the agencies, except for Navy.