Government Contracting
Industry Study

Government Contracting 
Industry Study

7TH Annual Comprehensive Report • 2016

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Results from our annual Deltek Clarity Government Contracting Industry Study find signs of strength and improvement throughout contracting operations.

Business Development

Results show a significant rise in the influence of small businesses

What is the 

#1

Reason For Not Pursuing an Opportunity

Not a
Good Fit!

Suggesting Greater
Caution & Less Desperation

No. of respondents that manage task order programs in a Centralized manner is...

50%

Test Your Knowledge

What do you think is the average win rate for large firms?

25-35% 

36-45% 

46-55%

CORRECT!

win rate for large firms

43%

44% win rate for small firms

Back

Good guess, but…

win rate for large firms

43%

Back

Top BD Challenges are​:

Limited Business Development Resources and Increased Competition

Top 3

Challenges to Achieving Success with Task Order Vehicles

Inability to Respond Quickly Enough 

Prime Vendor Does Not Share Opportunities

Lack of Information On The Opportunities

Project Management

Investment in the critical area of project management has doubled

Hover over each icon to learn more

Accounting for Risk

50%

50% of medium and large companies account for risk and uncertainty in scheduling the majority of projects.

Project Controls

59.8%

59.8% of all firms felt the importance of Project Controls software will increase in the next 2 years.

On/Under Budget Projects

76%

76% of projects were on/under budget for small and mid-size firms.  Large companies reported just 63% of their projects on/under budget.

Finance

Leaders are addressing the uncertainties of the federal spending environment through diversification

Net Profit

Matching the 2014 High

Avg Monthly Invoice Cycle

Flat Year-Over-Year

Unallowable Costs

Up From 2% Last Year, Probably Due to Compensation Caps

Overall Composite Fringe Rate

Up From a Low of 23% in 2014

The top three challenges facing financial leaders over the next 2-3 years:

Increasing Profitability
 Decreasing and/or Unpredictable Federal Spending Environment  
Cash Flow

Talent Management

Recruiting and retaining talented staff is the key to business success for government contractors.

#1 Challenge Contractors are Facing is Employee Morale & Work/Life Balance

58% of Organizations Said their HR Budgets Decreased

7 in 10 Respondents Said Talent Acquisition is One of the Most Expensive HR Processes

Top HR KPIs Tracked: 
Voluntary Turnover, Involuntary Turnover, Employee Retention and Revenue per FTE

Compliance

What % of firms have been through an Internal Controls Audit in the past two years?

30%-40% of firms

41%-50% of firms

51%-60% of firms

56% of firms 

have been through an Internal Controls Audit

In the Past
Two Years

an 18-point jump from last year

small firms (1–50 employees) - 45.0%
mid-sized firms (51–250 employees) - 45.8%
large firms (251+ employees) - 9.2%

Back

IT

As technology advances, it becomes more essential to how firms gain competitive advantage in the marketplace

Annual Revenue Allocated on Average to IT

up from 8% last year

Cyber Threat Protection

Dramatically increased their investment in protecting from cyber threats

IT and Data Security
IT and Data Security represents a 30 point surge from last year in the # of firms siting it as a top challenge
Experienced Data or Physical Breach

Plummeting significantly from last year’s results

Want to Know More?

Download the full report to learn more, including performance benchmarks and historical analysis of Government Contracting trends. See how your company stacks up and gain insight on strategies you can use to enhance performance.

Deltek is the leading global provider of enterprise software and information solutions for government contractors, professional services firms and other project and people-based businesses. 
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