Government Contracting
Industry Study

Government Contracting 
Industry Study

8TH Annual Comprehensive Report • 2017

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Results from our annual Deltek Clarity Government Contracting Industry Study finds an industry with eyes on the future following a year of mixed results.

Business Development

GovCon firms are projecting a return to a growth market and are investing back in the BD function.

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...

53%

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

44.6%

44% win rate for small firms

Back

Good guess, but…

win rate for large firms

44.6%

Back

Top BD Challenges are​:

Limited BD Resources and Customer Using Contract Vehicle We Are Not Associated With

Top 3

Challenges to Achieving Success with Task Order Vehicles

Lack of Information On The Opportunities

Inability to Respond Quickly Enough 

Prime Vendor Does Not Share Opportunities

Project Management

This year’s survey shows that key measurements of PM effectiveness are down, with some positive results in the area of risk/opportunity management. 

Hover over each icon to learn more

Chief Risk Officer 

12%

12% of companies have a CRO, up from just 2% last year.

Formal PM

55%

55% of all firms have a formal PMO, up from only 40% last year.

Project Status 

50%

50% of companies report High Visibility into current project status, down 10 points from last year.

Finance

Profits and growth are down, but other indications suggest this is reflective of the investment required for the next wave of growth

Net Profit

2 point drop from last year

Avg Monthly Invoice Cycle

Flat Year-Over-Year

Growth Rate

A sharp decline from 11% last year – its lowest level in at least 7 years

Overall Composite Overhead Rate

30 point drop in overall composite overhead rate

The Top 3 Challenges facing financial leaders over the next 2-3 years:

Decreasing/Unpredictable Federal Spending Environment
Organic Topline Growth
Increasing Profitability

Financial Compliance 

Compliance remains a real and costly issue for contractors of all sizes.

Hover over each icon to learn more

Employees focused on external audits 

2.5FTEs

At large companies are focused on external audits, up from 1.1 last year

% of Firms Audited 

82%

Were audited, down 10% from last year

Hours Spent Preparing for Audits 

1200hours 

Were spend preparing form government audits by large firms – a 253% increase

Human Capital Management

Finding and keeping talented professionals continues to be a top challenge facing Government Contractors.

Employee Engagement & Workforce Capacity & Planning tops firms’ list of Talent Management challenges 

10 point growth in headcount for large government contractors

The Talent Acquisition Process remains GovCon firms’ most expensive HR business process

Top Talent KPIs Tracked: 
Voluntary Turnover, Involuntary Turnover, Time to Fill Positions

IT

With the distributed nature of many firms, technology is how they maintain a view into business performance, distribute information and stay in touch with their workforce and customers.

Annual Revenue Allocated to IT

down from 9.4% last year

% of Firms Leveraging SaaS 

Are leveraging SaaS to address IT challenges, up from 15% last year

# 1 IT Challenge
Site IT security as their #1 Challenge
Firms in the Cloud

Are in the Cloud, with HR and Talent Management leading the way

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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©2017 Deltek Inc