For the past 18 years, Grant Thornton has served the federal contracting community with the production of its annual Government Contractor Industry Survey of firms doing business in the federal space. The results of this year’s survey continue to confirm trends noted in previous surveys regarding relationships with contracting officers, compensation and rising overhead costs.
The Annual Survey offers an in-depth look at the industry as a whole and into the day-to-day business of government contracting. The survey reflects findings from over 100 companies. This year’s survey highlights include:
- Revenue from government contracts grew for 36% of survey participants, while 26% experienced no significant change and 38% experienced reductions in revenue. This is the first time in many years of our tracking revenue from government contracts that a higher percentage of respondents experienced reductions in revenue from government contracts than those that experienced growth. Compared with the 2011 survey, this represents a 15% decrease in revenue growth and a 9% increase in revenue decline.
- Profit rates reported by survey participants are plunging, compared to the profit rates reported in the last several surveys. In the 18th annual survey, 60% of respondents reported either no profit or profit in the 1–5% range. This compares to 37% in the 17th annual survey, 50% in the 16th survey, 45% in the 15th survey, and 37% in the 14th survey.
- The relationship with DCAA Auditors, unfortunately, was not a positive one. A majority of surveyed companies have an adverse opinion of the Defense Contract Audit Agency (DCAA) and its work product: 53% believe that the DCAA’s audit conclusions are arbitrary and not appropriately referenced to procurement regulations. Further, 60% believe that the DCAA is inflexible and rarely receptive to contractor rebuttals.
To receive a PDF of the 18th Annual Government Contractor Industry Survey Highlights book, please fill out the fields below. For more information regarding the survey, please contact Megan Wolfe at 312-602-8910.