2021 Gauge Report Reveals GovCons Are Pivoting Amid Pandemic

Despite the COVID-19 pandemic, government contractors (GovCons) are optimistic about their future business prospects, according to Unanet and CohnReznick LLP, the joint authors of the fifth annual 2021 Gauge Report .

Drawing its findings from a survey of more than 1,400 GovCon representatives from January – May, the Gauge Report highlights the pressures this market faces, including cyber threats, hybrid work and supply chain disruptions, as well as solutions they are investing in and exploring that are helping to address the issues.

“Among the biggest insights from the Gauge Report are how the pandemic’s fall-out has shifted the marketplace,” said Kim Koster, vice president of GovCon strategy for Unanet. “In 2020, the political environment, budgets and talent recruitment ruled, but this year competition was the number one issue causing sleepless nights for executives and managers. Compliance costs also ranked high among GovCon concerns.”

GovCons reported their top concern is increased competition, and with a vast increase in government spending, they are pursuing new awards. Because GovCons prepare an average of 62 proposals each year, particular attention is being paid to streamlining proposal management to meet tight deadlines, improving communications among proposal preparers and contracting officers, and clarifying proposal scope.

More than 70 percent of respondents identified these challenges to delivering winning proposals, so GovCons are looking at technology tools to help automate and manage these.

Cybersecurity is once again on the list of industry concerns because the federal government relies on GovCons to protect IT environments from hackers and therefore requires Cyber Maturity Model Certification (CMMC). Thirty percent of Gauge respondents indicated they have struggled with CMMC compliance, yet 70 percent plan to achieve Level 3 compliance. Maintaining, monitoring and managing compliance is an ever-changing reality for these GovCons.

“The Gauge Report is one of the most useful tools the industry has for understanding what challenges GovCons are facing, and with this knowledge we can work to develop solutions,” said Christine Williamson, CPA, PMP Partner, CohnReznick. “Intelligent technology, effective project management, communication and collaboration have consistently proven to be solutions for this dynamic, ever-changing marketplace.”

To download the 2021 Gauge Report, please visit https://hubs.ly/H0WS2QH0.