CohnReznick and Unanet release 10th annual GAUGE Report, marking a decade of insights into the Government Contracting industry

New York, NY - June 17, 2026 - CohnReznick and Unanet today announced the release of the 10th annual GAUGE Report, a milestone edition that reflects on a decade of benchmarking insights while offering a forward-looking perspective on how government contractors can compete and win in an increasingly complex market.

Titled “In It to Win It: Outthink, Outbid, Outlast,” the 2026 report draws on responses from more than 1,200 government contracting professionals, with 51% representing C-suite leadership. The report provides an industry-wide view of performance, challenges, and emerging trends shaping the future of government contracting.

“Winning today is about more than capturing awards—it’s about proving performance and delivering consistently in a constrained environment,” said Kristen Soles, Managing Partner – Global Consulting Services, CohnReznick. “The GAUGE findings reinforce that firms investing in operational maturity, integrated tools, and strong execution are better positioned to outthink the market and become resilient.” For 10 years, the GAUGE Report has served as a trusted resource for GovCon leaders navigating evolving regulatory requirements, economic uncertainty, and a shifting competitive landscape. This commemorative edition highlights how the definition of “winning” has changed—moving beyond contract awards to include operational maturity, data discipline, and strategic agility.

Key Findings from the 2026 GAUGE Report

The 2026 report underscores several critical trends influencing the industry:

• AI adoption continues to accelerate, with 70% of organizations leveraging AI to improve efficiency compared to 54% in 2025 and 74% are expecting automation to significantly shape the future of GovCon.
• Profitability is stabilizing, with average net profit reaching 7.6%, signaling recovery from recent market volatility and closer to the 7.7% GAUGE 10-year average.
• Confidence in compliance remains high, as 88% of firms report readiness for unexpected audits.

The report also finds that top-performing firms consistently outperform their peers by maintaining diversified revenue streams, investing in AI-enabled tools, and strengthening compliance, forecasting, and project management capabilities.

Navigating a More Competitive Landscape

While many contractors report increased pressure from procurement slowdowns, regulatory changes, and the rise of non-traditional competitors, the report highlights that high-performing organizations are better positioned to adapt. These firms demonstrate stronger win rates, improved efficiencies, and greater resilience in the face of uncertainty.

The findings reinforce that success in today’s environment requires a combination of disciplined execution, integrated systems, and the ability to quickly adapt to changing federal priorities.

Looking Ahead to the Next Decade

As the GovCon industry continues to evolve, the GAUGE Report emphasizes that organizations must balance innovation with strong governance. The growing role of AI, increased scrutiny around compliance, and ongoing regulatory transformation will require firms to be proactive, data-driven, and agile.
 
“As we mark 10 years of GAUGE, one message is clear: the contractors that keep winning are the ones who pair disciplined execution with the ability to adapt quickly,” said Christine Williamson, Partner & Co-Author of the GAUGE Report, Government Contracting Industry Practice, CohnReznick. “This year’s report reflects a market where scrutiny is high, competition is tighter, and data-driven decision-making is no longer optional—it’s a differentiator. By leveraging predictive insights, strengthening operational foundations, and embracing technological advancement, contractors can position themselves to outthink, outbid, and outlast the competition in the years ahead.”
 
Download the 2026 GAUGE Report

About CohnReznick

CohnReznick helps organizations optimize performance, manage risk, and maximize value through associated firms operating under the CohnReznick brand: CohnReznick LLP, a licensed CPA firm providing assurance services; and CohnReznick Advisory LLC (not a licensed firm) providing advisory and tax services. Together, CohnReznick provides leaders with deep industry knowledge and relationships, technology-enabled solutions to address clients’ unique business goals and risks, and insight on how emerging market forces can drive opportunity. With offices nationwide, CohnReznick serves organizations around the world as an independent member of Nexia.

About Unanet

Unanet is the leading provider of ERP and Growth solutions purpose-built for project-based businesses. More than 4,200 government contractor, architecture, engineering, construction and professional services organizations depend on Unanet to turn their information into actionable insights, drive smarter decisions, and accelerate business growth. Unanet's AI-first solutions are backed by a people-centered team invested in our customers' success from pursuit to profit. For more information, visit www.unanet.com.