2020 GAUGE Report highlights Government Contracting stressors and priorities
Tysons, VA, Aug. 25, 2020 – CohnReznick LLP, one of the top advisory, assurance, and tax firms in the United States and Unanet, the leading SaaS project-based Enterprise Resource Planning (ERP) provider, today released findings from their annual survey of the government contracting (GovCon) industry. GAUGE Report 2020 draws on responses from more than 1,450 U.S. GovCon businesses comprising all sizes, types, and industries. This fourth annual edition of the report reveals a variety of compelling storylines, best practices, and benchmarks from the GovCon world.
The standout metrics from GAUGE Report 2020 highlight the significant impact the COVID-19 pandemic, as well as new regulatory policies, are having on GovCons. Some key findings from the report:
- Optimism among respondents dropped from 84% in early 2020 to 68% later in the year after the pandemic hit, while pessimism doubled from 5.5% prior to the pandemic to 11% during the same timeframe
- The cost of compliance continues to concern GovCons, with 30% of respondents identifying it as their most pressing concern, doubling the 15% identifying compliance cost as their top concern just two years ago. This is likely due to Business Systems, CMMC, and FAR compliance now being crucial for successful award wins.
“The takeaways from this year’s GAUGE Report shows that technology is helping government contractors weather this regulatory, COVID-19, and economic storm,” said Christine Williamson, Partner, CohnReznick, and co-author of the GAUGE Report. “While we are seeing the positive effects of many GovCons using technology to help run their businesses, not all are using it to run their businesses better. There is extensive opportunity and upside for GovCons to leverage technology to empower their teams, be more productive, and improve competitiveness.”
Operational efficiency is a key stressor for many GovCons. However, the industry’s move toward more technology-based solutions is helping to alleviate this pressure.
- 59% of respondents reported that at least three-quarters of their projects were on or under budget, an improvement over prior years
- 55% of GovCons report their project management is at a high level of maturity, an increase from previous years. However, a significant number of companies still use spreadsheets and manual processes for resource management, leaving room for further improvement.
“The concerns and sentiments shared are to be expected given the current economic climate,” said Kim Koster, VP of GovCon Strategy for Unanet and co-author of the GAUGE Report. “However, what stands out is the relative comfort among businesses that have adequately prepared for variables through strong technology investments and operational efficiencies. We see more optimism in companies that feel secure in their ability to be operationally efficient.”
The 2020 GAUGE Report is available for download here.