2021 GAUGE report reveals insights to contractors on funding optimism and competition concerns

New York, NY, November 15, 2021 – Despite the COVID-19 pandemic, government contractors (GovCons) are optimistic about their future business prospects, according to CohnReznick LLP and Unanet, 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 notes that the increase in federal budget spending is a huge factor in the continued optimism among contractors over the last year, with 71% of government contractors being overall optimistic.

GovCons reported their top concern is increased competition in 2021, and with a vast increase in government spending, they are actively pursuing new awards. Because GovCons prepare an average of 62 proposals each year, creating a winning proposal is the theme of the 2021 GAUGE — a focus tailored to the enormous federal government appropriations in 2020 and the upcoming possibility of a massive infrastructure spending bill.

“If a GovCon is looking for an exit or an influx of capital, then winning is essential,” said Christine Williamson, CPA, PMP, Partner, CohnReznick. “Buyers, investors, and lenders want to see that a company can leverage proposal data to produce information that fuels growth and wins work, so it’s imperative to have a successful proposal track record.”

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.

“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. Compliance costs also ranked high among GovCon concerns.”