Deltek Clarity: Government Contracting Industry Study

First Look at 2024 Govcon Clarity Study Results

Join Deltek’s government contracting industry experts on May 7 as they unveil key findings from the 15th Annual Deltek Clarity Government Contracting Industry Study.

Attend this executive-level briefing to discover insights and trends designed to help you optimize your GovCon business. You will learn how government contractors are navigating current market conditions and top challenges, including insight on the emerging role of generative AI in GovCon. Register now to empower your government contracting business with market knowledge, tips and advice for success in 2024 and beyond.

Join Us on May 7

Find Out What’s Inside the 2023 Industry Report

The 2023 Deltek Clarity Government Contracting Industry Report, now in its 14th year, is the most comprehensive market resource for government contractors. The industry report, informed by more than 700 government contractors, focuses on the state of the government contracting industry, providing insights and trends based on survey data collected from hundreds of contractors. The Deltek Clarity Report covers a wide range of topics related to project-based businesses, including financial performance, project management practices, compliance and security regulations, labor market trends, contract management efficiencies, technology adoption for operational needs and how they respond to rapidly evolving government market conditions.

Download the Market Research Report

About the Deltek Clarity Government Contracting Industry Study

The latest iteration of the Clarity government contracting industry survey was fielded in the first quarter of 2023 and consisted of over 60 questions, divided into seven functional roles that respondents self-identified with based on their experience and qualifications. All respondents were government contractors, from small businesses to large global enterprises in size, who work across variety of industries providing goods and services to the public sector with the most representation from:

Information technology (25%)
Professional services (14%)
Defense, weapons, aerospace, or manufacturing (13%)

Out of all respondents, 67% work with the federal government, 55% with state, local, K-12 or higher education (SLED), and 33% are active in both markets. This year’s recruiting also targeted companies located and working in Canada, so the percentage working with the Canadian government rose to 28%.

The Deltek Clarity Key Findings Include:

Labor Cost Concerns

Labor market costs are the most significant driver impacting companies’ businesses.

Cybersecurity is Imperative

IT plans on addressing this concern through modernizing infrastructure.

Small Businesses Are Optimistic

Friendly regulations increase focus on awarding small businesses more contracts.

Top Priorities for Government Contracting for 2023

The government contracting environment can be lucrative but challenging. Continuing resolutions, executive orders, inflation, the war for talent, compliance and security regulations create a complex landscape for federal contractors in 2023. This convergence of opportunities, requirements, and challenges drives several themes impacting contractors.

Compliance with Government Regulations: Government contractors must stay up to date with the latest regulations and policies set forth by the government agencies they work with, such as the Federal Acquisition Regulation (FAR) and Defense Federal Acquisition Regulation Supplement (DFARS).

Cybersecurity: As cyber threats continue to evolve, government contractors are expected to prioritize cybersecurity to protect sensitive government data and systems. This may involve implementing robust cybersecurity measures, modernizing infrastructure, conducting regular security audits, and ensuring compliance with the National Institute of Standards and Technology (NIST) Cybersecurity Framework.

Business Development and Capture Management: Winning government contracts requires strategic business development and capture management efforts to identify and pursue new business opportunities and submitting compelling proposals to secure contracts.

Talent Acquisition and Retention: Government contractors may face challenges in attracting and retaining top talent, particularly in specialized fields such as technology and engineering.

Innovation and Technology: Government contractors are increasingly seeking innovative solutions to address complex business challenges and improve products and services to remain competitive.

Performance and Delivery: Government contractors are expected to deliver on their contracts and meet performance milestones while ensuring timely and quality of products or services.

Learn more about how we support the government contracting industry

Deltek takes pride in supporting government contractors through project-based solutions and services and through the thought leadership and education we provide to the industry. Learn more about how our solutions can help your firm streamline its processes for finding, winning and managing government contracts:

Government Contracting Industry page – Over 9600+ government contractors choose Deltek solutions to find new business and manage their projects.
Government Contracting Blog – Read the latest news, trends and insights in the government contracting industry.
Government Contracting 101 Guide – Get the information you need to find, win and manage government contracts.
Top Federal Opportunities for FY 2024 – Build your public sector pipeline with the Top Federal Opportunities for FY 2024.
2022 GovCon Clarity Report - See last year’s GovCon Clarity report to see what all the buzz is about.

Get the GovCon Industry Report

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