Top 3 Business Development Takeaways from the 2020 Clarity Government Contracting Study

Posted by Nick Schiffler on July 16, 2020

Deltek GovCon Clarity 2020

If there is one gold standard for government contracting benchmarks, it’s the information included in Deltek’s Clarity Government Contracting Industry Study. The 11th annual version of this report explores departmental challenges, identifies key issues and splits up industry sectors to provide benchmarks and trends relevant to every company involved in selling to the government.

This year’s report offers incredibly detailed insights for business development professionals. They will be able to benchmark their business's performance against peers in the government contracting industry, and discover key metrics, challenges and opportunities to consider as they prepare to close out the 2020 fiscal year and ramp up their government business pipeline for the future. 


11th Annual Deltek Clarity GovCon Industry Study – Business Development Trends

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The report is designed to help guide strategic business decisions in 2020 and contribute to the future success of those involved in business development for companies that sell to the public sector. Here are three key takeaways drawn from the survey responses of government contracting industry peers, as presented in the 11th annual version of Deltek's Clarity GovCon Industry Study.

1. Small Business Government Contractors Bringing In More Revenue

The breakdown between companies doing business with the federal government and those doing business at the SLED level remained largely consistent with last year, but there was a difference in how companies viewed the market depending on their size. While a variety of factors contributed to how the survey’s respondents sized up the government contracting marketplace, the picture was brightest for small and medium business (SMB) government contractors. Survey respondents reported that the percent of revenue received from government business increased by about 6% year-over-year in 2019.

GovCon Clarity Revenue from Government Business

2. Top Business Development Challenges Include Less Resources, More Competition

The top three business development challenges experienced by government contracting professionals were very similar to those last year. Easily the most common challenge cited by respondents was “limited business development resources,” a theme that was especially relevant for small businesses and midsize businesses. The next two most frequent challenges cited, “increased competition” and “customer using contract vehicles we are not associated with,” were also common last year. The challenge of “not enough time to assemble high-quality responses for RFPs and RFIs” was one of the concerns that grew the most year-over-year, with 44% of respondents citing that concern as either their first, second or third most significant challenge.

GovCon Clarity Top Business Development Challenges

3. Most Government Contracting Revenue Comes From Top 3 Customers

Respondents indicated that their largest customers were responsible for nearly half of their business’s net revenue, regardless of whether they were a small business, midsize business or a larger, enterprise company. This could be read in two ways. On the positive side, it shows that strong customer relationships with the top customers can lead to a stable base of business. But on the flip side, if those relationships erode or fall apart, companies over-relying on a small base of customers without a diversified portfolio of government contracting clients could be in trouble.

GovCon Clarity Top Revenue Sources

The 2020 Clarity Government Contracting Industry study goes into much more detail on different business development benchmarks, and identifies key issues impacting the government contracting market while forecasting trends into 2021 and beyond.

“It’s never been more important to understand how the government contracting industry is navigating the market. Deltek’s annual Clarity survey provides a comprehensive view on the industry’s top challenges, giving you the information you need to make smart business choices in 2020 and beyond. ”

Kevin Plexico, SVP of Information Solutions at Deltek

Of course, there are many different ways to break down the government contracting market. Different types of government contractors approach the market in different ways. Some target federal government contracts, some prefer the state and local market, and some diversify their government business pipeline and sell to both.

The Clarity series offers insights geared specifically for each of these markets in the form of a pair of on-demand webinars. To learn more, register here for Clarity on State & Local Business Development Trends, or sign up today for Clarity on Federal Business Development Trends.