Deltek recently released their Deltek Clarity Government Contracting Industry Study for 2019. This is the 10th annual study from Deltek and it continues to prove insightful for government defense contractors.
The survey outlined that government contractors are seeing more growth opportunities in the prior year and forward looking. They also address challenges the industry is facing that include diversification into new markets, improved qualification of profitability potential for new opportunities and renewed focus on billable and nonbillable utilization.
Below are three key benchmark metrics that you can use to stack your business up against:
- Small and large businesses saw a 2-point increase in their net profitability compared to prior year;
- The median business net profit margin was 7% for medium contractors and up to 10% for small contractors; and
- Tightening up of indirect rates from 2018 to 2019.
Our Government Contracting Services group was formed to help defense contractors with regulatory and compliance requirements, incurred cost submissions and DCAA Audits. Contact Michelle Jenkins at 256-533-1040 for information or to schedule a time to discuss your government contracting accounting and advisory needs.