5 government contracting myths busted

Deltek survey finds some surprising attitudes about audits, growth and M&A

In a survey of government contractors, Deltek Inc. has found some faults in the conventional wisdom about today’s market.

The survey covered questions about growth, business strategies, policy issues and operational issues facing contractors in the government market.

Nearly 250 people completed the 60-question survey, which will be presented at Deltek’s Clarity ’09 conference in Tysons Corner, Va., to be held Nov. 17.

5 Myths Busted

Myth 1: The government contractor growth rates are decreasing.
Reality: The sector is still growing, with larger firms in the survey are experiencing better growth rates than expected, on the order of 10 percent.

Myth 2: The merger and acquisition market is active and vibrant.
Realtiy: More than 85 percent of large firms surveyed did not indicate any definite M&A plans for 2010.

Myth 3: Project management is a mature discipline among large firms.
Realtiy: The discipline is less mature than one would think. Only 11 percent of large companies thought that their project management was very mature, and the larger the company, the more likely they were to report a lower level of confidence in their project status confidence.

Myth 4: Big firms do things faster and more efficiently.
Reality: The industry average invoicing cycle of a large firm is 12.6 days, while the cycle of a smaller firm is four times shorter.

Myth 5: In this new age, the Defense Contract Audit Agency has adopted a more confrontational stance with contractors.
Reality: Surprisingly, the survey found that not to be the case, with more than 83 percent of contractors that were recently audited saying that the relationship was “good” or “excellent”. The vast majority said it was actually improving.


About the Author

Nick Wakeman is the editor-in-chief of Washington Technology. Follow him on Twitter: @nick_wakeman.

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