It’s no secret that 2025 has been a year of constant change for the GovCon industry, and as we head into the second half of the year, that trend will no doubt continue. That’s why our 2025 GAUGE Report is focused on resource planning and project execution, unlocking the ways in which optimized project and resource management play a critical role in the ability of government contractors to survive and thrive amidst changing tides.
At the central point of effective resource planning and project execution is the Project Management Office (PMO) model. This year’s report revealed continued trends in the maturation of project and resource organizational practices that are directly tied to PMO models.
The most efficient, successful project management stems from a shared understanding and consistent application of PM practices. That’s where the Project Management Office (PMO) comes into play.
A PMO defines the standards for project management across the organization through documentation, metrics, and processes. Codifying the practice and execution of project management helps ensure rigor, compliance, quality, speed, and cost savings on every project. It’s no surprise, then, that companies that report having an established PMO are also more likely to report higher levels of maturity in their practices and compliance management. Having a clear source to establish resource coordination and management practices, and a consistent compliance process, can minimize the risk of human error and improve efficiency in every step of the journey.
In fact, from standardization to maturation, companies with PMOs are 4.5 times more likely to have “very mature” project management practices, and 2.5 times more likely to have “very mature” resource management practices. This points to the critical importance of PMO structure for government contractors, and the outsized benefits for those who have placed PMO models at the center of their planning and execution.
Companies also continue to rely on updating policies and procedures as a top method to improve PM efficiency – a tactic best supported by an effective PMO. Modernization remains a top approach; the percentage of companies looking to automate PM tasks with AI has risen 6% this year. Companies are also actively evaluating their PMOs, with 23% of respondents considering a restructure this year.
Unsurprisingly, companies with established PMOs are more likely to update their policies and restructure their PMOs.
There are three approaches your business can take: adopting a centralized PMO, a decentralized PMO, or a hybrid approach. Each one offers benefits and challenges for government contractors, and we’re going to take a deep dive into both to give you a better understanding of which may be right for you.
A centralized PMO refers to a single, organization-wide PMO that manages the project management practice. This kind of model is ideal for mid-to-large government contractors with cost-reimbursable contracts. Small to mid-size businesses can also use this model as a stepping stone for growth and maturity.
This centralized approach lends itself well to standardized reporting, executive oversight, compliance and audit readiness given the hub-like nature of a single office overseeing all aspects of project management practices.
Conversely, this kind of model may not offer the flexibility and agility sometimes required for fast-moving projects or diverse businesses, and it has the potential to create bureaucratic layers that can hamper productivity if it is not set up and managed effectively.
A decentralized PMO refers to a setup in which multiple project management offices are embedded within departments or business units, and manage projects independently.
This kind of model is best-suited for smaller companies, or those mid to large companies with diverse contract types that can’t necessarily be managed by a single set of processes or standardized practices. A decentralized PMO offers faster decision-making at a project level, as well as tailored responses across different workstreams and use cases.
While flexibility can be a major benefit for some GovCons, there is also inherent risk carried in a model that is not consistent across the entire business, creating potential challenges and additional checks and balances in auditing and compliance processes.
Establishing process discipline is often the biggest hurdle for small and midsize government contractors. A hybrid PMO helps you take that step by introducing consistent standards for how projects are scoped, resourced, and tracked. It does this without requiring every team to follow the same structure.
With a hybrid approach, you can centralize critical functions such as compliance checks, reporting protocols, and project templates. At the same time, individual teams can tailor execution based on the needs of specific contracts. This creates consistency across the business without adding unnecessary complexity.
The goal is not to create extra layers of oversight. It's to build strong, repeatable habits. A hybrid PMO provides the structure to reduce rework, manage risk more effectively, and prepare your business to scale, even if you are not ready to stand up a full PMO today.
As companies of all sizes focus on keeping up with the industry, it’s no surprise that our data tells us PMOs are on the rise. As noted earlier, companies with both centralized PMOs and decentralized PMOs report stronger communication and resource management maturity. These are two key factors in thriving amidst uncertainty and shifting federal regulations. PMOs are also linked to better audit preparedness and lower compliance risk, making the organizational lift needed to establish a PMO well worth the time and effort.
The report also demonstrates that companies with PMOs are more likely than those without to project positive growth for 2026. Structured project oversight could be driving higher confidence in future performance. 81% of companies with a PMO anticipate growth in the next year compared to only 68% of companies without.
It’s fair to say that establishing a PMO is a key differentiator for companies reporting positive results on forecasting for the future, as well as present maturity and efficiency. If you don’t already have a PMO in place, here are a few key considerations when deciding which model is right for your company:
Regardless of the model you choose, establishing a PMO can be a major change for your team, and managing that change will be critical in the success of your PMO. With that in mind, GovCons should ensure that they define the purpose of the PMO within the organization itself, and align it to organizational goals. Successful PMOs are rich with collaboration frameworks as well, offering the opportunity to balance structure with support. Be sure to invest in targeted training, certifications, coaching, and defined career paths for all project roles that interface with the PMO.
When established on solid footing with the right communication, both centralized and decentralized PMOs can offer new opportunities for your team to collaborate and thrive.
As you continue in your PMO journey, the most important idea to remember is that of intention: don’t just consider what industry trends are saying, consider the right path and setup for your unique organization and needs. This holds true whether you’re just beginning, or you’re reassessing your current PMO structure.
If you’re ready to take a deeper dive into establishing a PMO and developing your organizational maturity, and learn what industry experts are saying about their own experiences, download the full 2025 GAUGE Report here.
Ready to take the next step in using the 2025 GAUGE Report insights into action for your organization? Connect with a Unanet expert today to learn how.