New analysis from Unanet and CohnReznick reveals how the pandemic, new regulations, technology, and other factors are impacting GovCons.
Dulles, VA, Aug. 17, 2020 – Unanet, the leading SaaS project-based Enterprise Resource Planning (ERP) provider, and CohnReznick LLP, the global advisory, assurance, and tax firm, today released the annual GAUGE Report 2020. Drawing its findings from a survey of more than 1,450 U.S. government contractors (GovCons) of all sizes, types and industries, the fourth annual edition of the report reveals a variety of compelling storylines, best practices and benchmarks from the GovCon world.
Unsurprisingly, the GAUGE Report’s standout metrics this year highlight the significant impact the COVID-19 pandemic, as well as new regulatory policies, are having on government contractors. Some key findings from the report:
- Optimism among respondents dropped from 84% in early 2020 to 68% later in the year after the pandemic hit, while pessimism doubled from 5.5% prior to the pandemic to 11% during the same timeframe.
- The cost of compliance continues to concern GovCons, with 30% of respondents identifying it as their most pressing concern, double the 15% share that named compliance cost as their top concern just two years ago. This is likely due to Business Systems, CMMC, and FAR compliance now being crucial for successful award wins.
“These concerns and sentiments are to be expected given the current economic climate,” said Kim Koster, VP of GovCon Strategy for Unanet and co-author of the GAUGE Report. “However, what stands out is the relative comfort among businesses that have adequately prepared for variables through strong technology investments and operational efficiencies. We see more optimism in companies that feel secure in their ability to be operationally efficient.”
Operational efficiency is a stressor for many GovCons, but the industry is moving toward more technology-based solutions to alleviate this pressure. Ways technology is helping include:
- 59% of respondents reported that at least three-quarters of all their projects were on or under budget, an improvement over prior years.
- 55% of GovCons report their resource management practice as mature, an increase from previous years. However, a significant number of companies still use spreadsheets and manual process for resource management, leaving room for further improvement.
“The takeaways from this year’s GAUGE Report show that technology is helping government contractors weather this regulatory, COVID and economic storm,” said Christine Williamson, Partner, CohnReznick and co-author of the GAUGE. “We’re seeing the positive effects of many GovCons using technology to help run their businesses. However, not all are truly using it to run their businesses better. There is extensive opportunity and upside for GovCons to leverage technology to empower their team, be more productive, and improve competitiveness.”
The 2020 GAUGE Report is available for download on the Unanet website.
Unanet is a leading provider of ERP solutions purpose-built for Government Contractors, A/E, and Professional Services. More than 2,000 project-driven organizations depend on Unanet to turn their information into actionable insights, drive better decision-making, and nurture business growth. For more information, visit unanet.com. Follow Unanet at @UnanetTech on Twitter and Unanet-Technologies on LinkedIn.
As a leading advisory, assurance, and tax firm, CohnReznick helps forward-thinking organizations achieve their vision by optimizing performance, maximizing value, and managing risk. Clients benefit from the right team with the right capabilities; proven processes customized to their individual needs; and leaders with vital industry knowledge and relationships. Headquartered in New York, NY with offices nationwide, the firm serves organizations around the world through its global subsidiaries and membership in Nexia International. For more information, visit www.cohnreznick.com.
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Feed Media for Unanet
by Kim Koster
Sep 17, 2020