Did your revenues decline or increase?
Revenues Rose in 2009 for Many Contractors – Half of government contractors saw revenues increase in 2009 thanks to new business, according to a recent Grant Thornton survey. While the recession battered the commercial sector, government contracting actually grew; only 20 percent of contractors reported revenue declines. The survey also found that defense contracts slowed for the first time in several years, indicating the government is wrapping up operations in Iraq. Contractors cited changes in the Defense Contract Audit Agency’s management and audit procedures as well as new ethics and compliance requirements as issues that might dent 2010 revenue.
Agencies Reduce Future Contracts – Federal agencies plan to reduce 2010 contracting by $19 billion and save $40 billion annually by 2011. President Obama ordered agencies to review their contracting procedures to identify areas of over-reliance on contractors and reduce high-risk contracts. High-risk contracts – those awarded on a non compete, cost-reimbursement basis – grew 129 percent over the last six years, according to Federal Times. The cost-savings measures could prove problematic for government contractors aiming to grow their contract load.