https://www.americancityandcounty.com/wp-content/themes/acc_child/assets/images/logo/footer-logo.png
  • Home
  • Co-op Solutions
  • Commentaries
  • News
  • In-Depth
  • Multimedia
    • Back
    • Podcast
  • Resources
    • Back
    • Resources
    • Webinars
    • White Papers
    • Events
    • How to Contribute
    • Municipal Cost Index – Archive
    • Equipment Watch Page
    • American City & County Awards
  • Magazine
    • Back
    • Digital Editions
    • Reprints & Reuse
    • Advertise
  • About Us
    • Back
    • About Us
    • Contact Us
    • Privacy Statement
    • Terms of Service
American City and County
  • NEWSLETTER
  • Home
  • Co-op Solutions
  • Commentaries
  • News
  • In-Depth
  • Multimedia
    • Back
    • Podcasts
  • Resources
    • Back
    • Webinars
    • White Papers
    • Events
    • How to Contribute
    • American City & County Awards
    • Municipal Cost Index
    • Equipment Watch Page
  • Magazine
    • Back
    • Digital Editions
    • Reprints & Reuse
    • Subscribe to GovPro
    • Manage GovPro Subscription
    • Advertise
  • About Us
    • Back
    • About Us
    • Contact Us
    • Cookie Policy
    • Privacy Stament
    • Terms of Service
  • newsletter
  • Administration
  • Economy & Finance
  • Procurement
  • Public Safety
  • Public Works & Utilities
  • Smart Cities & Technology
acc.com

News


Revenue grew in 2011 for half of government contractors

Revenue grew in 2011 for half of government contractors

During the past year, revenue from government contracts grew for 50 percent of contractors, while 21 percent experienced no significant change and 29 percent experienced reductions in revenue, according to the 17th Annual Government Contractor Industry Survey.
  • Written by Michael Keating
  • 5th March 2012

During the past year, revenue from government contracts grew for 50 percent of contractors, while 21 percent experienced no significant change and 29 percent experienced reductions in revenue, according to Grant Thornton LLP’s 17th Annual Government Contractor Industry Survey. The respondents to the survey work for all levels of government: federal, state and local.

“The fact that half of the contractors experienced revenue growth continues a long-term trend that government contractors are far less vulnerable than commercial companies to recessions or slow growth in the overall economy,” said retired Vice Adm. Lewis (Lou) Crenshaw Jr., Grant Thornton LLP’s National Aerospace and Defense practice leader. “However, the 29 percent of companies experiencing revenue reductions is the highest percentage reported in several surveys, which may indicate that the government’s efforts to reduce deficits are having a negative impact on contractor revenue.”

Asked how he sees the current and coming year shaping up, Crenshaw told Govpro, “2012 seems to be a year of opportunity for government contractors, especially in the defense sector, because the Department of Defense is not under a Continuing Resolution. Those companies that are positioned in the Pentagon’s growth areas (cyber security, special operations, unmanned vehicles, energy efficiency and health care) stand to benefit the most.”

Crenshaw explained that uncertainty about fiscal year 2013 spending is consuming more and more management attention at contractors. “I suspect one reason profit numbers are up is because companies have leaned their operations in anticipation of reduced government spending in FY12 and beyond, and I anticipate rough waters ahead as internal costs continue to grow while government spending decreases. Companies will simply not be able to sustain profit margins in that environment.”

Nearly one-third of participants (31 percent) reported profit rates of between 1 percent to 5 percent as a percentage of revenue; 37 percent experienced profit rates of 6-10 percent; 18 percent saw profit rates between 11 percent and 15 percent; and 8 percent reported profit rates above 15 percent. “This is a significant improvement from the last two surveys,” the company said in a statement.

Other highlights from the survey include:

  • The average time to collect accounts receivables from government contracts was less than 30 days for 21 percent of survey participants, while 60 percent reported receivables were collected between 30 to 60 days.
  • On average, survey participants reported a 30 percent win rate on proposals submitted in a competitive environment for new work. This rate is consistent with the win rates reported in previous surveys.
  • Indirect cost rates are increasing at 39 percent of the surveyed companies and decreasing at 23 percent of the companies.

The relationship between contactors and government auditors and contracting officers has deteriorated, according to the survey. The relationship with auditors was rated as fair or poor by 19 percent of the surveyed companies, compared with 11 percent in the 16th annual survey. The relationship with contracting officers was rated fair or poor by 10 percent of the participants in the 17th annual survey, compared with 5 percent in the previous survey.

The survey is designed to cover sensitive areas that can directly affect the revenue and profitability of a government contractor, and to help firms remain competitive in the marketplace. The survey report includes suggestions on how to safely navigate contractual and financial issues that may arise during the performance of government contracts.

Go
here to download a copy of Grant Thornton LLP’s 17th Annual Government Contractor Survey Highlights Book.

Tags: News Public Safety

Related


  • How Philadelphia is aiming for zero waste
    The city of Philadelphia has long collected data on city properties’ waste generation and leveraged it to improve waste management, but now it’s honing in on the commercial sector too, realizing this will be crucial to hitting Philly’s zero waste targets. Today it runs a voluntary program where both municipal and commercial operations do detailed […]
  • In challenging year, working with public safety to move FirstNet forward
    It has been a challenging year for the nation, especially for the first responders who are on the front lines of wildfires, hurricanes, and the COVID-19 pandemic. During this historic year, the First Responder Network Authority (FirstNet Authority) remained committed as ever to helping first responders save lives and protect communities. As part of our […]
  • Biden’s relief plan includes $350 billion for local and state government
    President-Elect Joe Biden announced a $1.9 trillion relief plan Thursday to combat the COVID-19 crisis and the economic downturn it has caused. In addition to $400 million to combat the pandemic specifically, the proposal includes $350 billion for state, local and tribal governments that would help them to bridge budget shortfalls, help public works maintain […]
  • Person working on laptop computer
    Embracing digital within local government in 2021
    While COVID-19 has brought on a litany of challenges, it has also shown government leaders the need to employ the right digital solutions for their constituents

Leave a comment Cancel reply

-or-

Log in with your American City and County account

Alternatively, post a comment by completing the form below:

Your email address will not be published. Required fields are marked *

Related Content

  • D.C. police begin identifying Capitol rioters
  • Florida county announces successful test of Motorola Solutions’ cloud-based P25 core technology
  • Biden cabinet picks poised to bring municipal experience to national level
  • Looking ahead: What 2021 will bring to public safety

White papers


How a unified HR system helps one public safety organization manage crews, payroll, and more in a single platform

7th January 2021

Your Roadmap to COVID-19 Funding

18th December 2020

The One Where Everyone Wins: A Mutually Beneficial Contracting Method

10th December 2020
view all

Events


PODCAST


Young Leaders Episode 4 – Cyril Jefferson – City Councilman, High Point, North Carolina

13th October 2020

Young Leaders Episode 3 – Shannon Hardin – City Council President, Columbus, Ohio

27th July 2020

Young Leaders Episode 2 – Christian Williams – Development Services Planner, Goodyear, Ariz.

1st July 2020
view all

Twitter


AmerCityCounty

The latest episode The Young Leaders Podcast focuses on Cyril Jefferson. Cyril is the youngest African American to… twitter.com/i/web/status/1…

27th October 2020
AmerCityCounty

Hillsboro, Oregon is pioneering a new #renewableenergy generation technology through a partnership with… twitter.com/i/web/status/1…

27th October 2020
AmerCityCounty

The impact of the #COVID19 pandemic on #telework was swift and profound. Now, the big question is whether – and to… twitter.com/i/web/status/1…

26th October 2020
AmerCityCounty

Get ready for the can't-miss webinar on how to kickstart your efficiency improvement plan with Luke Anderson of… twitter.com/i/web/status/1…

26th October 2020
AmerCityCounty

Among all states headed into the 2020 general election, which ones have voting populations that are the most demogr… twitter.com/i/web/status/1…

26th October 2020
AmerCityCounty

We want to hear from you! Share your thoughts in our readership survey to help us shape future content so that we c… twitter.com/i/web/status/1…

23rd October 2020
AmerCityCounty

See how cities different approaches to distribute masks in their communities >> spr.ly/6010GAPLa

23rd October 2020
AmerCityCounty

While #facialrecognition is a powerful tool that can improve law enforcement efficiency, that doesn’t necessarily t… twitter.com/i/web/status/1…

23rd October 2020

Newsletters

Sign up for American City & County’s newsletters to receive regular news and information updates about local governments.

Resale Insights Dashboard

The Resale Insights Dashboard provides model-level data for the entire used equipment market to help you save time and money.

Municipal Cost Index

Updated monthly since 1978, our exclusive Municipal Cost Index shows the effects of inflation on the cost of providing municipal services

Media Kit and Advertising

Want to reach our digital audience? Learn more here.

DISCOVER MORE FROM INFORMA TECH

  • IWCE’s Urgent Communications
  • IWCE Expo

WORKING WITH US

  • About Us
  • Contact Us

FOLLOW American City and County ON SOCIAL

  • Privacy
  • CCPA: “Do Not Sell My Data”
  • Cookies Policy
  • Terms
Copyright © 2021 Informa PLC. Informa PLC is registered in England and Wales with company number 8860726 whose registered and Head office is 5 Howick Place, London, SW1P 1WG.
This website uses cookies, including third party ones, to allow for analysis of how people use our website in order to improve your experience and our services. By continuing to use our website, you agree to the use of such cookies. Click here for more information on our Cookie Policy and Privacy Policy.
X