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17th ANNUAL GOVCON INDUSTRY STUDY

The Clarity Report for Government Contractors

The data‑driven benchmarks GovCon leaders rely on to move faster while maintaining control in a more scrutinized market.

Now in its 17th year, the Deltek GovCon Clarity Study delivers a real‑world view of how government contractors across the U.S. and Canada are operating as expectations for speed rise and tolerance for error shrinks. The findings are based on proprietary survey data from 917 contractors and qualitative insight from industry experts.

This year's report reveals:

  • A growing tension between speed and control that now defines competitiveness
  • The impact of diversification on resilience across markets and contract types
  • A widening gap between AI adoption and governance readiness
  • How compliance and audit readiness increasingly shape eligibility
  • Why integrated systems are emerging as a key separator among top performers

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90% of firms are using AI. Adoption is nearly universal, but governance and audit readiness lag behind.
96% expect compliance costs to rise. Audit readiness, cybersecurity, and pricing defensibility now determine who can compete.
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Speed vs. Control Defines 2026: Moving faster now requires discipline, defensibility, and integrated systems.

Key Findings

Key Findings
90%

Growth Under Pressure

90% of contractors reported at least one declining financial or operational metric, even as revenue growth remains strong, highlighting the growing execution gap.

139.1 on GCCI

Cautious Optimism

The Government Contractor Confidence Index improved slightly to 139.1, signaling stable demand, but not a more forgiving environment.

5% Report Fully Developed AI

AI Adoption ≠ Maturity

AI usage is widespread, but only 5% of contractors report fully developed AI maturity, exposing gaps in governance and audit readiness.

Number of Tools Reported for Managing Projects

Connected Operations

Firms with more integrated financial, project, and workforce systems report higher visibility and more predictable delivery outcomes.

Connected Operations

Diversification Becomes the Default

Diversification is the most common revenue strategy contractors plan to pursue—expanding offerings and how they compete to stay resilient as priorities shift.

Kevin Plexico

Kevin Plexico

Senior Vice President, Information Solutions, Deltek

Shenê Commodore

Shenê Commodore

CEO, Commodore Consulting, LLC

Chuck Brooks

Chuck Brooks

President, Brooks Consulting International; Adjunct Faculty, Georgetown University

Maria Panichelli

Maria Panichelli

Partner, McCarter & English LLP

"Across the report, a clear pattern emerges: contractors are under pressure to move faster across nearly every function. From business development and pricing to automation and project delivery, speed has become a requirement to compete. At the same time, expectations around pricing defensibility, cybersecurity, compliance, governance, and performance oversight continue to rise."

"One of the most common risks in accelerating proposal development is failing to align stakeholders early. Without alignment, teams rush, coordination breaks down, and compliance suffers. The most effective control is establishing alignment across strategy, customer mission, pricing, technical approach, and compliance before writing begins. Speed helps you compete. Alignment is what wins."

"For years, cybersecurity in government contracting was a checkbox exercise. Now it determines who can compete in the defense market. Firms without strong security and regulatory readiness risk losing access to valuable opportunities."

"My top piece of advice for contractors in 2026 and beyond: Stay informed! Government contracting has always been an area where things move fast. But right now, things are going at light speed, and changes are being made across the board. You must remain proactive about staying on top of developments across a wide variety of topics, or build a team of experts around you who can help you do so."

Confident Decisions Start with Real Benchmarks

The 17th Annual Deltek GovCon Clarity Study uncovers the trends, risks, and performance signals shaping government contracting in 2026—straight from industry leaders. Benchmark your business against peers and plan with confidence in today's public‑sector market.

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Related Resources

Clarity is Deltek’s proprietary research delivering data-driven insights and benchmarks that help project-based businesses make smarter decisions.

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