Deltek Releases 17th Annual Clarity Report for Government Contractors

17th Annual Deltek Clarity Government Contracting Industry Study

The 17th Annual Deltek Clarity Government Contracting Industry Study delivers data-driven benchmarks and actionable insights for today's government and defense contractors. Based on survey responses from 917 contractors across the U.S. and Canada, the report provides a real-world view of how organizations are operating in an increasingly competitive, policy-driven environment.

This year's findings highlight a defining challenge: contractors must move faster across business development, pricing, and delivery—while maintaining the control required to meet rising expectations for compliance, cybersecurity, and audit defensibility.

Growth remains strong, with firms reporting average revenue increases, but performance pressure is intensifying. Nearly 90% of contractors experienced at least one declining financial metric, driven by rising labor costs, overhead, and compliance investment.

For defense-focused organizations in particular, compliance is no longer a back-office requirement—it is a competitive filter. Cybersecurity standards, audit readiness, and programs like CMMC are increasingly determining which firms can qualify for and sustain contract work.

Artificial intelligence is now embedded across the contract lifecycle, from opportunity identification to pricing and delivery. However, while adoption is widespread, governance maturity lags—creating new risks around data security, auditability, and performance oversight.

• Additional insights explore how leading contractors are responding to a changing market:
• Diversifying across agencies, contract types, and markets to maintain pipeline resilience
• Investing in automation and integrated systems to improve speed, visibility, and control
• Strengthening cost management and operational discipline to protect margins
• Prioritizing early opportunity identification and alignment with agency mission needs

Ultimately, the findings point to a widening divide. Contractors that can align speed with compliance, integrate systems, and operationalize governance are better positioned to compete—while those that cannot face increasing exposure across performance, eligibility, and growth.

Access the full report to benchmark your organization, understand where the market is headed, and identify the capabilities required to win in today’s defense and government contracting environment.