December 3 2010 Copyright 2010 Business Research Services Inc. 301-229-5561 All rights reserved.
Defense Contract Awards Procurement Watch Links to Prior Issues |
Teaming Opportunities Recently Certified 8(a)s |
Recent 8(a) Contract Awards Washington Insider Calendar of Events |
Snapshot of Contracting Industry Many small contractors are posting impressive gains in revenue, according to a survey by the software firm Deltek. Nearly four out of 10 small contractors (with less than $20 million in annual revenue) said revenue grew by at least 20% during the year, with one in five reporting growth rates exceeding 50%. By contrast, one out of 10 large contractors (revenue above $100 million) reported negative growth. Deltek’s non-scientific survey drew responses from 318 executives in companies of all sizes. Other findings of the survey: Nearly half of small and mid-sized firms reported profit margins of 4% or less. Margins were lower for the largest companies. For all the companies surveyed, margins averaged 4.1%, down from 7.3% in 2009. Small companies, on average, derived more than one-third of their revenue from subcontracts. Most small contractors submitted fewer than 25 proposals during the year, and none submitted more than 99. Small and mid-sized firms reported average win rates of over 50%, up from roughly 40% in last year’s survey.
|