Forty-two percent of U.S. government contracting firms that responded to a Grant Thornton survey reported growth in revenues from their contracts with public sector organizations during the past fiscal year.
The professional services company’s 2015 Government Contractor Industry Survey also found that 37 percent of respondents saw their contract revenues decline as a result of changing government spending priorities and budget cuts.
Companies surveyed said the average win rate on proposals they submitted through a competitive process last year was 35 percent and the rate increased to 75 percent for incumbent vendors.
Forty-three percent reported having a low opinion of U.S. Defense Contract Audit Agency reports and 49 percent cited issues about their relationship with contracting officials.
Data also showed that defense and federal civilian projects accounted for 74 percent of contractor revenues in 2014, compared with 84 percent during 2013 and 93 percent in 2012.
Researchers also found 56 percent of respondents said they expect merger and acquisition activities to increase over the next 12 months.