For many government contractors, the most pressing worry is no longer a shutdown, a budget squeeze or another round of technological disruption. According to Washington Technology, the deeper anxiety now is far more basic: whether firms can still win enough federal work.
That concern comes through clearly in the 10th annual GAUGE benchmarking report from Unanet and CohnReznick, which surveyed more than 1,200 government contracting executives and leaders. The report says the abi...
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lity to secure contracts is the issue keeping the sector awake at night more than any other.
A major reason is the pace of change in federal procurement. Cybersecurity Maturity Model Certification 2.0 and the continuing overhaul of the Federal Acquisition Regulation are reshaping how agencies assess contractors, making compliance a more central part of competition. In that environment, the report argues, firms that can show they understand the rules, and can operate confidently within them, are better placed to stand out.
The numbers suggest many contractors are still struggling. Just 27% of firms surveyed said they win more than half of the bids they pursue, while 37% reported a win rate of 25% or less. The share of companies winning more than three-quarters of their bids is at its lowest point since 2021, according to the report.
The findings also point to a link between regulatory readiness and stronger performance. Firms with win rates above 50% were three times more likely to say they were at CMMC Level 3. While the report stops short of claiming a direct cause, it suggests cybersecurity maturity has become a practical threshold for some defence work.
The Federal Acquisition Regulation changes add another layer of pressure. Agencies are said to be placing greater weight on relevant past performance, technical strength, management capability and lower execution risk, all within tighter procurement windows. That leaves contractors with less time to respond and less room for error.
Unanet and CohnReznick say firms that want to improve their odds should treat compliance as an ongoing business discipline rather than a last-minute proposal exercise. Their recommendations include earlier identification of CMMC requirements, tighter coordination between IT, contracts, capture and operations teams, and greater use of automation to reduce manual work. The report also urges contractors to factor their cybersecurity posture into bid-no bid decisions and to align proposals more closely with how agencies are buying under the modernised FAR.
The broader message is that the firms best placed to win are not necessarily the biggest, but the most disciplined, agile and prepared. In a market defined by faster buying cycles, stricter security expectations and heavier documentation demands, that combination may prove as important as pricing or past performance.
According to the report, AI is also starting to widen the gap between leading firms and the rest, with more mature users outperforming peers in growth, operations, compliance and margin. That suggests the next competitive divide in government contracting may be shaped not only by regulation, but by how quickly firms use new tools to adapt to it.
For executives trying to stay competitive, the challenge is no longer just surviving the churn. It is building the operational resilience to win inside it.
Source: Noah Wire Services
