AI technologies such as generative AI could help small Govcons improve light efficiency of low growth forecasts, according to a Deltek executive.
The study by Deltek Clarity 2025: The government of the contract industry has revealed that small Govcons are negative on future growth in the United States and could take drastic measures such as consolidation or disinvestment in response. Michael GreenmanDeltek Senior Manager for Cloud Solutions, told an audience during Govcon Wire State of Government Contracting in 2025: Industry Insights from the Deltek Clarity Study Webinar Improving efficiency is a priority for small businesses as president Trump in his second term, prioritized efficiency and reduces waste in government contracts.
Greenman said little govcons should be wary of reducing hands take advantage of technological innovation such as AI to make a workforce better, faster and stronger. Small businesses could also offer a better supply chain to find better sources of materials, which may require consolidation.
“Another underwear of this clarity study … It is not so much” change is the new standard “is” it is the reworking of the market that was necessary to propose efficiency and technological innovation to move our economy [and government] forward, ”said Greenman.
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What are the Govcon growth forecasts?
Greenman said that market conditions for small businesses are tumultuous and that small businesses had indications before the second inauguration of President Trump in January that growth was slowing down or stopped. A general state of the market, he said, among all the companies was that consolidation was the future.
“The status quo will no longer be acceptable to these companies which depend on government contracts,” said Greenman. “Often small businesses are the most precise indicator of [the] real market conditions. »»
The study of the clarity of Deltek 2025 said that almost half of all respondents, 44%, planned to diversify their products and services. Respondents identified Strengthening partnerships to team up, expand subcontracting opportunities and refine capture strategies as their main growth priorities. Attracting the best talents went from the third of last year’s investigation to the seventh, which suggests that recruitment is no longer considered a major obstacle.
Greenman said that the increase in the control of the efforts of small businesses was another concern for small Govcons, who are those who have less than $ 50 million in income. The Trump administration targets financing programs, 8 (a) business development and diversity efforts with the aim of rotating waste and efficiency creation. The break or elimination of funding from these programs, he said, creates an uncertainty of the market.
What is AI for government contracts?
AI and automatic learning were by far the main targeted technology companies for investment. In addition, 40% of respondents in the survey, an increase of six% compared to the previous year, said they used AI for innovation and product development. Beyond the primary use cases, the respondents cited a range of Additional AI applicationsincluding Compliance, writing proposals, data analysis and others.
Greenman said that the future of generative AI develops services such as strategic information and not only to help Govcons identify contracts. For strategic information, he said, Genai takes information from a company and its competitors and creates new content such as data results, information, trajectory and predictability. Greenman said Govcons are starting to see Genai so that strategic information appears in government contracts, promising to further disrupt technology and traditional commercial methods.
Govcons and CMMC 2.0
The Pentagon of President Trump’s second term of the second term of focus on the certification of the cybersecurity maturity model, which is designed to enforce the protection of non-classified sensitive information shared by the ministry with its entrepreneurs and subcontractors. Greenman said he was amazed to read that almost 70% of respondents at the survey planned to undergo an official CMMC assessment in 2025.
This, he said, demonstrates that the Defense Govcons take seriously CMMC 2.0. CMMC assessments are expensive and can cost around $ 100,000 for a level 2 assessment, which must be repeated every three years.
“You can expect there to be disturbances and changes in the industrial database of defense with regard to CMMC as it deploys,” said Greenman. “You can expect the wider federal government to also have CMMC type requirements in the near future.”
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