Federal Contractors' Profits Increased in 2011, Survey Shows

March 14, 2012

Federal contractors reported higher profit margins last year despite shrinking contracting budgets, a survey shows.

Most of the profit growth was achieved by cutting overhead expenses and decentralizing or eliminating program management offices, Warren Linscott, vice president of Deltek's GovCon business line, said Tuesday at the release of the third annual Clarity survey.

Companies reported an average profit margin of 8 percent of their total revenue in 2011, double the 4 percent average profit margin in 2010. 

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