With Federal Market Uncertain, Firms Seek Commercial Business
December 18, 2012
As agencies decrease contract spending, contractors are diversifying their portfolios to include more commercial business, according to preliminary results from a Grant Thornton survey of about 100 contractors.
The contractors view federal business as high-risk for several reasons, including a shift by agencies to use more firm, fixed-price contracts, which many view as putting more risk on industry, and an increased regulatory environment, according to Lewis Crenshaw, a retired Navy vice admiral and principal with Grant Thornton. Crenshaw shared the findings last week at an Association for Federal Information Resources Management event.