Survey: revenue rose in 2006.
The survey drew responses from more than 100 companies, most with revenues of less than $50 million.
Grant Thornton said 53% reported higher revenues during the year, while 22% were lower.
Other findings of the survey:
* Pre-tax income: Companies were profitable in all revenue ranges although pre-tax income was lower than in last year's survey.
* Management and support headcount: Headcount of management and support activities was 13.8% of total headcount compared to 16.2% in last year's survey.
* Indirect cost rates: Overhead rates continued a downward trend while rates for fringe benefits and G&A held steady.
* Uncompensated overtime: 37% of survey companies do not account for all hours worked, and as a result, are at risk for losing revenue and profits on time and material contracts.
* Revenue by contract type: Revenue from government cost reimbursable and time and material contracts increased sharply since last year's survey.
* Identifying out-of-scope work: 65% of survey participants reported that their procedures for identifying out-of scope work are either not effective or only somewhat effective.
* Executive compensation: Executive compensation remains the most frequent cost challenged by government auditors.
* Exit strategy: Sale of the company continues to be the most favored exit strategy. The interest in pursuing initial public offerings of company stock is lower than in last year's survey.
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|Title Annotation:||government contractors|
|Article Type:||Brief article|
|Date:||Apr 6, 2007|
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