What Happened
Contractors Face Mounting Challenges Amid Cost Pressures
Despite a 15% growth in 2025, the government contracting market faces significant challenges, including cost pressures, compliance demands, and a widening gap in artificial intelligence governance. According to Deltek’s Clarity report, contractors are navigating these challenges while also dealing with workforce constraints and intensifying competition. The report surveyed 917 contractors and found that AI is pervasive across the market, but only 5% of contractors have fully developed AI governance. This was reported by Washington Technology.