Aronson LLC’s Government Contracting Experts Quote 11% Retraction in Government Spending

Aronson News
May 11, 2011

Rockville, MD, May 10, 2011/PRNewswire/ — Aronson LLC, a nationally ranked top 50 accounting and consulting firm headquartered in Rockville, Md., announced that, in the Washington Metropolitan area, traditionally robust government spending has dropped 11% over the previous year and the region’s nearly 50,000 contractors are feeling the squeeze.

Lexy Kessler, the Lead Partner in Aronson’s Government Contract Services Group, commented: “If projections are correct, we can also expect to see up to a further 15% loss next year in some agencies.  The number of government contractors in the area has grown significantly in recent years, but the pool of opportunities available to them is retracting at a significant rate and the budget battle is reducing the number of contracts even more.  In order to survive, government contractors have to be stronger, smarter and more disciplined than ever before.”

Similar to the way the government is restructuring their budget, government contractors are restructuring their business models.  Companies focused on selling to the government are going back-to-basics, concentrating their efforts on prudent strategic management, financial discipline and execution.  In order to help their contractors strengthen their business and remain flexible in the light of changing spending priorities, Aronson has added new service offerings to their Government Contracting Ecosystem.  The Ecosystem is a highly customizable, modular program which allows their clients to put together a package of comprehensive services that work together for success.

The most recent addition to the Ecosystem is a comprehensive Transaction Advisory service component.  With the changes in the federal landscape, many government contractors are considering exit strategies, while others may be looking to bolster the diversity of their services or products.  All of this points to an increase in merger and acquisition activity.  Aronson’s Transaction Advisory team provides strategic support to both buyers and sellers during each phase of the transaction process, as well as to lenders requiring assurance to protect their interests in providing financing.

L. Michael Aumiller, the Aronson Partner leading the Transaction Advisory practice, remarked: “As the environment changes, we change as well, anticipating the needs of our clients and the government contracting community at-large.”

Aronson rolled out the revised Ecosystem in anticipation of their Platinum Sponsorship at this year’s Deltek Insight conference, along with an online resource portal for the government contracting community.