Government Contractor Profit Margins: The Hidden Costs Eating Into Your Profits

This image illustrates Government contractor profit margins affected by hidden interchange costs, government purchasing card processing, Level 3 data and Visa CEDP qualification

Government contractor profit margins are under increasing pressure. Between rising labor costs, growing compliance requirements, competitive contract pricing, and delayed payments, government contractors are being asked to do more with less. While winning additional contracts can increase revenue, it doesn’t necessarily translate into higher profits. With margins shrinking, it’s more important than ever for government…

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Government Contractor Cash Flow: The Hidden Cost of Federal Payment Delays

Government contractor cash flow diagram showing federal payment delay from Net 30 to 45-60 days

Government contractor cash flow is one of the most misunderstood challenges in federal business. While the Prompt Payment Act requires agencies to pay within 30 days of a proper invoice, many contractors routinely experience payment cycles closer to 45–60 days — because the statutory clock does not begin until a proper invoice is received and…

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