By Kim Koster, Vice President of Industry Marketing at Unanet
Government contractors face mounting pressure to deliver more with less. With increasingly complex requirements and shrinking margins for error, resource management has become more than a strategic function. It’s now an operational necessity. But many companies still operate with fragmented systems, reactive planning, and limited visibility into their people and projects. That creates bottlenecks, overspending and burnout.
In hot off the presses data from the 2025 GAUGE Report, we’ve found that resource management remains the biggest project management challenge among top GovCons for the fourth year in a row. Resolving this massive challenge will help organizations increase their profits while delighting customers with on-time and on-budget project execution.
The most successful GovCon teams are turning to smarter strategies and clearer metrics to stay ahead. They’re investing in systems that bring people, projects and data into alignment. And they’re building resilience through process discipline and foresight. Here’s how that transformation takes shape.
Workforce Optimization Starts With Alignment & Foresight
The foundation of efficient resource management is having the right people, with the right skills, assigned to the right work. That may sound simple, but without a solid forecasting process, even the best teams can fall into cycles of overstaffing or scrambling to fill skill gaps. Forward-looking firms rely on predictive tools to anticipate future demand and ensure the right mix of talent is in place.
Equally important is team agility. Fostering multi-skilled employees who can flex across project types lets GovCons apply a buffer against shifting priorities or contract requirements. And while it’s easy to focus only on utilization rates, it’s just as critical to look at how well staffing plans match project needs and where productivity bottlenecks emerge. High turnover, too, can drain efficiency by disrupting continuity and increasing training overhead.
Strong Project Management Brings Clarity & Consistency
Once the team is in place, project execution depends on how well work is broken down and monitored. Clear work breakdown structures and regular progress check-ins help teams maintain focus and meet deadlines. Many firms are adopting earned value management not just for compliance, but to gain early warning signals when schedules slip or costs drift off course.
In the new 2025 GAUGE data, businesses are looking to gain efficiencies in their project management processes by updating and creating policies and procedures, ditching spreadsheets, using AI tools and either creating or changing the structure of their project management office, or PMO.
Metrics like schedule and cost performance indexes provide real-time feedback on project health. But numbers alone aren’t enough. The key is turning insights into action. Comparing actual hours to original estimates uncovers where planning is falling short. Tracking on-time deliverables also paints a picture of operational discipline and team accountability.
Automation Clears the Way for Smarter Decisions
Manual tasks drain time and attention. In a field where compliance and documentation are non-negotiable, the opportunity to automate timesheets, expense tracking and reporting can yield real savings both in labor hours and reduced risk of error. Automation also frees teams to focus on strategic work that moves the business forward.
At the same time, dashboards and real-time analytics bring clarity to complex portfolios. Rather than chasing data across multiple systems, leaders can quickly spot trends, identify outliers and make informed decisions. The value of automation isn’t simply in faster work. It’s in better work.
Financial Control Is Key to Long-term Viability
Resource efficiency also means understanding how dollars flow through the business. This includes keeping direct costs in check, managing indirect rates within allowable ranges, and proactively monitoring budgets throughout the project lifecycle. Too often, firms only spot financial issues after they’ve impacted margins or compliance status.
That’s why tools that track cost variance and burn rate in real time are gaining traction. They allow project managers to course-correct before it’s too late. When paired with accurate forecasting, these insights help firms plan with confidence and protect their bottom line.
Compliance & Allocation Need Tight Coordination
GovCon work brings strict requirements on how resources and costs are allocated across task orders, contact line item numbers and funding lines. Missteps here aren’t just operational risks. They’re audit liabilities. High-performing firms bake compliance into their workflows, ensuring that labor and expenses are correctly assigned from the start.
Clean records and well-documented allocation processes not only reduce the burden of audits but also minimize the need for reallocations, which can be disruptive and time-consuming. A focus on first-time accuracy in planning pays off in both efficiency and peace of mind.
Subcontractor Management Is Part of the Resource Equation
Subcontractors often extend your delivery capacity, but only if they’re managed with the same discipline as internal teams. That means setting clear expectations, using performance scorecards and tracking delivery timelines. A delay from a vendor can ripple across your entire project schedule.
By tying subcontractor metrics to contract requirements, firms maintain accountability and transparency. On-time delivery, service-level compliance, and responsiveness should all be measured and managed with the same rigor as your own operations.
Asset Tracking Prevents Waste & Ensures Readiness
Inventory and equipment are often overlooked in the resource management conversation, yet they play a critical role in supporting project delivery. Overstocking leads to wasted spend. Understocking causes delays. Smart GovCon firms are investing in barcoding and digital inventory systems that offer real-time visibility into asset availability.
Analyzing inventory turnover and utilization rates helps leaders fine-tune procurement strategies and reduce material waste. This not only improves efficiency but also strengthens the firm’s ability to respond quickly to new project demands.
In government contracting, effort alone doesn’t drive results. What matters is how well you manage your resources, plan your work and respond to change. The most effective teams rely on clear systems and strategies that improve planning, accelerate decisions and reduce waste. When people, projects, and financials are in sync, your GovCon can build lasting momentum.