While it can be hectic at times, government contractors have always enjoyed a certain degree of stability in the nature of their work. The COVID-19 pandemic that hit earlier this year caused turmoil for everyone, shuttering countless businesses for the unknown future. Some were saved with public loans, while others went bankrupt and were quickly forced to close for good. While some industries were deeply impacted, and it may be years before they return to their former glory, the Department of Defense carries on in its duties despite the difficult times. And likewise, the DLA continues to do business.
Historically, the DoD shows strong growth, year after year. From 2018 to 2020, the budget grew each year from $639B to $686B to $718B. In 2021, the DoD budget requested by the White House consisted of $740.5B for national security, $705.4B of that for the Department of Defense. While the budget growth might have flattened when compared to the previous years, it’s important to take note that these are funds already allocated for contract work.
Despite the current conditions and market volatility, the DLA continues to provide a very stable line of work. It can also be quite profitable if companies can make the necessary adjustments. The key to maximizing profitability from DoD contracts is efficiency. And while most commercial orders are easy, DoD contracts are notorious for having strict requirements for processing orders that must be followed precisely in order to receive payment on time. Making even the smallest error in following these requirements will cause delays to payments and reduce profit margins.
As others allow small errors to affect the profitability of DoD contracts and subsequently retreat to easier (but less stable) commercial work, now is the time for companies to invest in their DoD processes and capture the business others are leaving behind. Odyssey software helps standardize processing of orders while removing all the hurdles. Contractors can process an order flawlessly in 2 minutes, and with only 14 keystrokes.
Even in tough times such as these, the Department of Defense must continue doing its job to keep our country safe; and it will continue to depend on contractors’ support to accomplish its mission. By improving processes and implementing efficiency, DoD contractors can thrive during these times and come out ahead.
To learn more about how Odyssey can help your business add efficiency to its DoD processes, contact us.