Operational cybersecurity and compliance concerns are among the highest priorities for federal contractors in the coming year, according to Deltek’s 2026 Clarity Government Contracting Report.

In its 17th edition, Deltek’s annual Clarity GovCon report is based on a survey of government contractors and provides benchmarks on industry performance, market conditions, key challenges, and expectations for the year ahead. This year's findings reflect an industry navigating increasing pressure around pricing defensibility, cybersecurity posture, compliance, and audit readiness, with the report concluding that success will be defined by the ability to move faster without losing control.

Top Three Cybersecurity Areas for Government Contractors

According to the Clarity survey results, multiple cybersecurity areas are among the top priorities among government contractors. Here are the top three priorities.

1. Cybersecurity & CMMC Compliance

Cybersecurity is the top-ranked audit risk area for contractors in 2026, and Cybersecurity Maturity Model Certification (CMMC) has shifted from an emerging requirement to an active competitive and contractual obligation. Firms unable to demonstrate security posture and regulatory readiness risk losing contract eligibility.

• Cybersecurity ranks as the single largest audit risk area (23% of respondents), and 59% of contractors expect CMMC requirements to apply to their organization in 2026, up from 55% the prior year. 77% are planning for some form of certified third-party assessment, with 58% anticipating Level 2 certification.
• Data security and cybersecurity compliance are rated the two most important IT investments for 2026, above cloud solutions, artificial intelligence (AI), and all other categories.
• The top cost drivers for CMMC implementation are infrastructure upgrades, new cybersecurity tools and technology, and training, with nearly half of contractors reporting compliance costs to date between $100K–$249K.

2. AI Governance and Security Risks

AI adoption is near-universal among IT and security teams, but governance frameworks have not kept pace, creating compounding risk as organizations attempt to deploy and govern AI simultaneously. The gap between adoption and oversight is itself a cybersecurity vulnerability.

• Over half of organizations remain in the initial or development stages of AI governance, with only 25% holding established or advanced frameworks. Firms with mature governance are twice as likely to be in the AI-mature subgroup and better positioned to scale AI without creating new vulnerabilities.
• 95% of IT professionals report concerns about using AI in IT and cybersecurity, with data privacy, inaccurate AI outputs, and regulatory/compliance uncertainty as the top three concerns. Yet, 97% still plan to use AI in IT and cybersecurity areas in 2026.
• Despite those concerns, IT and security professionals expect AI to deliver measurable benefits. Faster threat detection, improved cybersecurity compliance and audit readiness, and reduced manual effort are the top anticipated outcomes.

3. Ransomware and Evolving Threat Vectors Targeting CUI

Ransomware remains the dominant security threat for government contractors, and the threat landscape is expanding as AI introduces new attack vectors alongside the risks of internal AI deployment. Security failures in this environment carry direct consequences for contract eligibility, not just operational continuity.

• Ransomware and data extortion targeting controlled unclassified information (CUI) is the top-ranked threat vector expected in the next 12 months. This is followed by phishing/social engineering and AI-generated deepfakes, reflecting both traditional and AI-enabled attack methods.
• Besides ransomware and overall technology costs being the highest IT and security concerns, the prominence of AI itself as an overall security threat indicates that contractors view AI simultaneously as a defensive tool and an emerging threat.
• To counter rising threats, IT departments plan to increase security monitoring, implement strong authentication, and expand skills training for staff as their primary response strategies.

Contractor Implications

Effective cybersecurity requires investments in people, processes and technology. Failure to build cyber resilience puts organizations at risk of losses that go beyond data. They can cost an organization its financial and operational viability. In an era of increasing corporate financial scrutiny, IT and cybersecurity teams that frame their cybersecurity investments as a revenue protection function rather than a cost center will likely find it easier to secure budget and executive support within their organization.

Contracting firms are responding to ransomware or other cyber threats by increasing security monitoring, implementing strong authentication, and expanding staff skills training. It is this combination of adaptive technology, effective processes and vigilance by security staff and users alike that is necessary to maintain the most resilient security posture possible.

Cybersecurity compliance costs are now a permanent part of the government contracting landscape. For contractors operating in defense and national security markets, strengthening cybersecurity controls, preparing for and obtaining third-party assessments, and ensuring supply chain compliance are all becoming essential for maintaining contract eligibility. And civilian agencies are quickly moving in a similar direction.

AI governance is not something contractors should add after AI matures, it is the condition under which AI delivers value rather than risk exposure. Companies must govern AI and automation at the system level and treat compliance as a front-end requirement for expansion. Firms that build auditable processes, traceable outputs, and documented oversight alongside adoption will remain more competitive. Savy firms will take a strategic sequencing approach to their AI implementation: secure the foundation first (data security, compliance), deploy AI against high-volume tasks to free capacity, then reinvest that capacity into modernization and strategic initiatives.

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To learn more, check out Deltek’s 2026 Clarity Government Contracting Report.