Government Contractor Solutions

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Government contractors operate in one of the most highly regulated, margin-sensitive environments in the market. Every dollar retained through effective risk management can be reinvested to strengthen bids and improve competitiveness.

Gallagher's Government Contractor Solutions practice combines industry-specific insight, specialized government contractor insurance and risk expertise and national resources to help contractors stay compliant, competitive and resilient.

From Service Contract Act (SCA) and Davis-Bacon Act (DBA) compliance to complex risk financing, international operations and employee benefits administration, we help contractors navigate requirements with confidence while lowering their total cost of risk.

A compliance-first approach for government contractors

Our approach is built on a simple principle: Government contracting solutions work best when benefits, compliance, insurance and administration are aligned.

We start by assessing your contracts, workforce composition and cost structure, then benchmark against similarly situated contractors. Using our advanced data and analytics tools, we turn this insight into actionable strategies that help reduce total cost of risk, optimize fringe spend and improve bidding outcomes.

Gallagher delivers integrated solutions that:

Support compliance with federal, state and local labor requirements
Improve bidding competitiveness and help manage fringe dollars
Secure bonding for government contracts
Ensure you have the right executive and professional liability coverage
Protect people, property and operations across domestic and international contracts
Scale with your organization, from single contracts to enterprise-wide programs

Serving federal contractors and subcontractors

Government contractors need their benefits, compliance and risk strategies to work together. We help bring these pieces into alignment to support compliance, control costs and stay competitive.

Our Government Contractor Solutions practice is designed for:

Prime contractors and subcontractors
Joint ventures and teaming arrangements
Professional services contractors
Construction and infrastructure firms
Defense, security and international operations
Organizations operating under SCA, DBA, prevailing wage, living wage and international contracting requirements

Specialized services for government contractor risk and compliance

Contract performance often comes down to how benefits, fringe and risk are executed day to day. Our specialized services help you design SCA/DBA programs, manage fringe dollars and implement insurance strategies that control costs and support consistent delivery.

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We help contractors design personalized employee benefit and total compensation programs that balance compliance, affordability and workforce needs without adding unnecessary complexity.

Our capabilities include:

SCA and DBA benefit strategy and compliance support
Total compensation and fringe benefit analysis
Health and welfare fringe benefit program design
Retirement and qualified benefit strategies
Employee communication, enrollment and ongoing administration

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Managing fringe dollars effectively can impact cost, compliance and competitiveness. We help ensure fringe dollars are allocated efficiently, tracked transparently and aligned with contract and regulatory requirements.

Capabilities include:

Compliant fringe benefits administration, including management of self-funded plans and trusts
Premium reserve and hour bank accounting
Detailed fringe allocation and reporting
Online enrollment and employee self-service tools
Audit support and documentation readiness

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Our mission is to improve risk performance and cost predictability over time.

By aligning coverage, risk financing and loss control strategies with contract requirements and business objectives, we help our clients gain a competitive edge across operational, contractual and geographic risk.

Key services include:

Property and casualty insurance placement
Workers' compensation and experience modification management
Defense Base Act (DBA), United States Longshore and Harbor Workers' Compensation Act (USL&H) and foreign workers' compensation
Cyber liability assessment and placement for CMMC 2.0
Surety bonding solutions
Risk transfer, safety programs and loss forecasting
Support for continental US (CONUS) and outside the continental US (OCONUS) operations

Success story: SCA-compliant benefits improve contract profitability

A federal service contractor supporting large, short-term call center operations needed to rapidly staff hundreds of employees under a Service Contract Act-covered agreement. The contractor was required to meet a health and welfare fringe obligation while maintaining tight margins and minimizing administrative complexity.

The challenge

Paying fringe benefits out in cash would have increased payroll burden and reduced profitability. At the same time, the contractor needed a compliant, hourly‑priced benefit solution that could be deployed and communicated quickly and effectively across multiple locations to its short-term workforce.

The solution

We designed and implemented an hourly‑priced, SCA‑compliant benefit program aligned to the contract’s health and welfare fringe requirement. The solution emphasized coordinated enrollment and employee education to support understanding and participation from Day One.

The results

Improved contract profitability by reducing payroll burden associated with cash‑out fringe
Rapid, consistent onboarding across multiple locations
Employee appreciation for benefits not typically offered in short‑term roles
Greater confidence in bidding and pursuing future federal contracts

Success story: Benefits strategy supports complex workforce transition

Three federal contractors with more than 1,000 employees faced a complex workforce transition after a federal agency rebalanced work across multiple contracts and locations.

The challenge

Employees needed to move between employers while preserving benefits, rates, payroll deductions and plan accumulators across multiple bargaining units and union agreements.

The solution

Our GovCon team coordinated with employers, legal counsel, insurance carriers, unions and the federal agency to design and implement a multi-year transition strategy.

The results

Supported a seamless workforce transition across multiple contracts
Preserved employee benefits and payroll structures
Maintained compliance with contractual and collective bargaining obligations
Kept employees whole throughout the transition