I have no personal experience with federal contracts, however I find it very difficult to believe businesses "break" even. No incentive.
Anyone doing business at those levels would not stay in business long. Having personal experience in more than one business, I understand poor final numbers here and again, generally out of mistakes make somewhere along the line, never as a rule.
If I were to take a 97% note it better be an overnighter, for a friend, in a pinch, starving to death, family dying, just need a hamburger kind of situation.
Disclaimer: Everything I post is opinion and is not to be taken as investment advice. You make your own decisions based on your own judgement. Do your own DD = 'Due Diligence' = Your trade, Your responsibility.