Service Contractor Fall 2021 Magazine

Fall 2021

A New Fiscal Year Outlook: Priorities & Programs to Watch ALSO INSIDE: 6

MODERNIZING YOUR CLM

9

RISK TRANSFER AS A TOOL

11

GOVERNMENT CONTRACTING AT THE MIDDLE TIER

31

VISION PREVIEW

UNANET C O N S U LT IN G G R O U P

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Professional Services Council

Fall 2021

6

Future Focuses:

MODERNIZING YOUR CLM FOR BETTER DFARS COMPLIANCE

The Coming Months for PSC Policy

9

16

RISK TRANSFER AS A TOOL TO MITIGATE CLIMATE CHANGE

4 President’s Letter

15 CIDC Conference Preview 8 Zero-Trust Architectures: A Necessary, 19 Bill Tracker but Difficult Paradigm Shift 33 Member News 11 Stuck in the Middle of Government Contracting

31 VISION CONFERENCE PREVIEW

Cover illustration: Montage by Ana Eastep using images from shutterstock.com/MJgraphics and Vincze Szabi

Service Contractor

is a publication of the Professional Services Council 4401 Wilson Blvd., Suite 1110 Arlington, VA 22203 Phone: 703-875-8059 Fax: 703-875-8922 Web: www.pscouncil.org All Rights Reserved For advertising or to submit articles or items for the Member News section, contact: Pheniece Jones jones@pscouncil.org

P S C S TA F F David J. Berteau President & CEO berteau@pscouncil.org Stephanie Kostro Executive Vice President, Policy kostro@pscouncil.org David Broome Executive Vice President, Government Relations broome@pscouncil.org Cate Benedetti Vice President, Government Relations benedetti@pscouncil.org

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Joe Carden, CAE Vice President, Marketing & Membership carden@pscouncil.org Paul Foldi Vice President, International Development foldi@pscouncil.org Ryan McDermott Vice President, Defense & Intelligence mcdermott@pscouncil.org Melissa R. Phillips, CMP Director, Operations phillips@pscouncil.org

Robert Piening, CPA, CGMA Vice President, Accounting & Finance piening@pscouncil.org Matthew Busby Director, Membership busby@pscouncil.org Michelle Jobse Director, Vision Forecast jobse@pscouncil.org Cassie Katz Director, Marketing katz@pscouncil.org Andrea Ostrander Director, Events ostrander@pscouncil.org

Pheniece Jones Director, Media Relations jones@pscouncil.org Jean Tarascio Senior Manager, Events tarascio@pscouncil.org Donald Baumgart Manager, Vision Forecast baumgart@pscouncil.org Karen Holmes Office Manager holmes@pscouncil.org Christian Larsen Senior Associate, Public Policy larsen@pscouncil.org

Sebastian Herrick Senior Associate, Public Policy herrick@pscouncil.org James Millar Associate, Research millar@pscouncil.org Natalia Gray Associate, Events gray@pscouncil.org Alexandra Gomez Executive Assistant gomez@pscouncil.org DeAndre Robertson Associate, Marketing robertson@pscouncil.org Laila Hammonds Associate, Membership lhammonds@pscouncil.org

Service Contractor / Fall 2021 / 3

PRESIDENT ’S LETTER

W

elcome to the fall 2021 edition of Service Contractor Magazine! As I write this, PSC members and government officials are convening at the Greenbrier in beautiful West Virginia for PSC’s 2021 Annual Conference. Due to COVID-19, it has been 30 months since our last in-person Annual Conference, and it is so great to be together again. We have combined a robust agenda with valuable networking and proper COVID-19 safety precautions. Of course, members and government officials can still access our events virtually as well.

COVID-19 continues to command attention from the federal government and its contractors, our members. President Biden signed EO 14042, Ensuring Adequate COVID Safety Protocols for Federal Contractors, on September 9. The Safer Federal Workforce Task Force issued guidance on workplace safety for contractors and subcontractors. The FAR Council established a contract clause requiring adherence to that guidance (FAR 52.22399). Agencies are now incorporating this clause in all covered contracts, including new contracts awarded on or after October 15 and in many cases as a modification to existing contracts.

PSC supports vaccinations as part of a broader approach to controlling the spread of COVID-19, with testing, contact tracing, masking, distancing, care, and improved treatment regimes.

This vaccine mandate, however, raises many valid questions for contractors. PSC continues to raise and propose solutions for contractor questions and concerns with agencies and the White House while engaging with the media and Congress.

Beyond COVID-19, this issue of the magazine covers the new fiscal year and the critical policy areas we are tracking. Stephanie Kostro, Executive Vice President for Policy, provides an overview of PSC’s focus on policy areas impacting our members. You’ll also find articles from PSC staff and members on pathways to contract

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compliance, zero-trust architecture considerations, mitigating climate change-related fiscal risks, and more.

Our regular feature, the PSC bill tracker, highlights the status and major actions of bills in the first session of the 117th Congress. PSC’s government relations team continues to engage and collaborate with the Congress on key legislation related to workforce, cybersecurity, defense and infrastructure. As we face the expiration of the Fiscal Year 2022 Continuing Resolution on December 3, PSC continues to push for full-year appropriations to ensure the government stays open with funding for critical missions and programs.

Even with those challenges, we look ahead excitedly to upcoming key PSC events. The annual Vision Federal Market Forecast will be held virtually from December 1-2, convening government and industry to present and discuss agency plans, budgets, and programs. Our international development members will convene with government and industry guest speakers at the December 7 CIDC Conference at the Ballston Westin in Arlington or virtually.

Best of all, PSC will host our in-person December Board meeting and all-member holiday reception on December 16. Be on the lookout for more details. It will be a great chance to visit with many of you face-to-face after being apart for so long during the pandemic. We hope to “see” you at these year-end events!

As always, I welcome your input, your feedback, and your engagement in our efforts.

David J. Berteau, President and CEO

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Come for the Connections…

…Or Join Virtually for the Content FEATURED SESSIONS o Changes in the Security Clearance Landscape

o Return to the Office: Managing Expectations

o M&A: Company Executives Panel

o M&A: Investment Bankers Panel

o Partnering to Improve the Nation’s Cybersecurity o DEIA: Perspectives from the Federal Workplace

o Digital Transformation and Organizational Change o Corporate Perspectives on the Dynamic GovCon Landscape

o ...and more!

The PSC Annual Conference is returning to Greenbrier

October 24-26, 2021 The Greenbrier in West Virginia or Virtual Access Register at www.pscconference.org

Modernizing Your CLM

for Better DFARS Compliance

by Kevin Brancato, SVP of Product Strategy, TechnoMile

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ederal contractors are spending considerable time and money preparing to comply with DFAR, NIST, CMMC, and other cybersecurity requirements. The largest federal contractors are applying stringent cybersecurity requirements across their operations, including internal business systems for capture and contracts management. While these companies are modernizing their systems to increase security, they are also thinking carefully about how to enhance business efficiency, and how to extract value out of the data they are creating.

Every step in the contracts management process has its own unique government requirements, information to be captured and tracked, reports and briefings to be created and submitted, and workflows that must be followed.

Today, the largest federal contractors are creating a contracts “source of truth” that gives their contracting teams a complete view of federal contracts, sets up rule-based approval processes, eases data entry, and simplifies reporting – all inside a secure cloud environment. Using modern systems, contracting professionals can summarize, track, and alert on contracts or subcontracts using any field, including by contract clause, customer, business segment, value, or contract type. And they are using that data to assess contract risk in real time.

At the same time, some federal contractors adopting a modern contract lifecycle management (CLM) platform have found the need for substantial change management assistance during the transition from shared drives, spreadsheets, and email. And being an early adopter in the federal market means forging best practices, instead of adopting those developed by others.

Contract Management

To ensure compliance with cybersecurity, labor, or any other contract requirement, contracting professionals need to track all FAR and DFAR clauses, as well as unique clauses that are written in a contract. Such tracking of contract clauses has traditionally been an extremely burdensome, manual process. However, a modern CLM platform allows for increased automation and easier compliance, enabling the analysis of every contract

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line item number (CLIN), clause, subcontract, report, and deliverable – upon receipt of a contract or modification, or at contract closeout. Today, at the overall contract level and at the CLIN level, labor categories and rates, financial information, deliverables, and clauses can be tracked and reported.

With a modern CLM platform, every single change made to a contract in the scope, duration, value, or timeline can be tracked.

A contract in the system can start as draft, move to negotiated and awarded status, before becoming active, executed, and closed out.

Traditionally, creating a contract in a tracking system would require a company’s contracts team to enter a lot of information manually. Today, the largest companies are recording and tracking contracts in detail either by scanning and parsing electronic copies of contracts, or having information routed from federal contract writing systems. Before or at award, electronic copies of contracts are ingested, and starting with the standard form cover sheet, every clause is captured.

For the contractor, this creates an unprecedented database of contracts that can be queried and reported on–with automatic alerts set based on specifics of the contract. Not only is it possible to see every single contract that has received a modification in the past month, it is possible to see which contracts were modified with an additional clause added.

To simplify internal and external communication, reports are generated at the click of a button in pre-generated formats. These reports are tagged and automatically stored in a structured folder system directly tied to the contracts.

Tracking Data and Deliverables

A modern CLM platform allows for the automatic generation, approval, and tracking of documents and reports required to be submitted to the government during contract execution. This includes the creation and signing of the slate of Contract Data Requirements List (CDRL) documents for each contract, tied to each requirement in the contract.

In addition, to meet report requirements, deliverables can be entered into the system and tracked against each CLIN. Professional Services Council

Such a CLM platform includes automated alerts for when contract obligation threshold limits are being approached.

Once the alert is reviewed, the contract team can automatically generate the required letter to be sent to the government.

In addition, large contractors often need to spend considerable time and effort managing subcontracts. A modern contracts management system allows not just for the creation of lists tracking potential and executed subcontracts, but the quick creation of subcontract offer letters containing flow-down provisions and reps and certs, as well as sending a request to an enterprise resource planning (ERP) system to generate a purchase request.

In the end, this permits detailed tracking of a prime contractor’s performance against small business goals for every contract with a small business plan requirement.

shutterstock.com/ZinetroN

Tracking Risk

The most proactive contractors are using this system to assess risk in real-time. They are using recent historical contract performance to generate one or more risk scores automatically, both at the start of contracts and when modifications are added. Larger companies know the risks they want to track, and have unique ways of calculating it.

Here’s how. Every contract has a set of criteria, including cost type, ceiling value, customer, market segment, length, and security requirements. Many contracts share several criteria, and together, they provide a valuable dataset. A new contract can be analyzed in the context of previous contracts that share some of their characteristics. For example, a contractor that wants to assess risks of a contract at a customer for a given product could compare it to all similar, but not identical, previous work.

Previous contracts could be for a different product at that same customer, or the same product at a different customer.

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Don’t Ignore Requirements

Federal contractors must follow every contract clause, standard or modified, on every federal government contract.

Noncompliance can risk future growth. Take for example Seaport-e, the Navy’s preferred professional and technical services contract vehicle through which tens of billions of dollars were awarded to thousands of vendors. Stashed away inside Section H.11 was a provision that required a copy of every task order to be posted on the winner’s public website.

Several federal contractors never publicly posted Seaport-e task orders, putting their eligibility for future orders at risk.

Closeout Process

A modern system will provide options for closeout of contracts – a series of checklists to ensure that proper protocol is being followed. Information can be pulled in directly from the rest of the system, or can be done manually.

Wrapping Up

Federal contractors are heavily investing in both people and technology to comply with DFAR, NIST, CMMC, and related cybersecurity requirements. While some federal contractors are solely focused on meeting their compliance obligations, leading organizations are using these imperatives as an opportunity to improve or upgrade their existing processes and technology. With a modern CLM platform that acts as an organization’s “source of truth” – all stored within a secure cloud environment – these federal contractors will be able to increase security, enhance business efficiency, and extract value out of their data, which ultimately positions them to win more business and accelerate growth. 3 Service Contractor / Fall 2021 / 7

Zero-Trust Architectures:

A Necessary, but Difficult Paradigm Shift

by James Millar, Research Associate, PSC

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igrating toward a zero-trust architecture is a critical element of the federal government’s efforts to address “increasingly sophisticated and persistent cyber threat campaigns that target its technology infrastructure, threatening public safety and privacy, damaging the American economy, and weakening trust in Government.”1 To mitigate damage inflicted by malicious cyber actors (e.g., on critical supply chains, government systems, and industry networks), these efforts reflect a paradigm shift from perimeter cyber defense to a more defense-in-depth approach that can better address fastchanging, increasingly frequent attacks.

The Biden Administration has released several documents— including but not limited to a draft statement of zero-trust cybersecurity principles released by the Office of Management and Budget (OMB)—that provide insights into, and guidance on, how the executive should migrate toward a zero-trust architecture by fiscal year 2024 as part of this more in-depth approach to cyber defense. Once finalized, OMB’s strategy document will include a requirement for each federal agency to provide a plan for implementing a zero-trust architecture. However, agencies may continue to face long-term technical issues they may not have the capacity or capability to address. OMB acknowledges within the strategy document itself that “transitioning will not be a quick or easy task for an enterprise as complex and technologically diverse as the Federal Government.”2 Core challenges with a zero-trust architecture implemented across an expansive U.S. government include changes to existing applications, segmentation of networks, device management, and long-term funding challenges. For government services contractors, these challenges could also be opportunities to provide innovative, cost-effective solutions for updating or replacing systems.

1. Existing application owners typically implement custom interferences (e.g., patches, content), but in a zero-trust architecture, they may need to remove, alter, or add interferences to meet a “distrust by default” standard.

Application owners will need incentives to redesign applications that may be very old, difficult to alter, or unable by design to meet requirements.

2. Any zero-trust network will require connected systems across the government to establish segmentation between

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or among bureaus, agencies, and departments. Absent guidance for automated authentication, segmentation could reduce productivity and impair progress toward cloud-based computing and edge-processing. Expanding segmentation of networks will require further examination of shared data, inventories, and core U.S. government systems. Establishing efficient procedures for automated authentication to maintain access to those essential shared systems will be necessary.

3. The Covid-19 pandemic has shifted many elements of the federal workforce towards remote work and/or telecommuting. This shift has underscored the need for federal departments and agencies to support a variety of device types and properties. These devices may have their own technical challenges in complying with zero trust-related principles and policies, such as remote access through the cloud or an external partner.

4. Long-term funding will help ensure this overhaul occurs without significant disruptions in operations and services

by OMB’s 2024 goal. Although limited resources are available in the Technology Modernization Fund, departments and agencies will need to find funding within their own budgets, which may not be sufficient for high costs associated with complete system overhauls, redesigning extensively integrated applications, and creating or expanding authentication methods.

Implementing a zero-trust architecture can be worth worthwhile. A paradigm shift in the government’s approach to cybersecurity is a more proactive and somewhat refreshing way for federal departments and agencies to address a rapidly evolving cyber-threat environment. But success depends on a thorough evaluation of several key challenges, as noted above, and will require a detailed, well-resourced plan (or plans) to emerge from the documented principles, models, and strategy.

This is certainly a space worth watching. 3

US Office of Management and Budget (2021). Moving the U.S. Government Towards Zero Trust Cybersecurity Principles. Draft for Public Comment. Washington, DC. https:// zerotrust.cyber.gov 2 US Office of Management and Budget (2021). Moving the U.S. Government Towards Zero Trust Cybersecurity Principles. Washington, DC. https://zerotrust.cyber.gov 1

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Risk Transfer as a Tool

to Mitigate Climate Change-Related Fiscal Risks

by Jay Pacious, Managing Director - Federal Risk Lead Public Sector Partnership, Aon

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ccording to the National Oceanic and Atmospheric Administration (NOAA), there have been 119 weather and climate related disasters since 2010 where the overall damage costs per incident reached or exceeded $1 billion. The cumulative costs of natural disasters and extreme weather since 1980 in the United States exceeds $1.875 trillion.

Climate change will continue to influence the frequency and severity of natural disasters and extreme weather. As the Federal Government begins to determine how to measure the physical, transition and fiscal risks of climate change to Federal programs, assets and liabilities, they should concurrently adjust programs and policies to ensure all available tools and resources are available to departments and agencies to help manage and mitigate those risks.

shutterstock.com/Sam72

Executive Orders of 2021 In a series of recent Executive Orders, President Biden moved climate change to the forefront of his National and International agenda. In May 2021, President Biden signed an Executive Order, titled “Climate-Related Financial Risk,” that creates a framework for the U.S. Federal Government to develop regulatory plans to incorporate climate-risk issues into financial regulation. The President’s Executive Order noted, “it is the policy of [this] Administration to advance consistent, clear, intelligible, comparable, and accurate disclosure of climate-related financial risk ..., including both physical and transition risks; (and) act to mitigate that risk and its drivers.”

The Executive Order directs key officials to begin to develop a, “comprehensive, Government-wide strategy,” that includes determining how to measure, assess, mitigate and disclose the climate-related financial risks to the “federal government programs, assets and liabilities” to increase the long-term stability of Federal operations.

Mitigation comes in many forms, including loss control, infrastructure investments and nature-based solutions. A wellProfessional Services Council

established component of risk mitigation, however, is risk transfer. Governments have successfully used risk transfer (catastrophe bonds, insurance and reinsurance) to manage the fiscal impact from natural disasters and natural hazards. Two high-profile examples are the Federal Emergency Management Agency’s purchase of reinsurance for the National Flood Insurance Program, which collected $1 billion of recoveries within 10 days in the aftermath of Hurricane Harvey and the World Bank’s purchase of earthquake catastrophe bonds, which generated $60 million in loss recoveries following the 2019 earthquake in Peru. (1)(2) continued page 10 Service Contractor / Fall 2021 / 9

By moving physical and fiscal risk away from taxpayers through risk transfer, agencies can better satisfy and expand upon their mission while preserving the long-term stability of Federal operations. Aon, along with the Insurance Development Forum, Lloyds of London and many multilateral organizations, have been leading the calls for the inclusion of risk transfer to be deployed alongside government support for natural catastrophes.

Drawing on key expertise from the insurance and reinsurance industry is a specific area where private investment can help provide supplemental funding, specifically tied to more frequent and severe natural disasters. Risk transfer can not only help mitigate the explicit physical, transition and fiscal risk to the Federal Government but also the implicit and growing socio-economic costs driven by the protection gap.

The Role of the Federal Government A recent statement by Treasury Secretary Janet Yellen noted that, “Climate change isn’t just a specter on the horizon, a problem for future generations. It is a present challenge, and we must adapt.”(3) As the Secretary of Treasury and members of the Federal Stability Oversight Council (FSOC) develop a detailed understanding of the related financial risk, including 10 / Service Contractor / Fall 2021

both physical and transition risk of climate change, it will be critical to bring the Federal Government and private sector together to ensure all potential tools and resources are available to relevant agencies as they look to mitigate the identified risks on behalf of taxpayers.

It is the policy of the United States to reduce costs to taxpayers and to protect taxpayers against catastrophic losses through prudent and established risk management techniques.

As the Federal Government develops Climate Action Plans to strengthen its resilience and adaptive capabilities now is the time to ensure departments and agencies are equipped to evaluate and purchase risk transfer if a department or agency deems it necessary.

Risk modeling, risk management and risk transfer are critical tools to help mitigate climate change-related fiscal risks to taxpayers which helps departments and agencies achieve their missions all while working to close the protection gap and increase the long-term stability of federal operations. 3 “Treasury Releases Climate Action Plan”, U.S. Department of the Treasury, October 7, 2021 (2) “FEMA Will Recover $1.042 billion in Reinsurance from the Private Reinsurance Markets”, FEMA, December 5, 2017 (3) “Peru government confirms $60m cat bond pay out on the way”, Artemis, Steve Evans, October 7, 2021 (1)

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“The impact of natural disasters and extreme weather due to climate change will continue to stress capacity and funding resources at all levels of government.”

GovCon PEG Activity - 2010 - 2020 Deal Volume and Mix

Stuck in the Middle of Government Contracting:

2010-2014 2015-2018 7.8 10.3 12.8 15.0 20.6 25.3

PEG Platform PEG Tuck-in Total PEG Deals

2019-20 21.5 36.5 58.0

An Analysis of Private Equity Involvement on the Middle Tier Total Deals

70

by Amber Hart and Lisa Shea Mundt, Co-Founders, The Pulse30.4% of GovCon

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t’s no secret that size matters in the federal government contracting industry. It’s a common trope that small businesses who support the federal government work to build larger, only to become paralyzed, or worse, parish, in the valley of death once their organization reaches the dreaded undefined and undesirable mid-size/-mid-tier standard.1 Without the socio-economic setaside benefits of a small business, or the established internal resources of a large organization, these mid-sized companies get lost at sea – small catamarans against the giant yachts of industry.

Yet, in the last 20 years, there has been a massive uptick in private equity interest in mid-size federal contracting firms.

Federal Government Contracting (GovCon) Private Equity Group (PEG) activity has increased drastically in the last decade, and significantly in the period from 2019 to present with over 75% increased interest in M&A activity. Most of this activity has been with smaller platforms since the valuation of the assets are materially higher in comparison with median platform evaluations which have shown little change in the profile mix.

The Pulse of GovCon aims to explore the impact of PEG activity and speculates as to whether small businesses will one day need to pursue private equity to stay competitive. The Pulse of GovCon engaged 5 subject matter experts (SMEs) to answer the following questions: 1. What type (i.e. PSC [Service, Product, Research & Development (R&D)]) and size (based on a number of employees) of federal government contracting companies are attracting private equity interest?

2. Do federal government contracting companies become objectively more “successful” (profitable and/or notable) within five years of receiving private equity backing?

3. Are mid-tier/mid-size companies less likely to close their doors if they have private equity investment?

4. Will trends show a “trickle-down effect” of private equity interest in smaller companies?

1

https://docs.house.gov/Committee/Calendar/ByEvent.aspx?EventID=108230

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80 30.9%

122.0 47.5%

GovCon PEG Activity - 2010 - 2020 ($ in millions) PEG Platform Medians Deal Volume and Mix

2010-2014 2015-2018

(1)

Enterprise Value PEG Platform PEG Tuck-in Revenue Total PEG Deals EV / EBITDA

7.3

Total Deals

($ in millions)

2010-2014 2015-2018 2019-20 197.8 7.8 201.3 10.3 21.5 12.8 251.1 15.0 36.5 228.0 20.6 25.3 58.0 70 30.4%

(1)

Enterprise Value Revenue Enterprise Value(1) EV /Revenue EBITDA EV / EBITDA

74.6 71.8 7.7

8.0

80 122.0 30.9% 47.5% PEG Tuck-in Medians

2010-2014 2015-2018 PEG Platform Medians

2010-201463.0 2015-2018 201.329.4 251.1 7.2 7.3

2019-20

197.8 228.0 8.0

2019-20

48.3 2019-20 46.4 46.3 74.6 63.6 7.5 71.8 7.9 7.7

PEG Tuck-in Medians 2010-2014 2015-2018 (1)

Enterprise Value Revenue EV / EBITDA

63.0 29.4 7.2

2019-20

48.3 46.3 7.5

46.4 63.6 7.9

(1) Enterprise Values are calculated on an adjusted basis

So, what did we find?

• Question 1 Summary: The average revenue to attract private equity is $100M — right in the sweet spot of what would constitute a mid-sized government contracting firm. However, other factors play into consideration when private equity’s (1) Enterprise Values are calculated on an adjusted basis make the decision to pursue these investments and meeting that revenue stream does not guarantee an investment. Many mid-tier firms that do meet this threshold are put aside by continued page 12 Service Contractor / Fall 2021 / 11

private equity firms because of other reasons and concerns.

• Question 2 Summary: Yes – based more on lore than facts, and with caveats on what it means to be successful.

• Question 3 Summary: Yes – not only by helping to alleviate the general risk, but also because PE investors are inherently incentivized to grow their assets so they can sell for a higher multiple.

• Question 4 Summary: Possibly – but only to a point. There comes a point where a business is too small to be worth the risk, but in general the hearty, stable smalls could be a point of interest.

The following responses from the SMEs we surveyed provide more detailed perspectives on the potential outcomes from PEG activity.

SME #1: Bob Kipps | KippsDeSanto & Co., Co-Founder

Question 1: Each PEG has a particular comfort zone for the size and profile of companies they’re interested in, and each investment has its own thesis/focus. With the broad array of PEGs focused on the GovCon sector (some with multiple “platforms” or portfolio companies with the U.S. government as their end customer), there is interest in most market sectors. That includes Intelligence, Space, Digital Services and Base Operations. Historically, PEGs liked to start with a platform that was at least $100M in revenue and/or $10M in EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization); however, smaller PEGs are open to starting at a lower level. While PEGs are often willing to buy businesses with more set-aside contracts than larger strategic buyers, they do like to see a strong management team and either success in transitioning some of the target company’s set-aside work to full & open or success in the pursuit/win ratio of unrestricted work.

Question 2: If successful means having a high likelihood of remaining in business and/or growing, then yes, I believe they will be more successful. However, one caveat is that most PEGs have a preferred holding period of three to six years. One of the biggest risks/obstacles for GovCon firms is the transition from set-aside dependency to the unrestricted world.

Question 3: See answer to question 2.

Question 4: Given the difficult path for smaller firms to successfully transition to the larger unrestricted and the aforementioned benefits, PEG involvement in smaller companies may very well become much more common.

SME #2: Kristjan Kornmayer | The Chertoff Group, Senior Director

Question 1: I would start by breaking down the PE buyer landscape into two types: Specialists vs. Generalists. Each category approaches the A&D / GovCon market differently and will be searching for different types of companies.

Specialists: A&D / GovCon-focused PE firms with deep experience and expertise investing in this market. Buyers will have a preference for prime contracts and a limited tolerance for a lot of restricted and sub work. Other Transactions Authorities (OTAs) have become of greater interest to these types of buyers, especially in the research & development (R&D) + prototyping world. In terms of size, some buyers will go as small as 10 employees and $10M revenue, but those would be for highly specialized companies (e.g., National Security Agency [NSA], cyber); typically it’s more like 25+ 12 / Service Contractor / Fall 2021

employees / $25M+. Areas where we see a lot of activity in this realm include cybersecurity, C4ISR, R&D / S&T, modeling & simulation, intelligence solutions / services, space, AI/ML. Generalists: These are PE firms who typically don’t dabble in A&D / GovCon, but who might be looking at targets in adjacent markets (e.g., cybersecurity) or as “safe harbor” in an otherwise volatile economy. These types of buyers will typically look for larger services and products businesses with stable, predictable businesses and accompanying cash flows; they will also generally look for companies with some scale.

Thus, they will stick to mid-sized companies (50+ employees, $100M revenue) and will also want leadership to stick around and continue to grow the business. Example areas of activity: IT services, subsystem / components manufacturing, logistics, AEC, system MRO; commercial aerospace is seeing a lot of merger and acquisition activity recently Question 2: Generally, I would say that most Department of Defense (DOD) GovCon companies do become more successful within 5 years of PE backing, defining “successful” as continued revenue growth and profitability. Compared to other industries, we see a lot more growth investing in our space.

Question 3: Yes, for the reasons highlighted above. PE investors are inherently incentivized to grow their assets so they can sell for a higher multiple. Another approach to generating value is through cost-take out (downsizing and optimization) which isn’t nearly as prevalent in GovCon as in other industries.

Question 4: To an extent, but there’s a threshold below which companies are simply too small with too much risk (e.g., too much small business / restricted work, too much sub work, etc.) for PE to acquire. There are other options available to smaller companies (minority recap, venture capital, etc.).

SME #3: Richard Phillips | Crossroads Capital, Senior Partner

Question 1: Companies want to see past performance heavily sought on the most attractive, best-in-class contract vehicles that key agencies are deploying in their spending. Typically, institutional buyers and PEGs want to see full and open work of 70% or greater. Sub-work is heavily discounted. Contract diversity is more important than agency diversity. That said, differentiated capabilities drive buyer interest more than customer access. The proven ability and track record of winning competitive work and making the transition beyond reliance on small business (SB) setasides is a key determinant in showing the business can scale.

Question 2: In a word, yes. It helps a company evolve from small to large with more resources, more robust corporate infrastructure and better governance having gone through the diligence rhythm and the change management a PE buyer will demand.

Question 3: Generally yes, it provides credibility, financial resources, talent, and increased capability to expand and build beyond current revenue plateaus. A private equity overseer will be demanding but they will do what is required to navigate a company through trouble waters. A PEG answers to its even more demanding LPs, so they are on the hook too.

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Question 4: Yes – there are currently 70+ PE platform companies in the sector and counting. These PEGs will look for “bolt-on” acquisitions that will by definition be smaller but more targeted in terms of unique capability and complementary services. We have seen this in deal activity over the past three years and it should continue.

invested in a transaction). Target equity check size is a range driven by the firm’s fund size or capital able to be deployed and the number of desired investments with parameters on the larger and smaller ends based on investment mandate, concentration requirements, and time/economic factors.

SME #4: Kevin Robbins | Blue Delta, Co-Founder

Type: There is broad investor interest across government business types. An investor’s experience, focus, and familiarity drives specific business type interest. Investors without an A&D/government focus are more likely to search for companies with capabilities, customers, and end markets that are adjacent and familiar to their typical areas of focus, whereas a specialized buyer in the market may focus elsewhere, especially where the investor believes they can uniquely add value.

Question 1: It is an interesting question, because most PE firms do not think in terms of PSCs or employee counts. They are seeking capabilities and specific customer concentrations and measure size by EBITDA or revenue. That said, I see the most interest for services and to a far lesser extent, some select specialized hardware or software. Very few people are actively seeking R&D right now.

With respect to size, most PE firms require leverage, so typically they are looking for a bare minimum of $5M of EBITDA but prefer to be in the $10-30M range, which means there is a little appetite for companies once they get over $50M of revenue and far more once they are in the $100-300M revenue range. For services companies at $200K/employee, that means there is little interest below 250 employees and the most interest in the 500-1,500 employee range.

Question 2: There really isn’t a lot of empirical data here, just a lot of speculation. Generally speaking, PE firms are best at extracting operational efficiencies (cutting costs to expand profitability) and aiding in inorganic growth (making acquisitions). I know of very few companies that have failed to grow post-investment, but most of the topline (revenue) growth has been the result of making acquisitions and most of the bottom line (profit) expansion has been from cutting costs or leveraging existing costs over a broader revenue base.

Question 3: Yes. The mid-tier is a lonely place to be. You no longer have the set-aside protections from the SBA and have to fend off the small businesses, yet you lack the scale, credibility and process maturity to go toe-to-toe with the big companies.

The only way to succeed is to concentrate your fire and make fewer, bigger bets. That is a risky strategy that few management teams have the intestinal fortitude to execute, so bringing in a PE sponsor to add resources or to let the founder de-risk the path forward by taking chips off the table makes a lot of sense.

Question 4: This is really hard. For starters, control private equity immediately vacates the SB protections for smaller companies by virtue of the Small Business Administration (SBA) Affiliation rules. This alone is typically a deal killer. Second, without more than $5M of EBITDA, banks and institutional lenders have trouble putting much leverage on these businesses, which means PE firms have to put in way more equity than they typically like to do (normally 50/50 equity/debt) or are restricted to paying lower prices to preserve their ratios, which prices are rarely compelling to Founders selling a stake in their companies. Minority equity (as evangelized by Blue Delta as far back as 2009) is the right solution to this problem: arm the smaller companies with the resources they need to scale into the mid-tier and beyond.

SME #5: Austin Libowitz | Private Investor

Question 1: Size: PE firms determine the size of their target acquisitions based on the firm’s desired equity check size (amount of equity Professional Services Council

Question 2: All else equal, the answer is yes. I am defining success here from the perspective of revenue and EBITDA growth and/ or staying in business. A private investor-backed business generally has greater capital and resources to achieve success. Businesses will experience inevitable ups and downs, issues, and challenges (i.e. major recompete loss), especially in the middle market, that a private investor backing can help de-risk.

Question 3: In short, yes. For mid-size companies, especially at the smaller end of the market, a focused investor could provide financial backing, know-how, and support to increase the likelihood of survival compared to a solely founder owned company. A talented private investor deploying an appropriate capital structure, providing financial reserves, helping with growth initiatives and processes, and assisting in scenario planning and risk mitigation techniques will de-risk the likelihood of failure. To provide a frame of reference, the loss ratio (percentage of capital realized below cost divided by total invested capital) in private equity generally is ~8.5%, and for a firm knowledgeable in the sector, anecdotally that number should be lower than average.

Question 4: This ties into the first question about investment size requirements, leverage available, and generalist or sector specific investors, and has implications about the investor landscape and search for alpha (performance of an investment as compared to a relevant benchmark return). Smaller companies can be an attractive market for targeted strategies from a specialist investor, but I would find it generally uncommon for a non-specialist to attempt to trickle down lower into the market. Smaller companies generally have an increased risk profile, and greater market knowledge would be required to successfully invest further down market.

Conclusion

While this is not definitive proof correlating PE involvement to future success, we can ascertain that the middle-of-the-pack size standard is not an ideal place to be and does not provide a strong enough foundation for continued operational achievement in the GovCon ecosystem. It could be concluded that the best option for success once companies are contracting as a mid-sized business is to receive PE involvement. Only then can an “other than small business” company be competitive enough to walk amongst the giants. To read the full report findings, visit: https://thepulsegovcon. com/article/private-equity-and-the-middle-tier/. 3

Service Contractor / Fall 2021 / 13

SAVE THE DATE! 9th Annual

Development Conference Dec. 7, 2021 The Westin in Arlington, VA or Virtual

WALK AWAY WITH:

A better understanding of the current climate of USAID and State Insights into procurement updates New connections in the international development community www.developmentconference.org

SERVICE CONTRACT ACT TRAINING PROGRAM

ENSURE YOUR COMPANY IS SCA COMPLIANT! Course Highlights • The presentation will include panel discussions with leaders from Department of Labor’s national office and with procurement agency labor advisors from Department of Defense.

• Attendees will receive extensive course materials, copies of the presentations, and contact information for post-course follow-up.

• Attendees participate in interactive exercises, worksheets, and question/answer sessions.

November 8-9, 2021 | 8 a.m. - 4 p.m. ET | Virtual (Zoom) Register at www.pscouncil.org!

14 / Service Contractor / Fall 2021

Professional Services Council

CIDC Conference Preview

by Paul Foldi, Vice President, International Development, PSC

PSC

’s Council of International Development Companiesn (CIDC) started the year on a very positive note, with a presentation by the new Procurement Executive at the Department of State – Michael Derrios – who knew PSC well from a similar position at the U.S. Coast Guard. While this engagement has continued to bear fruit with additional contacts within the Department, events soon overshadowed these efforts.

Rapid advancements in COVID vaccine technology allowed many domestic staff to receive both doses by the beginning of summer. Demand at home reflected decisions in Washington to focus on domestic distributions. This, coupled with production issues overseas, resulted in severe shortages for CIDC’s American, TCN, and local employees working around the globe. PSC heard numerous anecdotes of members resorting to the same whispered, word-of-mouth campaigns that initially were the hallmark of vaccine distribution back home. PSC was a strong advocate with the U.S. government for maximum flexibility for contractors trying to protect their staff, who often sent them back to the U.S. or Europe to receive their vaccine.

Our COVID-related advocacy was no less prevalent regarding the White House’s various Executive Orders, FAQs and pronouncements on vaccine requirements. PSC’s efforts led to USAID issuing clarifying guidance, and our multiple meetings with White House officials helped bring clarity to the somewhat conflicting and confusing policies.

CIDC also issued two major thought leadership pieces in the first six months of the Biden Administration. Our Executive Advisory Board produced a compendium, Key Issues for the New Administration, comprised of ten important development issues, with one authored by each EAB member. Topics included the value of contracts in U.S. foreign assistance, the role of DEI in development, suggestions on which reforms implemented by the previous administration should be maintained, and how CIDC members can unlock additional development capital. This collaborative effort by the EAB reinforced the value of our combined efforts, and PSC ensured the piece received distribution throughout USAID, the Department of State, and our contacts on the Hill.

As USAID’s new leadership began to establish its own policies, it became clear that Localization would be at or near the top of the list. While still not fully defined, localization

Professional Services Council

efforts in the past have focused on ensuring higher degrees of consultation with indigenous leaders and implementers to promote more successful programs and longer-term outcomes – and all indications are this administration will use something similar. In order to ensure that CIDC members’ lengthy exposure to, working with, and enhancing localization goals were recognized, PSC – working with 3 authors from within CIDC – polled our members for concrete data, dollars, and examples of such work. This feedback was incorporated into the final piece that was presented by the authors to newly installed political appointees at the agency. While distribution was initially limited, word of mouth interest within the agency soon saw demand for the paper grow, even from Mission Directors based abroad.

Unfortunately, almost all this work has been over-shadowed by the events in Afghanistan. The rapid collapse of all central and military authority and the formal departure of all U.S. troops by August 30 left countless local staff and their families struggling to leave. (Based on polling of our members, we came to believe at least 10,000 staff and family were trapped as of the beginning of September, with mere handfuls making it out each week since then.) Many had applied for Special Immigrant Visas. Some applications were in-process, some were about to be issued, many had their passports destroyed when the U.S. Embassy was ordered to evacuate.

PSC and CIDC members worked with the Department of Defense, then USAID, the Department of State, and, finally, the National Security Council to bring our concerns directly to those involved in making legal and logistical decisions on next steps – including direct conversations with USAID Administrator Samantha Power. CIDC members formed their own informal support teams and networks to help trapped staff get support funding any available exit information.

Many have volunteered their time here in the U.S. to welcome Afghan refugees as they arrive at Dulles airport and to assist in local resettlement programs.

With our annual (hybrid) Development Conference fast approaching on December 7, these and many other issues confronting our members as they perform needed work around the globe for the U.S. government and the American taxpayer will be discussed. I hope we see you there – either inperson or via video! 3

Service Contractor / Fall 2021 / 15

Future Focuses: The Coming Months for PSC Policy

by Stephanie Kostro, Executive Vice President for Policy, PSC

16 / Service Contractor / Fall 2021

Professional Services Council

W

ith more than two months remaining, 2021 has already been a long year. From a delayed release of the president’s budget request and a nationwide vaccine rollout to the more recent workplace safety protocols for federal contractors, this year has kept the government contracting community on its toes.

PSC and its member companies had to react quickly— and well—to late-breaking developments, including solicitation amendments that were released the evening before and even on the proposal due date.

In such a fast-paced environment, it can be difficult to focus on longer-term policy issues. But as we move further into this new government fiscal year, it’s important to think strategically about how PSC will target its advocacy, education, and facilitation efforts. There are several areas that come to mind.

First, in the coming months, PSC will continue to focus on requirements stemming from Executive Order 14042, Ensuring Adequate COVID Safety Protocols for Federal Contractors. President Biden signed this order on September 9, and since then, the Safer Federal Workforce Task Force, FAR Council, and agencies have promulgated guidance, contract clauses, and class deviations. These activities have focused most notably on a vaccination mandate for services and construction contractors.

While supportive of vaccination as part of a broader approach (i.e., inclusive of testing, masking, distancing, care, and treatment) to controlling the spread of COVID-19, PSC staff have consistently advocated for a level playing field within the government contracting space and for practical support for companies that must comply with these new requirements. Such support could include equitable adjustments, staffing and schedule changes, bilateral modifications that allow for consideration, and some level of indemnification. We continue to engage tirelessly with U.S. Government officials on these and many other industry concerns about COVID-related mandates and their human capital, financial, and legal implications for our member companies.

Second, officials within the Biden-Harris Administration have repeatedly stated their intent to use acquisition as a catalyst to advance many of the

Professional Services Council

President’s “Build Back Better” priorities. In fact, at PSC’s annual Federal Acquisition Conference in June, OMB’s Deputy Director for Management Jason S. Miller stated in his keynote remarks, “President Biden wants the federal government to procure a lot more…The president has directed his team to ensure that our government’s buying power should help to shape outcomes and strengthen the country and deliver results for all Americans. We refer to this as leveraging federal procurement as a catalyst to address our most pressing priorities.”

With almost 70 Executive Orders signed to date, it is clear that the White House is promoting its priorities through robust executive actions and is relying on the regulatory and contracting activities that flow from them to make progress on the President’s agenda. PSC staff are tracking activity in areas like supply chain security, Made in America, diversity, equity, inclusion, and accessibility, climate change, and small business promotion. We are responding to requests for comments and weighing in on efforts to create, change, and leverage contracting tools so that they make the best sense for services contractors.

Third, PSC is reinvigorating several key councils and working groups. If form should truly follow function, PSC must adapt its structures to support discussions and actions related to emerging issues of importance to member companies. Earlier this year, PSC member companies participated in a kickoff meeting of the newly re-energized Mid-Tier Working Group. In the next few months, we envision refreshing the PSC Technology Council’s charter and reconstituting the Human Resources and Labor Policy Working Group. It is no accident that these groups focus on key policy issues that have risen in profile recently.

Whether the increasing emphasis on cybersecurity, zero-trust architecture, or acquisition of technological capabilities as a service or the surge in Afghan immigrant and refugee flows to the United States, technology and human resources/labor concerns are certainly areas for PSC’s upcoming policy focus.

We welcome your comments about how the policy areas mentioned above factor into your business. Please email policy@pscouncil.org with any questions or input. 3

Service Contractor / Fall 2021 / 17

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www.unanet.com Professional Services Council

Bill Tracker: 117th Congress-First Session (2021) NEW

Newly introduced since last issue

Major action taken since last issue

Bill became law since last issue

H.R. 21 FedRAMP Authorization Act, Connolly (D-VA)

SUMMARY Would codify the Federal Risk and Authorization Management Program within the General Services Administration and make certain changes designed to enable the government to better leverage cloud computing services.

STATUS Passed the House (voice vote) on 1/5/21.

Congressional Budget Justification Transparency Act, Quigley (D-IL)

H.R. 22

SUMMARY Would require federal agencies and the Office of Management and Budget to make certain budget justification materials publicly available.

STATUS Passed the House (412-2) on 1/5/21. Related Bill: S.272.

Construction Consensus Procurement Improvement Act, Comer (R-KY)

H.R. 26

Would prohibit the federal government from using reverse auctions for complex, specialized, or SUMMARY

substantial design and construction services.

STATUS

Signed into law on 7/26/21; P.L. 117-28. Related Bill: S.1231.

Homeland Security Acquisition Professional Career Program Act, Titus (D-NV)

H.R. 367 Would establish an acquisition professional career program to develop a cadre of acquisition

SUMMARY

professionals in the Department of Homeland Security.

STATUS Passed the House (voice vote) on 4/20/21. Ordered to be reported by the Committee on Homeland

Security and Governmental Affairs on 7/14/21.

H.R. 408

Department of Homeland Security Mentor-Protege Program Act, McEachin (D-VA)

SUMMARY Would codify the Mentor-Protégé Program of the Department of Homeland Security.

STATUS Passed the House (voice vote) on 4/20/21. Ordered to be reported by the Committee on Homeland

Security and Governmental Affairs on 7/14/21.

Promoting Digital Privacy Technologies Act, Stevens (D-MI)

H.R. 847 Would direct the National Science Foundation to support merit-reviewed and competitively

SUMMARY

awarded research on privacy enhancing technologies.

STATUS

Referred to the House Committee on Science, Space, and Technology on 2/4/21. Related Bill: S.224.

H.R. 916

Rebalance for an Effective Defense Uniform and Civilian Employees (REDUCE) Act, Calvert (R-CA)

SUMMARY Would reduce the Department of Defense civilian workforce by 15% by Fiscal Year 2025.

STATUS

H.R. 978

Referred to the House Committee on Armed Services on 2/8/21.

Chai Suthammanont Remembrance Act, Connolly (D-VA)

SUMMARY Would require federal agencies to develop and disclose safety plans that contain certain information

for on-site employees and contractors during the public health emergency relating to COVID-19.

STATUS Passed the House on 9/29/21. Related bill: S.2343.

H.R. 1251

Cyber Diplomacy Act, McCaul (R-TX) SUMMARY Would create a Bureau of International Cyberspace Policy at the Department of State, led by an

ambassador with the same rank and status as an assistant secretary of state.

STATUS Passed the House (voice vote) on 4/20/21.

Professional Services Council

Service Contractor / Summer 2021 / 19

Bill Tracker: 117th Congress-First Session (2021) NEW

Newly introduced since last issue

Major action taken since last issue

Bill became law since last issue

American Rescue Plan Act, Yarmuth (D-KY)

H.R. 1319 Provides supplemental appropriations to address the continued impact of COVID-19 on

SUMMARY

the economy, public health, state and local governments, individuals, and businesses. Among other provisions, the law includes $1 billion for the Technology Modernization Fund and an extension of CARES Act Section 3610.

STATUS

Signed into law on 03/11/21; P.L. 117-2.

Eliminate Barriers to Innovation Act, McHenry (R-NC)

H.R. 1602 Would establish the ‘SEC and CFTC Working Group on Digital Assets’ to analyze and report

SUMMARY

on the legal and regulatory framework in the United States for digital assets and make recommendations for improvement.

STATUS

Passed the House (voice vote) on 4/20/21.

Industrial Control Systems Capabilities Enhancement Act, Katko (R-NY) H.R. 1833 DHS Would designate the Cybersecurity and Infrastructure Security Agency as responsible for SUMMARY

maintaining capabilities to identify and mitigate cyber threats to industrial control systems.

STATUS

Passed the House on 7/20/21.

H.R. 2153 Securing American Leadership in Science and Technology Act, Lucas (R-OK)

SUMMARY Would establish or amend programs, projects, and activities at federal science agencies, including those regarding federal research security, the science and technical workforce, and emerging technology and cloud computing, among other provisions.

STATUS

Referred to the Committees on Science, Space, and Technology; Judiciary; and Small Business on 3/23/21.

Enhancement Reform Act, Connolly (D-VA) H.R. 2617 Performance Would require agencies’ chief performance officers to now include the chief human capital SUMMARY

officer, the chief information officer, the chief data officer, and the chief financial officer when preparing the annual performance plans.

STATUS Passed the House (414-10) on 9/28/21.

Cybersecurity of Mobile Networks Act, Eshoo (D-CA)

H.R. 2685 Understanding Would require the National Telecommunications and Information Administration to report

SUMMARY

to Congress on the cybersecurity of existing wireless networks (2G, 3G, and 4G) and vulnerabilities to cyberattacks and surveillance by adversaries.

STATUS Ordered to be reported by the Committee on Energy and Commerce on 7/21/21.

PPE in America Act, Budd (R-NC)

H.R. 2720 Make Would provide for domestic sourcing of personal protective equipment.

SUMMARY

STATUS Referred to the Committees on Energy and Commerce; Armed Services; Veterans’ Affairs; Homeland

Security; Education and Labor; and Oversight and Reform on 4/21/21. Related Bill: S.1306.

DHS Blue Campaign Enhancement Act, Meijer (R-MI)

H.R. 2795 Would amend the Homeland Security Act of 2002 to enhance the Blue Campaign of the

SUMMARY

Department of Homeland Security.

STATUS Passed the House (voice vote) on 7/20/21.

20 / Service Contractor / Fall 2021

Professional Services Council

Bill Tracker: 117th Congress-First Session (2021) NEW

Newly introduced since last issue

Major action taken since last issue

Bill became law since last issue

H.R. 2980

Cybersecurity Vulnerability Remediation Act, Jackson Lee (D-TX)

SUMMARY Would authorize the Department of Homeland Security to take certain actions with the goal

of countering cybersecurity vulnerabilities, including disseminating protocols and establishing a competition to develop remedies.

STATUS Passed the House (voice vote) on 7/20/21.

State and Local Cybersecurity Improvement Act, Clarke (D-NY)

H.R. 3138 Would require the Department of Homeland Security to establish the State and Local

SUMMARY

Cybersecurity Grant Program to address cybersecurity risks and threats to the information systems of state, local, or tribal organizations.

STATUS Passed the House (voice vote) on 7/20/21.

CISA Cyber Exercise Act, Slotkin (D-MI)

H.R. 3223 Would establish a National Cyber Exercise Program to evaluate the National Cyber Incident

SUMMARY

STATUS

Response Plan, which outlines the roles and responsibilities, capabilities, and coordinating structures that support how the United States responds to and recovers from significant cyber incidents.

Passed the House (voice vote) on 7/20/21.

Pipeline Security Act, Cleaver (D-MO)

H.R. 3243 Would codify the Transportation Security Administration’s responsibility relating to securing pipelines

SUMMARY

against cybersecurity threats, acts of terrorism, and other acts that jeopardize the physical security or cybersecurity of pipelines.

STATUS Reported by the Committee on Homeland Security on 7/13/21.

DHS Medical Countermeasures Act, Miller-Meeks (R-IA)

H.R. 3263 Would establish in the Department of Homeland Security (DHS) a medical countermeasures

SUMMARY

program to facilitate personnel readiness and protection for DHS employees.

STATUS Passed the House (voice vote) on 7/20/21.

Domains Critical to Homeland Security Act, Katko (R-NY)

H.R. 3264 Would require the Department of Homeland Security to undertake research and development

SUMMARY

to identify and evaluate the extent to which critical domain risks within the United States supply chain pose a substantial threat to homeland security.

STATUS Passed the House (voice vote) on 7/20/21.

Next Generation Computing Research and Development Act, Obernolte (R-CA)

H.R. 3284 Would direct the Department of Energy to implement a research, development, and demonstration

SUMMARY

program to advance computational and networking capabilities to analyze, model, simulate, and predict complex phenomena relevant to the development of new energy technologies and the competitiveness of the United States.

STATUS Referred to the Committee on Science, Space, and Technology on 5/17/21.

Small-business Procurement Utilization Reform (SPUR) Act, Neguse (D-CO)

H.R. 3350 Would increase the governmentwide goal for the percentage of procurement contracts

SUMMARY

awarded to small business concerns.

STATUS Referred to the House Committee on Small Business on 5/19/21.

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Service Contractor / Fall 2021 / 21

Bill Tracker: 117th Congress-First Session (2021) NEW

Newly introduced since last issue

Major action taken since last issue

Bill became law since last issue

Blockchain Technology Act of 2021, Soto (D-FL)

H.R. 3543 Would establish an office within the Department of Commerce to coordinate all non-defense related

SUMMARY

deployment and activities related to blockchain technology within the federal government.

STATUS Referred to the House Committee on Energy and Commerce on 5/25/21.

Improving Contractor Cybersecurity Act, Lieu (D-CA)

H.R. 3608 Would require information technology contractors to maintain a vulnerability disclosure policy

SUMMARY

and program.

STATUS Referred to the House Committee on Oversight and Reform on 5/28/21.

Space Infrastructure Act, Lieu (D-CA)

H.R. 3713 Would direct the Secretary of Homeland Security to issue guidance with respect to space

SUMMARY

systems, services, and technology as critical infrastructure.

STATUS Referred to the Committee on Science, Space, and Technology on 6/4/21.

Aviation Funding Stability Act, DeFazio (R-OR)

H.R. 4042 Would exempt the Federal Aviation Administration (FAA) from federal shutdowns by giving the

SUMMARY

FAA access to non-appropriated funds.

STATUS Referred to the Committees on Transportation and Infrastructure and Ways and Means on 6/22/21.

Policy and Cybersecurity Coordination Act, Duncan (R-SC)

H.R. 4046 NTIA Would establish the Office of Policy Development and Cybersecurity at the National

SUMMARY

Telecommunications and Information Administration.

STATUS Ordered to be reported by voice vote by the Committee on Energy and Commerce on 7/21/21.

Improving Digital Identity Act, Foster (D-IL)

H.R. 4258 Would establish the “Improving Digital Identity Task Force” to develop secure methods for government

SUMMARY

STATUS

agencies to validate identity attributes to protect the privacy and security of individuals, and support reliable, interoperable digital identity verification tools in the public and private sectors.

Referred to the Committees on Oversight and Reform; Science, Space, and Technology; and Ways and Means on 6/30/21.

National Defense Authorization Act for Fiscal Year 2022, Smith (D-WA)

H.R. 4350 Would authorize appropriations and policy for Fiscal Year 2022 for the Department of Defense.

SUMMARY

STATUS

Forwarded by the Subcommittees to Full Committee on 7/28/21.

DHS Reform Act, Thompson (D-MS)

H.R. 4357 The Would make reforms to the Department of Homeland Security mission and management,

SUMMARY

including making changes to the workforce and the department’s acquisition authorities.

STATUS Referred to the Committees on Homeland Security; Judiciary; and Transportation and Infrastructure on

7/6/21.

H.R. 4363

DHS Contract Reporting Act, Harshbarger (R-TN) SUMMARY Would require daily public reporting by the Department of Homeland Security for contract awards over $4 million.

STATUS Passed the House (voice vote) on 9/29/21.

DHS Software Contract Supply Chain, Ritchie (D-NY)

H.R. 4611 Would require the Department of Homeland Security to issue guidance requiring certain IT

SUMMARY

contractors to certify that their products do not have known security vulnerabilities.

STATUS Reported by the Committee on Homeland Security on 9/14/21.

22 / Service Contractor / Fall 2021

Professional Services Council

Bill Tracker: 117th Congress-First Session (2021) NEW

Newly introduced since last issue

Major action taken since last issue

Bill became law since last issue

Unmanned Aerial Security Act (UAS Act), Guest (R-MS)

H.R. 4682 Would prohibit the Department of Homeland Security from operating, financing, or procuring

SUMMARY

unmanned aircraft systems that are manufactured in China.

STATUS Passed the House (voice vote) on 9/29/21.

Just In Case Act, Wittman (R-VA)

H.R. 5104 Would provide DoD with the authorities to pay certain contractor expenses during pandemics

SUMMARY

and other emergencies.

STATUS Referred to the House Committee on Armed Services on 8/24/21. Text included in H.R. 4350, the Fiscal

Year 2022 National Defense Authorization Act.

Extending Government Funding and Delivering Emergency Assistance Act, DeLauro (D-CT)

H.R. 5305 Provides for a continuing resolution for federal agencies and provides disaster relief and

SUMMARY

supplemental appropriations for Afghanistan related accounts.

STATUS Signed into law on 9/30/21; P.L. 117-43.

End Government Shutdowns Act, Balderson (R-OH)

H.R. 5325 Would provide continuing appropriations to prevent a government shutdown if appropriations bills

NEW

SUMMARY

STATUS

or a continuing resolution have not been enacted. The bill would reduce the appropriations by 1% after the first 120-day period and by an additional 1% for each subsequent 90-day period until appropriations legislation is enacted.

Referred to the Committee on Appropriations on 9/22/21. Related bill: S.2760.

Cyber Incident Reporting for Critical Infrastructure Act, Clark (D-NY)

H.R. 5440 Would establish the Cyber Incident Review Office in the Cybersecurity and Infrastructure Security

SUMMARY

Agency and require certain critical infrastructure owners and operators to report cyber incidents.

STATUS Referred to the House Committee on Homeland Security on 9/30/21. Text included in H.R. 4350, the Fiscal

Year 2022 National Defense Authorization Act.

H.R. 5411

NEW Governing Effectively, with Transparency, Integrity, and Timeliness, and Doing Our

Necessary Expenditures Act (or the GET IT DONE Act), Johnson (R-SD)

SUMMARY Would hold the salaries of certain government officials and prohibit travel if each of the regular

appropriations bills for a fiscal year prior is not enacted into law by the beginning of the fiscal year.

STATUS Referred to the Committees on Appropriations, Oversight and Reform, House Administration, Rules,

and the Budget on 9/29/21.

H.R. 5415

Debt Ceiling Reform Act, Boyle (D-PA)

SUMMARY Would authorize the Secretary of the Treasury to increase the public debt limit without

Congressional action.

STATUS Referred to the House Committee on Ways and Means on 9/29/21.

NEW

Authorization Act for Fiscal Year 2022, Schiff (D-CA)

H.R. 5412 Intelligence Would authorize appropriations for the Intelligence Community’s programs for Fiscal Year 2022

SUMMARY

and includes policy provisions that impact the Intelligence Community’s contractor workforce.

STATUS Ordered to be reported by the House Permanent Select Committee on Intelligence on 9/29/21.

Related bill: S. 2610.

Professional Services Council

Service Contractor / Fall 2021 / 23

Bill Tracker: 117th Congress-First Session (2021) NEW

Newly introduced since last issue

Major action taken since last issue

Bill became law since last issue

Building Resilient Supply Chains Act, Malinowski (D-NJ)

H.R. 5495 Would create a Supply Chain Resiliency and Crisis Response Office in the Department of Commerce

SUMMARY

and authorizes funding to develop, diversify, and expand supply chains and the domestic manufacturing of critical goods and services.

STATUS Referred to the House Committee on Energy and Commerce on 10/5/21.

Ransom Disclosure Act, Ross (D-NC)

H.R. 5501 Would require certain public and private entities to disclose ransom payments to the Department

NEW

SUMMARY

of Homeland Security within 48 hours and directs the department to make that information publicly available annually.

STATUS Referred to the House Committee on Energy and Commerce on 10/5/21.

American Security Drone Act, Scott (R-FL)

S. 73 Would ban the procurement or use by the federal government of unmanned aircraft systems

SUMMARY

that are manufactured or assembled by certain entities, including entities subject to influence or control by China.

STATUS Ordered to be reported by the Committee on Homeland Security and Governmental Affairs on 5/12/21.

Digital Privacy Technologies Act, Cortez Masto (D-NV)

S. 224 Promoting Would direct the National Science Foundation to support merit-reviewed and competitively

SUMMARY

awarded research on privacy enhancing technologies.

STATUS Referred to the Committee on Commerce, Science, and Transportation on 2/4/21. Related Bill: H.R.847.

Congressional Budget Justification Transparency Act, Peters (D-MI)

S. 272

SUMMARY Would require federal agencies and the Office of Management and Budget to make certain budget justification materials publicly available.

STATUS

Signed into law on 09/24/21; P.L. 117-23. Related bill: H.R.22.

S. 363 Make It in America Act, Stabenow (D-MI)

SUMMARY Would direct the Office of Federal Procurement Policy to promulgate regulations to standardize and simplify how federal agencies comply with, report on, and enforce the Buy American Act.

STATUS

Referred to the Committee on Homeland Security and Governmental Affairs on 2/23/21.

S. 522

Providing Accountability Through Transparency Act, Lankford (R-OK)

SUMMARY Would require the notice of a proposed rule by a federal agency to include the internet address of a

summary of the rule that is 100 words or fewer, written in plain language, and posted on regulations.gov.

STATUS Reported by the Committee on Homeland Security and Governmental Affairs on 6/21/21. .

Promoting Rigorous and Innovative Cost Efficiencies for Federal Procurement and

Acquisitions (PRICE) Act, Peters (D-MI)

SUMMARY Would require annual reports on the Department of Homeland Security’s Procurement

Innovation Lab and would further establish a council to examine best practices for acquisition innovation in contracting in the federal government, including small business contracting.

STATUS Passed the Senate with amendments by unanimous consent on 7/29/21.

Billion Dollar Boondoggle Act, Ernst (R-IA)

SUMMARY Would require federal agencies to report annually on certain projects that are either more than

five years behind schedule, or $1 billion over budget.

STATUS Reported by the Committee on Homeland Security and Governmental Affairs on 5/10/21.

S. 583

S. 636

24 / Service Contractor / Fall 2021

Professional Services Council

Bill Tracker: 117th Congress-First Session (2021) NEW

Newly introduced since last issue

Major action taken since last issue

Bill became law since last issue

S. 658

National Cybersecurity Preparedness Consortium Act, Cornyn (R-TX)

SUMMARY Would allow the Secretary of the Department of Homeland Security to work with a consortium

composed of non-profit entities and institutions to support efforts to address cybersecurity risks, incidents, and responses.

STATUS Passed the Senate on 7/15/21.

Federal Agency Customer Experience Act, Hassan (D-NH)

S. 671 Would require certain agencies to collect and publish voluntary feedback on customer service

SUMMARY

and require the Government Accountability Office to report on agencies’ use of the data to improve service delivery.

STATUS Reported by the Committee on Homeland Security and Governmental Affairs on 7/19/21.

S. 731

S. 732

Department of Veterans Affairs Information Technology Reform Act, Tester (D-MT) Would improve the management of information technology projects and investments of the Department of Veterans Affairs.

STATUS Referred to the Committee on Veterans’ Affairs, hearing held by the Committee on 4/28/21.

SUMMARY

BuyAmerican.gov Act, Portman (R-OH)

SUMMARY Would direct the President and specified federal agencies to take steps to increase transparency and limit the use of waivers of Buy American laws.

STATUS Ordered out of the Committee on Homeland Security and Governmental Affairs on 5/12/21.

Homeland Procurement Reform (HOPR) Act, Shaheen (D-NH)

S. 1009 Would require the Secretary of the Department of Homeland Security to procure one-third of items

SUMMARY

for a frontline operational component from small businesses to the maximum extent possible.

STATUS Ordered to be reported by the Committee on Homeland Security and Governmental Affairs on 7/14/21.

Acquisition and Contracting Transparency (FACT) Act, Rubio (R-FL)

S. 1048 Federal Would require a contractor, first tier subcontractor, or any related entity to disclose certain

SUMMARY

information regarding any contracts or relevant commercial ties to certain Chinese companies.

STATUS Referred to the Committee on Homeland Security and Governmental Affairs on 3/25/21.

in America Act, Baldwin (D-WI)

S. 1094 Made Would ensure that certain materials, including steel, iron and cement among other materials,

SUMMARY

used in carrying out federal infrastructure aid programs are made in the United States.

STATUS Referred to the Committee on Homeland Security and Governmental Affairs on 4/13/21.

No TikTok on Government Devices Act, Hawley (R-MO)

S. 1143 Would require TikTok to be removed from the information technology of federal agencies.

SUMMARY STATUS

S. 1549

S. 1161

Ordered to be reported by the Committee on Homeland Security and Governmental Affairs on 5/12/21.

A bill to require a review of the National Aeronautics and Space Administration

preference for domestic suppliers, Peters (D-MI)

SUMMARY Would require the National Aeronautics and Space Administration (NASA) Administrator to

undertake a comprehensive review of the domestic supplier preferences of NASA and the obligations of NASA under the Federal Acquisition Regulations to ensure compliance, particularly with respect to foreign-based subcontractors.

STATUS Referred to the Committee on Commerce, Science, and Transportation on 5/11/21.

Quantum Network Infrastructure and Workforce Development Act, Thune (R-SD) Would direct the Undersecretary of Commerce for Standards and Technology to conduct research on the development and standardization of quantum networking and communications technologies and applications, among other provisions.

STATUS Referred to the Committee on Commerce, Science, and Transportation on 4/15/21.

SUMMARY

Professional Services Council

Service Contractor / Fall 2021 / 25

Bill Tracker: 117th Congress-First Session (2021) NEW

Newly introduced since last issue

S. 1169

Major action taken since last issue

Bill became law since last issue

Strategic Competition Act, Menendez (D-NJ)

SUMMARY Would direct federal agencies to undertake certain actions to counter and confront China and Chinese influence around the world.

STATUS Reported by the Senate Foreign Relations Committee on 5/10/21.

S. 1197

Quantum for Universal Advancement in Nationwide Technology Use and Modernization (QUANTUM) for National Security Act, Hassan (D-NH)

SUMMARY Would encourage the Department of Defense Public-Private Talent Exchange to exchange personnel

with private sector entities working on quantum information sciences (QIS) and computing technology research and increase coordination across agencies on QIS research.

STATUS Referred to the Committee on Armed Services on 4/15/21.

National Strategy to Ensure American Leadership (SEAL) Act, Van Hollen (D-MD)

S. 1213 Would direct the Department of Commerce to partner with the National Academies of Sciences,

SUMMARY

STATUS

Engineering, and Medicine to identify the ten most critical emerging science and technology challenges facing the U.S. and develop recommendations for legislative or administrative action to ensure United States leadership.

Referred to the Committee on Commerce, Science, and Transportation on 4/19/21.

S. 1231

Construction Consensus Procurement Improvement Technical Corrections Act, Portman (R-OH)

SUMMARY Would prohibit the federal government from using reverse auctions for complex, specialized, or

substantial design and construction services.

STATUS Referred to the Committee on Homeland Security and Governmental Affairs on 4/20/21.

Related Bill: H.R.26.

United States Innovation and Competition Act, Schumer (D-NY)

S. 1260 Would create a new Directorate for Technology and Innovation at the National Science Foundation

SUMMARY

focused on basic research, commercialization, and innovation related to key technology areas with geostrategic implications for the United States, among other provisions.

STATUS Passed the Senate on 6/8/21.

America, Buy America Act, Brown (D-OH)

S. 1303 Build Would require federal agencies to identify each infrastructure program and ensure that certain

SUMMARY

materials for those projects are produced in the United States.

STATUS Ordered to be reported by the Committee on Homeland Security and Governmental Affairs on 5/12/21.

Make PPE in America Act, Portman (R-OH)

S. 1306 Would provide for domestic sourcing of personal protective equipment.

SUMMARY

STATUS Ordered to be reported by the Committee on Homeland Security and Governmental Affairs on 5/12/21.

Related Bill: H.R. 2720.

Cyber Response and Recovery Act of 2021, Peters (D-MI)

S. 1316 Would authorize a Cyber Recovery and Response Fund for the Secretary of Homeland Security to

SUMMARY

utilize in response to certain designated cyber incidents.

STATUS Ordered to be reported by the Committee on Homeland Security and Governmental Affairs on 5/12/21.

Civilian Cyber Security Reserve Act, Rosen (D-NV)

S. 1324 Would establish a Civilian Cyber Security Reserve as a pilot project to address the cyber security

SUMMARY

needs of the United States.

STATUS Ordered to be reported by the Committee on Homeland Security and Governmental Affairs on 7/14/21.

26 / Service Contractor / Fall 2021

Professional Services Council

Bill Tracker: 117th Congress-First Session (2021) NEW

Newly introduced since last issue

Major action taken since last issue

Bill became law since last issue

National Risk Management Act, Hassan (D-NH)

S. 1350 Would require the development of a national critical infrastructure resilience strategy that, among

SUMMARY

other tasks, would propose national-level actions, programs, and efforts to address any risks identified.

STATUS Ordered to be reported by the Committee on Homeland Security and Governmental Affairs on 5/12/21.

Safeguarding American Innovation Act, Portman (R-OH)

S. 1351 Would establish a Federal Research Security Council to develop federally funded research and

SUMMARY

development grant making policy and management guidance that addresses the security of grants and export-controlled goods, technologies, or sensitive information.

STATUS Ordered to be reported by the Committee on Homeland Security and Governmental Affairs on 5/12/21.

S. 1419

Protecting Critical Boards and Electronics Through Transparency and Enduring Reinvestment (PCBETTER) Act, Hawley (R-MO)

SUMMARY

STATUS

Would establish an “Electronics Supply Chain Fund” for the construction, expansion, or modernization of facilities to develop or manufacture semiconductors, microelectronics, advanced electronic packaging, and printed circuit boards.

Referred to the Committee on Armed Services on 4/28/21.

Technology Standards Task Force Act, Cortez Masto (D-NV)

S. 1498 Would require the Director of the Office of Science and Technology Policy to establish the

SUMMARY

Emerging Technology Standards-Setting Task Force and develop a strategic plan to ensure U.S. leadership in standards setting.

STATUS Referred to the Committee on Commerce, Science, and Transportation on 4/29/21.

Artificial Intelligence Capabilities and Transparency (AICT) Act, Heinrich (D-NM)

S. 1705 Would establish a coordinated federal initiative to accelerate the research, development,

SUMMARY

procurement, fielding, and sustainment of artificial intelligence.

STATUS Referred to the Committee on Armed Services on 5/19/21.

Artificial Intelligence for the Military Act, Portman (R-OH)

S. 1776 Would implement recommendations relating to military training on emerging technologies.

SUMMARY

STATUS

Referred to the Committee on Armed Services on 5/20/21.

Contracts and Obligations Modernization for Efficient Terms of Service (COMETS) Act, Rubio (R-FL)

S. 1871 Would allow National Aeronautics and Space Administration to use its procurement contracts to

SUMMARY

acquire supplies and services to meet not only NASA requirements, but also the requirements of its commercial partners.

STATUS Referred to the Committee on Commerce, Science, and Transportation on 5/27/21.

Supply Chain Security Training Act, Peters (D-MI)

S. 2201 Would require the Administrator of General Services to develop a training program for officials

SUMMARY

with supply chain risk management responsibilities at executive agencies.

STATUS Ordered to be reported by the Committee on Homeland Security and Governmental Affairs on 7/14/21.

Chai Suthammanont Remembrance Act, Warner (D-VA)

S. 2343 Would require federal agencies to develop and disclose safety plans that contain certain

SUMMARY

information for on-site employees and contractors during the public health emergency relating to COVID-19.

STATUS Referred to the Committee on Health, Education, Labor, and Pensions on 7/19/21. Related bill: H.R. 978.

Professional Services Council

Service Contractor / Fall 2021 / 27

Bill Tracker: 117th Congress-First Session (2021) NEW

Newly introduced since last issue

Major action taken since last issue

Bill became law since last issue

Cyber Incident Notification Act, Warner (D-VA)

S. 2407 Would require federal agencies, government contractors, and critical infrastructure owners and

SUMMARY

operators to report cyber intrusions within 24 hours of their discovery.

STATUS Referred to the Committee on Homeland Security and Governmental Affairs on 7/21/21.

False Claims Amendments Act, Grassley (R-IA)

S. 2428 Would overrule the Supreme Court’s decision in Universal Health Services, Inc. v. United States,

SUMMARY

which held a lawsuit could fail for lack of materiality if an agency continued to pay a contractor despite fraudulent conduct.

STATUS Referred to the Committee on the Judiciary on 7/22/21.

DHS Industrial Control Systems Capabilities Enhancement Act, Peters (D-MI)

S. 2439 Would designate the Cybersecurity and Infrastructure Security Agency as responsible for maintaining

SUMMARY

capabilities to identify and mitigate cyber threats to industrial control systems.

STATUS Ordered to be reported by the Committee on Homeland Security and Governmental Affairs. Related bill: H.R.1833.

American Telecommunications Security Act, Cotton (R-AR)

S. 2474 Would prohibit funding from the American Rescue Plan Act from being used to purchase

NEW

SUMMARY

telecommunications equipment from Chinese companies.

STATUS Referred to the Committee on Commerce, Science, and Transportation on 7/26/21.

Domains Critical to Homeland Security Act, Portman (R-OH)

S. 2525 Would require the Department of Homeland Security to undertake research and development

SUMMARY

STATUS

to identify and evaluate the extent to which critical domain risks within the United States supply chain pose a substantial threat to homeland security.

Ordered to be reported by the Committee on Homeland Security and Governmental Affairs on 8/4/21.

Related bill: H.R.3264.

Intelligence Authorization Act for Fiscal Year 2022, Warner (D-VA)

S. 2610 Would authorize appropriations for the Intelligence Community’s programs for Fiscal Year 2022

SUMMARY

and includes policy provisions that impact the Intelligence Community’s contractor workforce.

STATUS Ordered to be reported by the Select Committee on Intelligence on 7/28/21.

Prevent Government Shutdowns Act, Lankford (R-OK)

S. 2727 Would automatically approve a continuing resolution upon a lapse in appropriations every two

NEW

SUMMARY

weeks and withhold funding for certain activities until appropriations are enacted.

STATUS Referred to the Committee on Homeland Security and Governmental Affairs on 9/14/21.

End Government Shutdowns Act, Portman (R-OH)

S. 2760 Would provide continuing appropriations to prevent a government shutdown if appropriations

NEW

SUMMARY

STATUS

bills or a continuing resolution has not been enacted. The bill would reduce the appropriations by 1% after the first 120-day period and by an additional 1% for each subsequent 90-day period until appropriations legislation is enacted.

Referred to the Committee on Appropriations on 9/20/21. Related bill: H.R.5325

National Defense Authorization Act for Fiscal Year 2022, Reed (D-RI)

S. 2792 Would authorize appropriations and policy for Fiscal Year 2022 for the Department of Defense.

SUMMARY

STATUS

Reported by the Armed Services Committee on 9/22/21. Related bill: H.R.4350.

28 / Service Contractor / Fall 2021

Professional Services Council

Bill Tracker: 117th Congress-First Session (2021) NEW

Newly introduced since last issue

Major action taken since last issue

Bill became law since last issue

Cyber Incident Reporting Act, Peters (D-MI)

S. 2875 Would require certain critical infrastructure operators to report cyberattacks and ransom

NEW

SUMMARY

payments to the Cybersecurity and Infrastructure Security Agency within at least 72 hours of experiencing a cyberattack and 24 hours of making a ransom payment.

STATUS Ordered to be reported by the Committee on Homeland Security and Governmental Affairs on 10/6/21.

S. 2892

Stop the Shutdowns Transferring Unnecessary Pain and Inflicting Damage In The Coming Years (Stop STUPIDITY) Act, Warner (D-VA)

SUMMARY

STATUS

NEW

Would automatically renew funding for federal departments and agencies, at the previous year’s funding levels, in the event of a future lapse in appropriations, with the exceptions of the legislative branch and the Executive Office of the President.

Referred to the Committee on Appropriations on 9/29/21.

Federal Information Security Modernization Act, Peters (D-MI)

S. 2902 Would update the Federal Information Security Modernization Act to clarify roles, responsibilities,

SUMMARY

and authorities of federal agencies.

STATUS Ordered to be reported by the Committee on Homeland Security and Governmental Affairs on 10/6/21.

Gathering Government Contracting Leaders January 30-31, 2022 • The Willard • By invitation only The Summit is comprised of the PSC Board of Directors and C-suite member executives.

Over a Sunday evening dinner reception and Monday morning program, leaders get closeddoor updates from PSC executives, hear from high-ranking government officials, and provide feedback on issues that matter most to federal contracting.

For more information visit: www.pscouncil.org/summit

Professional Services Council

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30 / Service Contractor / Fall 2021

Professional Services Council

The 2021 Vision Teams

by Todd Pantezzi, Chief Strategy Officer, CVP Corp

F

rom AI to supply chain to cryptocurrency, agency forecasts and program trends are evolving at a fast pace. This environment makes it critical for industry to maintain awareness of what shapes agency planning, priorities, budgets and goals. This year’s PSC Vision program brings together the Professional Services Council (PSC), industry and federal government officials for a dynamic review of the current program and acquisition trends. At the core of this effort are the PSC members who make up the Vision teams assigned to leading candid and anonymized discussions with government officials and compiling the research for the Vision findings.

The Vision teams are a diverse group of members representing small, mid-size and large firms. This brings different perspectives and balance as we discuss and arrive at consensus on our direction and the questions we’d like to pose for our research.

I’ve had the opportunity to lead the Department of Health and Human Services (HHS) team for Vision for nearly 20 years.

With the help of my Co-Chair, Kathy Lentz, Federal Insights LLC, this team is currently the largest and most active across the Vision program in terms of the number of meetings we secure with HHS decision-makers. Our meetings focus on strategic plans, procurements and programs, technologies, trends and drivers, and outside influences affecting HHS priorities. Over the past six months our team has been conducting candid conversations with HHS officials, healthcare industry specialists, former feds with deep background knowledge, contracting officers in the frontline action, and acquisition experts. Not only do we get their insights, but some meetings become the springboard for future conversations and relationships.

We interviewed representatives from each of the HHS Operating Divisions to gather information, create and validate hypotheses, and present an overall agency forecast. Our goals are to: 1) gain as much perspective as possible directly from officials to form unbiased views and forecasts, 2) share the agency message back to industry, and 3) educate industry and government to improve collaboration. A better-informed industry is better able to help government agencies.

The last 18 months have been challenging for agencies. The ongoing response to the COVID-19 pandemic, along with transitioning to a new administration, makes for a unique set of challenges and approaches for agency missions and programs.

Perhaps no federal organization more so than HHS.

Professional Services Council

What about the rest of Vision? There are many different teams. Most are agency-focused - think USDA or NASA – and some cover government-wide topics such as IT Management and Budget or Customer Experience. Vision’s Defense teams focus on areas including services, technology, and macro-economic trends.

Members can and do participate in multiple Vision teams, and this facilitates learning across the topics. In addition, the team leaders have a regular call cadence to coordinate our overall messaging and approach.

Thanks to PSC’s Vision program, I am well informed and better able to serve as a leader in the industry, setting and executing strategy for a prominent firm. I have had the opportunity to work with some of the best in the industry to work towards our shared goal of improving government-industry relations. I have also shared with members, especially those newer to PSC and Vision, the value in the collaborative research process in hopes of recruiting and diversifying the Vision teams.

To sum up the benefits of participating in Vision: access to decision makers, networking, professional development, and access to information months before the Vision conference gives us competitive insight.

It all comes together at the Vision conference. Vision is the only non-profit federal market forecast that addresses the defense, civilian, and federal IT markets. Hear from industry and government as we present and discuss the results of the Vision Federal Market Forecast.

This year it will be held virtually from December 1-2, 2021. (www. pscouncil.org/vision/) We hope to “see” you there.

To join a Vision team, contact PSC Director of the Vision Market Forecast, Michelle Jobse at jobse@pscouncil.org. 3 Service Contractor / Fall 2021 / 31

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Professional Services Council

MEMBER NEWS Bixal made #1,495 on Inc.com’s list of the 5,000 fastest-growing companies in the United States; Erika Gianni recently joined Bixal as Vice President of Operations as did Kenny Bruce as Vice President for Measurement and Impact.

Capgemini signed an agreement to acquire IT services provider VariQ, adding scalability and strengths to its Government Solutions capabilities in the United States.

Chemonics received a score of 100 on the Human Rights Campaign Foundation’s 2021 Corporate Equality Index and earned a top score in the 2021 Disability Equality Index. Judith Heichelheim was recently appointed Senior Vice President and IDIQ Director for the USAID Global Health Supply Chain Program-Procurement and Supply Management Project.

DAI welcomed James Watson as Vice President for US Government Programs, to oversee DAI’s USG project portfolio of approximately 90 long-term initiatives in almost 50 countries. James comes to DAI after a distinguished 32year career with USAID. GDIT promoted Jylinda Johnson to Sector Vice President & General Manager for Government Operations, Commerce, and Global Citizen Services. The company was recognized by the National Organization on Disability as a leading

disability employer, and made WayUp’s list of the Top 100 Internship Programs.

ME&A - After some 35 years at the helm, founder Tom England stepped down on October 1 and Teresita Perez, the current Chief Operating Officer and Executive Vice President, took over as ME&A’s new CEO and President.

Palladium and UK National Parks have partnered to design nature restoration projects in the UK to combat climate change and the biodiversity crisis with key funding provided by The Estée Lauder Companies UK & Ireland, Gatwick Airport, Southern Co-op and Capita.

Panagora Group recently hired Melissa Cook to be Vice President of Corporate Operations. President Betsy Bassan is an Ernst & Young Entrepreneur Of The Year 2021 Mid-Atlantic Award Winner.

QED recently announced the appointments of Suzanne Bond as Vice President of Programs and Patrick Bryski as Vice President of Corporate Growth and Strategy.

URC recently appointed Robin Jaffe Goebel as Vice President of Human Resources and “Mále” (Maria Alejandra) Pelaez as Vice President of Global Operations.

Welcome New PSC Members!

October 2021

For more information on PSC membership, contact membership@pscouncil.org.

Professional Services Council

Service Contractor / Fall 2021 / 33

MEMBER NEWS Northern Virginia Chamber and PSC Announce 2021 Greater Washington Government Contractor Awards™ Finalists Winners to be Announced Live at the 19th Annual Awards Gala on November 3 The Northern Virginia Chamber of Commerce (Northern Virginia Chamber) and the Professional Services Council (PSC) have announced the finalists for the 19th Annual Greater Washington Government Contractor Awards™ (GovCon Awards), the premier awards event for the Washington area government contracting community. The winners will be recognized during the annual awards gala held in person at the Ritz-Carlton Tysons Corner on November 3.

The purpose of the GovCon Awards is to honor the exceptional work of the leaders and businesses in the region’s government contracting sector. The award categories include: Contractor of the Year in four revenue categories and Executive of the Year in three revenue categories.

The 2021 Washington Government Contractor Awards Finalists are: Contractor of the Year, Up To $25 Million • Arena Technologies • Electrosoft Services, Inc. • INCATech LLC • Kreative Technologies • Managed Care Advisors • Pueo Business Solutions LLC • Ripple Effect Contractor of the Year, $25 – 75 Million • Aptive Resources • Integral Consulting Services, Inc. • Metron, Inc. • NetImpact Strategies, Inc. • Steampunk, Inc. • VariQ Contractor of the Year, $75 – 300 Million • B3 Group • Credence Management Solutions LLC • Dev Technology Group, Inc. • REI Systems, Inc. • Systems Planning and Analysis

Contractor of the Year, Over $300 Million • Accenture Federal Services • DCS Corporation • Dovel Technologies • OptumServe • SAIC • Siemens Government Technologies Executive of the Year, Up to $75 Million • Rachele Cooper, Aptive Resources • J. Van Gurley, Metron, Inc. • Dave Hart, Continental Mapping Consultants LLC • Ki Ho Kang, KIHOMAC • Mike Kushin, BlackHorse Solutions • Deepti Malhotra, VMD Systems Integrators Executive of the Year, $75 – 300 Million • Anirudh Kulkarni, CVP • Kendall Holbrook, Dev Technology Group, Inc. • Dwight Hunt, B3 Group • Shyam Salona, REI Systems, Inc. • Mehul Sanghani, Octo Executive of the Year, Over $300 Million • Damon Griggs, Dovel Technologies • Patricia D. Horoho, OptumServe • Nazzic Keene, SAIC • John Wasson, ICF In addition to the Company of the Year and Executive of the Year award winners, Anne Altman will be inducted into the Greater Washington Government Contractor Hall of Fame. Anne Altman is an experienced corporate director and Co-founder & CEO of Everyone Matters, Inc. She is being honored for her innumerable achievements and unparalleled professional excellence over the course of her distinguished career.

More information about the GovCon Awards can be found at www. novachamber.org. Follow the conversation on Twitter through @ NovaChamber and @PSCSpeaks and hashtags: #GovCon2021 #GovConAwards #GovConAwards2021.

Have a story for Service Contractor’s Member News section? E-mail jones@pscouncil.org 34 / Service Contractor / Fall 2021

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E! T A D E

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