PSC's Service Contractor Magazine - October 2015

October 2015 / The Voice of the Government Services Industry

Who Is In Your Boardroom?

6

UNCLE SAM JOINS YOUR BOARD

12

ALso inside:

ENHANCING GOVERNMENT CUSTOMER SERVICE

16

CHALLENGES FOR THE NEW USAID ADMINISTRATOR

28

THE PENTAGON’S WAR ON COMMERCIAL PRIcing

October 2015 T h e Vo i ce o f t h e G ove r n m e n t S e r v i ce s I n d u st r y

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8

Uncle Sam

from reasonable to intrusive: the real life impact of regulatory overreach

Joins Your Board

124 enhancing government customer service

Cover illustration: Sylwia Surowiec

4 President’s Letter 20 VISION 2015 21 2015 ACQTECH 23 Bill Tracker

28 Policy Spotlight 30 Council Corner 33 Member News 34 PSC Scene & Heard

16 challenges for the new usaid administrator

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: Elise Castelli

P S C S ta f f

Stan Z. Soloway President & CEO soloway@pscouncil.org Alan Chvotkin Executive Vice President & Counsel chvotkin@pscouncil.org Donald Baumgart Manager, Vision Forecast baumgart@pscouncil.org

Matt Busby Director, Membership busby@pscouncil.org Joe Carden Vice President, Marketing & Membership carden@pscouncil.org Elise Castelli Senior Manager, Media Relations & Publications castelli@pscouncil.org

Professional Services Council

Paul Foldi Vice President, International Development foldi@pscouncil.org Karen L. Holmes Office Manager/ Receptionist holmes@pscouncil.org Ryan Jennings Executive Assistant jennings@pscouncil.org Michelle Jobse Director, Vision Forecast jobse@pscouncil.org

Roger Jordan Vice President, Government Relations jordan@pscouncil.org Cassie Katz Senior Manager, Marketing katz@pscouncil.org Jeremy Madson Senior Manager, Public Policy madson@pscouncil.org

Melissa R. Phillips Vice President, Events & Operations phillips@pscouncil.org Robert Piening Vice President, Finance piening@pscouncil.org Jerome Punderson Senior Vice President, Defense & Intelligence punderson@pscouncil.org Ivory Smith Marketing Associate smith@pscouncil.org

Jean Tarascio Senior Manager, Events tarascio@pscouncil.org Matthew Taylor Manager, Public Policy taylor@pscouncil.org Dave Wennergren Senior Vice President, Technology Policy wennergren@pscouncil.org Erin Whittaker Senior Manager, Events whittaker@pscouncil.org

Service Contractor / October 2015 / 3

PRESIDENT ’S LETTER

The New Regulatory Order and a New Chapter for PSC

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he federal contracting marketplace has long been significantly regulated. Unique rules and regulations are evident in virtually every aspect of business operations. For the most part, because the customer being served is the American people and thus the work involves a unique trust, companies have also been more than willing to accept special levels of oversight. But how much oversight and regulation is appropriate? That’s also a time honored debate and one on which the pendulum often swings back and forth.

Today we are in a most unusual period and the trends are both increasingly concerning and counter to other, key priorities and objectives the government has established: more innovation, access to new technologies and market players, streamlined processes, speed to market, agility, and more. Those objectives are also entirely consistent with where our industry is focused.

But they are not at all consistent with an environment where, as PSC’s Alan Chvotkin explains in his primer explaining Uncle Sam’s place on your Board, so much of what a company does is limited in significant and growing ways.

In this issue of Service Contractor, we explore this dichotomy and what it means for companies. PSC Board member and Hei-Tech Services CEO Heidi Gerding shares her perspectives on how the ever increasing layers and levels of oversight and compliance, no matter how well intended, are impacting her company every day.

In addition to assessing how often conflicting government policies and practices can impede progress, we’re also pleased to include in this issue a very thoughtful piece from Susi Mudge, CEO of Chemonics and chair of PSC’s Council of International Development Companies. In her article, Susi outlines not only the imperative for a swift confirmation of nominated USAID Administrator Gayle Smith, but also some of the challenges she will face as she steps into that crucial job. We are also pleased to

4 / Service Contractor / October 2015

include a piece by PSC Board Member Janet Foutty of Deloitte exploring the link between information technology, contractor support and improving the government’s customer service.

Finally, as you have likely already heard, I have decided to step down as the president and CEO of PSC. After 15 years at the helm, I am at that stage of my career where, if I want to do something different and substantial before I retire, the time to do so is now. However, I will remain in place and fully committed through the succession process. This has been an amazing run and I consider myself incredibly fortunate to have had the privilege of leading PSC for all of these years. I am proud of the unique credibility PSC has achieved and of our status as the preeminent association in the federal marketplace. PSC’s foundation is sound, our direction is the right one, the team is top notch and the future is very bright.

The Executive Committee has launched a search for my successor and I am committed to doing all I can to support their efforts and to ensure that we continue to do what is in the best interests of our membership and terrific staff. While I am not yet certain what my next step will be, I do plan to remain fully engaged in this exciting and important industry and fully intend to remain an active member of the PSC community.

I will be around for a few more months yet, and thus it is a bit soon to start with farewells. But I do want to thank you for all you have done to make these last 15 years so memorable, enjoyable and rewarding. It has been a singular honor.

Thank you, as always, for your support of PSC.

Stan Soloway President & CEO

Professional Services Council

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Uncle Sam Joins Your Board:

by Alan Chvotkin, PSC Executive Vice President and Counsel 6 / Service Contractor / October 2015

Professional Services Council

Illustration: Sylwia Surowiec

The Balance between Reasonable Regulation and Irrational Intrusion.

C

orporate boards of directors have the fiduciary responsibility to shareholders for providing the overall guidance and direction to the company and to generally supervise the work entrusted to the leadership of the business.

But if the business is a federal government contractor, there is an unelected board member taking a seat at the table: Uncle Sam himself.

With a flurry of legislation and executive actions in recent years, the federal government has become the principal director setting company policies and dictating how the company will compete for its business. From human resources to compliance, and from pricing to purchasing, Uncle Sam isn’t just on your board, he’s running the company.

The federal government spends billions annually on the purchases of goods and services and many of these practices are not by themselves objectionable. However, the cumulative effect of all of these government-specific provisions—and their sometimes overzealous enforcement mechanisms—is to increase the administrative and compliance costs and the risk of doing business with the federal government. It also further separates government contracts and its contractors from the rest of the commercial marketplace—and the innovation therein.

Here are but a few examples of how Uncle Sam has taken over your Board and operations.

1. Uncle Sam dictates contractor prices and profitability.

In one of the largest components of government contracting, the General Services Administration’s multiple award schedule program, the government requires that the maximum price that a company can charge for its goods and services must be at or below the “most favored” prices that the company charges any other customer. This pricing level is regularly audited and subjected to automatic price reductions to the government if the prices the company offers to designated benchmark customers are reduced. Beyond encouraging competitive (i.e., lower) pricing for specific procurement offerings through general market forces, the government specifically limits the profitability on certain common types of contracts and through the terms and conditions of specific large contract offerings. Finally, the government imposes unique accounting rules for government contracts and then requires detailed financial disclosures and aggressively audits those submissions to ensure accuracy and compliance.

2. Uncle Sam dictates contractor human resources policies. During the Obama administration, at least 12 executive orders and their implementing regulations have imposed specific and unique burdens on contractor firms, including dictating who a contractor can hire. There is a set of rules that generally gives the right of first refusal to employees of the predecessor contractor for new positions at the successor firm in a Service Contract Act covered contract. New rules establish hiring priorities to employees with certain disabilities and for veterans. The government has limited the use of certain arbitration provisions in workplace disputes, requires certain pay data disclosure and generally constrains imposing any limitation on employees discussing their pay. Contractors are required to develop more detailed affirmative action plans for designated groups and may soon be required to provide more detailed Professional Services Council

disclosure to federal buyers of their compliance with a wide range of federal and state labor provisions. There is even an executive order—the so-called Fair Pay and Safe Workplaces Executive Order—that would rob companies of their contracts, and their ability to win new contracts, if they or their subcontractors even allegedly fall short of perfect compliance with the myriad federal and state labor laws. Finally, on Labor Day, the president signed the latest order dictating federal contractors sick leave policies.

3. Uncle Sam dictates contractor purchasing policies. As is common on certain types of federal contracts, the government reserves the right to approve certain subcontractors to be used in the performance of contracts. In addition, the government has established policies that require setting goals for the use of subcontracting with small and designated socio-economic categories of businesses. They have required that only certain types of goods and services can be used in the performance of work, such as compliance with the Buy American provisions or prohibiting the use of any labor at risk of trafficking. More recently, the challenges of cybersecurity and information assurance are creating new and still evolving regimes of regulations relating to both prime contractor and subcontractor responsibilities.

4. Uncle Sam dictates contractor business conduct and compliance (ethics) programs. All government contractors who have cumulative annual contracts greater than $5 million must have a written code of business conduct suitable to the nature of its business and the risk areas for its work. In addition, the contractor’s code must include regular training for its employees. Furthermore, additional rules require mandatory disclosures to the government for certain types of potential violations of federal procurement laws and, because of the risk of government action to potentially exclude a company from competing for future business, companies are encouraged to make voluntary disclosures to the government about any business compliance matter. Government rules establish parameters for other types of training programs in specialized areas such as when performing U.S. government contracts overseas or in certain high-risk environments.

These are only a few of the more visible examples of the government’s dictates over federal government contractors’ operations and performance. The government should be assessing the impact of these unique requirements on companies that are, or that want to be, providing goods and services to fulfill agency needs. Similarly, companies are assessing whether the nature and cost of these requirements can be complied with effectively while also being price-competitive. Finally, some of the individual rules and, likely, the cumulative impact of all of these regulations, are a significant barrier to growing the number of commercial companies willing to compete for federal contracts.

Every responsible board of directors should be continually assessing the market for its products and services, its ability to deliver quality and value, and its cost of doing business. At the federal level, the Congress and the president must carefully assess the overall balance between the imposition of such a wide range of policy requirements and the ability of its existing and potential contractor base to successfully compete to meet agency needs. 3 Service Contractor / October 2015 / 7

by Austin Price, Illustration: Sylwia Surowiec

Partnership for Public Service

8 / Service Contractor / October 2015

Professional Services Council

From Reasonable to Intrusive:

The Real-Life Impact of Regulatory Overreach

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by Heidi W. Gerding, President and CEO, HeiTech Services, Inc.

eiTech Services has been greatly impacted by expanded government involvement across the entire company: in our Human Resources by the Department of Labor Wage and Hour Division and the Equal Employment Opportunity Commission; in our Operations by the National Labor Relations Board; in our Finance and Accounting by the Internal Revenue Service and Maryland’s Revenue Administration Division; and even in our Marketing/Business Development by almost all federal agencies and the Government Accountability Office. I certainly have not seen a positive result of this expanded government involvement. This expanded government involvement has increased business costs for employees, attorneys, accountants, and consultants to ensure we promptly respond to audit requests or to review corporate policies/procedures to ensure we were in full compliance with the changes imposed. In the end, these costs have to be accounted for, and since we are primarily a federal contractor, it is reflected in our price to the government.

Over the past six years, President Obama has issued many executive orders as well as presidential memoranda. Although the president asserts that he uses his executive power less than other presidents, it has had an impact on our business. Between the executive orders and presidential memoranda, we are spending an inordinate amount of time reviewing these edicts to ensure we are fully compliant when implemented.

One of the biggest areas affecting our business through expanded government involvement has been numerous new regulations issued by DoL. From increased scrutiny of compliance with the Service Contract Act to the Office of Federal Contract Compliance audits, we have spent hundreds of hours to respond to agency questions through email, letters, and in-person 1

job shadowing to ensure proper job classification. Some audits have been conducted in as little as three months but others took as long as three years to complete. Worse yet, once DoL gets involved with an audit, employees rally around the hopes that there will be some sort of “back pay” owed them only to learn that they are not getting anything or it’s not as much as they had planned.

This unexpected outcome results in a dissatisfied workforce and more complaints to DoL, so the cycle continues with more onthe-ground audits. It seems as though there is never resolution to some of these matters while our costs, including legal fees, climb.

Rather than increase the number of SCA auditors within DoL or keep raising the health and welfare rate each year, it would be nice if DoL redirected their resources to reviewing prevailing wages across the country and issuing revised wage determinations. Many of the labor categories affecting our employees have not seen an increase in wages for more than five years. Our employees would greatly benefit from a more regular adjustment of prevailing wages rather than an increase in the hourly health and welfare rate.1 Another area where expanded government has impacted our business is the apparent promotion of unionization. When has an employer suddenly become an adversary to the employee?

Rather than allowing the business to openly resolve concerns from our employees, this administration seems to be promoting the use of unions and thereby further removing the employee’s ability to directly communicate with the business. We actively meet with our employees to solicit concerns and respond to their questions. Although the answers do not always result in their desired outcome, explaining the reasons for our decisions, while ensuring compliance with federal and state regulations, is welcomed. continued on page 10

On August 24, 2015, PSC wrote to the Labor Department strongly recommending such action.

Professional Services Council

Service Contractor / October 2015 / 9

from page 9

With federal and state governments looking to collect revenue wherever possible, both have increased audits, again requiring a disproportionate amount of time to respond to questions. As an S-corporation, the federal government has held up federal tax refunds citing possible identity theft (with the IRS representative recently advising us that the IRS paid out over $8 billion last year alone to unauthorized individuals misrepresenting themselves as taxpayers). Even after correctly answering questions, our tax refund check was delayed six to eight weeks, if the IRS did not inquire about other things. Two years ago, after waiting nearly 18 months for a tax refund, the funds were finally released along with a letter advising that we had randomly been selected for an audit.

Likewise, Maryland’s Revenue Administration Division spent over 12 months at our company conducting a Sales and Use Tax Audit. We would meet for months followed by long periods of inactivity followed by intense pressure to produce receipts, invoices, etc. Again, long periods of silence fell waiting for their results.

After nearly 13 months, we finally were told that the woman conducting the audit had been replaced and that they would need to begin again. We engaged a lawyer who worked with the state to resolve the audit based upon the information already collected.

Again, we needlessly spent money on the time invested in the audit itself but again on legal fees to bring the audit to closure.

Last, but not least, is the impact that the delayed procurement cycle or contract award period has on our business. Then couple these timelines with the almost certain follow-on protest, which, unless you are the incumbent, pushes revenue projections further to the right. We have been involved in a procurement where proposals were submitted in March 2013, followed by an award to our team in March 2014, followed by a protest that has now spanned another 18 months. This procurement has been on our books for nearly 3 years waiting for the government to make a decision (make the award, pull the procurement back and reissue, or open up discussions again). The uncertainty associated with when a procurement will actually “hit the street” versus award becomes a game of chance. It is hard to plan for future growth with such uncertainty in the marketplace.

Although none of the issues raised here, which have impacted our business due to expanded government involvement, are new, they are realities that ALL businesses, large or small, face every day. There is one final question that I’d love an answer to: Is the government getting the monetary or compliance return on investment they expect by putting federal contractors through the additional scrutiny of more audits or compliance regulations? The dollars DoL collected from HeiTech Services pales in comparison to the dollars DoL spent conducting audits on our contracts. 3

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Enhancing Government Customer Service

by Janet Foutty,

H

aving had an opportunity to enjoy some overseas travel with my college-bound adult children this summer, I returned mindful of the wide-array of services our government provides here at home. Many of these services are unique to our country and are often taken for granted by us here in the United States.

While there is constant undercurrent of improvement and innovation in government, it’s important to recognize the ways that expanded government involvement is truly improving the everyday lives of the American people. Many trends are in play, but the three trends that I believe are creating the most impact are the government’s renewed focus on enhancing its customer service, modernizing information technology (IT) infrastructure (think cloud), and growing its use of shared services.

Trend 1: Customer service. For those of us in the professional services arena, customer service is our second (well, really first) nature. We are constantly asking ourselves: how can we better serve our clients, how can we communicate more effectively, and how can our people improve their client-services skills? It is a constant focus for us at Deloitte and we have a lot of knowledge and experience in this realm that is shared to help our public sector clients better serve their customers, be it a citizen, another agency, or a business.

Many consumers are now demanding their government act and respond more like a retailer. This change in consumer behavior—the demand for all things digital on multiple platforms—is now transforming not only how people interact with government but their expectations as well. We are helping our

federal clients better understand where their agency falls in the customer spectrum and what it means for them. We are also helping federal agencies figure out what this shift in consumer habits can mean to their mission and how they can use it to better serve their constituents.

Trend 2: IT modernization. Complementing this expansion into digital is IT modernization in which government agencies take a closer look at their IT needs and explore off-the-shelf solutions that can replace legacy systems in ways that save time and money. In response to this, we have seen our offerings grow to meet this need. Our commercial-facing teams have helped private-sector companies keep their IT needs current as well as adapt to new mobile and digital consumer trends. We are taking these lessons and applying them to help our government clients succeed in this ever-changing tech world.

Another critical aspect to IT modernization is cybersecurity.

Government is rapidly expanding into this realm as the threats only get bigger and more complex. There is far more that needs to be done. How a federal organization prepares for, responds to, and recovers from a cyber incident has and will continue to test many CIOs and their teams. We are continuing to work with our clients—both in the public and private sector—to develop new tools and approaches in this fast-moving, ever-changing cyber world.

Trend 3: Shared services. We are working hand-in-hand with our private and public sector clients to lower costs and risks, and provide more value across the spectrum. There’s no more resourceful and impactful way to accomplish this than continued on page 14

12 / Service Contractor / October 2015

Professional Services Council

Illustration: Sylwia Surowiec

Principal, Deloitte Consulting LLP and Federal Government Services leader

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from page 12

through a shared services model. Deloitte has helped clients build shared services around the globe, and has recently released findings in Deloitte’s 2015 shared services survey.1 The survey found that along with improved efficiency and control, shared services creates deeper support for business units, and freedom that allows people across the enterprise to focus on what they do best. By leveraging shared services, public sector agencies can focus on driving results to accomplish their unique missions.

We have examined the unique challenges that federal agencies have when moving to a shared services model, whether it is acquisition, financial management, human resources, or information technology. A study that we did with the Partnership for Public Service “Helping Government Deliver II” outlined the challenges and opportunities to furthering the government’s expansion into this model.2 Through this ongoing work with the Partnership for Public Service and federal agencies to overcome those challenges and leverage those opportunities, the federal government can continue on this path forward.

I’m often asked by our clients, “What’s next?” We’ve helped our federal clients roll out many tangible improvements—many programs and processes changing the efficiency and effectiveness 1 2 3

of government by leaps and bounds. But I believe what’s next will begin to happen organically as new generations of public service leaders come of age and more millennials take on bigger and better roles.

The evolution of our government and the way it is changing to serve the American people can continue to get even better.

We talk about this in Gov2020.3 We know that our younger generations want careers in which they can make an impact, bring fresh thinking and innovation, and make the world a better place for all.

From my vantage point, there is tremendous potential in how millennials can continue to make us rethink how we approach problems and serve our clients. We’ll likely see the mission-critical work of the public sector aligning itself with what many millennials are about—making an impact. Add in their intuitive approach to personalization and we can continue to see customer, IT modernization, and shared services drive change in the federal government and the rest of the public sector for years to come. Each is a prime example of government expanding its involvement to make a big and bold impact on how the government operates and serves the American people. 3

Deloitte’s 2015 global shared services survey results. Available at http://www2.deloitte.com/us/en/pages/operations/articles/2015-global-shared-services-survey0.html.

Helping Government Deliver II. Available at http://ourpublicservice.org/issues/modernize-management/shared-services.php.

Deloitte Gov2020. Available at http://government-2020.dupress.com/.

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Three Pieces of Advice

for the Next USAID Administrator

by Susanna Mudge

Chair of the Council of International Development Companies and President and CEO, Chemonics International

E

bola. Terrorism. Poverty. Human trafficking. Corruption. HIV/AIDS. Democracy. Clean water. Tropical diseases.

Energy. Economic growth.

What do all these things have in common? For one, they’re all global in their scope and impact. And two, USAID is the agency at the forefront of addressing each of them.

The USAID administrator holds a mind-boggling responsibility over a vast and complex agency whose challenges are often quite literally matters of life and death— both for citizens of the globe and those here at home.

As I write this, Gayle Smith has been nominated as the next administrator for USAID and is awaiting confirmation by the Senate. Her nomination is welcomed as USAID has a critical role to play in shaping and leading the U.S. government’s support to international development during these challenging times, and having a strong leadership team is a

prerequisite. Being its administrator is a big undertaking and one I respect greatly.

The incoming administrator will be able to build on former USAID Administrator Rajiv Shah’s five year effort to galvanize USAID’s impact with new programs addressing hunger (Feed the Future), electrical infrastructure (Power Africa), and the poor (Ending Extreme Poverty).

His innovations in development were highlighted by the creation of the Global Development Lab, which uses crowdsourcing and prizes to drive new ideas.

Through PSC’s Council of International Development Companies (CIDC), we worked diligently during Mr. Shah’s tenure to keep lines of communication and dialogue open with USAID, and hope to have the same open and collaborative relationship with the new administrator. We value the opportunity to shape the next chapter in international development, and in that spirit, we have a few tips to continued on page 18

16 / Service Contractor / October 2015

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from page 16

help make the most of the remaining months of the Obama administration:

1

Let conditions on the ground dictate which instrument of foreign assistance delivery is used.

Development is complex, but at the end of the day, it’s about improving the lives of people in the places we work around the world. That is our industry’s common goal, and the choices we make about disbursing and spending foreign assistance funds should always have that goal in mind. Some types of development work are best accomplished with a grant or cooperative agreement, while others require a contract. For-profit companies and non-profit organizations both have a role to play. Ensuring the right “instrument” for delivery is used to most effectively address the conditions on the ground and the scope of the program to be delivered allows each to work where they are most effective and produce the most meaningful impact. Moving forward, let’s bridge this divide and embrace the fact that we’re all on the same team working to improve the lives of people around the globe.

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2

Balance innovation and efficiency.

It’s easy to get excited about the “next big idea,” but development is also about efficiently and effectively implementing what we know already works, and taking existing ideas and approaches to scale to deepen impact. USAID, as one of the largest and most longstanding development agencies, has a wealth of knowledge about what works, and has been a leader in identifying and implementing best practices. The new administrator should be committed to ensuring we are putting what we already know to its best use, and expanding the reach of the proven, evidence-based approaches as far and as wide as possible. That doesn’t mean we should stop looking for innovative ways to solve complex development challenges—now or ever. The combination of innovations and effectiveness should continue to be seen as parallel and complementary goals.

3

Don’t be afraid to fail.

Development is often a messy process, and not every project or initiative is an unqualified success. But over the years, I’ve learned as much (if not more) from our combined mistakes as from our shared triumphs. Doing development better requires an honest and unflinching look at our successes, our failures, and our opportunities to work more effectively together. Being willing to reflect, and commit to address whatever we find, will benefit all of us in the long run.

It’s easy to give advice, but there are no quick fixes. The next USAID administrator inherits an agency with an enormous mission and opportunity to drive progress around the world and a committed and passionate workforce striving to meet its objectives and results. It is also an organization that has had to pivot and change over the years to deal with challenges in the global and domestic landscape, and those of us working and supporting USAID’s programs have pivoted and changed as well.

The next administrator inherits a wealth of partners in this mission, including the members of the CIDC. To the outside world, we are often the silent partners, working behind-the-scenes to implement USAID’s vision and goals.

But we’re also on the front lines, every day, in countries that are facing extreme challenges and opportunities. We have the experience and knowledge, and we’re more than willing to talk, to listen, to share, and to collaborate.

So, as the next administrator prepares to take the helm of USAID, my final request is simply this: Don’t hesitate to reach out. We’re here to help. We are your partners in creating the world we all want, and we stand ready to collaborate and to partner to help USAID achieve its mission and goals. 3 Professional Services Council

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Professional Services Council

Service Contractor / October 2015 / 19

PSC Offers a New Vision on the Federal Market

by David Wennergren, Senior Vice President, Technology, PSC

O

n November 18 and 19, PSC will unveil the findings and analysis of over 300 interviews with key federal marketplace movers and shakers from inside and outside of government at the Vision Federal Market Forecast Conference.

While the Vision Forecast is in its 51st year, this is the first time PSC will present it since acquiring the forecast and conference from TechAmerica in February. As the only non-profit federal market forecast that addresses the defense, civilian and federal information technology and services markets, this year, the Vision analysis and report will be broader and more comprehensive than ever before.

Over the last few months, over 300 industry volunteers have conducted market research and interviews of government executives, industry leaders, think-tank experts, financial analysts and congressional staffs who will shape the federal marketplace and government priorities for the year ahead. From the results of these interviews and analyses the 2015 Vision Conference, to be held at the Fairview Park Marriott, will provide: • Concise, quantifiable assessments of the budgets, programs, priorities, and issues in a rapidly changing environment; • Insights from government customers on their current and future needs; • Valuable information on trending technology innovations, requirements development, upcoming opportunities, improved business practices and ways to build better customer relationships; and • Opportunities for government and industry to exchange ideas on issues, technology, programs and other areas of mutual interest.

In addition to keynote speeches from federal government leaders, the conference will include plenary and breakout sessions for most of this year’s Vision

Plenary sessions will include: Macro-Economic & Defense Topline Forecast Federal IT Budget Outlook Technology Outlook Acquisition Outlook Federal Services Outlook Industry Outlook

Defense tracks will include: International Shipbuilding Vehicles Space IT/Networks C4SIR Defense Health

Civilian Agency tracks will include: Homeland Security Health and Human Services Veterans Affairs NASA Agriculture State/USAID Treasury Commerce Social Security EPA Justice

20 / Service Contractor / October 2015

teams—organized functionally for the Department of Defense and by agency for the civilian side of government.

The federal marketplace has seen many shifts and perturbations in recent years, and the year ahead will be no exception. At PSC’s Annual Conference we take a serious look at that unrest from the macro, strategic perspective. At the Vision Conference, we dig in at an even more granular level through the extensive Vision Forecast report and live expert discussions of the issues and trends that matter most to you and your company.

In addition to unique insights into the near- and mid-term spending priorities of federal customers, the Vision Conference will provide up-todate perspectives on things like FITARA implementation, how the massive data breaches at OPM are impacting the market, and how both the acquisition and technology communities see contracting policies and practices affecting how they approach and work with the market. The conference will also take a look at how the government’s continued human capital crises impact the market and how the investment community assesses the market’s future. By then we will also know either what the fiscal year 2016 financial picture looks like or how choppy the year is likely to be.

As we have said previously, the new PSC conference cadence is intentional: high-level strategic thinking at the Annual Conference, the market and opportunity-focused Vision conference, the policy conference and the technology trends conference. Each has significant value on its own, but together they provide the fullest possible picture of the market in which we all operate.

So, mark November 18 and 19 on your calendars and register for Vision today to ensure you’re able to navigate and thrive in today’s complex federal marketplace. 3 Professional Services Council

1

2

4

2015 ACQ TECH 6

1. From left, OFPP Administrator Anne Rung discusses acquisition policy, buyers’ clubs and the digital service with panel moderator Francis Rose of Federal News Radio and PSC Technology Council Chair Anne Altman of IBM, at the June 8 ACQTECH Conference.

2. PSC SVP Dave Wennergren moderates an ACQTECH discussion of PSC’s 2015 CIO Survey with a panel of CIOs, featuring (from left): Joe Klimavicz, DoJ; Margie Graves, DHS; Dave DeVries, DoD; Steve Cooper, Commerce.

3. PSC President and CEO Stan Soloway kicks off the 2015 Acquisition and Technology Conference on June 8.

Professional Services Council

3

5 4. Rep. Barbara Comstock, R-Va., keynotes the 2015 Acquisition and Technology Conference on June 8.

5. HHS Sr. Procurement Executive Angela Billups and Principal Deputy Under Secretary of Defense for AT&L Alan Estevez talk about what’s next for the services market with panel moderator Henry A. “Trey” Obering III of Booz Allen Hamilton at ACQTECH. 6. Chris Dorobek of the DorobekINSIDER moderates a discussion on infusing innovation into government, featuring (from left) PSC Acquisition & Business Policy Council Chair Kymm McCabe of ASI Government; Jim Lee of Microsoft; Chris Cairns of GSA’s 18F; and Mark Naggar of the HHS Buyer’s Club.

Service Contractor / October 2015 / 21

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Professional Services Council

Bill Tracker: 114th Congress-First Session (2015) NEW

Newly introduced since last issue

Major action taken since last issue

Bill became law since last issue

H.R. 55

Rightsizing Activities of Intelligence Non-Governmental Contractors Act of 2015,

Jackson Lee (D-TX)

Summary Would mandate a 25 percent reduction in the number of contractors with top secret security clearances that are engaged in intelligence activities. Would direct the Director of National Intelligence to conduct a study to determine the extent to which contractors are used in the conduct of intelligence activities and the type of information that they can access.

STATUS Referred to Intelligence Committee on 1/6/2015.

H.R. 234

Cyber Intelligence Sharing and Protection Act, Ruppersberger (D-MD)

Summary Would establish cyber threat intelligence sharing procedures between the intelligence community and certain private sector entities.

STATUS Referred to Armed Services, Homeland Security, Intelligence, and Judiciary committees on 1/8/2015.

H.R. 479 American Jobs Matter Act of 2015, Etsy (D-CT)

Summary Would require contracting officers to consider information regarding domestic employment before awarding certain federal contracts.

STATUS Referred to Armed Services Committee on 1/22/2015. Related bill: S. 26.

Security Clearance Reform Act of 2015, Lynch (D-MA)

H.R. 490

Would prohibit the Director of the Office of Personnel Management (OPM) from awarding a contract Summary

STATUS

to any entity for investigative support services or background investigation fieldwork services if such entity has another contract in effect with the federal government to provide such services.

Referred to the Judiciary and Oversight and Government Reform committees on 2/19/2015.

Related bill: S. 434.

SAVE Act, Murphy (D-FL)

H.R. 614

Would require OMB to issue government-wide savings goals for the strategic sourcing of goods Summary

and services by executive agencies and would require agency CIOs to report to OMB on agency efforts to identify and eliminate potentially duplicative information technology investment.

STATUS Referred to 11 committees on 1/28/2015.

Boosting Rates of American Veterans Employment Act of 2015, Rice (D-NY)

H.R. 1382

Would permit the Department of Veterans Affairs to provide a preference in the evaluation of Summary

offers to contractors that have a higher percentage of veterans within their workforce than other offerors.

STATUS Passed the House (404-0) on 4/18/2015.

H.R. 1481

Small Contractors Improve Competition Act of 2015, Chabot (R-OH)

Summary Includes several provisions seeking to reform federal small business contracting policies, including a provision that would spur federal agencies to report small business participation across industry sectors. It would require earlier reporting of consolidated or bundled contracts; and would limit the government ability to use reverse auctions for the procurement of certain equipment and services.

STATUS Reported by the Small Business Committee on 3/25/2015. Related bill: S. 958.

Professional Services Council

Service Contractor / October 2015 / 23

Bill Tracker: 114th Congress-First Session (2015) NEW

Newly introduced since last issue

Major action taken since last issue

Bill became law since last issue

H.R. 1560 Protecting Cyber Networks Act, Nunes (R-CA)

Summary Seeks to promote the timely sharing of cyber threat indicators between the private sector and government entities. Provides liability protections for entities that share cyber threat indicators.

STATUS Passed the House (307-116) on 4/22/2015.

H.R. 1562 Contracting and Tax Accountability Act of 2015, Chaffetz (R-UT)

Summary

STATUS

Would propose for debarment any contractor with an unpaid, seriously delinquent tax debt.

Would require prospective contractors to certify that the contractor has no unpaid, seriously delinquent tax debt.

Passed the House (424-0) on 4/15/2015.

H.R. 1731 National Cybersecurity Protection Act of 2015, McCaul (R-TX)

Summary

STATUS

NEW

Seeks to enhance voluntary cybersecurity information sharing among private sector entities and the federal government and establishes the DHS National Cybersecurity and Communication Integration Center as the primary cybersecruity reporting portal.

Passed the House (355-63) on 4/23/2015. Related bill: S. 754

H.R. 1735 National Defense Authorization Act of 2016, Thornberry (R-TX)

Summary

STATUS

Would enact a myriad of defense acquisition reforms focused on areas such as commercial item procurements, streamlining of requirements development, acquisition workforce, and small business contracting.

Passed the House (269-151) on 5/15/2015. Amended and passed in the Senate (71-25) on 6/18/2015.

Conference negotiations are ongoing.

Buy Smarter and Save Act of 2015, Reed (R-NY)

H.R. 1760

Would require the administration to establish an annual government-wide goal to procure goods and Summary

services using strategic sourcing, along with an annual government-wide goal for savings from the use of strategic sourcing.

STATUS Referred to the Oversight and Government Reform Committee on 4/13/2015.

U.S. Chief Technology Officer Act of 2015, Loudermilk (R-GA)

H.R. 1764

Would codify the roles and responsibilities of the U.S. Chief Technology Officer.

NEW

Summary

STATUS Referred to the Oversight and Government Reform and Science, Space, and Technology committees on 4/14/2015.

H.R. 2039

National Aeronautics and Space Administration Authorization Act of 2015, Palazzo (R-MS)

Summary Would require NASA to revise the NASA Supplement to the Federal Acquisition

Regulation to provide uniform guidance and recommend revised requirements for organizational conflicts of interest by contractors in major acquisition programs. Would also imposed new requirements on contractors to identify and avoid the use of counterfeit electronic parts; and would establish a “de facto� debarment of any contractor that is criminally or civilly charged by a government entity for a myriad of enumerated offenses.

STATUS Reported by the House Science, Space, and Technology Committee on 4/30/2015.

24 / Service Contractor / October 2015

Professional Services Council

Bill Tracker: 114th Congress-First Session (2015) NEW

Newly introduced since last issue

Major action taken since last issue

Bill became law since last issue

H.R. 2199 DHS Acquisition Accountability and Efficiency Act, Perry (R-PA)

Summary Would enhance a number of acquisition management and policy changes implemented by DHS’s Management Directorate over the past several years, including the codification of the existing Program Accountability and Risk Management (PARM) Office. Would also require DHS to develop a multiyear acquisition strategy and would require DHS to appropriately report and take corrective actions for any programs that experience significant cost overruns or schedule delays.

STATUS Referred to the Homeland Security Committee on 5/1/2015.

H.R. 2596 Intelligence Reauthorization Act for 2016, Nunes (R-CA)

NEW

H.R. 3245 Government Refusal of Abortion in Contracting and Enterprise Act, Bridenstine (R-OK)

NEW

H.R. 3305 EINSTEIN Act of 2015, Hurd (R-TX)

NEW

H.R. 3313 Cyber Defense of Federal Networks Act of 2015, McCaul (R-TX)

NEW

Summary

STATUS

Summary

STATUS

Summary

STATUS

Summary

STATUS

Would require the DNI to report to Congress regarding the representation of certain minority- owned, women-owned, small disadvantaged, service-disabled veteran-owned, or veteran-owned businesses among the contractors awarded contracts by elements of the intelligence community.

Would also direct the DNI to report to Congress on the continuous evaluation of security clearances of employees, officers, and contractors of the intelligence community.

Passed by the House (247-178) on 6/16/2015.

Would prohobit federal agencies from entering into a contract with a person or entity that donates or matches employee donations to Planned Parenthood Federation of America, Inc., or any affiliate or clinic of Planned Parenthood.

Referred to the Oversight and Government Reform Committee on 7/28/2015.

Seeks to broaden DHS authorities to assist federal civilian agencies with deploying technologies to diagnose, detect, prevent and mitigate cybersecurity risks. Provides liability protections for contractors assisting DHS with such efforts.

Referred to the Oversight and Government Reform and Homeland Security committees on 7/29/2015.

Seeks to generate greater use at civilian agencies of continuous diagnostics and mitigation tools, better intrusion detection and response plans and greater transparency into agency cybersecurity postures.

Referred to the Oversight and Government Reform and Homeland Security committees on 7/29/2015.

S. 26

American Jobs Matter Act, Murphy (D-CT)

Summary Would require contracting officers to consider information regarding domestic employment before awarding certain federal contracts.

STATUS Referred to the Armed Services Committee on 1/6/2015. Related bill: H.R. 479.

S. 103 Ensuring Pay for Our Military Act, Heller (R-NV)

Summary

STATUS

Would require the government to continue to provide pay and allowances to members of the armed services, DoD civilians and contractors providing direct support to the armed services who perform active service during a government shutdown.

Referred to the Appropriations Committee on 1/7/2015.

Professional Services Council

Service Contractor / October 2015 / 25

Bill Tracker: 114th Congress-First Session (2015) NEW

Newly introduced since last issue

S. 434

S. 456

Major action taken since last issue

Bill became law since last issue

Security Clearance Reform Act of 2015, Tester (D-MT).

Summary Seeks to strengthen the accountability of individuals involved in misconduct affecting the integrity of background investigations, to update guidelines for security clearances, and to prevent conflicts of interest relating to contractors providing background investigation fieldwork services and investigative support services.

STATUS Referred to the Homeland Security and Governmental Affairs Committee on 2/10/2015.

Related bill: H.R. 490 and H.R. 1735 as passed by the Senate.

Cyber Threat Sharing Act of 2015, Carper (D-DE)

Summary Seeks to enable better sharing of cybersecurity threat indicators both within the private sector and between private and government entities.

STATUS Referred to the Homeland Security and Governmental Affairs Committee on 2/11/2015.

Cybersecurity Information Sharing Act of 2015, Burr (R-NC) S. 754

Would require DHS, DNI, DoD and DoJ to establish procedures that promote the sharing of cyber Summary

STATUS

threat indicator information among federal and non-federal entities, including the private sector.

Would also provide liability protections to private sector entities that share such information with a federal entity.

Reported by the Select Committee on Intelligence on 4/15/2015. Related bill: H.R. 1731.

S. 958

Small Business Fairness Act, Enzi (R-WY)

Summary Would require federal agencies to consider the capabilities and past performance of each member of a joint venture as the capabilities and past performance of the joint venture even if the joint venture does not have a combined record of past peformance.

STATUS Reported by the Small Business and Entrepreneurship Committee on 4/23/2015. Related bill: H.R. 1481.

S. 975 American Business for American Companies Act, Durbin (D-IL)

Summary

STATUS

S. 1725

S. 1828

Prohibits federal agencies from awarding a contract for the procurement of property or services to any foreign incorporated entity determined to be an inverted domestic corporation or any subsidiary of such entity.

Referred to the Homeland Security and Governmental Affairs Committee on 4/16/2015.

NEW Department of State, Foreign Operations, and Related Programs Appropriations Act of 2016, Graham (R-SC)

Summary Would restrict funding for democracy programs almost exclusively to grants and cooperative

agreements. Also expresses congressional expectation that contractor executive salaries will not exceed Executive Level II salaries.

STATUS Reported by the Appropriations Committee on 7/9/2015.

NEW Federal Information Security Management Reform Act of 2015, Collins (R-ME)

Summary Would provide DHS with the authority to conduct targeted cyber security risk assessments and operational evaluations for other agencies’ information and information systems and private entities that own or operate such systems

STATUS Referred to the Homeland Security and Governmental Affairs Committee on 7/22/2015.

26 / Service Contractor / October 2015

Professional Services Council

Bill Tracker: 114th Congress-First Session (2015) NEW

Newly introduced since last issue

S. 1859

S. 1869

Major action taken since last issue

Bill became law since last issue

Assuring Contracting Equity Act of 2015, Udall (D-NM)

Summary Would raise the government-wide small business prime contracting goal from 23 percent to 25 percent and would make increases to the prime contracting goals for the other socio-economic small business categories.

STATUS Referred to the Small Business and Entrepreneurship Committee on 7/23/2015.

NEW

NEW Federal Cybersecurity Enhancement Act of 2015, Carper (D-DE)

Summary Would formally authorize the DHS-run Einstein intrusion detection system and the Continuous Diagnostics and Mitigation program. Would also authorize DHS to issue a directive to an agency to take any lawful action with respect to the operation of an information system (including a system owned or operated by another entity on behalf of the agency) for the purposes of protecting or mitigating against a security threat.

STATUS Reported by the Homeland Security and Governmental Affairs Committee on 7/29/2015.

FEDERAL MARKET FORECAST CONFERENCE NOV. 18–19, 2015 | FAIRVIEW PARK MARRIOTT | PRESENTED BY:

Professional Services Council

The Voice of the Government Services Industry

The Vision Conference is in its 51st year of providing the only non-profit federal market forecast that addresses the defense, civilian and federal information technology markets. Hear the results of the Vision Federal Market Forecast, developed from 250+ interviews conducted with key government agency executives, congressional staff, industry members, think tank analysts and Wall Street analysts.

YOU’LL GET

• A concise, quantifiable assessment of the budgets, programs, priorities and issues in a rapidly changing environment.

• Insight from government customers on their current and future needs.

• Valuable information on trending technology innovations, requirements, developments, upcoming opportunities, improved business practices and ways to build better customer relationships.

• An opportunity for government and industry to exchange ideas on issues, technology, programs and other areas of mutual interest.

9-10-15 Vision half page.indd 1

Professional Services Council

9/10/2015 1:14:01 PM

Service Contractor / October 2015 / 27

Policy Spotlight

The Pentagon’s War on Commercial Pricing

by Alan Chvotkin, PSC Executive Vice President and Counsel

T

he Department of Defense is fighting another secret war.

This time, regrettably, its adversaries are federal contractors selling commercial items and services. And it has recruited many civilian agencies to the fight.

For more than three decades, Congress has been encouraging the federal agencies generally, and DoD specifically, to take advantage of the innovation taking place in the commercial sector and do a better job of expanding procurement opportunities for commercial items and services. As an inducement to these firms to bring their commercial technology to the government, Congress has freed these companies from a number of specific government-unique requirements and specifically constrained the authority of federal agencies to impose new government-unique requirements on them and on the items and services they offer.

Yet time and again, we see DoD propose a range of procurement regulations to undercut those objectives. Many of the government-wide procurement regulations are also expanding the imposition of special requirements and unique contract clauses on commercial items.

In addition, DoD is continuing to chip away at its acceptance of commercial item exclusions. For example, in 2014 DoD refused to accept a determination from the General Services Administration that the prices of products and services published on the Multiple Award Schedules are “fair and reasonable,” instead requiring DoD contracting officers to make an independent determination of such price reasonableness. In that case they conflated the issue of “fair and reasonable” with whether the price is the “right” price for a given requirement. If I price a car at $30,000, that may well be a fair and reasonable price. But in a competitive market, you as the buyer would have every right to expect me to discount that price. It’s called competition.

Instead, DoD contracting officers are encouraged to seek more detailed cost information from commercial item providers to support the prices bid on specific procurements rather than allowing competition to rule. And DoD is establishing a special cadre of cost and price analysts to develop a repository of price information and be a resource to DoD contracting officers on both the determination of whether the item or service qualifies as a “commercial item” and whether the price offered is “fair and reasonable.”

There are also related actions in the civilian agencies. NASA has joined DoD in questioning whether the prices for goods and services on the GSA Schedules are fair and reasonable, and now also requires its contracting officers to make their own determination on each procurement. GSA is working on a prices paid portal that will provide some, but not enough, visibility into the 28 / Service Contractor / October 2015

prices agencies have actually paid for purchases off the GSA Schedules. GSA also launched a pilot web-based Contract Awarded Labor Category (CALC) tool that makes available all of the labor categories and their price rates, but not other critical information, from eight selected GSA professional services schedules contracts to assist the contracting officers for ordering activities in making their “fair and reasonable” price determination.

However, Congress has not been steadfast on this matter either. At the urging of DoD, Congress modified the statutes relating to DoD’s acquisition of major defense acquisition programs and limited the ability of companies to qualify their commercial items and services for use in these major systems.

Although these constraints apply to only a small percentage of all of the eligible purchases by DoD, it is nevertheless a recognition of the limits of the congressional push. In addition, numerous specific contracting provisions included in annual national defense authorization acts and other laws have carved out exceptions to the principles of commercial item procurements.

Yet, when DoD submitted legislative proposals to Congress in 2013 and 2014 to significantly narrow the definition of a commercial item or service, Congress refused to do so. Interestingly, earlier this year when DoD issued its implementing guidance for its “Better Buying Power” version 3.0 that called for further legislation to change the policy relating to commercial item procurements, senior DoD leaders subsequently decided not to pursue such changes. And the Senate version of the Fiscal Year 2016 National Defense Authorization Act actually has strong language that would advance the role and prominence of commercial items and services acquisitions at DoD. As federal spending declines and the agencies expect more innovation and access to emerging technologies, the tension between whether to contract for goods and services using government-unique requirements or commercial item techniques becomes even more important. In PSC’s view, there is an appropriate place for both contract types based on the agencies’ objectives and outcomes to be achieved. But for commercial item procurements to be available as a viable option for federal agencies, federal procurement must be able to rely on the offerings of the commercial marketplace to meet agency needs. Since the traditional procurement requirements typically also flow down from the prime to its subcontractors, the flexibilities of commercial acquisition are important to all market participants. Hence, as an industry, this is a battle we must and will continue to wage. 3 Professional Services Council

Building Government Acumen Competing for the Future 2016 “In a race to the top, you need someone with a proven track record to hand you the baton.

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Participants Will Gain: • An understanding of what it will take to successfully compete and what you can do today to get started • A powerful network of established leaders and industry peers • Insight into individual leadership strengths and how to leverage them • Experience with applying entrepreneurial “lean start up” approaches and frameworks to growth Program Includes: • Welcome reception, coffee breaks and lunches • Networking opportunities • The chance to earn up to 24 CPE credits

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Professional Services Council

Service Contractor / October 2015 / 29

Council Corner:

Delivering Value

by Joe Carden, PSC Vice President of Membership and Marketing

T

here are many industry associations in Washington competing for your time, leadership and resources.

On most days, you are inundated with requests to participate, engage or support these organizations.

PSC understands the demands on you, the value of your time and the importance of a demonstrable return on investment to justify your support. In an effort to understand member needs and market challenges and uncover ways we can improve the delivery of our offerings and enhance our effectiveness, this year we conducted several customer and product evaluations. In addition to valuable insights into the perceptions of our value proposition, the data underlines the importance of PSC’s advocacy and policy leadership to our members and steps to improve how we deliver it.

However, data must become direction.

In the past year, PSC has taken dramatic steps forward, restructuring the association around five councils. Each council is led by an Executive Advisory Board and facilitated by a senior PSC executive. The Acquisition and Business Policy Council and the Technology Council are our governmentwide policy councils. The Defense and Intelligence Council, Civilian Agencies Council and the Council of International Development Companies are our key mission-area engagement councils. Finally, in February, PSC acquired the TechA30 / Service Contractor / October 2015

merica Foundation, including three new staff members, as well as the CIO Survey, Vision Forecast and Vision Conference, to expand and enhance our value to our members.

But we aren’t done yet. By incorporating the results from our member research, PSC has centered its purpose and focus on four main objectives: Improve the quality of acquisition across the federal market. PSC works across the government to reduce the burden of compliance, increase outcome based and transparent contracting with reduced procurement lead times, improve the government’s acquisition workforce and increase the use of industry best practices. In fact, it is widely accepted that PSC is the most significant association force when it comes to government business policy. For example, in just the first six months of 2015, PSC testified on Capitol Hill four times on issues ranging from detrimental labor executive orders to tax policy and small business issues. We have also led efforts on clarifying “commercial items” in the NDAA and prevented provisions that arbitrarily limit services contracts from being added to the bill. In addition, PSC continues to identify key procurements of importance to our members and for which we see opportunities to shape. During the first half of the year, with significant help from the membership, PSC engaged key government customers Professional Services Council

Get Involved with PSC Want to get involved with one of PSC’s councils, committees, working groups or networks? It’s easy! Just follow these simple steps:

in important discussions about NS2020, HCaTS, Emerald and Alliant 2. And there’s still more to come.

Promote innovation through fostering the awareness and adoption of technology and commercial best practices. PSC will continue to enhance its promotion of innovation and the proper adoption of technology and commercial best practices by driving more efficient and effective IT acquisition, help shape the role of the federal CTO, ensure proper implementation of FITARA and work to fill cybersecurity policy gaps.

Promote the industry’s contribution and value. Through our research, op-eds, columns, congressional testimony and other channels, PSC will not only continue to give voice to industry’s challenges and concerns to affect measureable change, but will also seek to significantly enhance understanding among decision makers, the media and the public, of the very real value and importance of this sector.

Facilitate connectivity and collaboration with mission and acquisition government leaders. PSC will enhance its role as a center of gravity for our industry by continually expanding connectivity and collaboration between the industry and government mission and acquisition leaders. PSC has also begun initiatives to develop key recommendations for the next administration that we believe should form the basis of the next’s president’s management, acquisition and technology agenda.

Additionally, by applying the findings of our member research and embracing industry best practices, PSC will improve our delivery of key offerings valuable to our members.

In the coming months, PSC will be delivering an improved model with some key improvements to watch out for: Professional Services Council

Log in to your pscouncil.org profile.

Select the “committees and preferences” tab (next to “contact information”) on your profile page.

Choose the desired options from the list of councils, committees, working groups and networks.

Click “SAVE” at the bottom of the page to record your preferences.

• Improved Conference Schedule. With the addition of the Vision Conference (Fall), starting in 2016 the PSC Annual Conference will be held in April. We believe this will nicely balance the cadence of our major events across the year.

• Dynamic Online Magazine. PSC will transition the quarterly Service Contractor magazine online to improve its scope, accessibility and timeliness.

• Streamlined Member Communications. PSC will consolidate our member communications into a daily update with relevant industry news; policy, legislative, and regulatory updates; event notifications; and other association news.

These enhancements will ensure that our members receive better access to our many engagement channels and communications, relevant and timely business intelligence and widened programmatic offerings. And because the core of these changes grew directly out of the inputs we received from our members, we are confident they will ensure that PSC continues to provide ever growing and unparalleled value to our members.

We welcome your recommendations and participation as we move forward together. If you have any questions about how you can get more from your membership, please don’t hesitate to contact any of our staff. 3 Service Contractor / October 2015 / 31

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MEMBER NEWS PSC Members Among the Washington Post’s Top 150 Places to Work Congratulations to the PSC member companies named among the top 150 places to work in the Washington, D.C. region by the Washington Post. The Post ranked 25 large businesses, 50 mid-sized businesses, and 75 small businesses.

The PSC members recognized are: Large Business AT&T CACI Capital One Deltek ECS Federal Maximus Noblis WilmerHale Mid-sized Business Buchanan & Edwards Delta Resources Kelley Drye & Warren Perkins Coie Systems Planning and Analysis Small Business JRC Integrated Systems Next Century

DELTA Resources releases 2014 Annual Report DELTA Resources released its 2014 Annual Report on June 15. The report elaborates on several elements of DELTA’s corporate vision as well as plan for the road ahead. It highlights the company’s strategic assessment, the resulting DELTA 2020 plan, the technically focused solutions DELTA is investing in, and specific service areas that will require DELTA’s innovative solutions: cybersecurity, cloud computing, communications and mobility, and flexible ships design.

To learn more visit https://www.deltaresources.com/.

Sabre Awards STEM Scholarships Sabre Systems awarded three, $1,500 STEM Scholarships to high school seniors demonstrating outstanding Science, Technology, Engineering and Mathematics (STEM) accomplishments. The recipients are: Thomas Jefferson High School for Science and Technology senior Annika Kim of McLean, Va.; Havre de Grace High School senior Stephen Link of Professional Services Council

Havre de Grace, Md.; and Thomas Stone High School senior Amanda Reigel of Hughesville, Md.

Sabre Earns Superior Security Rating from DSS Sabre Systems’ corporate headquarters in Warrington, Penn., has earned a “superior” security rating—the highest rating possible—following a recent vulnerability assessment of its system conducted by the Defense Security Service (DSS).

Only 8.3 percent of the 13,300 cleared facilities that the DSS oversees receive the highest rating, according to Sabre. The rating is reserved for cleared facilities that have consistently and fully implemented the requirements of the National Industrial Security Program Operating Manual (NISPOM) in an effective fashion resulting in a security posture of the highest caliber compared with other cleared facilities of similar size and complexity.

Unanet Announces Next Generation Enterprise Software for Project Driven Organizations Unanet released its new, next-generation software to support the needs of executives, project managers, operations and financial teams throughout the entire project lifecycle, on August 3. The latest update to Unanet’s software offering, available both in the cloud and on premise, combines realtime visibility into portfolios of customer projects, project resources, direct and indirect costs, profitability, invoicing, revenue recognition and performance against forecast and budget, with financial management capabilities for receivables, payables, general ledger and cost pool calculations. The addition of financial management capabilities gives managers the ability to monitor the entire bid-to-bill-to-book life cycle for time and materials, fixed price and cost plus projects. By optimizing projects, people, and financials in one easy to use web based product, Unanet customers will be able to improve accuracy and projections for their project-driven business.

Have a story for Service Contractor’s Member News section?

E-mail Elise Castelli at castelli@pscouncil.org.

Service Contractor / October 2015 / 33

PSC: SCENE & HEARD

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1. GSA’s Mary Davie, Chris Fornecker and Amando Gavino take PSC member questions about the NS2020 and Ailliant 2 procurements at a special forum of PSC’s Acquisition and Business Policy Council and Technology Council on May 21.

2. DCMA Director Lt. Gen. Wendy Masiello and DCAA Director Anita Bales outline their priorities for PSC President and CEO Stan Soloway and PSC’s Defense and Intelligence Council at a July 14 Dialogue Series Lunch.

3. USAID Compliance Division Chief Kathleen Stohs met with PSC’s Council of International Development Companies on July 16.

4. VA Deputy Secretary Sloan Gibson offers an update on the department’s transformation initiatives at a July 9 Dialogue Series Lunch hosted by PSC’s Civilian Agencies Council.

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5. PSC President and CEO Stan Soloway moderates a discussion of defense acquisition reform, featuring Robert Durbin of AIA, Lorne Thompson of the Lexington Institute, and John Hamre of CSIC. The event was hosted by the U.S. Chamber of Commerce and keynoted by Senate Armed Services Committee Chairman, Sen. John McCain. Photo Credit: U.S. Chamber of Commerce 6. HHS Senior Procurement Executive Angela Billups and DHS Chief Procurement Officer Soraya Correa met with members of the Civilian Agencies Council Executive Advisory Board on July 22 to discuss what their agencies are doing to advance acquisition workforce and process reforms, and how industry can help.

Professional Services Council

Compliance have you frazzled?

IIf you have SCA employees, you know that compliance with federal labor laws is a complex and important part of your business.

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Do you carry an SSAE-16 audit? l Are you up-to-date on the new Executive Order? l Is your compliance team trained on ERISA and ACA? l Who responds to Medicare Secondary Payor inquiries? l

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Professional Services Council 4401 Wilson Blvd., Suite 1110 Arlington, VA 22203

Up against the ropes?

Make your next move count.

When you’re contending with the government, bench strength counts. Baker Tilly’s specialized team of more than 70 government contractor advisors provides the muscle needed to achieve success when faced with government audits, claims and investigations. Count on us to be in your corner.

Connect with us: bakertilly.com/governmentcontractors Tony Fuller, GovCon practice lead 703 923 8688 | tony.fuller@bakertilly.com

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