PRESIDENT ’S LETTER
W
elcome to summer, 2022! Each year at this time, we see at PSC two competing dynamics. First, there are events that are part of the annual cycle of budgets and contracts. Then, there are the new initiatives and priorities that come from Congress and the administration, either to shape the future or to respond to current conditions. This summer, we seem to have an abundance of work on both fronts. As we do every year, PSC is closely tracking legislation, particularly the National Defense Authorization Act (NDAA) for funding priorities and policy changes that will affect national defense and security programs. The House Armed Services Committee’s version of the FY23 NDAA included a number of key provisions (note that the Senate marked up its version of the FY23 NDAA but at press time has yet to release details or language). You can read more in our regular Bill Tracker feature. The more immediate concern for government contractors, though, is how the NDAA will help them address the cost growth from inflation and the tight labor market that they’re experiencing today. An inflation rate of 8.6% means increasing costs for labor, components and materials, and transportation have rapidly outpaced the assumptions built into existing contracts and into FY22 agency appropriations (which assumed roughly 2 percent for inflation). PSC has urged the Administration to take action now to help companies address their higher workforce costs. One straightforward action would be to issue government-wide guidance to programs and contracting officers that, subject to available funds, encourages them to work with contractors to reimburse them for unexpected higher costs. PSC members can check out the online Inflation Resource Center with both civilian and DoD-related inflation guidance and information, including the March 2022 GSA guidance and the May 2022 DoD memo. The Center also includes PSC actions and additional information and can be found on the PSC website and clicking on the “Resource Center” tab. Beyond the NDAA and the impacts of inflation, PSC’s government relations team continues to track legislation related
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to workforce, cybersecurity, and annual appropriations. The PSC Bill Tracker (pg. 17) also includes the status of these and other key bills on the Hill. In this issue you’ll also find articles on cyber, budgets, workforce, and more, including: • how industry meets the security challenges of federallyprocured software (pg. 6), • new procurement rules on labor law violations (pg. 9) • the benefits of clean audits (pg. 10), • the Coalition for Racial & Ethnic Equity in Development (CREED) Pledge (pg. 12), and • the value of intellectual property (pg. 27). In June, PSC held our annual Acquisition Conference, with speakers engaged with our attendees both virtually and in-person on issues ranging from speed of contract award and governmentindustry collaboration to the impact of the Great Resignation and emerging cyber security rules. We used this conference to roll out the latest PSC Business Forecast Scorecard, in which we rate 62 federal agencies and components, letting them know how well their posted forecasts fare against 15 criteria. Visit www.pscouncil.org and search Business Forecast Scorecard to see the results and the supporting comments from the government itself. Finally, we look ahead to the remaining key PSC events this year: Defense in October, International Development in November, and the Vision Federal Forecast Conference in December. Each conference planning committee worked to create engaging agendas and facilitate valuable networking both in-person and virtual while following the proper COVID-19 safety precautions. I look forward to seeing you there. As always, I welcome your input, your feedback, and your engagement in our efforts.
David J. Berteau, President and CEO
Professional Services Council
