Spring 2025 Service Contractor Magazine

14 Managing a Reduction in Force:

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WPRESIDENT’S LETTER

elcome to the Spring 2025 edition of Service Contractor magazine. Spring started with good news for federal contractors, as Congress avoided a government shutdown by passing the Full-Year Continuing Appropriations and Extensions Act of 2025. The president’s signature on the bill means that all agencies are funded for the remainder of Fiscal Year 2025 (FY25) at levels broadly consistent with FY24.

That good news brings even more positive developments: the administration can finalize the FY26 President’s Budget Request (PBR) and submit it to Congress. With this, government contractors will gain insight into the new administration’s program and project priorities, allowing them to anticipate where budget proposals might lead to future contracts.

Check out our regular feature “What to Watch in Washington,” on page 30 to gauge when to expect further details on the president’s budget and Congress’s next steps.

PSC Updates

The new administration has hit the ground running. At press time, President Trump has issued more than 100 new executive orders, many of which impact government contractors and/or their government agency customers.

PSC member companies can find relevant executive orders and associated guidance documents on the PSC website, in the Post-Election Resource Center at pscouncil.org/postelection.

Additionally, PSC staff host a weekly webinar covering one or more of the latest administration actions affecting our industry. Members can register for this Member Update at pscouncil.org/events

PSC Advocacy

PSC maintains ongoing engagement with Congress on legislative developments. To stay informed about key bills, refer to the PSC Bill Tracker on page 32

Another key PSC advocacy function is to develop and submit official comments on proposed rules and regulations impacting our industry. Since the last edition, these comments have included:

• Inflation Adjustment of Acquisition-Related Thresholds

• SBA Government Contracting: Subcontracting Program

• Strengthening America’s Cybersecurity Workforce (FAR Case 2019-014)

• RFI on the Development of an Artificial Intelligence (AI) Action Plan (not public)

• FAR: Controlled Unclassified Information

• FAR: Small Business Participation on Certain Multiple-Award Contracts

• FAR: Preventing Organizational Conflicts of Interest in Federal Acquisition

Like all incoming administrations, this one has implemented a freeze on new regulations. However, once that freeze is lifted, we will resume representing your interests in newly proposed rules and regulations.

Conferences

Since the last issue of Service Contractor, PSC has hosted two conferences: the CEO Leadership Summit (February 2-3) and the Federal Law Enforcement Conference (February 20). Highlights and photos from these events are featured in this issue on pages 34 and 35.

We look forward to welcoming all PSC members at The Greenbrier for our members-only Annual Conference from April 27-29. Additionally, all contractors are invited to the FedHealth Conference on May 22 and the Federal Acquisition Conference on June 5. Attendees can expect a robust agenda and ample networking opportunities. Additional details about these and other events are available at pscouncil.org/Events.

Stay up to date on important industry news by subscribing to the PSC Daily newsletter at pscouncil.org/PSCDaily. Non-member companies can create an account and receive a weekly summary.

Federal Contracting Spotlights

PSC consistently promotes success stories in the government contracting industry. These stories highlight the value of contractors by showcasing the important work they do. PSC member companies, Digital Infuzion, HII, and Navarro Research and Engineering, are featured in this edition on page 29

Articles

Service Contractor magazine has also long provided an opportunity for thought leadership in our industry. This issue has abundant and timely offerings, including:

• Lisa Wilkinson of SOSi on how a shifting federal workforce landscape presents opportunities for government contractors;

• Sherean Miller and Z. Selin Hur of Federal Management Partners LLC and Megan Maxwell of Andrew Morgan on how workforce planning leads to long-term operational success;

• Jake Frazer of Precision Talent Solutions on ways to reimagine talent acquisition;

• Tiffany McGarry of Premier Consulting & Integration on managing a reduction in force (RIF);

• Daniel Schmidt of Client Solution Architects on creating a workplace where employees feel valued, supported, and inspired;

• Natalie Kapoulas of The Clearing on how federal agencies can optimize return to in-person work;

• John Im of Magellan Healthcare on an easier transition for employees back to in-person work;

• Patrick Shields of Seventh Sense Consulting, LLC on the importance of guiding principles in the Federal Acquisition Regulation (FAR) as foundational in adapting to shifting policies; and

• David E. Crawford of CGI Federal on zero trust frameworks to enhance security and operational efficiency.

As always, we welcome your input, feedback, and engagement in our efforts. Thank you for your continued support of PSC and our collective mission to help the government be a smarter customer and better buyer.

David J. Berteau, President and CEO

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The Pivot Point: Turning Federal

Workforce Shifts into Opportunities

by Lisa Wilkinson Chief Human Resources Officer, SOSi

Familiar trends marked last year’s workforce discussions and 2025 predictions: the growing impact of technology, balancing return-to-the-office policies with flexible work expectations, and a focus on employee upskilling and well-being. Surveys like PwC’s Global Workforce Hopes and Fears painted a picture of employees worldwide wrestling with the rapid pace of transformation—more than half of the 56,000 workers surveyed across 50 countries reported feeling overwhelmed by the amount of change happening all at once.

A Unique Juncture

Even with ongoing discussions about workforce disruption, few could have foreseen just how abruptly the ground would shift, particularly in the U.S. public sector. The new administration’s drastic changes, including measures to shrink the federal workforce, represent a stark departure from established norms and anticipated trajectories. As a result, government employees are grappling with profound uncertainty. Yet, I see this pivot as an opportunity: a chance to embrace change and rise to the challenge. Additionally, the government contracting community has tremendous potential to bridge gaps and offer a path forward.

Private sector companies that support the government can provide skilled professionals exiting the federal workforce with opportunities to continue their mission of public service, allowing them to carry on their commitment to the nation. At SOSi, where veterans make up a quarter of our workforce, we’ve witnessed how dedication to service can find a new outlet. By offering experienced public servants roles on their teams, the professional services community can deliver critical continuity amidst disruption.

Building a Resilient Workforce

Ensuring skilled individuals can contribute their expertise where it is needed most—and where it will have the greatest impact—is a key element of a resilient workforce that can adapt and thrive. To facilitate it, forward-thinking hiring teams are increasingly moving beyond rigid degree requirements and job title qualifications to prioritize tangible abilities, demonstrated expertise, and potential over conventional credentials. For federal employees navigating an uncertain future, this focus on skills offers a significant opportunity, as their knowledge— honed through years of public service—is highly transferable and valuable in organizations supporting the government.

On the other hand, skills-based hiring empowers professional services organizations to build core competencies and unlock a more flexible and adaptable talent strategy.

Government contractors have a unique opportunity to bolster their ranks with mission-driven individuals who understand agency-specific challenges, can navigate complex procurement processes, and have established networks within the government. By tapping into this talent pool, private businesses can tailor their solutions to be more informed and relevant, streamline project management, and cultivate better communication and collaboration with government customers.

Securing the right talent for the right positions lays the groundwork, but a truly robust workforce demands more than just smart recruitment. Ongoing professional development and avenues for growth are equally vital. Continuous learning, mentorship connections, and clear career progression are key components. For those transitioning from the public sector, tailored programs that bridge industry-specific knowledge gaps and creatively leverage their expertise are essential.

Beyond the immediate concerns of talent acquisition and development, evolving government policies directly impact workforce strategies. Professionals moving from the public to the private sector often experience a cultural adjustment as they navigate differences between the two environments. Government roles are generally characterized by structured hierarchies, formal reporting processes, and well-established protocols, which can foster stability and clarity. In contrast, private industry emphasizes autonomy, flexibility, and innovation. This shift can be both exciting and challenging.

HR teams and organizational leadership play a pivotal role in ensuring a smooth and successful transition. Companies should tailor onboarding programs to help new hires from federal government jobs understand private sector operations, pair them with mentors who can provide guidance and insight, and implement training initiatives that build confidence in navigating dynamic, fast-paced environments.

A Path Forward

From the workforce perspective, we are in an unprecedented moment. The opportunity I see is for private sector employers, particularly government contractors, to help pave a path forward—one that transforms disruption into opportunity and ensures that critical expertise is not lost but redirected. 3

SOSi is a private defense and government services firm.

Harnessing Strategic Workforce Planning to Navigate Uncertain Times

by Sherean Miller, Managing Partner and Z. Selin Hur, Senior Communications Advisor, Federal Management Partners, LLC

Seismic changes in the federal landscape over the past few months have thrown the public and private sectors for a loop. The unprecedented cuts, policy shifts, and uncertainty have left leaders and employees across many government organizations and contractors questioning not just their next steps, but their long-term plans. What can they do to remain resilient? Organizations have many ways to respond to disruptions but may not realize one readily at their disposal—strategic workforce planning.

Shifting business priorities require continuous human resources (HR) transformation. Strategic workforce planning is a systematic process to align an organization’s workforce to strategic priorities by assessing and forecasting work requirements. In other words, ensuring the right people are in the right place at the right time. It should include workload calculations (the number of employees needed to execute a project) and anticipation of upcoming work, as well as the capabilities required for operations and client missions. Companies that utilize strategic workforce planning have reported savings of 10% in their annual labor budgets, a 10% increase in revenue generated per employee, and improved efficiencies in talent retention, financial forecasting, and operational decision-making.

Organizations should typically map workforce needs three to five years into the future; surprisingly however, many have not engaged in robust workforce planning activities. In a recent survey on 2025 HR priorities, a staggering two-thirds of HR leaders admitted that their workforce planning was limited to headcount planning and extended only one year into the future. So how can organizations experiencing sudden changes use strategic workforce planning to their advantage right now?

First, don’t panic. Disruptions are as unwelcomed as they are unexpected, but they can be leveraged to strengthen an organization’s resilience and reputation. With the pivots necessitated by the COVID-19 pandemic, as well as numerous government shutdowns, most organizations should have the muscle memory and workforce strategies to respond to abrupt changes affecting employees, customers, and operations.

For organizations without a strategic approach to workforce planning, this is an ideal time to take inventory of skills, processes, and requirements before making big decisions. This planning process begins with defining the work the organization currently performs and what will be needed in the future. From there, current and future work tasks are translated into workload requirements and drivers, identifying the knowledge and skills needed to perform that work. Next, that information is used to create a data-driven justification for the number and distribution of employees across various functions and units within the organization. A comprehensive workforce planning process will integrate both quantitative data (e.g., number of employees, retention rates, workload driver data), as well as qualitative data (e.g., management insights on future organizational needs). This

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exercise should also include plans to mitigate identified gaps between current workforce and capabilities and future demands.

Organizations with an established workforce planning approach should reassess their procedures before reacting to volatility. Workforce plans are extremely effective in helping leaders leverage data and analytics to inform key decisions. These tools can be used to run cost comparisons for workforce sourcing decisions, advance workforce development and succession plans, allocate budgets and funding, justify staffing decisions, assess and mitigate risk, and guide reorganization efforts.

Organizations can also leverage other HR strategies to optimize their current workforce. Talent mobility strategies (moving employees laterally or vertically based on skills and experience) can help retain top performers and reposition the organization for efficiency and success as operations pivot. Likewise, investing in upskilling and reskilling employees now can help address identified or anticipated skill gaps. Over the past five years, more than half of employees have needed some degree of retraining, and employers expect 39% of workers’ core skills to change by 2030.

While traditionally considered an executive-level function, succession planning is crucial for many roles, enabling managers to identify internal candidates and define job requirements for tactical and client-facing positions. For example, the loss of engagement leaders or capture managers can create more

immediate disruptions than executives, who typically plan their exits months in advance.

It is particularly important to avoid making reactive or hasty workforce decisions during unstable times. Abrupt reductions may lead to loss of expertise and institutional knowledge, damage employee morale, and increase restaffing costs. Conversely, organizations in a position to hire should not rush their decisions. Reductions across the federal government and contracting sector have deepened the external talent pool, but recruiting without a clear understanding of internal and client needs can confuse existing staff and erode confidence in leadership.

Strategic workforce planning is an ongoing process of evaluating how well an organization’s workforce is structured to meet current and future demands. Successfully navigating the new challenges across the government services sector will require organizations to take a methodical approach to understanding their workforce needs based on data-driven insights and foresight. Resilience to overcome the unexpected is built over time through careful planning, deliberate decisions, and strategic action. Organizations that take time to prepare their workforce now will have a clear advantage. 3

Federal Management Partners (FMP) is a professional services firm that delivers transformative, evidence-based workforce and organizational management solutions that provide competitive advantages for the public sector and industry.

Sherean Miller can be reached at smiller@fmpllc.us. Z. Selin Hur can be reached at shur@fmpllc.us.

Workforce Optimization: Bridging Talent, Technology, and Strategy

by Megan Maxwell Workforce Planning & Optimization Consultant, Andrew Morgan

In today’s fast-paced environment, where efficiency and optimization dictate the competitive edge, organizations can no longer afford to treat workforce planning as an afterthought. People Planning (PP) is a critical component of Human Capital Management (HCM), which encompasses recruitment, onboarding, training, performance management, and succession planning to maximize employee value and align contributions with organizational objectives.

While HCM provides a comprehensive framework for workforce management, PP specifically focuses on workforce planning and analytics to ensure that organizations have the right people with the right skills, in the right roles, at the right locations, at the right time. Many organizations face challenges with fragmented workforce data, inefficiencies in staffing processes, and misaligned resourcing. By improving PP, organizations can enhance the broader HCM framework, addressing key deficiencies in workforce visibility, talent allocation, geography, and readiness.

By leveraging technology, such as OneStream People Planner, organizations can bridge critical gaps in HCM by integrating realtime workforce reconciliation and predictive analytics to optimize workforce planning. This targeted approach allows the Defense and Civilian Sectors to strengthen their overall human capital strategy without overhauling the entire HCM ecosystem.

Whether you are in healthcare, defense, asset-intensive industries, or a global enterprise, having a robust people plan is essential to ensure that critical missions are staffed effectively. This contributes to both short-term operational success and long-term strategic workforce development.

The Imperative of a People Plan

In an era characterized by rapid change, required optimization, and operational complexity, a comprehensive yet highly adaptable people plan is not just beneficial; it’s mission critical. Modern organizations face challenges ranging from fragmented data and delayed reporting to evolving budget cycles. Through

our experience in Defense and Civilian organizations, the absence of real-time workforce visibility can compromise readiness, strain budgets, and impact critical mission delivery services. A proactive people plan creates a single source of truth, ensuring that every staffing decision is aligned with and supports the overall strategic mission. (see graphic next page)

Comprehensive Elements of a People Plan

A truly effective people plan goes beyond merely filling vacancies. It encompasses:

• Current Assignments: Maintaining an accurate and upto-date record of roles and responsibilities, along with key workforce attributes such as certifications, degrees, past assignments, and specialized training. A data source that supports analysis with data science techniques ensures leaders can rapidly access and visualize workforce insights to make informed staffing decisions.

• Knowledge, Skills, and Abilities (KSAs): Fully articulating all aspects of an employee’s KSAs enables precise talent alignment with organizational needs. By leveraging structured workforce data, organizations can match employees to roles based on expertise, career progression, and mission demands.

• DOGE Adjustments: A critical component of the comprehensive plan is incorporating strategic adjustments inspired by the Department of Government Efficiency (DOGE). PP can help shift the focus toward performancebased outcomes, measured by clear metrics for success. This approach enhances transparency and fosters closer collaboration between public and private entities.

• Efficiency Solutions: Developing innovative data collection and analysis solutions to improve overall government operations, further reducing waste and driving productivity. Leverage the power of machine learning for insights.

• Contractor Coverage: Seamlessly integrating external talent into the workforce planning strategy, ensuring that contractor roles are clearly defined and effectively managed.

• Future Outlooks: Looking ahead to anticipate shifts in market demands, career progression, and workforce needs, positioning the organization to adapt to both foreseeable changes and unexpected challenges.

This holistic approach is essential for navigating both immediate operational challenges and long-term strategic goals.

Scenario Planning: The Catalyst for Informed Decisions

Scenario planning is a cornerstone of modern workforce strategy. By simulating various “what if” scenarios, decision-makers can forecast potential challenges and opportunities. This method empowers leaders to make data-driven adjustments, ensuring that personnel assignments remain agile in response to unexpected shifts in demand or resource availability. As highlighted in industry discussions, scenario planning is indispensable for mitigating risks and ensuring that the organization can pivot effectively when needed.

Aligning

Capabilities with Mission Requirements

At the heart of effective PP is a deep understanding of individual capabilities. Matching skills, experience, and potential with optimal roles not only enhances performance but also drives mission success. Organizations that excel in this area leverage detailed analytics to map employee strengths against operational needs. This alignment not only boosts productivity but also cultivates a culture of excellence where every team member contributes directly to the organization’s core objectives.

Leveraging

Technology for

Unified Workforce Vision

No plan can succeed without the right technology and data backbone. Workforce planning solutions must integrate diverse tools that enable leaders to manage, analyze, and visualize workforce information in real time. Platforms such as OneStream

People Planner, AI-driven analytics, and leading data visualization tools like PowerBI, Tableau, and Databricks provide powerful capabilities to enhance analysis, optimize reporting, and enable advanced scenario modeling.

By leveraging a combination of workforce planning software, predictive analytics, and business intelligence platforms, organizations can transform fragmented staffing data into actionable insights. These tools empower decision-makers to create dynamic workforce strategies, improve agility, and drive mission success.

For organizations with limited budgets or varying technological needs, starting with widely available analytics solutions can set them on the path toward an integrated workforce planning approach. Whether through enterprise-level platforms or modular solutions, implementing data-driven workforce insights is key to achieving strategic alignment and operational efficiency.

Conclusion

In a time when efficiency and optimization are paramount, PP, as a critical component of a comprehensive Agency HCM strategy, is pivotal to mission success. By developing comprehensive plans that address current assignments, necessary adjustments, contractor roles, and future workforce needs, organizations can create agile and responsive teams.

By leveraging robust scenario planning and sophisticated analytics capabilities, aligning individual capabilities with mission requirements becomes not only possible but a decisive, competitive advantage. By coupling the power of platforms like OneStream with the expertise of Andrew Morgan Consulting, organizations can transform workforce planning from a reactive necessity into a proactive strategic asset—ensuring that every decision contributes to the larger mission of operational excellence. 3

Andrew Morgan is proud to share these insights and invite industry leaders to rethink their approach to PP in the age of optimization. Contact Megan Maxwell at mmaxwell@andrewmorganconsulting.com or visit https://andrewmorganconsulting.com.

The Challenges of Recruiting Top Talent in the “New Era” of Government Contracting

by Jake Frazer President/Founder, Precision Talent Solutions

The government contracting (GovCon) sector is a crucial component of U.S. government operations, supporting everything from national security to infrastructure projects. The first quarter of 2025 has ushered in a “new era” for the GovCon industry, disrupting traditional budgetary trends, drastically reshaping the employment landscape, and altering perceptions of job stability in government-related work. This evolving environment presents both challenges and opportunities for GovCon firms, as they recruit, screen, and select the right talent.

Finding Quality in Quantity

The recent DOGE-induced reductions in the federal workforce have flooded the market with experienced and often highly qualified talent that could transition into the GovCon industry. However, the challenge lies in adapting existing talent acquisition processes to identify candidates who best fit GovCon’s unique needs.

• Translating Resumes: Long-term federal employees may use government-specific terminology that corporate HR teams struggle to interpret. To bridge this gap, hiring teams should leverage specialized expertise in both industry and government to ensure a proper match. This includes cross-referencing federal job titles, classifications, and career progression with corporate equivalents.

• Aligning Mindsets: While government and industry serve the same overarching mission, differences in motivation and mindset exist between federal employees and profitdriven industry executives. Companies should employ assessment tools that evaluate soft skills such as personality, leadership potential, and cognitive ability to ensure the best cultural fit.

• Enhancing Hiring Efficiency: High applicant volumes can overwhelm traditional corporate applicant tracking systems, making it difficult to identify top talent efficiently. While AI tools can streamline candidate selection, many employers fail to use them effectively, leading to wasted time on unproductive interviews. Companies should leverage trained AI systems, video interviews, and targeted “job fairs” to efficiently sift through high volumes of applicants.

• Doing More with Less: GovCon leaders must maximize efficiency in talent acquisition despite limited resources.

GovTECH Talent Competition

Prior to this year’s Federal workforce reductions, the government and its contractors faced a significant shortfall of top technology talent, with over 100,000 unfilled roles in cybersecurity, AI, and data science. Government employers continue to lose ground in the competition for top talent, as they struggle to match the salaries, benefits, and career development opportunities offered by companies like Google, Amazon, and Microsoft.

Traditionally, job stability and security have been key advantages of working in or with the government. However, the current era of uncertainty threatens this perception, making it even harder to attract top-tier candidates. To remain competitive, GovCon companies must:

• Emphasize Mission-Driven Work: Highlight the opportunity to contribute to national security and public service.

• Offer Competitive Incentives: Provide security clearance sponsorships and fund professional certifications to attract and retain skilled professionals.

• Tap into Military Talent: Focus on transitioning military personnel who already possess security clearances, relevant certifications, and a strong commitment to missionoriented work.

Return to Office (RTO)

The new administration has prioritized return-to-office (RTO) policies, with many prime contractors following suit.

While this shift may seem like a disadvantage when competing with private-sector employers offering remote or hybrid work, GovCon firms have an opportunity to reframe it as a strategic advantage when recruiting top talent.

• Emphasize Career Growth: Promote in-office mentoring, team collaboration, and access to specialized projects that provide unique professional development opportunities unavailable in remote settings.

• Enhance Leadership Visibility: Ensure GovCon leaders are accessible and engaged with employees to foster a sense of connection and community. This should be emphasized during the recruitment process.

• Reinforce the Mission-Centered Culture: Where possible, enable employees to engage directly with end users, allowing them to see the tangible impact of their work.

RTO is a new reality, and the GovCon community must reposition it as a competitive advantage rather than a liability in the fight for top talent.

Conclusion

This new era of constrained budgets, fierce competition for talent, and the return to office presents both challenges and opportunities for GovCon leaders. It is an ideal moment to reimagine traditional talent acquisition by leveraging technology, specialized expertise, and targeted recruitment strategies. By doing so, GovCon firms can not only adapt to the evolving workforce landscape but also emerge as leaders in the ongoing war for top talent. 3

Managing a Reduction in Force: A Practical Guide for

Government Contractors

by Tiffany McGarry Principal Talent Acquisition Consultant, Premier Consulting & Integration

When a government contractor determines that a reduction in force (RIF) is necessary, the decision is never made lightly. This process requires extensive planning, careful communication, and a commitment to supporting both departing and remaining employees. While budgetary constraints or project changes often drive RIF decisions, how they’re handled speaks volumes about an organization’s values and leadership.

Preparing for a Reduction in Force

Once leadership concludes that a RIF is required, the next step is to identify the areas and roles that will be impacted. This involves analyzing performance, salaries, bonuses, and project relevance metrics. The process must be thorough, data-driven, and legally compliant to ensure fairness and mitigate risks. After identifying the affected employees, leadership must prepare:

• Offboarding documentation: This includes termination letters, severance details, and any relevant benefits or resources for the impacted staff.

• Communication scripts: Managers need clear guidelines on what to say during these sensitive conversations and how to handle questions empathetically yet professionally.

• Resources for support: Offering severance packages, job placement assistance, or counseling services demonstrates compassion and helps employees transition with dignity.

The emotional impact of a RIF cannot be overstated. Employees often face significant financial responsibilities—such as mortgages, healthcare expenses, or tuition fees—dependent on their job security. Leadership teams must be prepared to address a range of emotional responses, from disbelief to frustration or sadness. Empathy and active listening are the cornerstones of these difficult conversations. By approaching these meetings with care, leadership can preserve trust even in challenging circumstances.

Supporting Remaining Employees

Once the RIF is communicated and meetings with affected employees conclude, attention must shift to the remaining workforce. Transparency is critical at this point. Employees need clarity about the company’s future to maintain morale and productivity. Addressing the following is essential:

• Stability: Clarify whether this was a single event or if additional reductions may occur. Ambiguity will only breed anxiety.

• Operational adjustments: Provide details on any organizational changes, such as shifts in team responsibilities, new goals, or updated workflows.

• Open dialogue: Encouraging feedback and fostering honest communication helps remaining employees feel heard and valued.

From my experience, thoughtful communication following a RIF makes all the difference. When I encountered a RIF earlier in my career, hearing directly from leadership on the same day helped ease lingering uncertainty. The next day, they outlined the company’s reorganization plan and answered questions. This two-step approach allowed me and my colleagues to process the initial news before focusing on the path forward.

Simple acts of connection—such as one-on-one check-ins by managers—also go a long way in demonstrating care and strengthening loyalty to the company. Employees who feel supported, especially during challenging times, are more likely to remain engaged and motivated.

The Ripple Effect on the Industry

RIF decisions affect the implementing organization but also ripple through the broader industry. For recruiters like myself, RIFs often bring an influx of highly skilled professionals seeking new roles, serving as a stark reminder of the human impact of layoffs.

Even a small gesture—whether a referral to a trusted recruiter, a contact at another company, or a link to a careers page—can make a world of difference to someone navigating an uncertain future. Taking that extra step might lead to someone landing a role they never knew existed. It also reminds companies in similar industries to seek opportunities. RIFs can introduce experienced professionals to the job market— individuals whose skills and insights could be invaluable to another organization.

Final Reflections from a Recruiter

Reduction in force decisions are some of the toughest an employer can make. However, by approaching the process with

empathy, transparency, and a focus on support, companies can demonstrate their commitment to their employees—both those who are departing and those remaining.

For government contractors navigating RIFs, partnering with experienced personnel or HR specialists can help streamline the process and mitigate risks, ensuring compliance and professionalism at every stage. Additionally, fostering industry connections, offering resources, and maintaining trust through open communication can lead to better outcomes for everyone involved.

A little kindness and collaboration go a long way—whether through a reassuring coffee chat with an uncertain employee or by forwarding a resume to your network. Together, we can build an industry where even the toughest decisions create pathways for growth and opportunity. 3

FLEXIBLE SOLUTIONS FOR GOVCON

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Retention Revolution: Building a Workforce that Stays and Thrives

by Daniel Schmidt Talent Acquisition Manager, Client Solution Architects

Hiring and retaining skilled professionals with specialized qualifications, such as government security clearances, is one of the most pressing challenges for government contractors today. These cleared workers possess unique skills critical to the success of sensitive projects—yet demand for their expertise far exceeds supply. With the evolving expectations of the modern workforce, particularly the rise of flexible work environments, organizations must rethink their recruitment and retention strategies.

Companies that struggle to attract and retain top-tier talent often face prolonged hiring cycles, increased costs, and setbacks in maintaining project timelines. Additionally, high employee turnover can negatively impact company culture, employee satisfaction, and long-term success. By implementing intentional strategies—such as fostering clear communication, cultivating a strong company culture, and investing in employee development—businesses can better compete in this challenging environment.

Transparent Communication

The modern workforce is more informed now than ever, with access to vast amounts of information at the click of a button, from a device smaller than most calculators. For employers, it’s not enough to ensure their staff is well informed; employees must also feel genuinely heard. Effective communication is a two-way street and should be at the core of a company’s culture, beginning with the hiring process. Employers need to be transparent with candidates, set clear expectations, discuss growth potential, and, if the position is on-site, explain why that requirement is essential. Similarly, candidates should be encouraged to voice their questions and concerns early on, ensuring they make a confident and informed decision to join. Communication must extend well beyond onboarding. Leadership should foster a culture of transparency that empowers employees to reciprocate that openness. Hosting open forums to share company updates allows teams to celebrate wins and address challenges collectively, reducing the risk of disengagement. When employees raise concerns, it’s essential to listen. Often, a single voice reflects a broader sentiment. Addressing difficult topics proactively through candid discussions fosters trust—employees value honesty and transparency, which leads to higher retention rates and deeper engagement.

Cultivating a Strong Company Culture

A strong workplace culture is a significant factor in both attracting and retaining top talent in the government contracting sector. High-performing professionals stay with companies where they feel respected, recognized, and connected to a greater mission. Fostering a strong company culture with clear values and a

supportive atmosphere sets an organization apart from competitors. Demonstrating a commitment to employee well-being during the interview process reflects a forward-thinking approach.

Highlighting mentorship programs, professional development opportunities, career growth pathways, and team-building initiatives reinforces the benefits of joining your company. Employees prefer workplaces that recognize their contributions and provide opportunities for advancement. A thriving work culture can outweigh salary constraints for employees who prioritize job satisfaction when evaluating long-term career decisions.

A positive and dynamic workplace culture can also mitigate concerns about non-negotiable aspects of the job, such as onsite work requirements. Employees who feel engaged and valued are more likely to accept and adapt to these conditions.

Investing in Employees

Retention starts with investment. Employees who see clear opportunities for growth and development are more likely to stay with their employers rather than seek opportunities elsewhere. Offering robust programs for skills development— whether through external training, in-house workshops, or leadership development initiatives—demonstrates a company’s commitment to its workforce. Encouraging employees to pursue continuing education, certifications, or specialized training

strengthens their expertise while reinforcing their long-term value to the organization.

Clearly defined advancement paths also play a critical role in retention. Employees should understand how they can grow within the organization, which fosters motivation and long-term engagement. These investments not only enhance professional development but also strengthen workplace morale and improve retention rates.

The Time to Act is Now

Talent recruitment and retention challenges are significant, but companies that prioritize open communication, a strong company culture, and employee development will stand out in a highly competitive job market.

Securing and retaining top talent isn’t about simply checking boxes—it’s about creating a workplace where employees feel valued, supported, and inspired to do their best work. The question is no longer whether you should implement these strategies—it’s how soon. Start the conversation with your human resources team, engage leadership, and implement incremental changes to strengthen your talent pipeline. By acting now and aligning operations with modern workforce expectations, your company can position itself as a leader in attracting and retaining top talent. 3

Email Dan Schmidt at daniel.schmidt@csaassociates.com. Website: https://www.csaassociates.com.

Optimizing the Return to Office: A Federal Agency Guide

by Natalie Kapoulas Workplace Practice Lead, The Clearing

As federal agencies require a return to in-person work, agencies must balance compliance, efficiency, and employee experience. Unlike private sector organizations with flexible hybrid policies, government agencies face unique challenges in navigating this transition. This article outlines a strategic approach federal agencies can use to optimize space, enhance employee well-being, leverage technology, and ensure a seamless transition back to in-person work.

Workplace Transformation: A Strategic Imperative

Effective workplace change management is crucial to the success of a structured return to in-person work. Agencies that proactively plan and engage employees in the transition are more likely to achieve desired outcomes. Key strategies include:

• Proactive Communication: Keep messaging simple, direct, and consistent across multiple channels.

• Employee Involvement: Solicit feedback and create opportunities for employees to engage in decision-making.

• Leadership Commitment: Ensure leadership alignment and sponsorship to reinforce workplace policies and cultural shifts.

• Organizational Ambassadors: Leverage internal advocates to promote and facilitate the adoption of new work models.

Suggested Return to In-Person Work Planning Process for Federal Agencies

To successfully implement the return to in-person work mandate, we recommend adopting the four-step process below:

1. Conduct workplace readiness assessments: These assessments identify necessary changes to facilities, equipment, and other resources to support increased occupancy.

2. Engage employees through surveys and feedback sessions: The more conversations you have about the transition, and the more inefficiencies you can address, the smoother the change will be.

3. Develop a phased transition plan (if applicable) with clear milestones: You may not be able to accommodate all employees on day one, but providing clear information about who must return first, the reasoning behind the process, and the timeline for subsequent phases will enhance transparency.

4. Monitor and adjust strategies based on real-time data and feedback. No plan is perfect, and unforeseen challenges are inevitable. The best approach is to maintain open communication with employees and regularly evaluate data to make informed decisions.

Key Considerations for Federal Agencies

Our experience has shown that focusing on the following areas can facilitate a smoother transition to in-person work:

1.

Space Planning & Occupancy Management

• Ensure workspace layouts align with expected occupancy levels and make real-time adjustments as necessary.

• Design workspaces that foster collaboration while maintaining efficiency.

• Implement desk-sharing and reservation systems to support mobility inside and outside the building.

2. Employee Health

• Update office spaces to meet current health and safety regulations as well as emergency and crisis response measures.

• Address employees’ ergonomic needs.

• Ensure employees receive necessary accommodations promptly.

3. Technology & Infrastructure Readiness

• Ensure IT systems support desktop technology setups, meeting room A/V, and collaboration tools.

• Implement robust security protocols to accommodate increased office attendance.

• Maintain building systems (HVAC, lighting, badge access) to optimize efficiency.

4. Workplace Experience & Employee Support

• Create an inviting office environment with diverse workspaces to enhance productivity.

• Clearly communicate policies, expectations, and available support resources.

• Address commuting, parking, and accessibility concerns to ease the transition.

• Preserve and enhance the workplace environment through intentional change management strategies.

5. Operational Efficiency & Building Management

• Adjust facility operations based on actual occupancy patterns.

• Reassess vendor contracts for cleaning, security, and other essential services.

• Plan for long-term adaptability as work models continue to evolve.

Lessons from the Private Sector

Private sector organizations that have successfully transitioned employees back to in-person work have focused on:

• Flexibility where possible: While federal agencies may have stricter mandates, allowing for some flexibility in daily scheduling can improve productivity.

• Technology enablement: Investing in digital collaboration tools can ease the transition and enhance productivity. Examples include:

- Digital Collaboration Hubs – Platforms like Microsoft Teams, Slack, and Asana streamline

communication, task management, and project, keeping teams aligned whether in-office or remote.

- Smart Office Integrations – Desk reservation systems (e.g., Robin, Envoy) and meeting room booking tools optimize office space and improve hybrid work efficiency.

- AI-Powered Automation – AI-driven platforms like Zapier and UiPath handle repetitive tasks, reducing manual workload and boosting productivity.

- Real-Time Analytics – Business intelligence tools like Power BI and Tableau provide data-driven insights to optimize workflows, office usage, and employee engagement.

- Customer Intelligence – Tools like HubSpot CRM and Clarabridge use AI-powered text and speech analytics to analyze customer feedback.

Conclusion

A well-executed return to in-person work strategy requires proactive communication, and a commitment to balancing operational needs with employee experience. By leveraging best practices in space planning, employee welfare, technology integration, and workplace change management, federal agencies can create a more effective and resilient workforce—ultimately delivering improved services for the American public. 3

Natalie Kapoulas brings over a decade of experience in workplace strategy, advising architecture and design firms as well as the commercial real estate industry. She holds a Bachelor of Arts in Organizational Development and Behavioral Psychology from George Mason University and is certified by the Society for Human Resource Management (SHRM-CP). Email: natalie.kapoulas@theclearing.com.

OfficeOvercoming Reentry Anxiety: 5 Tips for Employees

by John Im Vice President, Federal Program Operations, Magellan Federal

As workplace dynamics continue to evolve post-pandemic and under the current administration, many organizations are shifting away from remote and hybrid work models to return to in-person operations. This transition represents a significant adjustment for employees who have grown accustomed to the flexibility and comfort of working from home. If you are experiencing stress or anxiety about returning to the office environment, these tips can help you navigate this change effectively.

1

Plan Your Transition

A methodical approach to your office return can significantly reduce associated stress. If your organization offers flexibility, consider implementing a gradual return strategy—beginning with two or three days per week and progressively increasing your in-office presence as you become more comfortable with the routine.

Before your official return date, conducting a “dry run” of your commute and morning routine can prove invaluable. This practice session allows you to identify potential challenges and adjust accordingly. Time your journey during typical rush hour conditions to gain an accurate understanding of your new schedule requirements.

Mentally rehearsing common workplace scenarios can also enhance your preparedness and confidence. Visualize interactions with colleagues, meetings in conference rooms, and navigating shared spaces. While you cannot anticipate every situation, focusing on elements within your control can restore a sense of agency during this transition period.

2

Revitalize Your Daily Routine

The shift from a home-based to an office-based workflow necessitates a recalibration of your daily habits. As you prepare for your return, consider how your current morning routine must evolve to accommodate commuting time and professional presentation requirements.1

Begin by allocating extra time for morning preparations— setting your alarm 30-45 minutes earlier than your remote work schedule might be necessary. This buffer helps prevent the stress of feeling rushed. Prepare essential items the evening before: pack your computer bag, arrange your lunch and snacks, and select your outfit to streamline your morning process.

Take inventory of your professional wardrobe well before your return date. Try on work clothes to ensure they still fit comfortably and appropriately. This preparation prevents last-minute clothing crises and builds confidence in your professional appearance.

3

Embrace the Benefits of In-Person Work

While returning to office life may initially feel challenging, consciously focusing on its advantages can foster a positive mindset. In-person work environments offer numerous benefits that remote settings cannot fully replicate.

Face-to-face collaboration often yields more dynamic and creative teamwork. The spontaneous exchange of ideas in shared spaces can lead to innovative solutions and stronger professional relationships. Physical proximity to colleagues facilitates networking opportunities that can enhance your career trajectory and professional development.

The office environment provides access to support staff, specialized equipment, and dedicated workspaces optimized for productivity. Many employees also value the boundary between professional and personal life that comes with physically leaving the workplace at the end of the day. Additionally, working alongside colleagues can restore a sense

of organizational belonging and shared purpose that may have diminished during remote work. This renewed connection to your company’s culture and mission can reinvigorate your professional motivation.

4

Personalize Your Workspace

Your office or cubicle may remain unchanged since your last regular appearance, or you may be assigned a new space. Taking time to refresh or set up this space can significantly impact your comfort and psychological adjustment.1

Consider updating your workspace with items that reflect your current interests, achievements, and values. New framed photographs of loved ones, meaningful mementos, or inspiring quotes can transform an impersonal space into a motivating environment. Practical comfort enhancements might include an ergonomic cushion, footrest, or desk lamp with appropriate lighting.

Stock your workspace with stress-management tools and comfort items—such as a stress ball, hand cream, tea bags, or healthy snacks. These small touches create a supportive microenvironment, helping ease the transition on challenging days.

5 Manage Transition-Related Stress

The return-to-office transition commonly triggers various stress responses. Recognizing and addressing these reactions proactively enhances your resilience. You might experience a range of emotions, including anxiety about social interactions, frustration with commuting, sadness over lost flexibility, or general irritability as you adjust to new constraints.2 These emotional responses are entirely normal aspects of significant change.

Practicing self-compassion and patience during this period is essential—allow yourself grace as you readjust to office life. Maintaining open communication with trusted colleagues, friends, or family members about your concerns provides valuable emotional support. While some days you may prefer solitude, staying connected to your support network remains crucial for emotional health and perspective. These supportive relationships help normalize your experience and provide encouragement as you navigate this professional transition.

Conclusion

Returning to the office after an extended period of remote or hybrid work is a significant adjustment, both professionally and personally. While the transition may come with challenges, taking a proactive approach can help ease the process. By planning your return strategically, refining your daily routine, embracing the benefits of in-person work, personalizing your workspace, and managing stress effectively, you can navigate this change with confidence and resilience.

Remember, adaptation takes time—be patient with yourself as you reacclimate to office life. Seek support from colleagues, maintain a positive mindset, and focus on the opportunities this transition can bring. With the right strategies in place, you can make the shift back to in-person work a smooth and successful experience. 3

1 https://www.indeed.com/career-advice/career-development/how-to-transition-from-remote-to-onsite-work

2 https://www.indeed.com/career-advice/career-development/stressed-about-work

Embracing FAR Guiding Principles: Enhancing Federal Acquisition Efficiency

by Patrick Shields Director of Acquisition Practice, Seventh Sense Consulting, LLC

President Trump has issued multiple Executive Orders (EOs), particularly those related to the Department of Government Efficiency (DOGE) initiatives, aimed at regulatory changes.” His campaign commitments and policy actions indicate an intention to continue his demonstrated deregulation proclivity during his 1st term. EO #14192, Unleashing Prosperity Through Deregulation (January 31, 2025), explicitly freezes the issuance of new and updated regulations. Additionally, EO #14222, Implementing the President’s “Department of Government Efficiency” (February 26, 2025), directly addresses agency regulations and policies, including those related to acquisition and contracting.

Beyond the EOs already issued—and those yet to come— this shift is intended to modify regulatory requirements. Proponents argue it reduces burdens on federal agencies and the public, while critics raise concerns about potential oversight gaps. In 2022, the Supreme Court ruled that agencies cannot impose regulations on major economic or policy issues unless specifically authorized by Congress.1

Various DOGE-related discussions, whether supportive or critical of the initiative, acknowledge that the Federal Acquisition Regulation (FAR) can be highly restrictive, as frequently implemented by federal agencies. The FAR serves as a framework for compliance and accountability, though perspectives on its efficiency vary. So, how can agencies proactively adapt to shifting policies? While predicting every regulatory change is impossible, one clear path forward is for FAR-covered agencies—and even non-FAR-covered entities—to fully embrace and implement the FAR Guiding Principles outlined in FAR 1.102, particularly the Acquisition Team concepts in FAR 1.102-4.

Rather than mandating their adoption, these principles should be encouraged as the default operating framework, with adjustments made only when specific acquisition circumstances necessitate deviations.

Background on FAR Guiding Principles

The FAR’s Guiding Principles emphasize teamwork via an interactive Acquisition Team construct, integrity, and delivering the best value to the customer. These principles help ensure that

If federal agencies actively embrace the FAR’s teamwork, integrity, and innovation principles—both internally and in collaboration with contractors—procurement processes will become more efficient, cost-effective, and mission-driven.

the federal acquisition system provides high-quality products and services while maintaining public trust.

Despite these established guidelines, my experience over the past two decades as an acquisition and contracting subject matter expert (SME) has shown a consistent lack of full implementation of these principles—both in agency policy and practice.

Understanding FAR Guiding Principles

The FAR’s guiding principles aim to deliver the best value to customers while maintaining public trust. They encourage collaboration, informed decision-making, and innovation.

Key Principles:

• Best Value Delivery – Ensuring that agencies receive the highest value products and services in a timely manner while maintaining cost efficiency.

• Teamwork and Empowerment – Encouraging collaboration among all acquisition stakeholders, including technical, supply, procurement, customer, and contractor teams. Team members should be empowered to make informed decisions within their area of expertise, fostering open communication and operational efficiency.

• Integrity and Fairness – Conducting business with transparency, fairness, and ethical integrity to maintain public trust.

• Innovation and Flexibility – Allowing for creative solutions within the bounds of sound business judgment. If a strategy benefits the government and is not explicitly prohibited by law, it should be considered viable.

The Role of Acquisition Team Members

For acquisition teams to function effectively, they must be empowered, well-trained, and collaborative.

Key Areas of Focus:

• Empowerment and Decision-Making – Acquisition team members should have the authority to make timely and effective contract-related decisions.

2 https://acquisitiongateway.gov/periodic-table

• Training and Development – Ongoing professional development is essential to equip acquisition professionals with the skills and knowledge necessary for success.

• Cooperative Relationships – Fostering positive collaboration between government agencies and contractors leads to more successful acquisition outcomes.

It is important to underscore the value of efficiencygenerating innovative practices that can best emerge from within acquisition teams. The team members best understand the critical elements of their acquisition project and the circumstances within which they are operating.

A very effective and prolific resource available to any acquisition team is the “Periodic Table of Acquisition Innovations (PTAI)” maintained on the Acquisition Gateway.2 However, whether or not they are armed with an externally crafted (and proven) idea to adopt and adapt to the team’s own situation, only fully cross-functional, empowered teams can drive it to ultimate success.

Conclusion

If federal agencies actively embrace the FAR’s teamwork, integrity, and innovation principles—both internally and in collaboration with contractors—procurement processes will become more efficient, cost-effective, and mission-driven. Implementing these principles at the agency policy level will enhance acquisition effectiveness, enabling government agencies and their contractor partners to achieve their objectives with greater speed and efficiency. 3

Patrick Shields has 47 years of experience as an acquisition/contracting professional and innovative leader. As a Navy Department civilian, he served as major weapons systems contracting officer and manager. Since retiring from civil service, he has provided subject matter expertise in acquisition strategy, documentation support, policy development, and training for numerous federal civilian and Department of Defense (DoD) organizations. He also managed an “ask the expert” response team and authored numerous publications for over 25,000 acquisition professionals in federal agencies.

Modernizing Federal IT with Zero Trust and Application Portfolio Management

by David E. Crawford, CISSP, PMP Director, CGI Federal

Federal agencies implementing zero trust frameworks must grapple with a broad range of factors that can influence plans and initiatives. Your application portfolio is a significant aspect of successfully implementing zero trust, and many agencies are at the starting line for analyzing and rationalizing applications.

Application workload is one of the five pillars of zero trust. Applications proliferate so rapidly across organizations that getting a full picture of your application ecosystem is rarely simple. Still, for success with zero trust, it’s essential to do so.

A Quick Refresher

Zero trust provides the foundation for powerful cybersecurity, and any organization with critical assets should consider implementing it. Built on the premise that threats can originate from both outside and within the network, zero trust demands stringent verification measures for every individual and device seeking access to a given asset or resource.

As its name implies, zero trust is a framework to enhance security by granting the least amount of access possible to critical systems and data. Implemented correctly, it ensures that only authorized individuals or systems have access to specific assets—and only to those they truly need.

How Zero Trust and IT Modernization Intersect

An IT modernization initiative often provides an opportunity to implement a zero trust framework. Zero trust reinforces many of the goals of modernization, and the necessary business process reengineering and organizational change management that come with modernization can ease the transition to new security practices.

The goals of IT modernization typically include improving efficiency, agility, scalability, and reducing costs, enhancing security and enabling digital transformation. Zero trust provides a robust security framework that supports these goals.

Application Portfolio Rationalization

Identifying and removing duplicative, outdated or unused applications reduces the organization’s potential attack surface while increasing efficiency and reducing software costs.

Evaluate each application in your ecosystem using qualitative data and metrics. Consider the entire lifecycle of each application, from development to retirement. Where possible, leverage investments in existing technologies such as Application Discovery and Dependency Mapping (ADDM), and Application Portfolio Management (APM) solutions. At the end of the analysis, you should have each application categorized as retain, retire, replace or consolidate.

To begin the rationalization process, consider these steps:

Understand there is no defined end state for zero trust—you never truly reach a final destination. It is an information security model that organizations must continuously refine and adapt as new technologies emerge.

1. Catalog Applications:

• Inventory: Include details such as application name, functionality, users, and associated costs (licensing, maintenance, etc.).

• Ownership: Identify and document both the business owner and the technical owner for each application.

2. Assess Usage and Performance:

• Metrics Analysis: Collect usage metrics to determine which applications are widely used and which are underutilized.

• Performance Evaluation: Assess the technical performance of each application, including response time, reliability and scalability.

3. Categorize Applications:

• Platform Dependency: Categorize applications based on their platforms, such as legacy systems, cloud-based solutions, or hybrid environments.

• Compatibility: Identify applications that are incompatible with the current or future IT environment.

4. Identify Redundancies and Duplicates:

• Duplicative Applications: Identify applications that perform similar functions and determine whether all are necessary.

• Nested Applications: Be alert to applications embedded within larger systems that may not be immediately visible.

5. Evaluate Business Value:

• Business Impact: Consider each application’s contribution to business outcomes, customer satisfaction and strategic goals.

• Total Cost of Ownership (TCO): Calculate each application’s TCO, including direct and indirect costs.

6. Research and Plan for Modernization:

• Legacy Replacement: Research suitable replacements or modernization options for legacy applications.

1 https://www.cgi.com/us/en-us/federal/cybersecurity/zero-trust

• Modernization Roadmap: Develop a roadmap to modernize the application portfolio, prioritizing highimpact applications.

7. Identity and Access Management (IAM) Analysis:

• Current State Assessment: Evaluate the IAM capabilities of each application, focusing on legacy systems that may have outdated or insufficient IAM controls.

• Compliance and Security: Ensure IAM practices meet modern security standards and compliance requirements, such as multi-factor authentication, single sign-on and role-based access control.

• Integration Challenges: Identify legacy applications that lack support for modern security solutions and plan for necessary upgrades or replacements.

Appreciating the Big Picture

Understand there is no defined end state for zero trust—you never truly reach a final destination. It is an information security model that organizations must continuously refine and adapt as new technologies emerge.

Application rationalization, as a subset of the larger zero trust paradigm, is also an ongoing effort. With every new application introduced, existing applications may become outdated or redundant. Managing application proliferation is an ongoing challenge, but it is essential to ensure your zero trust framework remains effective.

Zero trust is a critical component of IT modernization efforts, and its creator, John Kindervag, emphasizes that it is intended to be simple. However, as straightforward as it can be, it does require care and attention to detail.

A well-structured approach to all zero trust pillars will lead to a more successful implementation, allowing you to expand and refine your strategy as your organization evolves. For more insight into zero trust, visit Federal zero trust | CGI United States.1 3

The federal government can enhance operational efficiency by effectively leveraging contractors. The following success stories highlight how contractors have helped achieve better outcomes.

FROM THE FIELD

Implementing and Deploying SEC Evidence Tracking System

Digital Infuzion implemented and deployed a case management system, the Evidence Tracking System (ETS), to support the SEC Division of Enforcement (ENF) requirements for investigating and litigating potential violations of federal securities laws. ETS serves SEC stakeholders nationwide as an authoritative data source supporting over 2,400 users, consolidates application tools, and contains cost by having all stakeholders work within one system.

Making Major Advances in Addressing U.S. Marine Corps Joint Training Needs

The Marine Air Control Squadrons (MACS) and Marine Air Support Squadrons (MASS) needed a more robust way to train Tactical Air Traffic Control personnel on a daily basis without the significant efforts required in deploying to a training area and launching dozens of aircraft to control in a tactical scenario. The team at HII created simulations and scenarios to train the controllers using DMO, providing a capability the units never had previously.

Providing Environmental Services for NASA

At NASA’s White Sands Test Facility (WSTF), Navarro Research and Engineering provides site-wide environmental services. They manage, operate, and maintain two groundwater treatment systems; manage the facility-wide groundwater monitoring program; and perform post-closure care and monitoring of landfill caps and covers for 36 hazardous/solid waste management units.

Read more at federalcontracting.pscouncil.org

What To Watch in Washington - April 2025

by David J. Berteau, President & CEO, PSC

The primary concern in our last edition on What to Watch was the uncertainty surrounding the Fiscal Year 2025 (FY25) federal budget. With the enactment of Public Law 119-4, the Full-Year Continuing Appropriations and Extensions Act of 2025, that concern has been resolved. The federal government avoided a shutdown, and funding is secured through the end of September.

However, a new set of uncertainties has emerged to take the place of the FY25 funding concerns. The most significant include:

• The FY26 President’s Budget Request (PBR),

• The budget resolution, including reconciliation instructions and additional funding for defense and border security, and

• The need to extend debt ceiling.

What indicators should we monitor to gain insight into these issues? Let’s examine some key points on the arrow chart.

What to Watch as of 3/31/25

FY26 Budget

The good news is that the FY25 funding levels in the full-year Continuing Resolution give the administration the necessary baseline to prepare and submit the FY26 PBR. The chart reflects the president’s signature on March 15.

We anticipate the initial submission—depicted on the chart—to be released in late April or early-to-mid May as a “skinny budget,” providing summary information for each cabinet department and federal agency. Detailed budget documents will follow in subsequent weeks and will be the subject of many congressional hearings.

For contractors, these budget details will provide critical insights into the programs and projects that align with the administration’s priorities and are considered worthy of continuation in the FY26 budget.

Congress uses the PBR as the starting point for legislation, so watch for hearings and markups on the FY26 budget beginning in May and continuing through June and beyond, as indicated on the chart.

Budget Resolutions and Reconciliation Instructions

At press time, Congress is considering a budget resolution with reconciliation instructions that would provide additional funding over four years for border security and defense, as well as extend the 2017 tax reforms.

While the chart marks April 15 as the budget resolution deadline, Congress has significant flexibility in setting this date.

Key Aspects to watch for:

• The level of additional funding for defense and homeland security,

• The separate legislation required to authorize the executive branch to use these funds—this will help contractors understand how and when the funds will be distributed over the four-year period, and

• Whether the budget resolution includes an extension of the debt limit.

Debt Limit Extension

The U.S. national debt limit reset on January 1, 2025, as shown on the chart.

The U.S. Treasury Department has implemented measures to delay the federal government from defaulting on certain payments, but these measures will only provide temporary relief. Watch for Treasury Department notices regarding anticipated default deadlines.

While Congress is expected to act to extend the debt limit, contractors should prepare for the possibility of a delayed resolution. In 2023, the Biden administration developed contingency plans for default scenarios that closely resembled a government shutdown.

If the risk of default increases, look to PSC for recommendations on how to prepare.

White House Executive Orders

Executive Order 14210, “Implementing the President’s ‘Department of Government Efficiency’ Workforce Optimization

A subsequent memorandum from the Office of Management and Budget (OMB) and the Office of Personnel Management (OPM), dated February 26, instructs federal agencies to submit plans for initial budget cuts and personnel reductions-in-force (RIFs) by March.

By April 14, as shown on the chart, agencies are expected to submit Phase 2 plans outlining reorganization strategies to be implemented by September 30, 2025.

While these plans may not be made public, watch for their impact to surface in the FY26 PBR. The incorporation of Agency RIF and Reorganization Plans (ARRPs) into the budget, as well as congressional actions on the FY26 PBR, will provide valuable insights for contractors regarding future federal agency programs and projects.

Next Steps

There is much to watch for. The actions outlined above are just a few of the possibilities. The administration continues to issue executive orders and guidance documents at an unprecedented pace. PSC member companies can stay informed about policies affecting government contractors through our Post-Election Resource Center.

Look for an updated What to Watch in Washington feature in the next issue of Service Contractor. In the meantime, PSC member companies can stay up to date by registering for our monthly Government Affairs Committee session, held on the first Friday of every month at pscouncil.org/events.

Until next time—keep watching! 3

Join Acquisition leaders from across government and industry discuss insights and best practices—all with an eye toward helping small and otherthan-small companies navigate the changing federal marketplace. This is a must-attend event for those professionals who

119th Congress Bill Tracker 2025

Information as of 3/31/25

BECAME LAW:

H.R. 1968

Full-Year Continuing Appropriations and Extensions Act, 2025

Introduced 3/10/2025

Sponsor: Rep. Cole (R-OK-4)

Cosponsor: N/A

Summary: Full year continuing resolution for FY2025

Status: Became Law 3/15/2025

PASSED THE HOUSE:

H.R. 856

Safe and Smart Federal Purchasing Act

Introduced: January 31, 2025

Sponsor: Rep. Donalds (R-FL-19)

Cosponsor: Rep. Connolly (D-VA-11)

Summary: This bill requires the Office of Management and Budget (OMB) to evaluate the procurement activities of federal agencies to determine whether provisions of the Federal Acquisition Regulation related to the lowest price technically acceptable source selection process have created any national security risk and report to Congress.

Status: Passed House 3/4/2025

H.R. 1166

Decoupling from Foreign Adversarial Battery Dependence Act

Introduced: January 31, 2025

Sponsor: Rep. Gimenez (R-FL-28)

Cosponsor: Rep. Green (R-TN-7), Rep. Moolenaar (R-MI-2), Rep. Pfluger (R-TX-11), Rep. Meuser (R-PA-9)

Summary: Bill prohibits DHS from using funds to procure a battery produced by certain entities, particularly six specific companies owned and operated in China. Prohibition begins on October 1, 2027.

Status: Passed House 3/11/2025

H.R. 1692

PATHS Act

Introduced: January 31, 2025

Sponsor: Rep. Guest (R-MS-3)

Cosponsor: Rep. Thanedar (D-MI-13)

Summary: This bill extends through FY2028 the authority of the Department of Homeland Security (DHS) to use other transactions (OT) to carry out research and prototype projects when the use of contracts, grants, and cooperative agreements is not feasible or appropriate. (OTs, in contrast to traditional procurement contracts, are exempt from many federal procurement laws and regulations.) DHS must notify Congress within 72 hours of using or extending this authority for research and development projects related to artificial intelligence technology and must offer to brief Congress on the rationale for such a decision.

The bill also lowers from $4 million to $1 million the minimum value of contract awards that DHS must publicly report on its website.

Status: Passed House 3/12/2025

PASSED THE SENATE:

S. 524

Coast Guard Authorization Act of 2025

Introduced: February 11, 2025

Sponsor: Sen. Cruz (R-TX)

Cosponsor: Sen. Cantwell (D-WA), Sen. Sullivan (R-AK), Sen. Baldwin (D-WI)

Summary:To authorize appropriations for the Coast Guard and for other purposes.

Status: Passed Senate 3/10/2025

INTRODUCED IN HOUSE OR SENATE:

S. 79

“Allowing Contractors to Choose Employees for Select Skills Act” or “ACCESS Act”

Introduced January 13, 2025

Sponsor: Sen. Lankford (R-OK)

Cosponsor: Sen Peters (D-MI)

Summary: Prohibits solicitations from minimum education requirements for proposed contractor personnel.

H.R. 519

“Federal Subaward Reporting System Modernization and Expansion Act”

Introduced January 16, 2025

Sponsor: Rep. Langworthy (R-NY-23)

Cosponsor: Reps Houlahan (D-PA-6), Lawler (R-NY-17), Davis (D-NC-1), Craig (D-MN-2), Guest (R-MS-3), Hageman (R-WY)

Summary: 180 days after enactment inspector general of GSA shall submit a report containing a review of the FFATA subaward reporting system, with recommendations for improvement.

H.R. 675

Domestic SUPPLY Act of 2025

Introduced: January 23, 2025

Sponsor: Rep. Morgan (R-VA-9)

Cosponsor: N/A

Summary: HHS Secretary in collaboration with Assistant Secretary for Preparedness and Response and CDC shall establish a program of entering into partnerships with eligible domestic manufacturers to ensure the availability of qualified personal protect equipment for preparing for and respond to public health emergencies.

119th Congress Bill Tracker 2025

S. 202

Helping Small Businesses THRIVE Act

Introduced: January 23, 2025

Sponsor: Sen. Shaheen (D-NH)

Cosponsor: Sen. Cassidy (R-LA)

Summary: SBA administrator shall establish a pilot program to assist eligible entities in limiting the risk from rising input costs from commodities.

H.R. 767

“Fast-Track Logistics for Acquiring Supplies in a Hurry Act of 2025” or “FLASH Act of 2025”

Introduced: January 28, 2025

Sponsor: Rep. Garcia (D-CA-42)

Cosponsor: N/A

Summary: Amend the Public Health Service Act to authorize BARDA to award follow-on production contracts or transaction, procure supplies for experimental or test purposes, and acquire innovative commercial products and commercial services.

H.R. 787

Plain Language in Contracting Act

Introduced: January 28, 2025

Sponsor: Rep. LaLota (R-NY-1)

Cosponsor: Rep. Tran (D-CA-45), Rep. Thanedar (D-MI-13), Rep Goodlander (D-NH-2)

Summary: Requires accessibility and clarity in covered notices for small business concerns.

H.R. 818

SPUR Act, Small Business Procurement and Utilization Reform Act of 2025

Introduced: January 28, 2025

Sponsor: Rep. Stauber (R-MN-8)

Cosponsor: Rep. Cisneros (D-CA-31), Perez (D-WA-3), Goodlander (D-NH-2), Meuser (R-PA-9), LaLota (R-NY-1)

Summary: Requires federal agencies to include on the annual scorecard for small business contracting the number of small businesses that receive a prime contract for the first time and are owned and controlled by service-disabled veterans, qualified HUBZone small business concerns, small business concerns owned and controlled by socially and economically disadvantaged individuals, or small business concerns owned

Join executives from across industry and government at PSC’s 9th Annual FedHealth Conference and discover the latest industry policy and acquisition priorities in civilian and military health. Get updates on federal health agencies, future policy and procurement trends, and their implications on your company.

Event Highlights

Event Highlights

Event Highlights

PSC's Leadership Summit, held on Feb. 2-3 at the St. Regis in Washington, DC, included approximately 100 PSC Board Members and C-Suite executives. The event featured the latest updates from senior government officials, and meaningful discussions on the critical issues facing the federal contracting community. Admiral Christopher Grady, Vice Chairman, Joint Chiefs of Staff, Congressman Glenn Ivey (MD-04), and U.S. Army General Paul Nakasone (Ret.), Former Commander, U.S. Cyber Command; Former Director, National Security Agency provided the keynote addresses.

PSC's Leadership Summit, held on Feb. 2-3 at the St. Regis in Washington, DC, included approximately 100 PSC Board Members and C-Suite executives. The event featured the latest updates from senior government officials, and meaningful discussions on the critical issues facing the federal contracting community. Admiral Christopher Grady, Vice Chairman, Joint Chiefs of Staff, Congressman Glenn Ivey (MD-04), and U.S. Army General Paul Nakasone (Ret.), Former Commander, U.S. Cyber Command; Former Director, National Security Agency provided the keynote addresses.

Paul Nakasone, Former Commander, U.S. Cyber Command & Former Director of the National Security Agency, Four-Star Army General (Ret.)

Paul Nakasone, Former Commander, U.S. Cyber Command & Former Director of the National Security Agency, Four-Star Army General (Ret.)

Admiral Christopher Grady Vice Chairman, Joint Chiefs of Staff

Admiral Christopher Grady Vice Chairman, Joint Chiefs of Staff

Zach Parker, President, CEO, and Board Director, DLH Corp., Chair of the PSC Board of Directors

Zach Parker, President, CEO, and Board Director, DLH Corp., Chair of the PSC Board of Directors

Congressman Glenn Ivey (MD-04)

Congressman Glenn Ivey (MD-04)

Event Highlights

Event Highlights

Event Highlights

PSC's 8th Annual Federal Law Enforcement Conference sold ou Westin in Ballston, Virginia and live streamed globally. The e and current government leaders. White House Border Czar, and Sp Investigative Technology provided the keynote addresses.

PSC’s 8th Annual Federal Law Enforcement Conference Westin in Ballston, Virginia and live streamed globally. The event featured the latest updates from former and current government leaders. White House Border Czar, and Special Agent in Charge of DEA Office of Investigative Technology provided the keynote addresses.

PSC's 8th Annual Federal Law Enforcement Conference sold out with 290+ attendees held on Feb. 20 Westin in Ballston, Virginia and live streamed globally. The event featured the latest updates from former and current government leaders. White House Border Czar, and Special Agent in Charge of DEA Office Investigative Technology provided the keynote addresses.

view more pictures & recap of the conference. Mike Maxwell, Special Agent in Charge, Office of Investigative Technology, DEA.

Tom Homan, White House Border Czar.

David J. Berteau, President & CEO, PSC.

Ron Appel, Vice President, Law Enforcement & Cyber, Harmonia (mod); Mike Maxwell, Special Agent in Charge, Office of Investigative, Technology, DEA; Eric McLoughlin, Deputy Asst. Dir., Innovation Lab & Technical Operations Center, HSI.

Timothy Kotman, Unit Chief, Cyber Crimes Center (C3), HSI; Derrick Driscoll, COO, National Center for Missing & Exploited Children; Intelligence Research Specialist, Emerging Threats Center (ETC), ATF; Shimon Richmond, Asst. Inspector General for Investigations Federal Deposit Insurance Corporation, Office of Inspector General; Jim Schrant, Dir. Strategy & Growth, Operations Support & Services, CACI (mod).

lawenforcement.pscouncil.org

Tom Homan, White House Border Czar.

Ron Appel, Vice President, Law Enforcement & Cyber, Harmonia (mod); Mike Maxwell, Special Agent in Charge, Office of Investigative, Technology, DEA; Eric McLoughlin, Deputy Asst. Dir., Innovation Lab & Technical Operations Center, HSI.

Timothy Kotman, Unit Chief, Cyber Crimes Center (C3), HSI; Derrick Driscoll, COO, National Center for Missing & Exploited Children; Intelligence Research Specialist, Emerging Threats Center (ETC), ATF; Shimon Richmond, Asst. Inspector General for Investigations Federal Deposit Insurance Corporation, Office of Inspector General; Schrant, Dir. Strategy & Growth, Operations Support & Services, CACI (mod).

The PSC Vision Federal Market Forecast and Conference is the only non-profit forecast that addresses the defense, civilian, and federal markets. 20+ reports on federal agencies and government-wide topics gathered from 400+ non-attribution discussions with government leaders, think tanks, Congressional staff, and Wall Street analysts. Gain exclusive insights at the Vision Federal Market Forecast mid-year preview event and hear about the latest developments and key takeaways while delving into the departmental changes emerging under the new administration.

get an exclusive preview of this year’s Vision Federal Market Forecast Conference on December 1, 2025 — the premier event for understanding the future of federal markets.

PSC offers a variety of high-visibility opportunities for your company throughout the year, including event sponsorships, advertising, and year-long partnerships.

Advertising options include: View all options at: pscouncil.org/sponsorship

Member Meetings

Service Contractor Magazine

The PSC Daily e-Newsletter

Social Media

Council Spotlight e-Newsletters specific to Acquisition and Business Policy, Civilian Agencies, Defense and Intelligence Agencies, International Development & Technology

PSC offers sponsorships for key events at a variety of levels so they’re accessible for small, mid-sized, and large companies: