PSC Recalculates Sequestration Impact

Based on the House passage of the first continuing resolution (CR) for fiscal year 2013, PSC has recalculated the estimated annualized effect of sequestration on both the Defense Department and civilian agencies if sequestration happens on January 2, 2013. Our previous calculations are available here for comparison. 

For DoD, at the major account levels, PSC now estimates that the reduction in each “program, project and activity” will be 10.1 percent.

For the civilian agencies, at the appropriations act level, the reduction would be 8.2 percent. 

For more information about the impacts of sequestration, visit PSC's Sequestration Preparation page. 

Surviving Sequestration, Part 2: What’s a company to do?

As agencies grapple with the prospect of sequestration, your contract funding could be at risk. What’s a company to do? PSC attempted to answer that question for its members during a panel discussion on Jan. 17.

Here is some of the advice PSC’s own Alan Chvotkin gave to attendees.

Immediate actions:

• Know your existing contracts:
• Contract Type
• Available period of performance
• Revenue options/ceiling amounts
• Option periods remaining/available
• Ensure that your past performance is the best it can be and that your PPIRS and FAPIIS database references are accurate and most favorable.

Short-term actions:

• Engage your customers, but recognize contracting officers and program managers might not have answers until the last minute or the authority to act in all cases.
• Evaluate agency spending on its priority contracts – even if you aren’t on it.

Long-term actions:

• Ensure that your past performance is the best it can be and that the PPIRS and FAPIIS database references are accurate and most favorable.
• Evaluate your existing contracts for flexibility to add new work or new funding opportunities.
• Evaluate future solicitations and potential awards for performance flexibility and for risk.
• Be an aggressive advocate for your performance capabilities and revenue options.

Senate Insourcing Provision Could Accelerate Job Losses, Weaken State and Local Economies

At a time when our country’s unemployment rate hovers near 10 percent and Congress has to pass legislation to keep cops, firefighters and teachers employed, the Senate Appropriations Committee has penned a bill that includes language that could put thousands of people out of work and weaken local tax bases.

Section 741 of the Senate’s version of the 2011 Financial Services and General Government Appropriations Act (S. 3677) would require all government agencies to arbitrarily insource work currently being performed by contractors, even though current law and recent OMB guidance says the work is perfectly suitable for private-sector performance. In a letter to senators, PSC President and CEO Stan Soloway outlined the impact of such arbitrary insourcing actions have already had at the Defense Department:

“A number of DoD insourcing actions have already put contractor employees out of work because their jobs were physically moved to different locations, closed off by federal hiring requirements that prevent incumbent employees from continuing to perform the work, or both. It is illogical to implement this misguided policy, which only serves to set back economic recovery.”