“The continuing resolution, having now eaten up nearly five months of the fiscal year, is starting to affect the market valuations of publicly traded federal contractors. That may not seem like a concern of the government, but think again. The Federal Drive with Tom Temin spoke to the president and CEO of the Professional Services Council, David Berteau…”
“Tom Temin: Yeah, the government that says it can operate on a CR is like saying, you know, a runner can operate with a broken leg, but it may not be optimal.
David Berteau: You’re not going to win the race that way, OK.
Tom Temin: Then what does this do to their competitive ability, though, maybe the smaller, more agile contractors can get through this better than the publicly traded ones?
David Berteau: Well, we’re still seeing a good pace of solicitations. In other words, the government’s asking companies to submit bids. But everybody is equally hobbled if the government doesn’t award these contracts. We’re seeing options being exercised, we’re seeing extensions of contracts. But every company large, middle sized and small has to hang on to people that were proposed in a bid. And we’ve asked our member companies, are you seeing an increase in the number of times the government requests you to extend the period of validity through your bid? You know, it’s good up to a certain date? Well, would you extend that for another 90 days? Would you extend up to 180 days? We have some that have been extended over a year now. How do you hang on to your key personnel, when you’re not making money to pay for them? No company large, medium or small can do that…” Read the full interview here.
Source: Why services contractors have a difficult landscape to cross – By Tom Temin, February 8, 2022. Federal News Network.
