Interview transcript:
Terry Gerton: Despite being close to the record length of a partial government shutdown, but in the middle of that, PSC has recently written a letter to members of Congress. Tell us a little bit about that. Who did you write to first?
Jim Carroll: Yeah, we really believe that in order for there to get a resolution and get the government up and running, there needs to be a bipartisan bicameral solution. And that’s what we did. Our letter was addressed to all four leaders, two in each chamber, to try to express not just the normal sort of, ‘This is really hurting us.’ But to explain the impact of mission, the very real concern that what we are going to see are critical issues with mission success as this goes on. And that’s what we were trying to convey in the letter and with some important meetings this week.
Terry Gerton: Jim, has PSC written letters like this in the past or is this something new?
Jim Carroll: We’ve certainly written letters in the past and tried to address significant issues, whether it is a lapse in appropriations or a couple of other issues that are really need the resolution of the entire Congress. But what we’re doing now is PSC is very proactive. We lean into issues. And so with this, we have followed up with significant meetings on the Hill and a very significant meeting at the White House. And so it’s not just a letter, we’re in the fight.
Terry Gerton: Jim, are there particular stories or cases that you are finding really resonate with the key leaders you’re speaking to?
Jim Carroll: I mean, I think the fact that our industry represents close to a trillion dollars in revenue, a million employees across the U.S. But really, it’s the idea that everything, as I said, from some of the DoD platform readiness to the NASA program and the work that’s being done on Artemis II, the launch preparations there. At the FAA, it’s the civilian pilot training that is being impacted. That could have long-term impacts and as Secretary Duffy said a few days ago, this could have safety implications at the rate we’re going. And so those are some of the impacts that we’re having when we bring those subjects up.
Terry Gerton: And what is PSC’s ask in these meetings? What do you want these leaders to do and do you feel like you’re getting traction with them?
Jim Carroll: To go in reverse order, I do think we’re getting traction. And I think again, the idea is not just to reopen the government. Everyone wants that. But what we’re also asking is recognition that once the government reopens and God willing, it’s maybe today, maybe this week and God knows hopefully soon, is that we need the contract officers to have the ability to move very quickly on getting payments out the door, to getting contracts awarded and that’s the best way to overcome some of the lag that is destined to happen. And of course, we do believe that our federal contractors need this reimbursement as well. They’re innocent, just like the federal government workers are innocent and not involved in this and they should not be denied the appropriate salaries that federal government workers will, God willing, get. And so that’s what we’re trying to convey. We also, of course, want Jayden Daniels to get better soon from the horrific injury last weekend. But we’re not making much progress on that.
Terry Gerton: I’m not sure that’s anything Congress can help you with.
Jim Carroll: Maybe not, Terry.
Terry Gerton: I’m speaking with Jim Carroll. He’s the executive director of the Professional Services Council. So Jim, also in the midst of this appropriation lapse, we’ll use that language, you all held a defense conference. How did that go? Did you get much participation and kind of what was the mood?
Jim Carroll: First off, it was a great defense conference. We had over 150 attendees. It was one of the largest attended events on the defense side that we have had. And despite some government workers not able to participate, we had a lot of former government workers who just left in January of this year, come back and talk about their experiences and really sort of explain how best to work in this new world, not only of what might be a Revolutionary FAR, but really on the mission. What’s happening in AI and what is happening with this new technology, we had multiple members of Congress come and again, bipartisan, the people, the members of Congress who we sincerely work with are those who understand the value that our members bring and it’s not based on politics. I will say Congressman Walkinshaw right here from the Northern Virginia area where so many of our members are located, he was really complimentary of the industry and some of the Republican members that came to. I know for Congressman Walkinshaw, who we’ve been speaking with quite a bit lately, he said something that I think really explains what we do. And he said, ‘If you want to succeed, you have to have good people and good technology.’ And I think sums up that what we’re doing is we’re bringing really good people and good technology, I would say great people and great technology, and that’s how we are able to remain a strong USA.
Terry Gerton: Was there anything about the conversations at the conference that surprised you?
Jim Carroll: I think a calmness, to be honest. I think I calmness with everyone sort of recognizing that this shutdown will end, that people, the larger companies are trying to move people around to contracts that are fully funded and do things like that. But even those sort of medium-sized companies are calm and knowing that this is a storm that they can ride out. That’s our message that we’re fighting. This, you know, some of the small companies who are almost exclusive DoD or maybe I should say exclusive to the federal government, because there was the DoD contract, pretty much exclusive DoD, they’re hurting and they’re worried. But there’s not a sense of panic. And Terry, maybe that’s reflection that this has been such a new world for the last 10, now 11 months that they are used to holding tight and they’re resilient. And so I was very pleased that they were able to understand and rely on us and their fellow members. We’re so much stronger when we’re together that we’re fighting for the reimbursement and a quick start.
Terry Gerton: Was there any consensus around the future of the defense sector and the defense industrial base?
Jim Carroll: Everyone does believe that the next three years and a few months, there will continue to be an emphasis on DoD and DHS. One of the issues is, we know that we’ve discussed, was not only how AI is going to continue to change the landscape, but the power demands for AI are going to be a very real issue for everyone, including people who have nothing to do with the government where there’s so much of a energy requirement for these data centers, especially as we get into AI, what will the impact be on the civilian population? We’ve heard things such a possible rolling brownouts in some parts of the U.S. as this pull continues of energy. There were some conversations, obviously, about the use of modular nuclear reactors, small ones that would pop up around the country and the use of those to fund the technology from an energy perspective. And so that was a fascinating discussion as well and just sort of a thought-provoking for the future.
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