In a letter, urging Congress to pass full-year appropriations (or at least avoid lapses) to prevent shutdowns, PSC highlighted how government funding lapses can undercut agency missions and disrupt public services supported by contractors.
PSC acts as a policy voice and advocate for the contracting industry, raising issues tied to procurement, appropriations, workforce, and government procurement stability. It includes over 400 member companies ranging from small firms to large integrators that deliver mission-focused services and solutions to federal agencies.
Concerns / Risks Highlighted by PSC related to Shutdown:
PSC’s letter (and related commentary) highlighted multiple risks associated with a lapse in federal appropriations or government shutdowns. Below are some of the key points:
- Disruption of agency operations & mission impact
- When funding lapses, government projects stall, procurement cycles are interrupted, and vital work is delayed.
- Destabilizing effect on the contracting workforce
- Shutdowns harm contractors: many contractor employees do not receive back pay during a lapse.
- Economic and business base harm
- Small and mid-sized firms face disproportionate financial strain during disruptions.
- The letter noted that each day lost to a shutdown leads to wasted taxpayer dollars, duplicative administrative work, and delays in launching new initiatives.
- Uncertainty & inefficiency in government-contractor relationships
- Contracting partners can’t plan; contracts and deliverables may be delayed or interrupted.
- Funding unpredictability undermines long-term planning for both government and contractors.
- “Catch-up” costs after a shutdown
- Recovery from a shutdown takes time; agencies and contractors must re-initiate administrative processes, causing inefficiency.
Recommendations Made by PSC:
To mitigate the risks and avoid the harm of a shutdown, PSC’s letter offered or implied several recommendations. Below are some of the key points:
- Pass full-year appropriations promptly
PSC urged Congress to enact one or more appropriations bills without delay so that the federal government remains fully funded and avoids a lapse. - Avoid extended reliance on continuing resolutions
Rather than patchwork funding, more stable, long-term appropriations are preferable to reduce uncertainty for agencies and contractors. - Provide stable, predictable funding to contractors and agencies
The letter emphasized the need for consistency and certainty in funding so that agencies and contractors don’t have to constantly cycle planning or pause operations. - Recognize the role of contractors as essential mission partners
PSC advocated that contracting firms be considered as integral parts of mission delivery, which implies that policy should ensure contractors are protected during funding lapses. - Protect workforce continuity and mitigate harm to contractors
- Ensure contractors are not unfairly penalized by lapses (e.g. back pay, clear guidance, fairness in reimbursement).
- Provide clarity on stop-work orders, obligations, and processes during lapses.
- Minimize wasted cost and administrative duplication
Since each shutdown imposes catch-up costs, PSC urged procedural changes (or prioritization) to reduce redundant work brought about by funding uncertainty. - Congressional responsibility & accountability
The letter framed timely funding as a core congressional responsibility, urged Congress to act decisively to prevent mission, workforce, and economic damage.
Ultimately, PSC stressed that timely, stable appropriations are not just about budgets; they are about protecting missions, safeguarding the workforce, and ensuring taxpayers get the value they deserve.