PSC Testifies before House Subcommittee on Shutdown Impacts to Contractors

(Washington – May 6, 2019) -  PSC leaders testified before Congress Monday morning on the lingering impacts of the nation’s longest-lasting government shutdown.

PSC President and CEO David Berteau, along with Leidos CEO Roger Krone and Advanced Concepts and Technologies CEO Michael Niggel, spoke before the U.S. House Oversight and Reform’s subcommittee on Government Operations, which is chaired by Rep. Gerry Connolly (D-VA). They highlighted workforce, financial, and employee impacts of the shutdown, which lasted from Dec. 21, 2018 through Jan. 25, 2019.

Unlike federal government employees, who received back pay after the shutdown ended on Jan. 25, contractors never received back pay, and historically, never have.

“The disparity is wrong,” said Connolly during the hearing. “Contractors serve important roles. Government could not function without them.”

Berteau outlined ways the shutdown was still impacting contractors, and also highlighted ways Congress could help including offering back pay, offering tax relief for donated leave time, and providing full-year appropriations and implementing automatic continuing resolutions.

“The idea that an automatic continuing resolution would prevent a shutdown is a very appealing idea,” Berteau said. “Clearly, a far better approach is, in fact, to use regular order and fully fund the government appropriations.”  

Krone and Niggel said they were able to make investments to keep many of their employees paid during the shutdown,  including sending them to paid training or shifting them to other funded contracts. But the shutdown still took a toll on each of their large and small businesses, respectively. Krone reported a $14 million loss in civilian agency revenue. Niggel said ACT 1 paid out of pocket to retain their cleared technical staff, which was a "huge investment for a small business... with a very high risk that we may never be fully or partially reimbursed."

"Please give agencies authority to guarantee compensation for contractors performing during budget lapses and shutdowns,” Niggel stated before the subcommittee.

Read the statements of Berteau, Krone and Niggel, and watch video of the hearing here.