PSC: Defense Cuts Must Focus On Innovation, Avoid Arbitrary Cuts

PSC President & CEO Stan Soloway

The Professional Services Council supports the Obama administration’s recognition that a strong, flexible and resilient industrial base is integral to ensuring future readiness and mission success as outlined in the Defense Strategic Guidance released today.

“Clearly, the planned reductions will have an impact on both the military and the industry. Those impacts could be exacerbated if the department does not pay close attention to how it can best capitalize on the capabilities of the private sector,” said PSC President and CEO Stan Soloway. “It is therefore more important than ever that the department buy smart and ensure it genuinely incentivizes and rewards performance and innovation rather than simply buying at the lowest price. In the end, a flight to quality will drive the best outcomes in both the short and long terms.”

“While spending details won’t be released until February, we’re pleased that the department took a strategic approach to determining how best to realign its budget to support future mission needs,” Soloway said. “PSC has long said that missions should drive investment decisions and that arbitrary cuts to contracts, programs, and military or civilian federal personnel would only produce poor results.”

Read Stan Soloway’s outlook for this year’s government contracting market on WashingtonExec here.


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