Tomeka B. Scales, Ph.D.
Director, Media Engagement & Communications
media@pscouncil.org

Partnerships, Acquisition Reform, and Defense Modernization: 
Insights from PSC’s 2025 Defense Conference

Arlington, Va. (November 3, 2025) -- The Professional Services Council (PSC) welcomed more than 150 attendees to its 7th annual Defense Conference on October 30, 2025, at the Westin Arlington Gateway. The event brought together defense and intelligence leaders from government and industry for candid conversations and collaborative problem-solving focused on energy resilience, acquisition reform, and policy engagement.

“This conference is a critical forum for bridging the gap between government and industry,” said PSC’s CEO Jim Carroll. “Our speakers provided valuable insights on artificial intelligence (AI), acquisition, and modernization, and the event created real opportunities for collaboration and networking across the defense enterprise.”

Key takeaways from the conference are below:

• A discussion on “Aligning Energy Demand and Investment for the Future Defense Industrial Base,” highlighted the rapid and transformative rise of AI, urging Congress to establish balanced guardrails that ensure national security without stifling innovation. Panelists emphasized that the U.S. must streamline regulations, empower private-sector innovation, and modernize defense systems and energy infrastructure. They highlighted the need for faster government processes, outcome-focused metrics, and a renewed industrial mindset akin to World War II mobilization—alongside a strong push for nuclear power and diversified energy production to sustain AI and defense needs.

• A dynamic panel discussion on “Working Together: Strengthening Partnerships Within the Defense Enterprise,” discussed how the Streamlining Procurement for Effective Execution and Delivery (SPEED) Act aims to modernize and streamline defense acquisition through bipartisan, collaborative reform. This panel stressed empowering program executive officers, improving workforce skills, and aligning incentives to create a level playing field for all contractors. Rather than carve-outs or band-aid fixes, they called for systemic change built on trust, communication, and cooperation between Congress, the Pentagon, and industry—ensuring acquisition moves faster, supports innovation, and delivers capability effectively to the warfighter.

• The armchair discussion, “Unlocking and Implementing Commercial Solutions Across the Defense Ecosystem,” highlighted the challenges in the defense acquisition workforce, emphasizing workforce reductions, risk aversion, and the need for stronger industry-government collaboration. This discussion stressed how leadership must take responsibility for risk to empower contracting staff and speed decisions. Panelists noted AI’s growing role in streamlining contracting, but agreed humans must remain central to decision-making. Finally, it underscored the importance of protecting intellectual property while encouraging innovation and small business participation through clearer communication and smarter contracting structures.

• Congressional leaders:
  • Discussed the vital role of federal contractors in supporting national priorities.
  • Warned of significant economic losses resulting from recent contract cancellations and the government shutdown.
  • Highlighted the need to modernize federal IT systems, strengthen cybersecurity, and responsibly advance AI innovation while protecting the federal workforce.
  • Expressed optimism about bipartisan collaboration to restore stability, spur innovation, and sustain the region’s economic strength.
  • Outlined funding priorities for munitions, tactical aircraft, unmanned systems, and critical mineral supply chains, along with procurement reforms under the SPEED Act to accelerate innovation — and thanked industry partners and service members for their contributions.

• The conference concluded with the panel, “Impacts of the Funding Lapse on the Defense Industrial Base,” which examined the negative effects of a government shutdown on Congress's ability to pass critical legislation such as the National Defense Authorization Act and on the federal contracting/defense industrial base (DIB). Speakers highlighted the financial hardship for federal employees and contractors, disruption to industry planning and contracts, and lasting damage to national security due to delays and turnover. The conversation also touched on the unique political gridlock this time, the need for contractor back pay, and the urgency of modernizing and stably funding the DIB to address rising security challenges and integrate new technologies like AI.

“This year’s conference brought together leaders from across government and industry to tackle the most pressing defense challenges,” said PSC’s President Stephanie Kostro. “Attendees left with actionable ideas, strengthened partnerships, and new connections that will help drive innovation, improve acquisition processes, and support national security.”

For more information and to access conference recaps, please visit the official conference website: https://defense.pscouncil.org/.

Download a PDF copy.

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About PSC
PSC is the leading trade association and voice of the government contracting industry, representing nearly 400 member companies—ranging from start-ups to multinational organizations—that support federal agencies with mission-focused services and solutions. Together, PSC member companies employ over one million U.S. workers; and with both commercial and government revenue, their combined annual income exceeds one trillion dollars. Learn more at: www.pscouncil.org.