PSC Comments on DoD Contract Finance Study Follow-Up Activity Request for Information
On September 12, 2023, PSC submitted comments responding to DoD's follow-up request for information on its Contract Finance Study. PSC's observations include:

1) The financial marketplace in which DoD contractors operate has changed dramatically and irreversibly since the 1985 Defense Financial and Investment Review report.
2) DoD contract financing policies and practices are important not just for individual companies but for the entire market.
3) More than half of DoD contract obligations are to companies that provide services, not products.
4) DoD small business contracting practices do not reward growth over the long term.
5) Markets focus on quarterly performance, not long-term outlooks.
6) Defense contractors must compete with the commercial economy for their workforce.
7) DoD needs appropriate scenarios to develop and assess options for changes to contract finance policies and practices.
8) The DIB would benefit significantly from increased inclusion of relevant Economic Price Adjustment (EPA) clauses in competitive proposals and as modifications of existing contacts for both products and services. 

Read PSC's comments here