The Professional Services Council has welcomed the passage of the fiscal year 2023 National Defense Authorization Act and an omnibus spending bill in Congress and identified several provisions in the measures that could have a potential impact on the federal contracting sector.
PSC said Tuesday the NDAA and the Consolidated Appropriations Act contain provisions that seek to increase transparency into the Department of Defense’s future requirements to inform contracting partners’ investment plans, mitigate supply chain vulnerabilities and help federal contractors recover costs associated with inflation and contract changes driven by the implementation of executive orders.
One of the key themes cited by the council is the expansion of procurement restrictions to semiconductors produced by some Chinese companies as part of efforts to reduce risks to supply chains.
PSC noted that it will monitor how the U.S. government will implement the requirement in the next five years.
According to the council, the defense policy legislation includes budget authority for multiple munitions programs, including Patriot, High Mobility Artillery Rocket System and the Long Range Anti-Ship Missile, that could help ensure supply chain stability.