Contractor trade groups to merge

The two largest trade groups representing federal contractors have joined forces, creating a powerful new advocacy organization for companies that work for the federal government.

On Wednesday, the Professional Services Council and the Contract Services Association of America, both of Arlington, Va., announced that they would merge as of Jan. 1, 2008. The new group will retain the Professional Services Council name.

Stan Soloway, PSC's current president and a former deputy undersecretary of Defense, said the merger, which has been discussed for nearly six months, makes sense because the two groups share nearly identical agendas and promote the same policies.

"This was a mission-driven decision," said Soloway, who will serve as the president and chief executive officer of the combined entity. "It makes sense to have one unified voice for the public services sector."

PSC Senior Vice President Alan Chvotkin will serve as executive vice president and counsel while Colleen Preston, CSA's senior vice president for public policy and also a former deputy undersecretary of Defense, is expected to round out the leadership team with an as-yet-undetermined title.

"This merger offers real synergies," said CSA Chairman Mike Shelton, who also serves as president of EMCOR Government Services Inc. in Norwalk, Conn. "Joining forces strengthens our industry's voice and solidifies the association's position as the advocate for and voice of the government services industry."

Soloway said that while the two groups share a core mission, there is relatively little crossover of membership of PSC and CSA.

PSC, which advocates primarily for consulting, research and development, and information technology contractors, has about 225 members while CSA has 140 members who generally specialize in facilities management and engineering. Between the two, there are only about 20 crossover members, Soloway said.

Members of PSC voted unanimously for the merger during a board meeting Wednesday; CSA held e-mailed balloting and teleconferencing in which all but a handful of members voted in favor of the move, Soloway said.

PSC has been in the process of moving to a larger Arlington office space, Soloway said, with the idea that the merger would most likely occur. The combined entity is expected to start sharing a new space no later than April, when the PSC's current lease expires. And while the merger officially will take place at the start of the new year, operationally, the groups are not expected to unite until Feb. 1, 2008.

For the first year, the boards of directors and executive committee representatives from each group will be combined. Shelton and current PSC Chairman Jim O'Neill will serve as co-chairmen.

In the coming months, an integration task force, comprised of three members from each organization's board of directors, will recommend a long-term governance structure.

The task force also will make recommendations related to programs unique to either association as well as a long-term dues structure. Until then, members will pay their current dues. Companies that belong to both organizations will pay only the higher of the two dues rates.