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View Diary: Private contractors cost more than federal workers in 33 of 35 cases, study finds (140 comments)

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  •  This is a no brainer (0+ / 0-)

    ...to everyone in the industry.  It's a shame the public view on this is so different.

    I admit I haven't read the entire diary or comments yet - busy morning, sorry - but the gist of the story and the title are absolutely correct.

    I worked as a govt contractor in NOAA for 13 years and rose through the contractor ranks so I was managing contracts and saw the financials of it.

    Government employees GENERALLY (not universally, but mostly) get paid MORE than contractor employees.  The problem is, the contractor COMPANIES charge overhead and profit rates that would border on criminal if there were reasonable regulations in place.  I have seen it first hand.  It's not universal (I have seen some good, responsible contracor companies), but it is widespread and it is the worst at the largest companies.

    What's most sad is that the companies do not pass on the windfalls to the employees.  They also (again, first hand experience) practice cronyism to an extreme degree when bad times hit and they need to make critical staffing decisions... they will quickly lay off the $30,000 HR personnel, and keep the $400,000 VP who does nothing but advise on corporate strategy (that same awful strategy that put them in this position).  And, then, because their overhead is barely trimmed by this idiotic approach, as their business shrinks their overhead rates charged to the government go through the roof.

    This is why I left the government contracting business.  And it's why I've learned that there's absolutely nothing wrong with "big government".  I understand the argument in favor of private enterprise (competition yields more innovation and, potentially, cost savings).  But that is only true in some industries and areas.  For the most part, government endeavors should be led by government employees.  Contracting the work out is nothing but massive corporate welfare.  Period.

    Be that self which one truly is. -Soren Kierkegaard

    by millwx on Thu Sep 15, 2011 at 03:40:15 AM PDT

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