Overseas Civilian Contractors

News and issues relating to Civilian Contractors working Overseas

Guess What? It Is Cheaper to Use Federal Government Employees Than Contractor Employees

Dina Rasor Truthout September 14, 2011

Having looked at federal government contracting for 30 years, I have heard over and over again that government employees make too much money and that the service contractor employees are cheaper. The mantra has been repeated that the government workers are bad, ineffective and expensive and that the federal government would do better to hire service contractor workers to do more and more of the government’s work. This belief that the “free market” will always do better than the government at any task has increased over the years until each president since Reagan has taken it as a given.

Even Bill Clinton pushed to shrink the federal employee workforce by “outsourcing” the work to supposedly cheaper contract workers to save money during his “reinventing government” effort. This craze to outsource as much of the federal government as possible hit its height during the second Bush administration. Saving money was always the reason given, but there was very little actual proof that this was true. The Obama administration had started to reverse this trend and began an effort to “insource” many of these jobs back into the government, especially in areas that were tasks that should be done by government because of the sensitivity of the tasks and possibility of corruption or conflict of interest. But the push to lower government spending has stymied this trend and threatens to push jobs back into service contractor employees as money for government workers dries up. The irony is that this practice is costing the government even more money

Please read the entire story here

September 14, 2011 - Posted by | Civilian Contractors, Contractor Oversight, Government Contractor | , ,

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