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Private contractors cost more than federal workers in 33 of 35 cases, study finds [View All]

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FourScore Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Sep-14-11 11:54 AM
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Private contractors cost more than federal workers in 33 of 35 cases, study finds
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Wed Sep 14, 2011 at 07:42 AM PDT
Private contractors cost more than federal workers in 33 of 35 cases, study finds
by Laura Clawson

A new study ( http://www.pogo.org/pogo-files/reports/contract-oversig... )by the Project on Government Oversight (POGO) finds that those overpaid federal government workers we hear so much about actually save the government money compared with private contractors doing the same work:

POGOs study analyzed the total compensation paid to federal and private sector employees, and annual billing rates for contractor employees across 35 occupational classifications covering over 550 service activities. Our findings were shockingPOGO estimates the government pays billions more annually in taxpayer dollars to hire contractors than it would to hire federal employees to perform comparable services. Specifically, POGOs study shows that the federal government approves service contract billing ratesdeemed fair and reasonablethat pay contractors 1.83 times more than the government pays federal employees in total compensation, and more than 2 times the total compensation paid in the private sector for comparable services.

Additional key findings include:

* Federal government employees were less expensive than contractors in 33 of the 35 occupational classifications POGO reviewed.
* In one instance, contractor billing rates were nearly 5 times more than the full compensation paid to federal employees performing comparable services.
* Private sector compensation was lower than contractor billing rates in all 35 occupational classifications we reviewed.
* The federal government has failed to determine how much money it saves or wastes by outsourcing, insourcing, or retaining services, and has no system for doing so...


MORE AT: http://www.dailykos.com/story/2011/09/14/1016813/-Priva...

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