The State Worker

Chronicling civil-service life for California state workers

October 20, 2011
Federal contracts study says privatization isn't cheaper

Thumbnail image for Thumbnail image for 100831 calculator.JPGA recently-released study by the nonpartisan watchdog Project On Government Oversight says the federal government signs off on service contract billing rates that, "on average, pay contractors 1.83 times more than the government pays federal employees in total compensation, and more than 2 times the full compensation paid in the private sector for comparable services."

The report, which was issued last month, concludes, "Given that one-quarter of all discretionary spending now goes to service contractors, a reassessment of the total federal work force, with a focus on contractor billing rates, could save taxpayers billions of dollars annually."

Thanks to Blog User G for flagging this for The State Worker.

Bad Business: Billions of Taxpayer Dollars Wasted on Hiring Contractors

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About The State Worker

Jon Ortiz The Author

Jon Ortiz launched The State Worker blog and a companion column in 2008 to cover state government from the perspective of California government employees. Every day he filters the news through a single question: "What does this mean for state workers?" Join Ortiz for updates and debate on state pay, benefits, pensions, contracts and jobs. Contact him at (916) 321-1043 and at jortiz@sacbee.com.

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