…by hiring contractors rather than government employees costs twice as much by this estimate.
POGO’s 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 shockingâ€”POGO 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, POGO’s study shows that the federal government approves service contract billing rates “deemed fair and reasonable” that 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.
It was long argued that Duluth’s Red Plan should have been supervised by a temporary School District Architect. He/She wouldn’t have been paid $30 million.