The Debt Crisis and its Effect on Government Contracting
We are inundated by discussions on the national debt, the deficit, and the battle between the parties. In response, I advocate outsourcing tasks and functions that are not core government functions to Americans. How this battle and debt crisis will affect the beltway contractors is yet to be realized; more importantly it is yet to be included in the discussions.
I have to applaud Eric Cantor for holding tight on taxes. I have to applaud many of the democrats for realizing this is a joint problem that requires a joint solution. But, first things first…shed some of the newly added government jobs. Do you realize that a $100,000 per year employee costs the government and subsequently us, the taxpayers, almost $200,000 per year? That is approximately $100 per hour for a full work year and does not account for the addition to any retirement, 401K or other plans.
Our industry is built on providing expertise where none exists. The government contracting community, whether around the beltway or the 50 state capitals, consists of the best in class consulting firms, technology providers, construction personnel, engineers, architects, and scientists. A contractor’s cost for the same $100,000 person to government… $85 per hour or $170,000 per year… a 15% decrease in cost, while in most cases increasing the experience and expertise. Both parties…wake up, shrink government and use the contractors’ ingenuity and expertise to its fullest.





