Feds vs. Contractors: Federal Employees Often Save Money, But an Advisory Panel is Needed to Create a Cost Comparison Model

Feds vs. Contractors: Federal Employees Often Save Money, But an Advisory Panel is Needed to Create a Cost Comparison Model

 April 15, 2013 | By: Scott H. Amey, J.D.

April 15, 2013, POGO Letter to OMB

April 15, 2013

Office of Federal Procurement Policy
Office of Management and Budget
ATTN: Ms. Aisha Hasan
725 17th Street, N.W.
Washington, D.C. 20503

Submitted via regulations.gov

Subject: Public Comments on the Use of Cost Comparisons

Dear Ms. Hasan:

The Project On Government Oversight (POGO) provides the following public comment regarding the use of cost comparisons outlined at 78 Fed. Reg. 11232 (February 15, 2013). Founded in 1981, POGO is a nonpartisan independent watchdog that champions good government reforms. POGO’s investigations into corruption, misconduct, and conflicts of interest achieve a more effective, accountable, open, and ethical federal government. POGO has a keen interest in government contracting matters, especially the important but often ignored issue of service contracting costs.

The Office of Federal Procurement Policy (OFPP) in the Office of Management and Budget (OMB) announced a public meeting on March 5, 2013, and requested public comments on “the practice of comparing the relative cost of performance by Federal employees versus contract performance in order to identify the most cost-effective source.” POGO hopes that all of the oral and written comments will be used to create a comprehensive cost comparison model that will be used when making human capital planning decisions.

Establishing a uniform, effective cost comparison model is one of the most, if not the most, important tasks facing the government today. This model, whether established by improving the A-76 process or building a new cost comparison process, must be initiated earlier in the human capital policy and planning phase. It also must compare the full life-cycle costs of outsourcing federal services to contractors with the costs of having those services performed by federal employees.

POGO realizes that such a system is difficult to create and will be subject to harsh criticism by all stakeholders involved. However, previous decisions to hire military or civilian personnel or to contract out have often been made without any strategic thinking about government operations and costs, and that needs to change. Continue reading “Feds vs. Contractors: Federal Employees Often Save Money, But an Advisory Panel is Needed to Create a Cost Comparison Model”

As Austerity Shrinks Government Budgets, Contractor CEO Pay and Public Costs Set to Rise

In the midst of shrinking federal spending on infrastructure, scientific research, Head Start, and other government programs, the costs of government contractor executives’ salaries and compensation are set to soar unless Congress takes action. This is another example of how current government policies transfer resources to the wealthy and away from the programs that broadly support and grow a vibrant middle class.

The maximum amount a government contractor can charge taxpayers for employees’ salaries is about to rise at least 25 percent in the next few weeks, from $763,029 to more than $950,000 – nearly $1 million. This comes as federal employees have seen pay freezes – justified on the basis of saving public dollars – and as most Americans have seen stagnant incomes over the past several years. It also comes as federal spending is reduced through the Budget Control Act of 2011 and sequestration. Continue reading “As Austerity Shrinks Government Budgets, Contractor CEO Pay and Public Costs Set to Rise”

Government executives could rake in bonuses as other workers furloughed

Government executives could rake in bonuses as other workers furloughed

4:25 PM, May 18, 2013   |
By Lindsay Wise McClatchy Newspapers

WASHINGTON — An elite group of federal employees is set to receive cash bonuses despite this year’s automatic budget cuts, according to a report by a Senate subcommittee.

The report showed that members of the government’s highly paid Senior Executive Service — who make up less than 1% of the federal work force — had received more than $340 million in bonuses from 2008 through 2011. The bonuses came on top of annual salaries that ranged from $119,000 to $179,000.

In a process known as sequestration, $85 billion in across-the-board federal spending cuts took effect March 1, forcing the government to slash services and furlough workers. A month later, the Obama administration froze bonuses for the vast majority of federal workers. Continue reading “Government executives could rake in bonuses as other workers furloughed”

Whats at Stake?

IMPORTANT: This information should not be downloaded using government equipment, read during duty time or sent to others using government equipment, because it suggests action to be taken in support of and/or against legislation. Do not list your government email or government address in filling out this message, and do not use a government provided phone for this action.

I applaud everyone’s great work in reelecting President Obama.  You helped make the difference.

And we need to celebrate our great victories in tough Senate races across the country: Sherrod Brown (OH), Elizabeth Warren (MA), Tammy Baldwin (WI),  Tim Kaine (VA), Claire McCaskill (MO), Joe Donnelly (IN), Chris Murphy (CT), Martin Heinrich (NM), Jon Tester (MT) Mazie Hirono (HI), and Heidi Heitkamp (ND).

Celebrate today!  Then we need you to roll up your sleeves and call your lawmakers tomorrow! The Lame Duck Session of Congress begins next Tuesday and there’s a lot at stake for federal employees.

Watch this short video we just made about the Lame Duck session.

Then use your personal cell phone or home phone to call both your Senators and your Representative toll free at 1-888-659-9401. Tell your three lawmakers:

•    End the Bush Tax Cuts for the richest 2%
•    Oppose any more cuts to critical services
•    Oppose any more cuts to federal pay and pensions
•    Oppose any changes to Social Security and Medicare

You and voters across the country soundly rejected the Romney/Ryan plan yesterday.  Our country needs tax fairness – not tax breaks for the very rich.  We need to continue rebuilding America.  And we start tomorrow. Your calls will get us in the fight, brothers and sisters.

Call your three lawmakers right now, toll free at: 1-888-659-9401.

Again, I applaud all of your hard work and look forward to all that we will do together in the weeks ahead.

In Solidarity,
J. David Cox, Sr.
AFGE National President


Cornyn slams door on Mo. Senate race

The Hill Newspaper

Cornyn slams door on Mo. Senate race

By Alexander Bolton – 09/28/12 11:31 AM ET

National Republican Senatorial Committee Chairman John Cornyn (Texas) has slammed the door on helping Rep. Todd Akin (R-Mo.) as the gaffe-prone candidate stumbled again.

A day after the executive director of the NRSC issued a statement that appeared to open up the possibility of spending money to help the Republican Senate nominee in Missouri, Cornyn bluntly declared the race “unwinnable.”

Cornyn, who’s in charge of winning a GOP majority for the upper chamber, said the committee would not put any money in the race against Sen. Claire McCaskill (D-Mo.), who was considered the most vulnerable incumbent in the chamber just a few months ago. Continue reading “Cornyn slams door on Mo. Senate race”

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