9/16/11

Study finds contractors charge double what public sector workers make

The New York Times reports that a study conducted by the Project on Government Oversight (a nonprofit Washington group) found that in 33 of 35 occupations, the U.S. government actually paid billions of dollars more to hire contractors than it would have cost government employees to perform comparable services. On average, the study found that contractors charged the federal government more than twice the amount it pays federal workers.

A policy analyst with the conservative Heritage Foundation responded that “It’s not a real apples to apples comparison. When the federal government hires contractors, it’s for the short-term. When they hire for the public sector, they are on the hook for the salaries and compensation for years.”

The Project on Government Oversight counters that the government usually pays contractors for multiple-year jobs, not just short term.

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