Defense contractors will share burdens of furloughs, Hagel says

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Defense contractors will share burdens of furloughs, Hagel says

Posted 6/11/2013

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by Jim Garamone
American Forces Press Service

6/11/2013 - WASHINGTON (AFNS) -- The Defense Department is reviewing all of its contracts, and DOD contractors will share the burden of spending cuts, including the furloughs facing the department's civilian workforce, Defense Secretary Chuck Hagel told senators June 11.

Hagel testified before the Senate Appropriations Committee's defense subcommittee this morning.

"Contractors are part of any institution," he said. "We need them -- certain skills, certain expertise."

DOD Comptroller Robert F. Hale, who accompanied Hagel, told the committee that about 700,000 defense contractors work throughout the department. And they are in for some changes, he added.

"The furlough process does include contractors," Hagel told the Senate panel. "It includes companies, it includes acquisitions, it includes contracts."

The department is taking a $37 billion sequestration spending cut in fiscal 2013, which ends Sept. 30.

"The majority of that is going to come out of contractors -- about $2 billion will come out of furloughs," Hale said. That means a drop in the number of contractors in the department.

"I don't know yet how much, because the year isn't over, but I think there will be a sharp drop," Hale said.

The senators asked about contractors because of newspaper reports about alleged National Security Agency leaker Edward Snowden receiving a $200,000 annual salary. Contractors generally receive more in salary than DOD civilian employees, Hale said.

"Whether or not a contractor or a civilian is cheaper or better really depends on the circumstances," he explained. "There are some cases where we simply don't have the skills in the Department of Defense that we need, or it's a short-term job and it wouldn't make any sense to grow them."

If it is a long-term job, he added, it makes more sense to hire a civil servant.

Comments

6/20/2013 10:43:12 AM ET
Remove the FMO contracts from the installations. Hire 1 or 2 people and make FMO a drop offpick-up service only. This will save the government millions of dollars. If the dorms need the furniture then the dorm managersMTO's can take a government truck and pick it up. Contract only repairs of furnishings. Modify DRMO contract to pick up DMRO goods directly from the FMO warehouse.

Taxpayer, TX

6/19/2013 8:58:52 PM ET
I don't see how this is going to work for existing contracts. Don't the contract companies get their money from the government up front for X number of employees working X number of hours I received my furlough notification and the contractors I work with haven't been notified of any furlough action for them at all.

RL, NV

6/14/2013 7:05:29 AM ET
The contracters at my command will work and be paid for 5 days while the civil servants will work and be paid for 4 days. No sharing here.

80 percenter, Ft Meade

6/13/2013 11:31:44 AM ET
I retired in 2009 and went to work as a contractor working with the same folks I worked with on AD. I recently accepted a position as a GS-11 performing the same work. I took a significant pay cut but I can tell you the company I worked for as a contractor cut everyone's pay by 25 percent roughly a year before I converted. Secretary Hagel is correct in that most companies that contract with the DoD will end up making similar adjustments. However Dan T is also correct and that is one of the many issues with contracts...low ball bids then nickel and diming the government or worse fulfilling the contract with other than what was promised with the bid i.e. personnel that do not meet the minimum requirements for experience expertise etc. From what I've heard lowest cost technically feasible is the new mantra for contracting...unfortunately that rarely brings in the quality individuals that the DoD needs in an age of austerity.

TE, Nellis AFB

6/13/2013 9:40:10 AM ET
What burden will those who cannot effectively run our country balance the budget or much less pass a budget share I as an American citizen am ashamed.

Arctic Warrior, Colorado Springs CO

6/12/2013 11:14:30 AM ET
In some instances it is true that the better option would be to turn a contractors job into a civil servants and vice versa. But one key note is that the DOD or U.S. taxpayers are not responsible for a contractors retirement. When a contractor is finished or retires from his contracting position that is it. No additional resources from the government will have to pay for that individuals retirement. Saving the most money comes from actual competition for the bid. Not always hiring the cheapest bid but hiring the bid that makes the most sense. As most contractural companies will come in with low bids knowing that can throw in additional expenditures after winning the bid.

Dan Troglin, Kirtland AFB

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