This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

AFGE Blasts Armed Services Leaders For Planning Familiar Assault On Working Americans

"Quite frankly, the lawmakers associated with this egregious legislation should know better," AFGE National President J. David Cox Sr. said.

The federal government's overall workforce, particularly in DoD, consists mostly of more expensive contractors. In DoD, total civilian personnel funding increased from $41 billion in 2001 to $69 billion in 2010; during that same period, total service contract funding increased from $104 billion to $181 billion.

As noted by Senate Armed Services Committee Chairman Levin in 2011: "Over the last decade, DoD spending for service contract services has more than doubled, from $72 billion in fiscal year 2000 to more than $150 billion (not including spending for overseas contingency operations), while the size of the Department's civilian workforce has remained essentially unchanged." 

And as noted last year by Chairman McKeon: "The Department now spends a greater portion of its budget purchasing services than it does purchasing weapons systems, hardware, and other products. In fact, the Department spends more on contracted services than it does on pay for military and civilian personnel combined."

Nevertheless, Chairman McKeon and Ranking Member Inhofe would impose no sacrifices on contractors. In fact, by arbitrarily reducing the federal workforce, agencies would simply contract out more work at higher prices. In 2011, the Project on Government Oversight (POGO) compared the cost of federal employees and contractors in a recent seminal study— Bad Business: Billions of Taxpayer Dollars Wasted on Hiring Contractors—determined that "on average, contractors charge the government almost twice as much as the annual compensation of comparable federal employees. Of the 35 types of jobs that POGO looked at in its new report—the first report to compare contractor billing rates to the salaries and benefits of federal workers—it was cheaper to hire federal workers in all but just two cases."

If Congressional Republicans want to reduce DoD, they should take on their weapons contractors cronies by reforming how we buy their products, reduce excessive layers of management bureaucracy, cap at  $200,000 annually taxpayer subsidies to contractor compensation, and substitute reliable and experienced federal employees for ruinously costly contractors.  If Congressional Republicans want to end sequestration, they should work with the President and Congressional Democrats on revenue-raising offsets. 

2 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,677.90 +216.58 1.32%
S&P 500 1,950.82 +23.71 1.23%
NASDAQ 4,452.7920 +69.9450 1.60%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs