Working for a Government Contractor During Sequestration

The world of government contracting has turned upside down, and sequestration knocked it over. 

Well, one can’t blame sequestration for all the ailments associated with government contracting, but trimming the budget eliminated cash needed for funding many projects, that’s for sure!  

With less money to spend, some projects get shoved into the “junk drawer” just to reincarnate in a healthier financial climate; while some are reevaluated and prioritized by necessity. 

There are cost-saving measures the government can entertain to reduce the bottom line.

To save noteworthy projects, the government can modify a statement of work and rebid a Request for Proposal (RFP).

For example, instead of sending workers to offsite classes, which could require hotel accommodations, transportation and per diem; the government could opt for internet-training or local training to save revenue in the training budget. 

However, some government projects are susceptible to line item (CLIN) changes.  Sometimes deleting one CLIN could negatively affect another. 

Take an upgrade for instance.  Has the IT guy at work ever upgraded your virus protection and then all of a sudden, your computer starts running at a retarded pace?   

Upgrading to cheaper virus protection software may save money on the front end, but costs associated with compatibility issues could eat savings and cost more on the back end. 

So, what happens when a project costs Y, but the government wants to pay Y-20%, still wanting bells and whistles but only having money for bells?

The government contractors’ employees are ultimately making the financial sacrifice. 

With short change in the government’s pocket compounded with the government contractors’ profit margins, employee salaries are attacked by capitalism. 

As a recruiter, I have been tasked to find Audio Video Technicians to work at Ft. Meade with a Top Secret / SCI clearance, specific AV skills including AMX Control Operation, and the ability to work with high-level military and government officials. The salary cap was $50,000.

It’s reasonable to say that not all government contractors consider the clearance requirement, duty location, and specific mandatory skills when submitting their bid.  Some must simply bid as low as they possibly can to win the work, and then figure out how to make a profit later. 

If the government continues to award contracts based on lowest price, government contractors will be forced to find people willing to work for salaries below market value.  And really, who wants to take a pay cut?

Suffice to say, I refilled that AV Tech position more times than I care to remember, and there was constant morale issues with the employees on that contract. 

When there is constant turnover, quality deteriorates. 

Does the government not care about quality? 

Is the government so gangster that they don’t realize how they perpetuate fraud and depression?

Being forced to take a pay cut when your debt has not decreased could despairingly change an employee’s attitude. 

Conversely, if a government contractor has to pay an employee a rate that’s over their bid rate, in effort to satisfy the contract, creative accounting may not necessarily be legit. 

One way or the other, government contractors will adamantly nickel and dime the government to death, with change orders, in effort to make a profit if they won the contract on lowest bid.

Therefore, in an era of sequestration, I think the government will only help the economy by granting best-value contracts. 

The government may have to pay a little more, but it’s for the economy’s best interest.

Best-value contracts give the government contractor a better opportunity to provide quality service, and the ability to pay employees a rate that is both fare and reasonable.  Constant turnover would not be the norm, and therefore, government civil servants would not be as stressed. 

Working for the government as a government contractor should be both appealing and rewarding, but it’s up to the government to look at different ways to cut costs without awarding contracts simply on lowest price... especially during sequestration. 

This is Jennifer Lightburn, and I approve this message.  J