We came across this article on how lawmakers are looking to cut compensation that contractors can charge for their employees. From a whopping $700k per employee lawmakers are pushing for something around $230k. Most of us in the contractor biz only make a fraction of that amount with the rest of those charges probably going to multiple layers of bureaucratic management and other overhead costs. Of course the question remains … how could this affect the hiring of critical infosec talent?
Federal employee unions and government accountability and public interest groups urged lawmakers Thursday to adopt Senate language that would cap the federal government’s reimbursements for defense contractor compensation at $230,700 per employee.
The Senate Armed Services Committee approved that cap in June, as an amendment to the fiscal 2013 National Defense Authorization Act. The House has not adopted the provision, however, and House-Senate negotiators will have to work out the difference. The bill has not yet gone to conference.
Leaders of advocacy groups, including the National Treasury Employees Union, the American Federation of Government Employees, OMB Watch and the Project on Government Oversight, signed an Oct. 18 letter to the chairmen and ranking members of the House and Senate Armed Services committees, arguing the current reimbursement cap of $763,029 is too high.
“Due to concerns about both fiscal responsibility and fairness, we believe it is important to reduce the compensation priced and/or reimbursed under U.S. government prime and subcontracts to defense contractor employees,” the leaders wrote. “With budget cuts and sequestration looming, it is fiscally irresponsible to allow private contractors to charge escalating and exorbitant rates to the government.”
What effects do you think this would have on contractors hiring infosec experts? Let us know in the comments below. Today’s post pic is from WebMoneyMaker.net.