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Government often pays twice as much for contracted-out instead of in-house services — study

Republican criticisms of bloated public service proven false.

Professor Paul C. Light: Contracting out to the private sector is often oversold.WASHINGTON, DC, September 12, 2011: A new study investigates government contract expenditure versus equivalent in-house costs, writes Ron Nixon in the New York Times. The study reveals how past studies have compared inadequate data to fuel Republican accusations.

"Despite a widespread belief that contracting out services to the private sector saves the federal government money, a new study suggests just the opposite — that the government actually pays more when it farms out work.

The study found that in 33 of 35 occupations, the 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.

The study was conducted by the Project on Government Oversight, a non-profit Washington groupÂ…"

For the complete article, please click here.

Posted: September 15, 2011

Categories:
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  Public services

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