Public Values

New US report shows higher cost of private contracts

To save money, government needs to bring services in-house.

Rasor: Federal contractors lead the government around by the nose and cost us billions of dollars.September 14, 201: The US government can pay up to five times more for contract services than for federal employees, Dina Rasor reveals in Truthout. Problems are especially pervasive where government budgets have actually increased, such as in the Pentagon and the Department of Defense, where it is separate federal from contract employees.

"Having looked at federal government contracting for 30 years, I have heard over and over again that government employees make too much money and that the service contractor employees are cheaper. The mantra has been repeated that the government workers are bad, ineffective and expensive and that the federal government would do better to hire service contractor workers to do more and more of the government's work. This belief that the "free market" will always do better than the government at any task has increased over the years until each president since Reagan has taken it as a given..."

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Posted: September 21, 2011

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