Report: Federal Defense Contractors Paid Almost Double Obama’s Salary

[ProSense]

Report: Federal Defense Contractors Paid Almost Double Obama’s Salary

By Hayes Brown

A new report out from the government’s oversight agency finds that millions of dollars could be saved if federal contractors — particularly at the Pentagon — made only as much as the President of the United States.

The report — invitingly titled “Information on the Impact of Reducing the Cap on Employee Compensation Costs” — was mandated as part of the National Defense Authorization Act for the current fiscal year, to find what sort of savings were to be had if the cap on the amount that defense contractors could charge the federal government was lowered. At present, the cap on the amount of compensation that contracting firms can charge the federal government per employee stands at a mind-boggling $763,029 for 2011 and 2012, up from $693,951 in 2010.

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The amount that could be saved if the cap were to be lowered could possibly be even higher. The GAO came to their conclusions through data requests and interviews with a random sample of 10 large-tier, 10 mid-tier, and 10 small-tier contractors, of which 27 replied. Strikingly, the three largest of the companies that the GAO polled did not provide the data that was requested, though the agency noted that it was mostly employees at large-tier companies whose salaries would be affected by lowering the cap. Most of those who outpaced the cap were at the executive level at the companies surveyed.

Proposals to lower the cap have the support of the Office of Management and Budget (OMB), who noted to GAO that nothing would prevent these companies from paying above the cap should it be lowered. These costs, however, would then be the responsibility of the firm itself instead of the government. To achieve this, OMB has “sent a legislative proposal to Congress that would abolish the current formula for calculating the cap, tie the level of the cap instead to the President’s salary, and apply it to all employees for both defense and civilian cost reimbursement contracts.” OMB also supports the idea of an exception for scientists and engineers to help obtain the necessary talent in those fields, though few individuals whose salary exceeds the President’s currently serve in those roles.

- more -

http://thinkprogress.org/security/2013/06/24/2200901/dod-contractor-salary/

Obama seeks to limit top pay for federal contractors
http://www.democraticunderground.com/10022927167

[libodem]

1. Who will pay

Our ledgendery mercenaries? Will they take the state secrets and move on to the next highest bidder, if we take them off the payroll? Will they turn on their masters?

Maybe they can never be cut off the dole?

[galileoreloaded]

2. the irony is

that at least they get their shit done like they said they would.

[enough]

3. The privatized armed forces: the worlds biggest cash cow,

the the privatized NSA is right up there with it.

[malaise]

4. Now you know why they are all libertarians

They are stealing government from the people