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News Link • Military Industrial Complex

The Cost-Savings Fantasy: Comparing federal and private sector employee compensation.

• David Isenberg, Huff Post

To appreciate the importance of this report keep in mind that one of the biggest talking points of PMSC advocates is that the virtue of using them is that they are cheaper than using full time government employees and that private sector rates are cheaper than government salaries. That is because they can be hired just for the task/mission, don't have to be paid pensions and other benefits, et cetera. As talking points go it's a good one and seemingly difficult to dispute; although when it comes to using private military and security contractors in the field there has not yet been much in the way of methodologically sound, peer reviewed evidence to support it.

So POGO decided to fill the data gap, or lacuna, as an academic would say. It compared total annual compensation for federal and private sector employees with federal contractor billing rates in order to determine whether the current costs of federal service contracting serves the public interest.


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