Anonymous wrote:I am working as a contractor at a Federal agency (FINREG), and my employer is hiring A LOT of IT people. I was hired three months ago and the salary is 220K/yr.
Anonymous wrote:Anonymous wrote:Anonymous wrote:1 contractor I know at State was laid off a month or two ago.
Yes, typically direct hire employees are cheaper in total cost than contractors, but they are getting rid of those too.
How is that possible with benefits, retirement, etc.?
Typical body shop contractor markup is maybe 80-100%. This means if contractor's direct employee has $x in pre-tax salary then government is charged (1.8 * x) to (2 * x) dollars.
The pass-thru markup typically is 8% to 10%. So for subcontractors who are 1099s (on the same contract) who get paid $x, the government gets charged (1.08 * x) to (1.1 * x) dollars.
Federal employees usually cost less than a direct employee of the contractor. For subcontractors who are 1099s, the subcontractors often are cheaper than civil service, but not always.
My part of the government is not in the budget. We are pure fee for service, so I have visibility into the fully burdened costs of a civil service employee.
Anonymous wrote:Anonymous wrote:1 contractor I know at State was laid off a month or two ago.
Yes, typically direct hire employees are cheaper in total cost than contractors, but they are getting rid of those too.
How is that possible with benefits, retirement, etc.?
Anonymous wrote:Anonymous wrote:1 contractor I know at State was laid off a month or two ago.
Yes, typically direct hire employees are cheaper in total cost than contractors, but they are getting rid of those too.
How is that possible with benefits, retirement, etc.?
Anonymous wrote:Anonymous wrote:1 contractor I know at State was laid off a month or two ago.
Yes, typically direct hire employees are cheaper in total cost than contractors, but they are getting rid of those too.
How is that possible with benefits, retirement, etc.?
Anonymous wrote:1 contractor I know at State was laid off a month or two ago.
Yes, typically direct hire employees are cheaper in total cost than contractors, but they are getting rid of those too.
Anonymous wrote:Are these third party consultants? Consulting firms?