Anonymous wrote:Wrap rate in DC for fed contractors can go from 1.58 to maybe 1.85 or so. Some of the bigger dogs have wraps well above 2.
Anonymous wrote:I have seen various bill rates vs pay rates (I work in an area dealing with temp/vendor pay), and generally, it's about 30 to 40% markup.
The biggest offendors are the large firms like Accenture and DT. They bill at $400/hour and pay the actual person doing the work (not a PM) about $80K/yr, which amounts to like $40/hr.
It's insane. Those big consulting firms are just money makers, and the worker bees who are actually good at what they do eventually go independent or to smaller boutique firms that pay them more. The ones who stay on longer term are not the best or they end up as the salesperson. The turnover in those firms is super high. I dislike these large firms. They just bilk their clients and produce shoddy work. I'm on a periphery project that is working with two huge consulting firms now, and their work prouct is crap, but management wants them, so, we just have to deal.
Upper management and the big honchos in the consulting firm will pat themselves on the back for a job well done, but the actual workers will be left holding the bag of the crappy results.
Anonymous wrote:Anonymous wrote:For Federal or commercial?
For Federal, there’s probably 20% profit built in on top of their fully loaded cost (which includes their salary, benefits, and corporate overhead like real estate, and back office staff). Working at a big corp, I was always surprised at how high that fully loaded cost was. An employee’s direct salary might only be 30% of the billed rate.
Commercial has higher profit margins.
Which contract supports 20% profit? It's more like 8%!
Federal Govt contracting sucks sometimes.
Anonymous wrote:I have seen various bill rates vs pay rates (I work in an area dealing with temp/vendor pay), and generally, it's about 30 to 40% markup.
The biggest offendors are the large firms like Accenture and DT. They bill at $400/hour and pay the actual person doing the work (not a PM) about $80K/yr, which amounts to like $40/hr.
It's insane. Those big consulting firms are just money makers, and the worker bees who are actually good at what they do eventually go independent or to smaller boutique firms that pay them more. The ones who stay on longer term are not the best or they end up as the salesperson. The turnover in those firms is super high. I dislike these large firms. They just bilk their clients and produce shoddy work. I'm on a periphery project that is working with two huge consulting firms now, and their work prouct is crap, but management wants them, so, we just have to deal.
Upper management and the big honchos in the consulting firm will pat themselves on the back for a job well done, but the actual workers will be left holding the bag of the crappy results.