Spending cuts already yielding bitter fruit for jobs

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Guns Guns Guns

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Wait until Teabaggers start getting laid off as a result of their demands to cut government spending...




Oops, has it already begun?


:burn:




The Pentagon's push to bring contract work in-house has started to cause hardship for the myriad companies that rely on government business to stay afloat, amid concerns that the strategy is not yielding the kind of taxpayer savings anticipated.


The shift to so-called "insourcing" marks a reversal from the decade-long period when the use of contractors in the U.S. military skyrocketed.


Concerned that businesses were picking up jobs better left to the government -- at great expense to the taxpayer -- then-Defense Secretary Robert Gates in 2009 called for the elimination of 33,000 service-support contractors by 2015.


Gates said contractors should be used for certain jobs, like peeling potatoes and doing the dishes, that soldiers should not have to waste their time doing.


At the same time, Gates continued to call for a 10 percent cut in funding for contractors for the next three years.


The Pentagon has not yet responded to a request for comment on where the effort stands now and what considerations are being made about which contracts to end.


Alan Chvotkin, vice president at the Professional Services Council, credited the ex-secretary with taking a new approach, but expressed concern that companies continue to be negatively affected.


Noting that government employees come with hefty retirement and health benefits, Chvotkin said insourcing does not always save the government money.


And he said the military, in some cases, has brought work in-house -- like information technology -- that is readily available in the private sector.


"There are a lot of skills that the government never had and should probably never develop the skills to do," he said.




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http://www.foxnews.com/politics/201...ctors-takes-toll-on-businesses/#ixzz1TPvigPwR
 
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