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Top 10 GovCon Stories – #5

by Michael Hackmer, CEO and Founding Partner, Government Contractors / Wednesday, December 15, 2010 / Published in Michael Hackmer, Top Ten GovCon Stories
Two-Year Federal Pay Freeze

Summary
Though a recent development in 2010, the decision to freeze pay to all civilian federal employees, including those working at the Department of Defense (excluding military personnel), was an important and newsworthy development. Political leaders felt pressure from voters, many of whom are concerned about high unemployment and the growing budget deficit. Analysts predict that the freeze will save more than $5 billion over two years, $28 billion over five years and over $60 billion in the next 10 years.

Why it matters to the GovCon space?

Jeff White, Founder of govWin

Written by: Jeff White, Founder of govWin

The issue of the two-year pay freeze ties into the issue around “insourcing vs. outsourcing” as well as the budget deficit.

For starters, the Obama administration’s goal of adding jobs to the federal payroll seems to run counter to idea of reducing the federal budget and cutting costs. I think this sends a very mixed message to current federal employees and the private sector.

Secondly, the major driver for the federal pay freeze has been the growing realization in Congress and the administration that payments on debt servicing are growing and will far exceed budget outlays in the immediate future. See chart below.

The idea for the pay freeze is to try and save money on the federal budget. However, while it is a decision that may resonate with some voters, it is largely symbolic in nature. We are currently faced with budget deficits that are over $1 trillion annually. Saving $5 billion over two years does not seem like an effective solution to the serious budget challenges.

In my opinion, federal workers and government contractors would all benefit from a much more deliberative process where the administration, Congress and business leaders work together to identify the real areas of need in the government workforce and common areas for spending cuts. By starting out in that direction – some real progress can be made.


Check back on Thursday, December 16th for the #4 most important story.

TIME IS ALMOST UP TO VOTE ON WHAT YOU THINK WAS THE TOP STORY OF 2010! The poll will be closed at 5:00 pm 12/15.

Please take a moment to fill out our poll below. If you do not see a story you think was important, use the option marked “other” to submit your own idea. The results will be collected over the next several days and shared on Monday, December 20th, with the #1 story of 2010.

Questions? E-mail us: CommunityLeader@govwin.com


What is the TOP GovCon Story of 2010?

What was the most significant story to impact the govcon space in 2010? Submit your own answers. (Poll Closed)

About Michael Hackmer, CEO and Founding Partner, Government Contractors

Michael Hackmer is the Co-Founder of Government Contractors, as well as the founder of: Social Web Tactics, Catoctin Education, YourTravel.Guide, and CBT Media. Social Web Tactics has three sub-divisions that Hackmer also oversees, including: Time To Brainstorm, Your Webinar Experts, and Your SEO Consultant. As part of Catoctin Education, there is Catoctin College and the Education Blog. Hackmer was born in Boston, Massachusetts, and currently resides in Ashburn, Virginia with his wife and youngest daughter, while his oldest is a student at VCU. To reach Michael Hackmer via e-mail, send to: michaelhackmer@governmentcontractors.co

What you can read next

Top 10 GovCon Stories – #7
Top 10 GovCon Stories – #10
FedTalks 2010 Recap: Deploying Technology That Enhances Government, Citizen Engagement

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