The average Defense Department contractor is paid nearly $200,000


The average contractor working for the Defense Department is paid nearly $200,000 a year, including benefits and other costs, according to an internal Pentagon study aimed at saving money and making its bureaucracy more efficient.

The report, produced by a federal advisory board and McKinsey and Company, and which has been “buried” by the department, according to a Washington Post report on Tuesday, also shows just how widespread the use of contractors is in the department: 268,000 in “back-office” jobs far from the front lines, or one for every 1.67 civilian employees in back-office jobs.

For its part, the Pentagon, in a statement Tuesday, played down the study’s findings, calling them well-intentioned but flawed.

The Pentagon has 448,000 civilians as well as 298,000 active-duty military personnel in its back office. Overall, it has 1.3 million military personnel on active duty.

Back-office jobs include supply-chain management, purchasing, real-estate management, human resources and payroll. About one-quarter of the Defense Department’s budget is spent on overhead and core business operations, according to the Washington Post, which published a 77-page summary of the report that was removed from the Pentagon’s website.

Here’s more of what the Washington Post said the report, which was issued in January 2015, found:

The Army had 199,661 full-time contractors, which on average cost $189,188, including salary, benefits and other expenses.

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The Navy had 197,093 contractors at an average cost of $170,865.

The Air Force had 122,470 contractors at an average cost of $186,142.

The Washington Post report didn’t break down the use of contractors or suggest why the costs are so high.

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McKinsey also found that the Defense Department had 457,000 full-time employees in logistics or supply-chain jobs, or more that United Parcel Service Inc.’s
UPS,
+0.99%
  global workforce.

An early finding of the report determined the average administrative job for the Pentagon topped $200,000, including salary and benefits.

Peter Cook, the Pentagon’s press secretary, told the Associated Press that the study was “well-intentioned” but had “limited value” because it didn’t take into account existing programs to improve efficiency. It also lacked “specific actionable recommendations appropriate to the department.”


View more information: https://www.marketwatch.com/story/the-average-defense-department-contractor-is-paid-nearly-200000-2016-12-06

Articles in category: moneyist

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