Government Contractor Cost Explained

[up148]

Three contractors


Three contractors are bidding to fix a broken fence at the White House.

One is from Chicago, another is from Kentucky, and the third is from New Orleans. All three go with a White House official to examine the fence.

The New Orleans contractor takes out a tape measure and does some measuring, then works some figures with a pencil.

"Well," he says, "I figure the job will run about $9,000. That's $4,000 for materials, $4,000 for my crew and $1,000 profit for me."

The Kentucky contractor also does some measuring and figuring, then says, "I can do this job for $7,000. That's $3,000 for materials, $3,000 for my crew and $1,000 profit for me."

The Chicago contractor doesn't measure or figure, but leans over to the White House official and whispers, "$27,000."

The official, incredulous, says, "You didn't even measure like the other guys. How did you come up with such a high figure? ”

"The Chicago contractor whispers back, "$10,000 for me, $10,000 for you, and we hire the guy from Kentucky to fix the fence."

"Done!" replies the government official.

And that, my friends, is how the Government Stimulus plan worked.

Remember... Four boxes keep us free: the soap box, the ballot box, the jury box, and the cartridge box.

"I love my country; it's the government I'm afraid of!"

[Rufus T. Firefly]

And that's how contract officers end up in jail,

[HONDO74]

And that's how contract officers end up in jail,

Only when they get caught.

[Rufus T. Firefly]

And that's how contract officers end up in jail,

Only when they get caught.

They get audited at least once a year and frequently more often to the point that getting even the most routine contracts awarded takes many months. The numbers of people that have to sign off on and approve a contract is staggering. It's amazing that anything gets done. And yes, I held a contract officer and project officer authority for some time. Such a PITA that I dropped certification.

[up148]

That explanation tells me why the contractors at Tinker AFB here, in OKC, charge so much. My sales manager worked for one of the contractors when he 1st got out of active service and the stories he tells are interesting. One year, the day the owner got his next contract he announced to the workers he was taking his family on a two weeks vacation to Europe. Sort of like winning the lottery.

But, I'm sure all contractors are not the same, as nothing in this world is. But, it sure struck my as a lack of oversight on someones part. But, apparently going through the BS to get the contract is more than most companies want to deal with.

BH

[Rufus T. Firefly]

the owner got his next contract he announced to the workers he was taking his family on a two weeks vacation to Europe.

Well, he knew he made his salary just on getting the contract; converse would have resulted in his laying everyone off.

....... apparently going through the BS to get the contract is more than most companies want to deal with.

There are contractors and companies that exist solely on rendering assistance on preparing proposals to get contracts. Basically companies exist to help process the paperwork. I've spent a week or 2 assembling contract paperwork only to find that 3 months later that "we want it all in a different format...". Start over....

[up148]

I believe it....although I don't understand why it has to be that way? If private and corporate businesses ran their operations this way, there would be no time to get business done. If this isn't a plan to keep a lot of people employed, it certainly is the reason why a layman looking in just shakes his head and sees government waste. I know our HR and accounting person was just overwhelmed at the red tape that was added during the Obama administration....we almost had to add another person.

[Rufus T. Firefly]

I believe it....although I don't understand why it has to be that way? If private and corporate businesses ran their operations this way, there would be no time to get business done. If this isn't a plan to keep a lot of people employed, it certainly is the reason why a layman looking in just shakes his head and sees government waste. I know our HR and accounting person was just overwhelmed at the red tape that was added during the Obama administration....we almost had to add another person.

Actually, I came from the private sector to the Govt - corporate operations were just like the Gov't ones only with better paid and a revolving door on stability.

I've seen every administration since 1983 claim to make things "better". Every single one of them made it worse. Every single one of them just added layers of committees to review the existing ones w/o doing away with anything.

I still have an office that I go to once a week or so - what I'm hearing is that it's gotten far worse in the last 2 years........but that's what we heard every 2 years since 83. Waste? You don't know the 1/2 of it.......or the 1/10....or the 1/100 of it.

[up148]

Really sad..........when there are people who could be helped with this money.

[Rufus T. Firefly]

Really sad..........when there are people who could be helped with this money.

Be consoled that it's not just the Gov't that wastes like crazy.