Private vs. public

A new study by the Project On Government Oversight — a nonpartisan watchdog group — found that the privatization of public services is wasteful of taxpayers’ money:

http://pogoarchives.org/m/co/igf/bad-business-report-only-2011.pdf

Key findings:

“POGO estimates the government pays billions more annually in taxpayer dollars to hire contractors than it would to hire federal employees to perform comparable services. Specifically, POGO’s study shows that the federal government approves service contract billing rates—deemed fair and reasonable—that pay contractors 1.83 times more than the government pays federal employees in total compensation, and more than 2 times the total compensation paid in the private sector for comparable services.

“Additionally:

  • Federal government employees were less expensive than contractors in 33 of the 35 occupational classifications POGO reviewed.
  • In one instance, contractor billing rates were nearly 5 times more than the full compensation paid to federal employees performing comparable services.
  • Private sector compensation was lower than contractor billing rates in all 35 occupational classifications we reviewed.
  • The federal government has failed to determine how much money it saves or wastes by outsourcing, insourcing, or retaining services, and has no system for doing so.”

The cartoon refers to the ongoing proposal to privatize Social Security.

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