Government Gives Top Contractor Bosses $30,000 Raise in 2011; Sets Reimbursement Cap at $723,029


At a time when pay is frozen, retirement benefits are being trimmed, and massive job cuts are on the table, this story is certain to make every federal employee across America jump out of their seat.

The Office of Federal Procurement Policy (OFPP) recently announced that reimbursement rates for top executives at government contractors has been raised from $693,951 for 2010 to $723,029 for 2011. Though both President Obama and OFPP acting-Administrator Lesley Field have called for dramatically lowering the cap, the reimbursement rate is tied to a formula passed into law by Congress years ago. That means that only Congress can act to adjust the contractor reimbursement formula and bring an end to this shameful practice.

“It’s absolutely inexcusable that Congress has not acted to change this wholesale waste of taxpayer dollars,” said NFFE National President William R. Dougan. “How can members of Congress look federal workers in the face, tell them they need to take a pay cut to help the country, then turn around and pay contractor bosses nearly twice as much as the President of the United States? We cannot allow this to go on any further.”

NFFE has long been an adamant supporter of lowering the egregious reimbursement rates enjoyed by government contractors. Last year, NFFE National Vice President Timothy Ostrowski joined Congressman Paul Tonko (D-NY) at a press conference in support of H.R. 2090, the Stop Excessive Payments to Government Contractors Act of 2011. The bill would cap contractor bosses pay at $200,000 per year, which is roughly the same salary given to cabinet-level secretaries in government.

“Federal employees have given enough these past two years, and the time has come for shared sacrifice,” said NFFE Legislative Director Randy Erwin. “We urge all NFFE members to contact their members of Congress and tell them to support H.R. 2090, and bring an end to this madness.”