by Dwayne Phillips<\/p>\n
I explain how any government delay leads to wasted taxpayer money.<\/strong><\/p>\n No connection between the two items? Let’s walk through this.<\/p>\n Company A contracts with the government. Which government doesn’t matter – national, state, local – as they all exist on taxpayers’ money. Company A has these smart, dedicated employees who work on government contracts.<\/p>\n When they don’t have a contract, these employees sit around watching the grass grow.<\/p><\/blockquote>\n They charge their salaries to what most companies call “overhead.” These overhead charges add to the bills that Company A must pay. Company A pays them with their “overhead rate” on government contracts.<\/p>\n Say Company A pays John Smith $50 an hour. Company A charges the government $110 an hour for John Smith. The difference is the overhead rate (that is a simplification, but the concept is true).<\/p>\n If Company A has to pay John Smith to watch the grass grow, that raises their overhead rate. Instead of charging the government $110 an hour, they charge the government $130 an hour. Their overhead rate went up.<\/p>\n How does the government reduce the overhead rate? By issuing contracts on time. How does the government raise the overhead rate? By delaying the issuing of contracts.<\/p>\n Hence, to pay John Smith closer to his actual salary, the government needs to be efficient and quick. Hmm, when was the last time any of us saw that?<\/p>\n Many years ago, someone described this situation to me. My reaction was quick and simple:<\/p>\n If John Smith has nothing to do – fire him. Hire him back when you have a contract.<\/p><\/blockquote>\n That doesn’t work either. Due to government regulation, hiring a person costs a lot of money – more money than paying them to watch the grass grow.<\/p>\n","protected":false},"excerpt":{"rendered":" by Dwayne Phillips I explain how any government delay leads to wasted taxpayer money. No connection between the two items? Let’s walk through this. Company A contracts with the government. Which government doesn’t matter – national, state, local – as they all exist on taxpayers’ money. Company A has these smart, dedicated employees who work […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[18,29],"tags":[140,151],"class_list":["post-1389","post","type-post","status-publish","format-standard","hentry","category-employment","category-government","tag-employment","tag-government"],"_links":{"self":[{"href":"https:\/\/dwaynephillips.net\/workingup\/wp-json\/wp\/v2\/posts\/1389","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dwaynephillips.net\/workingup\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dwaynephillips.net\/workingup\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dwaynephillips.net\/workingup\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dwaynephillips.net\/workingup\/wp-json\/wp\/v2\/comments?post=1389"}],"version-history":[{"count":2,"href":"https:\/\/dwaynephillips.net\/workingup\/wp-json\/wp\/v2\/posts\/1389\/revisions"}],"predecessor-version":[{"id":1397,"href":"https:\/\/dwaynephillips.net\/workingup\/wp-json\/wp\/v2\/posts\/1389\/revisions\/1397"}],"wp:attachment":[{"href":"https:\/\/dwaynephillips.net\/workingup\/wp-json\/wp\/v2\/media?parent=1389"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dwaynephillips.net\/workingup\/wp-json\/wp\/v2\/categories?post=1389"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dwaynephillips.net\/workingup\/wp-json\/wp\/v2\/tags?post=1389"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}