Are service contracts with the federal government on a decline?

Currently, about 40% of all government contractors’ work is in providing services. Many in the government have complained over the years that contractors get mission-critical jobs that should be inherently government employee work. With the new administration, the movement is to get those positions out of the contractors’ hands, back to the federal government.

I just heard that as part of a broad review of its operations, the Homeland Security Department will closely review all its service contracts over $1 million to ensure they do not include any inherently governmental work that’s outsourced to the contractors.

In the next four years, the government plans to hire several hundred thousand new government workers instead of subcontracting out this work. Different departments have set their own goals, just like DHS.

What do you think about this? Will this initiative greatly reduce all service contracts or just pure staff augmentation? Will it make the government work more efficiently and effectively? Will it reduce security and other risks? Will it save money? Would love to hear your opinions on pros and cons of the practices up to date vs. the current initiatives and trends.

Olessia Smotrova-Taylor
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