{"id":38509,"date":"2013-11-20T05:45:45","date_gmt":"2013-11-20T10:45:45","guid":{"rendered":"http:\/\/valorguardians.com\/blog\/?p=38509"},"modified":"2013-11-20T05:54:46","modified_gmt":"2013-11-20T10:54:46","slug":"ya-dont-like-contractor-labor-well-how-much-would-using-federal-civilians-cost","status":"publish","type":"post","link":"https:\/\/www.azuse.cloud\/?p=38509","title":{"rendered":"Don\u2019t Like Contractor Labor?  Well, How Much Would Using Federal Civilians Cost?"},"content":{"rendered":"<p>Yesterday, I wrote an article <a href=\"https:\/\/www.azuse.cloud\/?p=38488\">showing fairly clearly that military labor ain\u2019t exactly cheap these days<\/a>.\u00a0 It was kinda fun kicking the anthill &#8211; so to speak.\u00a0 (smile)<\/p>\n<p>However, someone asked an obvious follow-up question:\u00a0 rather than contractors, what would doing the same job with government civilian labor cost?\u00a0 So yeah &#8211; I took a shot at that one, too.<\/p>\n<p>I used the same assumed location (Fort Bragg, NC, area); the same activity (2 shift warehouse operations) applies.\u00a0 But now I\u2019ll use the following grade structure (all GS employees \u2013 I don\u2019t want to wade through Wage Grade regulations and policies to figure out what WG-level and pay rate is apropos).<\/p>\n<ul>\n<li>Warehouse Manager:\u00a0 GS-12, total:\u00a0 1<\/li>\n<li>Warehouse Foreman:\u00a0 GS-11, total:\u00a0 1<\/li>\n<li>Shift Lead:\u00a0 GS-9, total:\u00a0 2<\/li>\n<li>Team Lead:\u00a0 GS-7, total:\u00a0 6<\/li>\n<li>Warehouse Workers:\u00a0 GS-5, total:\u00a0 36<\/li>\n<\/ul>\n<p><!--more-->I used <a href=\"http:\/\/www.opm.gov\/policy-data-oversight\/pay-leave\/salaries-wages\/2013\/general-schedule\/rus.pdf\">Step 5 of the 2013 \u201cRest of United States\u201d civilian pay scales<\/a> for all salaries.\u00a0 That\u2019s just below midpoint on the scale for each grade, and I didn&#8217;t feel like averaging steps 5 and 6 to get the exact middle of each grade&#8217;s salary range.\u00a0 (The &#8220;Rest of United States&#8221; pay scale is the Federal civilian pay scale in effect in the Fort Bragg, NC, area.)<\/p>\n<p>For benefits cost, I used a flat 33% of salary.\u00a0 I refuse to use 50% of salary for Federal civilian benefits cost, as IMO that \u201cdouble counts\u201d the cost of sick leave and annual leave.\u00a0 (I didn&#8217;t include the &#8220;value&#8221; of vacation or sick leave in either contractor or military payroll costs in the previous article, either.)\u00a0 Absence for vacations is typically managed by adjusting staffing levels to account for people taking vacations while still getting the job done, then managing vacation schedules to &#8220;spread the pain&#8221;\u00a0 &#8211; not by hiring temps or paying a load of unnecessary overtime.\u00a0 And IMO, illness and injury requiring an absence is simply an unfortunate occurrence that you can&#8217;t plan for &#8211; whether you&#8217;re talking contractors, civilian employees, or members of the military.<\/p>\n<p>This being a relatively &#8220;quick and dirty&#8221; comparison, I&#8217;m ignoring things like overtime, night differential, special pays, and the like.\u00a0 Other than during emergencies, for an industrial operation like this one those types of extra costs should be relatively rare anyway if the facility manager is doing his\/her job.<\/p>\n<p>Without further ado, here are the totals:<\/p>\n<p>&nbsp;<\/p>\n<table border=\"1\" cellspacing=\"0\" cellpadding=\"0\">\n<tbody>\n<tr>\n<td valign=\"bottom\" width=\"79\">\n<p align=\"center\">Qty<\/p>\n<\/td>\n<td valign=\"bottom\" width=\"79\">Grade<\/td>\n<td valign=\"bottom\" width=\"83\">\n<p align=\"center\">Position<\/p>\n<\/td>\n<td valign=\"bottom\" width=\"79\">\n<p align=\"center\">Salary<\/p>\n<\/td>\n<td valign=\"bottom\" width=\"79\">\n<p align=\"center\">Benefits Cost<\/p>\n<\/td>\n<td valign=\"bottom\" width=\"79\">\n<p align=\"center\">Unit Cost<\/p>\n<\/td>\n<td valign=\"bottom\" width=\"81\">\n<p align=\"center\">Line Cost<\/p>\n<\/td>\n<td valign=\"bottom\" width=\"79\">\n<p align=\"center\">Hourly Cost<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td valign=\"bottom\" width=\"79\">\n<p align=\"center\">1<\/p>\n<\/td>\n<td valign=\"bottom\" width=\"79\">GS12<\/td>\n<td valign=\"bottom\" width=\"83\">Warehouse Manager<\/td>\n<td valign=\"bottom\" width=\"79\">\n<p align=\"center\">$77,983<\/p>\n<\/td>\n<td valign=\"bottom\" width=\"79\">\n<p align=\"center\">$25,734<\/p>\n<\/td>\n<td valign=\"bottom\" width=\"79\">\n<p align=\"center\">$103,717<\/p>\n<\/td>\n<td valign=\"bottom\" width=\"81\">\n<p align=\"center\">$103,717<\/p>\n<\/td>\n<td valign=\"bottom\" width=\"79\">\n<p align=\"center\">$41.41<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td valign=\"bottom\" width=\"79\">\n<p align=\"center\">1<\/p>\n<\/td>\n<td valign=\"bottom\" width=\"79\">GS11<\/td>\n<td valign=\"bottom\" width=\"83\">Warehouse Foreman<\/td>\n<td valign=\"bottom\" width=\"79\">\n<p align=\"center\">$65,061<\/p>\n<\/td>\n<td valign=\"bottom\" width=\"79\">\n<p align=\"center\">$21,470<\/p>\n<\/td>\n<td valign=\"bottom\" width=\"79\">\n<p align=\"center\">$86,531<\/p>\n<\/td>\n<td valign=\"bottom\" width=\"81\">\n<p align=\"center\">$86,531<\/p>\n<\/td>\n<td valign=\"bottom\" width=\"79\">\n<p align=\"center\">$34.55<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td valign=\"bottom\" width=\"79\">\n<p align=\"center\">2<\/p>\n<\/td>\n<td valign=\"bottom\" width=\"79\">GS9<\/td>\n<td valign=\"bottom\" width=\"83\">Shift Lead<\/td>\n<td valign=\"bottom\" width=\"79\">\n<p align=\"center\">$53,773<\/p>\n<\/td>\n<td valign=\"bottom\" width=\"79\">\n<p align=\"center\">$17,745<\/p>\n<\/td>\n<td valign=\"bottom\" width=\"79\">\n<p align=\"center\">$71,518<\/p>\n<\/td>\n<td valign=\"bottom\" width=\"81\">\n<p align=\"center\">$143,036<\/p>\n<\/td>\n<td valign=\"bottom\" width=\"79\">\n<p align=\"center\">$28.56<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td valign=\"bottom\" width=\"79\">\n<p align=\"center\">6<\/p>\n<\/td>\n<td valign=\"bottom\" width=\"79\">GS7<\/td>\n<td valign=\"bottom\" width=\"83\">Team Lead<\/td>\n<td valign=\"bottom\" width=\"79\">\n<p align=\"center\">$43,964<\/p>\n<\/td>\n<td valign=\"bottom\" width=\"79\">\n<p align=\"center\">$14,508<\/p>\n<\/td>\n<td valign=\"bottom\" width=\"79\">\n<p align=\"center\">$58,472<\/p>\n<\/td>\n<td valign=\"bottom\" width=\"81\">\n<p align=\"center\">$350,833<\/p>\n<\/td>\n<td valign=\"bottom\" width=\"79\">\n<p align=\"center\">$23.35<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td valign=\"bottom\" width=\"79\">\n<p align=\"center\">36<\/p>\n<\/td>\n<td valign=\"bottom\" width=\"79\">GS5<\/td>\n<td valign=\"bottom\" width=\"83\">Warehouse Workers<\/td>\n<td valign=\"bottom\" width=\"79\">\n<p align=\"center\">$35,489<\/p>\n<\/td>\n<td valign=\"bottom\" width=\"79\">\n<p align=\"center\">$11,711<\/p>\n<\/td>\n<td valign=\"bottom\" width=\"79\">\n<p align=\"center\">$47,200<\/p>\n<\/td>\n<td valign=\"bottom\" width=\"81\">\n<p align=\"center\">$1,699,213<\/p>\n<\/td>\n<td valign=\"bottom\" width=\"79\">\n<p align=\"center\">$22.62<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Total annual total labor costs:\u00a0 $2,383,331<\/p>\n<p>&nbsp;<\/p>\n<p>That\u2019s about 7% less than the projected military labor cost from the previous example, and about 8% less than contractor staffing using full-time warehouse workers.\u00a0 It\u2019s about 5% more than a contractor who uses part-timers to work the warehouse floor, though.<\/p>\n<p>Interestingly enough, this is the type of job one often sees performed by DoD civilian labor at many installations (it\u2019s also one that\u2019s often contracted out as well).\u00a0 And it\u2019s also a job that isn\u2019t likely to go anywhere at most bases unless\/until the base closes \u2013 pretty much every base has some type of receiving\/shipping warehouse operation.<\/p>\n<p>Maybe DoD is getting this one at least partly right.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Yesterday, I wrote an article showing fairly clearly that military labor ain\u2019t exactly cheap these days.\u00a0 &hellip; <a title=\"Don\u2019t Like Contractor Labor?  Well, How Much Would Using Federal Civilians Cost?\" class=\"hm-read-more\" href=\"https:\/\/www.azuse.cloud\/?p=38509\"><span class=\"screen-reader-text\">Don\u2019t Like Contractor Labor?  Well, How Much Would Using Federal Civilians Cost?<\/span>Read more<\/a><\/p>\n","protected":false},"author":623,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[189,11,84],"tags":[],"class_list":["post-38509","post","type-post","status-publish","format-standard","hentry","category-defense-cuts","category-economy","category-military-issues"],"_links":{"self":[{"href":"https:\/\/www.azuse.cloud\/index.php?rest_route=\/wp\/v2\/posts\/38509","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.azuse.cloud\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.azuse.cloud\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.azuse.cloud\/index.php?rest_route=\/wp\/v2\/users\/623"}],"replies":[{"embeddable":true,"href":"https:\/\/www.azuse.cloud\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=38509"}],"version-history":[{"count":0,"href":"https:\/\/www.azuse.cloud\/index.php?rest_route=\/wp\/v2\/posts\/38509\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.azuse.cloud\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=38509"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.azuse.cloud\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=38509"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.azuse.cloud\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=38509"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}