Gonna make a thread on this actually...
The amount of profit defense contractors make is truly honestly gross. Part of the blame lies at the feet of Congress - before Trump froze civilian hiring, hiring caps stopped how many hires federal agencies could make in a fiscal year.
but those hires are also on public payscales, such as the GS or the GG scale.
It's why so many contractors are working at the Pentagon and intel agencies.
The actual cost of contracts is what's nauseating. A contracting firm like Leidos or CACI often hires recently honorably discharged DD-214 soldiers who still hold active security clearances (a b
ig plus if those soldiers worked in intelligence collection or cyber intelligence).
CACI picks up a contract where the Federal government offers $120k to fill an analyst role somewhere in Oceania. CACI then hires an analyst to fill that spot, paying them anywhere from $55k (or about $25 per hour) to $72k (or about $37 per hour). The rest of the money goes to the contracting company - usually no health insurance or very meager if it is provided, no overtime, nothing. It's a fixed-rate contract.
That's why big government corps are christened "beltway bandits" - they usually offer marginally better pay rates than the government, with more freedom, the ability to quit when you like, etc, but the contractor is
generally not doing too much better than the enlisted or the officer. There are exceptions, of course, but that's the rule of thumb