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An annual survey of Capital-region salaries published Thursday indicates that civil servants on average saw a larger pay increase from 2004 to 2005 than government contractors.

Contractors canvassed by the Professional Services Council, an Arlington, Va., industry group, and the Human Resource Association of the National Capital Area, earned 3.5 percent more in April 2005 than they had the previous year, while federal employees at civilian agencies earned 4.6 percent more. The average civil servant earned 1.3 percent more than the typical contractor in 2005, the survey showed.

But when the salaries were broken down to look at executive positions, contractors earned 36.5 percent more than their counterparts at federal agencies. This difference can be attributed to pay caps on federal salaries, according to the Professional Services Council.

Of 101 job categories, 82 saw a decrease in contractors' salaries from 2004 to 2005 and 19 saw an increase. Those included positions in information technology and other areas where contractors are expected to provide more sophisticated support to government customers, PSC concluded.

The survey was intended to keep abreast of trends in salaries, and PSC is not making any policy conclusions or recommendations based on the results, said Stefanie Starkey, a spokeswoman. This is the 26th annual report on Capital region salaries but it is only the second year that statistics have been collected specifically for government contractors - defined as firms that earn more than half of their revenues from the government.

The data on contractor salaries is based on responses from 92 companies, which reported pay information for 19,910 employees. The responses were voluntary but provide the "most comprehensive" look at compensation available, said Alan Chvotkin, senior vice president for PSC.

The average federal salaries that Chvotkin used for comparison are based on Office of Personnel Management statistics for civilian jobs.

The survey results are not particularly surprising, said Jacque Simon, public policy director for the American Federation of Government Employees. "One of the best things about the government as an employer has been its pay system's recognition that everyone deserves a decent standard of living, and everyone deserves a fair share of the benefits of our nation's increased prosperity," she said.

"AFGE has always said that contracting out is not about saving money, it is about moving money," Simon said. "It moves money out of the paychecks of the rank-and-file employees who actually do the government's work, and hands it over to the well-connected profiteers in executive suites."

Simon added that she questions the objectivity of a survey conducted by a contractor group.

COMMENTS

• I know contractors who don't report everything they make too. It makes me sick when I see some of them claim "earned income credit" while driving around in new vehicles, taking nice vacations and etc. GovExec.com reader Posted September 11, 2005 8:24 PM
• This ignores the fact that most contractor employees are being massively overpaid for doing the same work as lower-paid govies. I have people where I am doing GS-12 work for a third over what a GS-12 gets a year and you have to show them how to do everything on top of that. This does not even count the money that is going to the contractors themselves. This is nothing but a big racket and time waster when people like me have to teach them how to do the job. stamp monkey Posted September 11, 2005 6:34 PM
• Approximately ten years (or more) ago, the federal government agreed to, and made it law, to increase the GS-scale federal employee wages a certain percentage each year for ten years until they met comparable industry standards of pay. We were on average 13-20% below what the private sector was given for comparable positions. Each year this agreement has been broken and much time and money is spent in congress determining what we can get. So looking at percentages given us each year is not a true reflection on what we have been paid over the years in comparison to the private sector. We also pay higher rates for health insurance than any other government agency and do not get vision or dental included except for 1st exams. Contractors have always overcharged the government because they could. We have seen this countless times over the years including the famous $500 hammer. We have seen contracting granted to 'minority' business and then that salesman calls on us, gets a list of what we need, then gets on the phone and orders the supplies from a 'regular' supplier and then marks it up again and charges us. So much for progress. GovExec.com reader Posted September 12, 2005 11:02 AM