Defense Secretary Chuck Hagel and his top budget deputy on Tuesday signaled they intend to make deep cuts in contractor personnel who help manage programs in almost every sector of the Pentagon bureaucracy.
The Defense Department today employs an estimated 700,000 service contractors who, in many cases, work side-by-side with the civilian and military workforce at installations across the country and worldwide.
The new shift can be expected to return some clout into the hands of civil service employees who work at half the cost or even less, reversing a decades-old trend of farming out program management increasingly to pricey hired hands in the defense industry.
“We are currently reviewing all contractors, all the contracts we have,” Hagel testified at a Senate Appropriations Defense Subcommittee hearing.
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