Defense Secretary Leon Panetta has been urged by 26 Democratic senators to cap their contractor workforce to match suggested cuts to the DoD’s civilian workforce, according to a report by The Federal Times. The Pentagon has suggested arbitrarily capping the civilian workforce to match 2010 levels, which would result in tens of thousands of jobs cut, according to the American Federation of Government Employees.
This comes amidst what CNNMoney has called a “fiscal cliff” of over $7 billion in spending cuts and tax increases scheduled to take effect by the end of the year.
Between 2010 and 2011 federal government spending on contracts was reduced by $20 billion which, according to Professional Services Council President Stan Soloway, “equates to tens of thousands of private sector jobs losses.”
Businesses competing for government contracting should start evaluating their marketing plans in order to better position themselves to win federal contracts despite increased competition.