Okay maybe this isn’t the funniest article you’ve ever read, but it’s downright insane. Booz Allen Hamilton is a private company that is contracted by the federal government, and its CEO earns around $3.5 million per year. To put this in perspective, the U.S. President’s salary is only $400,000.
Is there anything wrong with that? Yes.
Of course we know that Booz Allen Hamilton is a private organization—we just said that for goodness sake, were you listening? But the thing that doesn’t jive in this scenario is the fact that Booz Allen Hamilton is almost totally funded by the U.S. taxpayer. 97% of its revenue comes from these public donations.
It’s hard to get mad at a company with the name “Booz,” but this situation is too stinky to ignore.
However, is it really the company’s fault? Or are they merely taking advantage of government incompetence? I’d say the latter.
Booz Allen Hamilton categorizes their government work as “professional services.” So basically they are charging a consulting fee of, you know, millions upon millions of dollars, given the fact that they have over 5,000 contracts out.
So why doesn’t the government hire their own employees? Because they’re the government. There are many inconvenient regulations that the federal government imposes on itself, causing the hiring process of public employees to take months if not years. Imagine if after all that time, the employee turns out to be a dud? Then it would really be a waste of time.
This is why the government contracts private companies, even though it costs significantly more money. They know that they’ll be getting competent, and in some cases far better work.
What Booz Allen Hamilton is doing is kind of brilliant actually. They are acting as a sort of middle man between the employee and the government employer. This allows them to charge a premium, kind of like a really expensive job recruiter. I want to get in on this racket, please?
To be fair, the federal government hires many contractors at exorbitantly high rates. Booz Allen Hamilton is just an easy one to pick on, mostly because of its name.
Let’s look back at the year 2014; the U.S. government shelled out nearly $500 billion in federal contracts including a massive $32.2 billion to Lockheed Martin, and another $19.6 billion to Boeing. It’s nothing new, this idea of printing money is literally something the government has done for centuries.
Today, these totals just happen to have a few more zeros added to the numbers.
Anyway, the only DC that’s fun to talk about is DC Comics, am I right?
— MJD (@MikeObiWan84) June 2, 2017