This is a good move by the government. The U.S. government should try to eliminate as much government contracting as possible as it costs tons more for a contractor to do the same work as a government employee:

Despite a widespread belief that contracting out services to the private sector saves the federal government money, a new study suggests just the opposite — that the government actually pays more when it farms out work.

The study found that in 33 of 35 occupations, the government actually paid billions of dollars more to hire contractors than it would have cost government employees to perform comparable services. On average, the study found that contractors charged the federal government more than twice the amount it pays federal workers.

http://www.nytimes.com/2011/09/13/us/13contractor.html

Obama mentioned in his recent speech that he was going to speed up payments to government contractors. Instead of doing that, he should be freezing payments to government contractors, cutting them loose wholesale, and hiring more federal employees.

I work for a company that is NOT a government contractor. I fully expect layoffs en masse within the next 6 months. We’ve already been hit hard. Vacancies are NOT being filled in our group. So of someone leaves due to job change or retirement… our group is short handed.

I’ve got almost 17 years with this employer (although the name has changed due to aquisitions and splits) – but that doesn’t matter. I might be on the chopping block. Such is life.

Dual citizenship has always been an issue for security clearances above the very basic ones. It’s a factor I considered when I put together the application for my husband and sons dual citizenship. It might effect my sons’ future job prospects.

I guess I don’t understand why defense contractors should be any different than any other employer. We’re ALL screwed in this economy.

This is all wrong, what we really need to do is get more and better lobbyists and keep throwing money down rat holes of all kinds. Who will pay for our houses if we don’t? I don’t think it really should be a question of contractor or federal government at all. Let’s quit this petty,”throwing money down my rat hole is better than throwing money down your rat hole” bickering and spend. Give the rich more give, the poor more, prop up unions. Make more non-profits and endless grant money. Subsidize more farms and stockpile weapons. Start more wars and give money to churches too.

I’d guess it’s the cheapest way for your employer to downsize, though it’s a pretty crappy way to treat people. Either that or it’s a way for another contractor/agency to look busy and avoid their own downsizing.

I kinda question bankruptcy/foreclosure as reasons to pull someone’s clearance. I’d guess that someone trying to avoid bankruptcy or foreclosure would be more vulnerable/susceptible to blackmail or bribery, in the same way that an openly gay person would be a better security risk than someone who resorts to secret assignations in park restrooms.