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.
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.
