12:10 pm, July 10, 2014

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  • Outsourcing consequences hits Navy - saw that one coming
    Honest Broker
    A news report was interviewing a senior shipyard worker up in VA and of course it was gloom and doom. At the end of the interview, they mentioned he was an executive from BAE so I guess they ran the show. Back in the 1970s and 1980s, shipyards were primarily manned by Govt personnel and their salaries were closely regulated. The last 2 decades, the Navy has gone to outsourcing all shipyard work and changed the contract pay formula to cost plus fixed fee. Now the contractor can charge whatever they want if they can find a friendly politician to keep the money pump running. To exacerbate the problem, they dropped restricting Govt employees from taking retirement jobs with the contractor. Well US Navy and our illustrious politicians, welcome to the consequences of outsourcing for greedy purposes.
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