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Chuck Hagel Tells Congress Contractors Will Feel Sequestration’s Effects

Chuck Hagel
Chuck Hagel

Defense Secretary Chuck Hagel told a Senate subcommittee that government contractors will shoulder some of the burdens of sequestration as federal employees continue to experience furloughs, Federal News Radio reported Wednesday.

Jared Serbu writes that the sequester will shave 20 percent off the salary of most Defense Department employees who are undergoing one-day-per week furloughs and reduce the number of federal contracts.

Hagel told Sen. Dick Durbin, chairman of the Appropriations Subcommittee on Defense, that the DoD is already asking around 700,000 contractors to disclose the number of employees involved in federal contracts, according to the Federal News Radio.

“When you look at the buildup over the past 12 years, the money flowed in, but the time has come where we’re going to have to make some hard choices,” Hagel said.

The DoD plans to launch a data system in 2014 to gather information about contractor employees, the report stated.

The Government Accountability Office said the Pentagon will begin to provide data about their service contracts in 2016, Federal News Radio reported.

“We’re going to see a drop in contractors. I don’t know how much, because the year isn’t over. But I think it will be a sharp drop,” said Undersecretary of Defense Robert Hale, DoD’s comptroller and chief financial officer.

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2 comments

  1. This article does not make any sense. How are contractors going to feel sequestration’s cuts? That’s not answered. How is the DOD asking contractors to disclose how many employees are involved in federal contracts going to make any difference, to the DOD or contractors? A 2014 DOD launch of a system to gather information about contractor employees isn’t going to have any sequestration impact. What Hagel says to a Senate subcommittee should be recognized as not really anything but playing to the mood of the crowd. This article has no useful or relevant information in it and should not have been published. Move on, nothing to see here.

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