[Info-vax] OpenVMS future directions - discussion topics

[Bill Gunshannon]

In article <mda8g4$9o6$2 at pechter.eternal-september.org>,
	pechter at S20.pechter.dyndns.org (William Pechter) writes:
> In article <ckh4mrFtf5nU1 at mid.individual.net>,
> Bill Gunshannon <billg999 at cs.uofs.edu> wrote:
>>In article <mbqfuo$k7m$1 at dont-email.me>,
>>	David Froble <davef at tsoft-inc.com> writes:
>>> 
>>> 
>>> The most expensive way to develop software is to have an in-house staff.
>>> 
>>> A much more economical method is to have a "trusted" vendor with the 
>>> expertise to produce what is required.
>>> 
>>
>>This is the only part of this that got my goat.  It's hogwash.
>>
>>It's like the  logic that replaced E-3 and E-4 (that's Private and Corporal)
>>GI's as gate guards with contracted civilians for a a financial "savings".
>>
>>The E-3 or E-4 earned $24K-$25K.  The contractor is paid $60K for the
>>same job.  And that doesn't even touch on the cost of benefits for either
>>of them.
>>
> 
> Five bucks said the contract employee got at most $35k.
> The rest went to the firm managing the contract, sales commissions for the
> deal, corporate overhead.  

No, you misunderstood.  By contractor, I meant the contract gate guard.
He got somewhere from $45K to $60K starting salary depending on experience.
As explained elsewhere, the contracting company who owns him would get
as much as 3 times that for the contract.  So, the cost to the government
to replace the $24K-$25K soldier is over $100K.  But trust them, it's
a big budgetary savings.  And people wonder why the national debt is what
it is with this kind of accounting.

> 
>>And why is one considered "more economical"?  Not because of dollar value
>>but because of the budget line item the money comes out of.  It is truly
>>sad that the business world "learned" this from the government, a group
>>that has never successfully run any business venture.  Expertise cost
>>money, and if you have the work done out-of-house you are paying all of
>>their non-related operating expenses as well, with no oversight (haven't
>>you seen the Aspen Dental commercials about office expenses?)  And, their
>>profit.  When I was a government contractor the cost of my contract to
>>the government was 3 times what they would have paid a government employee
>>to do the same job.  1/3 was my pay, 1/3 was the cost of my benefits and
>>1/3 was profit to the company for the contract.  Tell me again how using
>>an outsider is cheaper for any company beyond the 1-5 man shop.
> 
> The problem is getting a good person on the contract.  
> Just because they promise quality staff doesn't mean they retain them.

And, as the contracts are fixed price, the cheaper (read less experienced)
the guard is the more profit the company makes.

> 
> I did some time as an employee at IBM Global Services in the '90's.
> The best and the brightest got out of the on site stuff into management, 
> presales etc. where they had a chance at getting bonuses...and raises and 
> where they wouldn't have to deal with 24x7 operations waking them up. 
> Not every week or two.  EVER.
> 

I only had one job that expected me to carry a pager.  I found it worked
best when left in my desk drawer in the office.

bill

-- 
Bill Gunshannon          |  de-moc-ra-cy (di mok' ra see) n.  Three wolves
billg999 at cs.scranton.edu |  and a sheep voting on what's for dinner.
University of Scranton   |
Scranton, Pennsylvania   |         #include <std.disclaimer.h>