AFGE did not provide an estimation as to how much might be saved under their proposal. In the scheme of things, it may not be all that much. But as Senator Everett Dirkson once was reported to have said, a billion here and a billion there and pretty soon you're talking about real money.
AFGE wants all agencies to immediately include the following clause in each solicitation:
No funds obligated under this contract shall be used to pay compensation to any individual, either as a direct cost or as an indirect cost, or proration at a rate in excess of Level 1 of the Executive Schedule prescribed at 5 U.S.C. 5312. Proration means that the amount charged for less than full-time employee cannot exceed an annualized rate equal to the authorized Executive Level I rate. This applies to all functions performed using contract funds including subcontracts. (The Executive Schedule Level 1 rate is currently $199,700).
Further, AFGE wants to amend FAR 31.205-6(a) - Compensation, to add the same provision.
AFGE points out that this provision would not cap contractors' salaries. It would only limit the amount that contractors can be reimbursed by taxpayers.
The AFGE is a federal employee union representing 600 thousand federal workers. AFGE provides legal representation, legislative advocacy, technical expertise and information services.