Federal Contractors

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Rebadging Offer Substantially Less Than Current Compensation - On-site contractor professional can keep job but w/steep pay cut

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lollyva		#1 Posted : Monday, March 11, 2019 5:22:26 PM(UTC)
Rank: Newbie Groups: Registered Joined: 11/26/2018(UTC) Posts: 1 Location: DC Area Thanks: 1 times		After a recompete the company that holds the contract that employs a friend at a federal agency was awarded to a new company. New company offered employment but with a steep pay cut. Is there any hope or recourse? I know there is/was an Executive Order to reduce "displacement", they're not a manager. They stuck with the job through the recompete with hopes of a not bad re-badging, but the cut is a deep one. What would you do? Obviously the onboarding is soon so would you just take it and then up your job search? I almost feel like the compensation difference is so egregious they should flag it somehow, but they'd rather just be employed and not lose a ton of money staying in the same job.


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FatHappyCat		#2 Posted : Monday, March 11, 2019 11:59:17 PM(UTC)
Rank: Senior Member Groups: Registered Joined: 1/9/2011(UTC) Posts: 953 Thanks: 3 times Was thanked: 147 time(s) in 129 post(s)		As my mentor once told me: the best time to look for a job is when you have a job. In my career, only once have I left a position without something else in place which shocked most people I know since I have a pretty high tolerance for equine excrement. On a side note - it always amazes me that most contractors have their pay scales reversed; start off high then lose money over time as the contracts are rebidded until eventually they hop ship to a different company and then start off high then lose money over time....etc

1 user thanked FatHappyCat for this useful post.		lollyva on 3/13/2019(UTC)
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habu987		#3 Posted : Thursday, March 14, 2019 8:28:28 AM(UTC)
Rank: Groupie Groups: Registered Joined: 9/7/2016(UTC) Posts: 120 Thanks: 26 times Was thanked: 24 time(s) in 24 post(s)		As a contractor, there's not much they can do. Keeping it very simple, EO 13495 just requires that the successful contractor for service contracts just provide the right of first refusal to contractors employed by the previous firm, not that they be placed in the same position under the new contract or receive the same pay, just that they be offered a position they're deemed qualified for if the new firm has space for them. Besides all that, if they don't have a new job lined up already, I'd recommend they take the rebadged position and fire up the resume printing press.


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someoldguy		#4 Posted : Thursday, March 14, 2019 1:04:24 PM(UTC)
Rank: Senior Member Groups: Registered Joined: 10/28/2013(UTC) Posts: 4,585 Thanks: 349 times Was thanked: 1030 time(s) in 871 post(s)		Here's something to keep in mind: Once you give up that $150K salary (or whatever) to take that steep pay cut, your new base pay is the lower number, and it will be very very difficult to get back up. So you need to ask yourself two questions: one, am I overpaid? That is, do I think my salary has gotten totally out of sync with the market? And two, can I afford to be out of work for a couple months while I try to find a new job at my current salary, after turning down the pay cut? It's a tough game to play but it is part and parcel of being a contractor. You have to know what you're worth and not sell yourself short... as long as you can afford to be on the sidelines if need be.
		DISCLAIMER: You read it on an open internet forum :)


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