Any company that is that is totally dependent on government for its income is not really private sector. For instance there are privately owned companies that do maintenance at Kirtland AFB here in Albuquerque and that is ALL they do. They were created to work exclusively for the government. Such companies in my opinion are not private sector because if their government contract is cancelled, they are essentially out of business.
The advantage of using such companies, however, is that these are not civil service jobs and the tax payer is not on the hook to provide retirement and health benefits to the employees once the contract ends though the taxpayer can still be on the hook for unemployment insurance until the laid off workers find other employment.
Contrast that with numerous other companies in New Mexico who bid on and receive government contracts at the labs, bases, and other federal installations, but that is only a portion of their work. Losing their government contract is painful, yes, but they have other work to do and would remain in business anyway. Such companies I consider private sector.
While I respect your opinion as I do all those, I would tend to disagree, because if those companies that have contracted with the Federal Govt. were to lose those contracts, those employee's are subject to the employers benefits not that Federal Govts. no less than any other "private sector" company.?
I don't think I said anything different. The taxpayer is on the hook for benefits and health coverage for vested civil service employees who leave their jobs or retire from a government job. I made a specific point to say that they are not on the hook for the same benefits for employees of the subcontractor even if the subcontractor works exclusively for the government.
The other thing that comes to mind here too, is that these companies are providing a service that they have been contracted to do no matter what that may be. In the case of those companies that depend on contracts completely , then they would cease to exist. Is this not the market sorting things out
How is what you are saying here in any way different from what I said? My point is, however, that the taxpayer will pay ALL the subcontractors costs for doing business for the govenment if that subcontractor works exclusively for the government. And that is what makes it just another government group though structured a bit differently than civil service jobs and much easier to terminate than are civil service jobs. If the government did not offer the contract, the business would not have existed in the first place. If the government terminates or does not renew the contract, the business ceases to exist.
Again, the business that contracts with government for some of its work but that does not need the government in order to exist is a private sector job. The government is not paying for the infrastructure, equipment, etc. except for whatever the employer needs to include in the contract to cover his expenses for wear and tear etc. And if there is no government work, the employer continues in business in the private sector.