Unread postPosted: 16 Jun 2012, 02:26
by fe_on_alta
It is my understanding and my experience, and I may be wrong, that U.S. sponsored contractors contractually receive full perdiem and usually a contracted labor rate for OCONUS individuals ranging from $200-400 an hour or more for their sponsorship of an individual. And I feel that it is very ok for those organizations to make profit.
However, and again this is only my experience, please check it out, that the sponsored corporations, while paying relatively low wages, reap huge financial benefit from not only the U.S. government but also from the tenant OCONUS government and/or corporation(s).
Perdiem is paid to the hiring org at whatever the rate may be, then they provide extremely low rate accomodations and transportation, and pay M&IE to the employee at a rate of usually less than 20% of what they may be receiving. The difference in M&IE may be obtained by the employee through tax returns if proper records of it are kept by the employee and requested on appropriate tax return paperwork.
The time off given is usually very generous and is used by the hiring organization to in most cases, keep the employee from being in an OCONUS status that may allow them to become tax exempt, depending on the location.
The ultimate situation would be to receive a tax exempt salary, get FULL perdiem for the location, and an approximate 25% indemnity for the effort upon completion. Making the employe responsibile for obtaining lodging and transportation and M&IE. The company still reaps the difference in labor which is huge.

Just sayin, and I may be wrong, please do not take my estimation as true or current. Chance does favor the prepared mind. So check things out and get all in writing, make an email trail with read receipts, and save everything. Knowledge is power.

Unread postPosted: 16 Jun 2012, 06:07
by mc5wes
Thats a very good example of what you should do.

But your premous is a bit off. It would be fine if there was only one bidder on the contract. But except for a few. All have multiple companies bidding on them.

So if the contract say to maintain an aircraft for one year. The companies would bid on it depending on what the goverment was providing.

If they go a place like Bagram. Where the Parts, Gas, Hotels, Food, Medical are provided. Then they could bid less.

So if all the companies know what the expenses are. There only cost would be the Labor. And depending on the location cost of the labor. Say the difference between Al Udied and Bagram.

Companies are in the business to make money for their shareholders. The more the better. But less is always better than none.

Unread postPosted: 20 Jun 2012, 18:21
by bountyhunter
True as in the case with the "other" company that is in discussion right now. Not sure about you mc5wes, but I got hired on by them and now I am just waiting. From what I heard, it is going to be somewhat of an expeirience!