Would defense contractors take a pay cut?

Here's a unique idea: Save billions by asking existing federal government contractors to give back some of their earnings.

In an eloquent column this week in Federal Computer Week, Harvard professor Steve Kelman makes the case for President Obama to call on the defense industry to make voluntary price reductions on existing contracts for weapons systems and the cost of spares and outsourced maintenance.

Kelman estimates that the cost savings would be $4 billion a year for each of the next two years.

"This would, obviously, hardly solve the deficit, but it's not pennies either. And the savings would occur without any sacrifice in programs or mission," he writes.

For more on this budget idea:
See this FCW.com article

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