Can someone explain the rationale behind fed hiring a firm for a staff aug role/set of roles versus a dire-hire contractor?

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Don't understand the question. Government hires contractors because it is cheaper and less liable to hiring restrictions and regs associated with direct-hire government employees. Benefits and job security are so, so good for government employees that even accounting for company profits, contractors are still cheaper - you can get rid of a contractor whenever you want, don't have to employee them for life, and no pension.

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Agencies have a PSC cap that is determined by Congress. No such cap on the number of non-PSC contractors.

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Direct-hire individual contractors still require a management structure. Contracting out an entire process is easier for them to manage.

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Firm brings accountability. Also authenticity of the resource.

*direct hire
Excuse the typo

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