Re:NSA’s top talent is leaving because of low pay, flagging ...
by vonmoltke on Wednesday January 03, 2018 @09:24AM
(#16061160)
I pulled $250/hour out of my ass.
As for the rest, I am not talking about consulting-style contracts where a company is billing out people individually. I'm talking about contracts for development of bespoke systems, provide specific services, and so on.
When Raytheon gets a contract, they get it to build X. They need to account for the work, and the amount they get paid for labor is the number of recorded hours times the agreed-upon rate for that specific type of labor. There is frequently also a soft cap on the number of hours that can be billed in specific periods. The billed rate covers not only the employee salary but also benefits, overhead, and profit.
As for the rest, I am not talking about consulting-style contracts where a company is billing out people individually. I'm talking about contracts for development of bespoke systems, provide specific services, and so on.
When Raytheon gets a contract, they get it to build X. They need to account for the work, and the amount they get paid for labor is the number of recorded hours times the agreed-upon rate for that specific type of labor. There is frequently also a soft cap on the number of hours that can be billed in specific periods. The billed rate covers not only the employee salary but also benefits, overhead, and profit.