(source: I almost took an offer at the VA-embedded Digital Service. Still wishing I could have made it work)
And frankly, $132k in the DC area is about as pitiful in the Bay Area if you ask me. Defense contractors alone command $140k salaries for senior developers frequently (the contractors that still do have contracts that is). If you're in "cybersecurity" (whatever BS that actually means is beyond me when it comes to the technical definitions) you can get that with some pretty solid experience beforehand and reach into $200k as an engineer (not being management, which is usually where the caps on compensation tend to lift - see the ES pay scale compared to the GS).
Also, one of the big points about USDS is they are paying at or above market rate for developers which is something they have not done in the past. I think all the speculation in your comment is off the mark.
Regardless, I greatly welcome change to the federal service system in any way to promote better retention and progress for its tech workers. Federal service used to mean good and service a source of genuine pride. I went into federal service a long time ago with enthusiasm for change and left pretty damn disillusioned rather quickly.
Regarding pay, I dunno. Based on quotes from this[1] article, the pay scale seems to cap out at GS15 Step 10 which is ~132k. Now obviously this is still a lot of money but if I'm reading between the lines of his quotes right, this is the most an engineer can make w/ USDS without bumping up to SES (Senior Executive Service) levels. Not to say that's substantively less than industry salaries, but they definitely are paying government salaries (by definition).
As far as dissolution, I'm talking more from the perspective of attracting & retaining top talent. With a private sector startup, you trade job security for potentially out-sized payoff. But here... Anyway, point being I think the risks should be articulated well.
[1] http://fcw.com/articles/2014/10/27/red-tape-holding-back-hir...