FYI, this doesn't happen at Raytheon SI. They're mainly in Florida, Maryland, Virginia, and Texas. They're hiring. Desired skills relate to reverse engineering, disassembly, emulators, JIT, hypervisors, compilers, binary static analysis, and embedded systems. It's a place with extreme flex time, T-shirts and jeans (or shorts even), normally 40-hour weeks with the option for paid overtime if you want it, your choice of desktop OS, real walls (most locations), and lots of mischievous bright nerds with maker attitude.
A lot of the blame lies with the leadership of the organizations that are hiring the contractors. At some places, a government agency will stick with the same company as long as things are going well, at other places, they automatically accept the lowest bid every single year, even though doing it sabotages their own projects and puts people out of work.
Sounds like your company (or at least your part of Raytheon) is willing to fight for its employees. I made the move to private sector a little over a year ago after my entire team was laid-off. Things are so much better now that its hard for me to consider ever working for the government again, but if things change I'll probably look into Raytheon SI first.
We only got involved in big contracts, though. New business that wasn't measured in at least tens of millions was ignored, unless it was an add-on to an existing contract.
There are so many re-competes and re-bids for contracts that are supposed to be multi-year, that pretty much every fucking year a new company comes in and under-bids a contract. The company isn't going to take the hit, so the employees basically get to re-apply for the same position at a lower salary.
The government claims that this system was developed to ensure fairness to the companies bidding on jobs, but it seems an awful lot like the real purpose was to drive employee wages down. Hopefully it doesn't start to drive down private sector wages in the DC area.