President Obama’s State of the Union Call-Out to Contractors

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Untitled-1In a State of the Union address characterized by promises of Executive Orders and bold action, President Obama made several statements directly related to government contractors and the federal budget.  In fact, he called out contractors specifically when talking about his focus on wage equality and living wages:

“In the coming weeks, I will issue an Executive Order requiring federal contractors to pay their federally-funded employees a fair wage of at least $10.10 an hour – because if you cook our troops’ meals or wash their dishes, you shouldn’t have to live in poverty.”

The reality that most federal contractors already make at least $10/hour speaks to a bit of Presidential hyperbole for dramatic effect in the last part of that statement.  While on the surface this part of his speech probably won’t have great impact on the way you do business, it’s important to reserve judgment until seeing exactly what that executive order might look like and when it will go into effect.  As with most political addresses, much of the speech left contractors with more questions than answers about what the future may look like.  One thing you can be sure of is that Aronson will continue to monitor this and other important issues and keep you apprised of any important developments.

For more information on the minimum wage increase visit the U.S. Department of Labor website.

If you have any questions regarding this topic or other contract administration issues, please contact Tom Marcinko at 301.231.6237 or via email at tmarcinko@aronsonllc.com.

 

About the author:  Thomas Marcinko is a Principal Consultant in Aronson’s Government Contract Services Group.  He has over 25 years of government contracts experience, including proposal development, contract and subcontract administration, FAR compliance, small business programs, and government audits.

About Thomas Marcinko


Thomas Marcinko is a Principal Consultant in Aronson’s Government Contract Services Group. He has over 25 years of government contracts experience, including proposal development, contract and subcontract administration, FAR compliance, small business programs, and government audits.

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