Contractor question

[sockgirl77 (Premo)]

What exactly happens to employees once a contractor loses a big contract at NAVAIR?

[fredsaid2]

They can be placed on another of the company's contracts if a position is available, they can go on overhead, they can be let go, or they can seek a position with the winning contractor.

[withrespect (Premo)]

Originally Posted by fredsaid2

They can be placed on another of the company's contracts if a position is available, they can go on overhead, they can be let go, or they can seek a position with the winning contractor.

My friends company lost the contract.. She was picked up by the new company but was given a $25000 pay cut.

[Chasey_Lane]

Originally Posted by sockgirl77

What exactly happens to employees once a contractor loses a big contract at NAVAIR?

Here are a few things that can happen:

(1) The current employer can find another position to support the employee.
(2) The current employer will be picked up by the winning company.
(3) The current employer can look for another position on his/her own.
(4) Unemployment.

[sockgirl77 (Premo)]

Originally Posted by fredsaid2

They can be placed on another of the company's contracts if a position is available, they can go on overhead, they can be let go, or they can seek a position with the winning contractor.

Thanks. The bf was just informed that the company that he works for lost their contract and they're working off of a bridge contract in hopes that this gets resolved. I do not know much about the contract world except for the fact that the company that I work for just signed a 5-year contract.

[sockgirl77 (Premo)]

Originally Posted by Chasey_Lane

Here are a few things that can happen:

(1) The current employer can find another position to support the employee.
(2) The current employer will be picked up by the winning company.
(3) The current employer can look for another position on his/her own.
(4) Unemployment.

With #2 and #3 you mean the employee, right?

[sockgirl77 (Premo)]

Originally Posted by kwillia

Don't take that as a guarantee that all option years will be exercised or that they will be fully funded. The government has the right to cut funding at any point including the current option year.

Oh I know. We've already been talked to about a possible furlough.

[withrespect (Premo)]

Originally Posted by kwillia

Don't take that as a guarantee that all option years will be exercised or that they will be fully funded. The government has the right to cut funding at any point including the current option year.

And contract modifications are always possible.... expensive, but possible.

[Chasey_Lane]

Originally Posted by kwillia

Don't take that as a guarantee that all option years will be exercised or that they will be fully funded. The government has the right to cut funding at any point including the current option year.

Exactly. And, most pots of money are not fully funded at one time. They are incrementally funded. So, just because your company was awarded a 5-year contract does not mean every position will be funded or that all money will be received.

[Chasey_Lane]

Originally Posted by sockgirl77

With #2 and #3 you mean the employee, right?

Oops, yes. I mean to see "employee" in my post.