that happens in some industries, on some contracts.. but not always, and not in all industries/fields..
I have seen RFP's (requests for proposals) where the government establishes baseline wages for certain positions.. but most of those that I have seen have been in highly technical fields, areas where advanced degrees/educations are required, etc.. where the government is worried about high quality control or a very high end/technical product being produced..
In the field that I work, those types of wage clauses are pretty rare..
In scientific fields, they are much more common..
Up until a couple of years ago, the majority of contract opportunities I saw coming out from the government were "best value" opportunities.. a simplistic way to explain a "BV" contract is the government is open to giving the work to a company that might be more expensive than the other companies that propose solutions, but they have to prove that the government is going to get more value for the end product..
in other words.. If you bid $1M to produce something or provide a service to the the government.. and I bid $1.1M (10% higher), but I can convince the government they are going to get 15% more product or a 15% "better" product in my bid (I am going to bring in higher waged employees which will be more motivated and skilled and our productivity is going to be higher.. or Im going to give better benefits.. or Im going to use higher quality materials than the RFP requires.. etc..etc..). then the government reserves the right to select the higher cost solution since they believe they are going to get an overall better "deal" out of it..
These days more and more BV contracts are going away.. and more and more LPTA (Lowest Price, Technically Acceptable) opportunities are being seen..
In a nutshell.. the government cant afford to spend the extra money to get the extra benefits.. what they want to see now is vendors that produce solutions that meet their requirements, and do it at the absolute lowest price possible..
as long as you meet all the requirements of the RFP, they could care less about anything "extra".. just give them the cheapest price..
if you bid $1M and meet their requirements.. and I bid $1.1M but can provide them $2M in value.. they dont care.. you win.. you were the cheapest option..
Sooooo...
companies that provide services and products to the government are cutting wages and benefits dramatically (this is the only way they can continue to win work with the government and continue to provide jobs).. they are looking for lower cost of living locations to open manufacturing facilities (like Boeing has done in SC) where they can remain competitive.. they are avoiding unions, so that they can remain competitive, etc..
5 years ago I am reasonably certain Boeing would have told you that the union is a pain in their backside.. but it really wasnt a big concern.. everyone in their industry deals with the same pain.. its a level playing field.. and they could compete by presenting to the government that while their product is more expensive, they are providing better value than what "XYZ corporation" is offering since they dont do business the same way they boeing does..
these days, if Boeing wants to continue to be competitive in the government arena.. they have to cut costs.. the government is no longer considering "best value" on most of its opportunities.. they want "lowest price" as their highest priority.. the fastest and easiest way to do that, is to cut labor costs (which often means moving from high cost of living areas which also happen to be where the unions are more prevalent (east and west coast) to low cost of living areas (south east, south west, mid west, etc.. )..
if the government wants to go back to offering true "BV" opportunities.. companies like boeing will have less reason to go through the butt pain of having to pack up their belongings and move across the country..
but the government wants its cake and the ability to eat it too here..
one division (the purchasers of the products) wants the cheapest price.. and doesnt care how you become the cheapest..
and another division (the regulators) want you to pay more, force unions upon you, etc.. and doesnt care if you can actually provide the cheapest product to the customer (another division of the same government) or not..