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Public sector IT contractors earn 20% premiums


Public sector IT contractors who have security clearance can demand a 20% premium over their hourly rate for the same contract in the private sector.

Delays to security vetting are “choking the supply” of key personnel for sensitive IT projects, affording public contractors some the ‘highest rates across all sectors of the economy.’

Without extra resources the situation will continue, given security clearance now takes four weeks - not the 14 days the DVA initially hoped, ReThink Recruitment said yesterday.

Figures released by the staffing company show however that IT contractors are likely to have to wait “considerably longer” than the average 28-day period.

This is because contractors “often relocate or spend time working abroad, which can make the vetting process much more complicated,” the agency said.

Private sector contractors without experience on sensitive IT projects find it hardest to get timely clearance, while new IT hires still complain about the difficulties of sponsorship.

“The problem is compounded because the defence vetting agency cannot security check candidates unless they are first sponsored by an employer,” Rethink Recruitment explained.

“The Catch 22 is that public sector employers often refuse to sponsor candidates unless they are security cleared first.”

The Defence Vetting Agency (DVA) told Contractor UK of a “steady stream” of so-called ‘Catch 22 complaints’ in October last year, three months after the London bombings.

Phil Clarke, Hudson’s managing director of IT & Telecoms recruitment, said: “This ‘chicken and egg’ situation when it comes to obtaining clearance can lead to understandable frustration for contractors.

“But you shouldn’t be deterred from applying for ‘security-cleared’ contracts,” he said.

“Companies will sponsor candidates when the need arises.”

The agent said the start of major projects can drive up pay rates for security-cleared contractors in the short term, “but over a longer period they are comparable with non-cleared roles.”

Reflecting yesterday, Jon Butterfield, managing director of, ReThink Recruitment said a faster vetting process is needed if public sector IT projects are to access to the skills they need.

“A lot of contracts in IT are short term, and by their very nature need to be fulfilled quickly, so candidates that are already security cleared tend to be favoured for roles at the expense of people from the private sector without security clearance.

“Speeding up the vetting process should make it easy for the government to bring in private sector expertise. This should ease pressure on public sector rates, which have risen to among the highest across all sectors of the economy. The government could make big cost savings by removing this bottleneck.”

Vetting procedures have not been changed since 9/11 or the July 7 bombings, but certain changes are under consideration following a Review of Personnel Security carried out by the Cabinet Office.

The DVA has reminded IT applicants to challenge any employment agency that says only individuals who possess a clearance may apply for the advertised role.

In a statement, the Agency said: “If it appears that the job advertised is with MOD or an MOD contractor, applicants should ask who the sponsor is, and approach the sponsor/security controller directly if they feel the employment agency is discriminating against them because they do not have a clearance.

“Agencies which discriminate against uncleared applicants should be reported to the DVA.”

MoD sponsors and Defence Industry security controllers were recently reminded that any employment agency they use must not discriminate against uncleared applicants.

Contractors should expect job ads to include wording along the lines of ‘applicants should possess a security clearance or be prepared to undergo clearance checks’.



Nov 23, 2006

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