It's even worse in defense consulting. - I've seen people billed at 2x salary because overhead includes work area cost, management chain cost, passthrough perc

It's even worse in defense consulting. - I've seen people billed at 2x salary because overhead includes work area cost, management chain cost, passthrough percentage, etc.). None of that overhead is likely to be at 80%. - Defense consulting often involves combined staffing from different companies. For example, if BigCorp partners with ThreePhdsInABox on a Small Business Innovation Research (SBIR) project, then the rules are often interpreted to mean 51% or more of the staffing has to come from the small business (usually). This is measured in terms of number of people on a project, not total cost of each person. - For classified efforts, the cost of a clearance can run up to $50,000 per person, depending on the clearance. This is the same whether the person is 10%, 80%, or 100%. If they are already cleared at the needed level then this isn't an issue. I don't see this happening in defense consulting until/unless the government goes to a mandatory 32 hour work week. That said many government projects have a mandatory 40 hour week, and some defense companies have an unwritten expectation of 50 hours per week, so the new unwritten will likely be a 40 hour week.