4 years of research revealed the best GovTech transition route

Three years before I separated from the Air Force, my daughter was born.

That changed everything.

Suddenly, the idea of following orders for another 12 years while someone else controlled my career path didn't sit right.

I started asking questions:

I got serious about understanding the three paths available in GovTech:

After four years as a contractor working alongside all three groups, here's what I learned.

Every federal technology project relies on these three groups working together:

Each serves a critical role. But they come with very different trade-offs.

As a contractor, I'm earning significantly more than I ever could as a GS civilian with the same experience level. The pay scales aren't even comparable.

The real wealth-building difference comes from the retirement systems:

Federal Contractors get 401(k) plans with 4-6% company matching. When you're making two to three times more than military or GS pay, that 4-6% match represents serious money.

Plus, you can contribute up to $23,500 annually (with catch-up contributions after age 50). A higher salary, combined with a higher match, means you're building wealth significantly faster.

Active Duty Military transitioned from the old "High Three" system to the Blended Retirement System (BRS) in 2018.

Now they get TSP matching up to 5% of basic pay, plus an automatic 1% contribution.

The government matches dollar-for-dollar on the first 3% you contribute, then 50 cents on the dollar for the next 2%.

However, military base pay is significantly lower, so that 5% represents a much smaller amount of actual money going toward retirement.

GS Civilians have the Federal Employee Retirement System (FERS), which includes three parts: a basic pension, Social Security, and TSP.

They get the same TSP matching structure as the military (up to 4% match when you contribute 5%), plus an automatic 1% contribution.

The pension provides additional security, but GS employees typically contribute 4.4% of their salary to fund this defined-benefit pension.

The math is stark: higher contractor salaries mean that the same percentage match translates to thousands more dollars annually going toward retirement.

The flexibility difference is just as dramatic.

As a contractor, I can move between contracts, negotiate my role, and actually control my career trajectory. When I wanted to transition from systems administrator to senior systems engineer, I made that happen by finding the right contract.

GS civilians have some mobility, but it's slow and bureaucratic.

Active duty? You go where they send you and do what they tell you.

During deployments to places like Al Udeid and Afghanistan, I worked alongside contractors who had the same skills I did: the same technical background, the same clearance level.

They were making two to three times what I was making.

The math that opened my eyes:

As an active duty military member, I received $225 per month for Hostile Fire Pay or Imminent Danger Pay, along with $150 monthly for Hazardous Duty Incentive Pay (HDIP) for my specialized duties.

That totals an additional $375 per month in hazard pay.

The contractors sitting next to me? They were earning between $300 and $750 daily, which adds up to $9,000 to $22,500 per month in total pay.

Some surveys indicated starting salaries in Iraq at $91,000 and $99,000 in Afghanistan, with opportunities paying over $100,000 just in base salary.

But that wasn't even the full picture.

Defense contractors also received danger pay allowances that could reach 35% of their base salary in high-risk areas, such as Iraq, compared to 15% in lower-risk areas, like Kuwait.

Additionally, they had access to the Foreign Earned Income Exclusion, allowing them to exclude up to $103,900 of their income from federal taxes (this amount has since increased).

So while I was earning an extra few hundred dollars per month in hazard pay, they were earning tens of thousands more in base salary, substantial danger pay bonuses, and significant tax advantages.

I realized the federal contracting space wasn't just an option—it was the path that aligned with my values and goals.

More veterans are choosing the contractor route because of what's happening right now:

The "One Big Beautiful Bill" just created the largest federal tech hiring surge in history. Defense contractors are securing massive IT and AI contracts—and they need people now.

Just look at the contract awards from 2025:

These aren't isolated awards.

Accenture Federal Services got $210 million for FBI IT support.

Leidos secured $128 million for software modernization.

Northrop Grumman received $99 million for Navy command and control systems.

When the federal government allocates defense budgets (the fourth-largest line item after Social Security, Medicare, and Medicaid), billions of dollars flow to contractors who require cleared professionals with the right technical skills.

That money flows directly to people with the right skills and clearances.

Higher salaries, better career flexibility, and the ability to specialize in cutting-edge AI and cybersecurity technology without being constrained by government pay scales.

All three paths serve the mission.

But after studying this space for years and now working as a senior systems engineer, the contractor route offers something the others don't: the ability to build the career you actually want while earning what you're worth.

If you're transitioning out of the military or looking to make a career shift into the GovTech space, the timing couldn't be better.

With billions in new contracts being awarded and companies desperately needing cleared professionals, the opportunities are massive.

I'm currently developing a proven roadmap that will help ambitious service members and career changers secure high-paying careers in GovTech.

My system will walk you through everything from translating your experience into contractor-ready skills to landing that first six-figure role without wasting years on rejected applications.

This roadmap will be ready within the next two weeks, and newsletter subscribers will be the first to know when it's available.

Want to discuss your career ambitions in the meantime?

I'm taking time each week to sit down one-on-one with readers who want to discuss their transition strategy, share the roadblocks they're facing, and receive feedback on solutions that would make their career shift easier.

If you'd like to schedule a 30-minute meeting with me to discuss your path into GovTech, please grab a time on my calendar https://calendly.com/murphyjerraill/govtech-career-pathfinder-feedback-session.

And make sure you're subscribed to this newsletter so you'll be notified the moment my comprehensive roadmap becomes available.

See you next week, 🫡
— Jerraill