The big picture: NASA is insourcing jobs previously handled by contractors, leading to 70 layoffs at Amentum, a major contractor at Kennedy Space Center.

Why it matters: This move signals a potential shift in government contracting strategy, prioritizing internal expertise over external vendors, which could impact other federal contractors and the broader contingent workforce.

Between the lines:

• NASA Administrator Jared Isaacman initiated the insourcing after issues with the Boeing Starliner program.
• The layoffs at Amentum were announced via a WARN Act notice, affecting engineers, analysts, and system administrators.
• Amentum still retains significant contracts with NASA, employing over 2,100 under its COMET contract.

Staffing & HR impact: This highlights the volatility for contractors reliant on government contracts and the need for robust workforce planning to manage such transitions, impacting recruiter mobility and talent redeployment. It also underscores the importance of WARN Act compliance for employers facing significant workforce reductions.

The bottom line: Expect increased scrutiny on the balance between contractor reliance and in-house expertise across federal agencies.