There needs to be some raises for at least some specific Federal workers. The Navy, for example, has been BLEEDING R&D engineers due to pay freezes. They have been leaving for private contractors. The Navy's solution? Tripwire. It's a rule that limits contract rates to no more than what an "equivelent" .mil engineer would cost. This effectively limits what the company can pay engineers working on the .mil contracts. The results? Fewer decent companies bidding on .mil contracts. My company has rearranged some overhead expenses to keep most of our guys under the limit, but we're looking at abandoning some of the contracts (not bidding on additional delivery orcders), becuase we won't be to retain our best engineers.
This problem will just get worse.
Of course, one solution would be for the Navy to specifiy stupid rules like Tripwire, but that would be too easy...