I work at an engineering firm in the DC metro area and we are a government contractor. About 50% of our work comes from the FedGov. We have lost multiple employees to the FedGov due to benefits and medical care. Sometimes when they leave they take a small paycut initially, but the overall benefits are much better in the public sector. My maxed out vacation time is basically what a Fed starts with in the first year.
Definitely a lot more job security. Most contractors don’t like their employees on “bench” very long and will lay them off.