FLGOVCON42- Standing Up To Predatory Primes

In this episode Jenny talks about the issues and concerns with working with a Prime Contractor, IDIQ, and the math involved in figuring it all out.

Does this sound like you?

• You’re teamed with a large Prime Contractor on a “must-win” bid
• It’s an IDIQ worth nearly a billion dollars
• If you don’t bid on this contract, you could be locked out

Remind Me..What Makes Up the Billing Rate?

• Employee’s hourly pay rate
• Fringe Benefits
• Payroll Taxes
• Leave
• Group Benefits
• Overhead
• Recruiting
• Clearances
• Certifications
• G&A
• Corporate Expenses
• Profit

What do you mean my rates are too high?

• How can I get Cleared People to match those Labor Categories at those rates?

Defense Contract Audit Agency (DCAA)

• Guidance
  • Information for Contractors
  • Accounting System Requirements
• http://www.dcaa.mil/audit_process_overview.html

Government Contract Requirements

• DCAA
• FAR
• CAS

Should I even bid?

• IF WE WIN…
• We’ll get the work:
  • then compete for task orders
  • I’ll chase for Candidates willing take a 20% pay cut
  • Wait out their clearance approval
  • Then have them poached by the prime or the agency itself?
• Oh, and I carry them on payroll for 60-90 days before I can get payment on my invoices?
• So my net profit as a small biz #GovCon is about 5%?

To contact Jenny W Clark

CEO

Solvability, Inc

www.solvability.com

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