Two main questions. The primary question many of us have are the Limitations on Subcontracting. Some people don't have a business to do the work. They desire to seek out a subcontractor to do the work outlined in the contract but find out they also have to do 15-51% of the work themselves as a Prime. Where are the best places to find contracts to get around that or perhaps how do you handle such contracts? Additionally consulting is a way to avoid that but how do you follow through with negotiating between you and the Contractor who is going to do the work themselves. What do people typically provide and charge for their consulting service? Thanks
Thanks for the comment. You're right to highlight subcontracting requirements. Many contracts require the prime to complete a certain amount of the work as you pointed out. I advise people to build a commercially viable business before attempting gov contracting so they have commercial past performance and revenue as well as a proven and tested product or service. Gov contracting is hard and the timelines are much longer than commercial sales. There are certain areas of govcon where you act as a reseller (think commodities) but typically you will have high competition and thin margins, I avoid that type of work all together. Finally, if you do not have a business (or you just started an LLC) and are interested in gov contracting consulting is hands down your best option. When you charge a business to help them I recommend charging by the project or monthly fee. Rarely, although I have done it, I will include a commission. However, the FAR contains language that states you should never help a company sell to the government for just a commission. If interested, I go into great depth with our students in the GovClose certification program ( www.govclose.com/sales-certification ). Many of them close there first clients before even graduating. A big contrast between this and selling to the gov as a prime is you are getting paid up front and maintain much more control of your revenue stream. Hope that helps! Rick
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This is great!
Two main questions. The primary question many of us have are the Limitations on Subcontracting. Some people don't have a business to do the work. They desire to seek out a subcontractor to do the work outlined in the contract but find out they also have to do 15-51% of the work themselves as a Prime. Where are the best places to find contracts to get around that or perhaps how do you handle such contracts? Additionally consulting is a way to avoid that but how do you follow through with negotiating between you and the Contractor who is going to do the work themselves. What do people typically provide and charge for their consulting service? Thanks
Thanks for the comment. You're right to highlight subcontracting requirements. Many contracts require the prime to complete a certain amount of the work as you pointed out. I advise people to build a commercially viable business before attempting gov contracting so they have commercial past performance and revenue as well as a proven and tested product or service. Gov contracting is hard and the timelines are much longer than commercial sales.
There are certain areas of govcon where you act as a reseller (think commodities) but typically you will have high competition and thin margins, I avoid that type of work all together.
Finally, if you do not have a business (or you just started an LLC) and are interested in gov contracting consulting is hands down your best option. When you charge a business to help them I recommend charging by the project or monthly fee. Rarely, although I have done it, I will include a commission. However, the FAR contains language that states you should never help a company sell to the government for just a commission.
If interested, I go into great depth with our students in the GovClose certification program ( www.govclose.com/sales-certification ). Many of them close there first clients before even graduating. A big contrast between this and selling to the gov as a prime is you are getting paid up front and maintain much more control of your revenue stream.
Hope that helps!
Rick
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