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  2. Don’t know. It depends upon the terms of your contract with the prime and your contract with the employment agency.
  3. If for example I am in connection with a prime contractor who has already been awareded a contract, the standby team will have to be familiar with the responsibilities required by the prime contractor through an agreement which will document the responsibilities for both the sub and the prime contractor. It is for that reaosn I asked, will I need to pay my staffing firm in advance for the time it has taken them to familiarise themselves with the contract requirements and at the same time potentially have a conference between the 2 teams.
  4. My answer to you would be that you will have to obtain financing if necessary to pay your workers then get reimbursed by your prime, unless the prime is willing to provide this financing for you.
  5. It appears to me that you are going to subcontract all of your labor for your potential subcontract. Even if you aren’t, a company is expected to pay its employees even if it is waiting reimbursement from a higher tiered Contractor. If this is a federal construction contract, the Miller Act and other labor laws apply to all prime and subcontract labor and the prime and subs must submit payroll information for hourly paid workers. The government doesn’t make progress payments for advanced labor costs on fixed price construction contracts. For cost reimbursable construction contracts, which
  6. GovBiz, We don’t have enough information about either the prime contract or the subcontract to be able to answer your questions. Are they fixed price or cost reimbursement? Are they for construction or supplies or services? What is the purpose of your sub contract? Is the prime contract with a federal government agency?
  7. Why would it be mandatory to pay in advance of winning a subcontract? To me it doesn’t make any sense and would likely be an unnecessary and unreasonable cost if you are seeking reimbursement from the government through the prime contractor for a cost reimbursement subcontract. What is the purpose of the prime contract and also the subcontract? Are the prime and subcontracts cost reimbursable type? EDIT: What is the purpose for “standby” of personnel prior to winning a subcontract? In another thread and here, I think you are alluding that there will be standby costs after you win the s
  8. Hello, I have been thinking of variants on how to hire my standby team. Is it mandatory to pay in advance the standby team hired by the staffing agency or will the payments start after winning the contract between me and the prime contractor? Looking forward to your assistance, thank you.
  9. The government won’t make advance payments for construction contracts under the provisions of the Payments and prompt payment clauses.
  10. Why do you think that the prime will pay you the full amount of the subcontract once the prime contract is awarded?
  11. Sounds like you should include language in your contract with the prime that you are to be paid 100% in advance within x days after the prime accepts a prime contract award. Also, you should include language in your contract with the staffing agency that they agree to provide all required labor within x days after you receive payment for the labor from your customer. In my experience, the prime contract arrangement you seem to need is not the usual arrangement...the prime would likely need to ask the government for your advance payment and/or obtain a loan to finance it.
  12. DOD Instruction 1400.25 Vol. 451 appears to be in effect. The latest version I could find is dated Nov 4, 2013 with an apparent expiration date of Nov 4, 2023. It provides as follows at Enclosure 3, page 16: (2) To avoid issues in connection with contractual relationships and obligations, actual or perceived conflicts of interest,and actual or perceived acts of favoritism, persons, organizations, or companies having a commercial or profit-making relationship with the DoD or with a DoD Component will not be granted recognition. The single exception is if the contribution is deemed to be un
  13. Happy Thanksgiving from all of us at SmallGovCon. Hope all our readers have a wonderful and revitalizing holiday. The post Happy Thanksgiving! first appeared on SmallGovCon - Government Contracts Law Blog. View the full article
  14. No disagreement yet it would be my view that in the scheme of things that the rest of the reasoning applies. In other words multi-year is an issue directly related to appropriation law and as such determining what is and what is not multi-year is determined from that standpoint. By example you hold up bona fide need yet you do not hold up antideficiency as well. Not that I want to get into some discussion about antideficiency but generally speaking if there is no money in the trust fund and someone used money from it I would suspect one enters the world of antideficiency. I realize in the
  15. Incidentally, what are the prime contract and subcontract for? If the contract ceiling amount is $700K or more ($1.5m for construction) then the Prime cotractor needs to subcontract at least 35% of a contract. In which case, the subcontractor is the middle man and the Prime contractor therefore pays the sub 35% of the award amount. If the work is 50% then it will be 50% of the award amount and so on. So as a subcontractor, the prime (once they've been awarded) will pay me before the work can begin. Are you asking for a way for you to delay paying for labor until the prime pays you?
  16. Are you asking for a way for you to delay paying for labor until the prime pays you? Incidentally, what are the prime contract and subcontract for?
  17. Hello Joel, thank you for the input! Is there a way to start paying the staffing firm/employees once the prime contractor has paid me (as a sub-contractor)? I will be more than happy to explain further should there be any confusion.
  18. 16.203-4 Contract clauses ... (c) Adjustments based on actual cost of labor or material. ... (4) In negotiating adjustments under the clause, the contracting officer shall— (i) Consider work in process and materials on hand at the time of changes in labor rates, including fringe benefits (if any) or material prices; (ii) Not include in adjustments any indirect cost (except fringe benefits as defined in 31.205-6(m)) or profit; and (iii) Consider only those fringe benefits specified in the contract Schedule. The direct labor and materials costs would have to chan
  19. Faroutgeek, I will admit that I am unable to do a WIFCON forum search on my Iphone. I click on the Spyglass icon and the search term box comes up. I click on it to pull up the keyboard and an ad for “FedBizAssist L.L.C.” pops up rather than the keyboard. I spent the better part of an hour this morning trying to find that thread that I referred to above!!!! I ended up doing google searches with key words until I found something.
  20. Raise your hand if you love completing your SAM profile! Um, anyone? Anyone? Love it or hate it, SAM is a fact of life for government contractors, and it’s very important to get it right. Mistakes on your SAM profile (including those seemingly never-ending “reps and certs”) can come back to haunt you. On December 1, please join me and Carroll Bernard, the co-founder of Govology, as we discuss how to set up your SAM profile–properly! Just click here to register. Hope to see you then! The post Event: SAM Profiles with Carroll Bernard of Govology first appeared on SmallGovCon -
  21. Joel: Thank you for the response. I did look up the archives too and was wondering if there was anything more recent since DOD Manual was dated a while back. Seems like it is still applicable. Appreciate the response
  22. Not disagreeing with anything posted but I’m not sure if any of Carl’s research applies. Money from foreign governments goes into a special US Trust Fund. It has no fiscal year identity like appropriated funds. So I don’t see the Bona Fide Need rule applying. In other words, needs are those of a foreign government who’s furnishing money and there are no appropriation actions by the US.
  23. Further read of the Red Book got me to the point of why stop now.......of interest. And I have gone 360 and suggest that Retreads suggestion to contact DSAA is the best idea. From page 3-38 of the Vol I...short but interesting excerpt....emphasis added "A good illustration of how all of this can work is found in B-222666, Jan. 11, 1988. The Defense Security Assistance Agency (DSAA) is responsible for issuing instructions and procedures for Foreign Military Sales (FMS) transactions...." And from https://samm.dsca.mil/chapter/chapter-6#C6.T1. Again emphasis added..... C
  24. Control over a Service-Disabled Veteran-Owned Small Business can be held by multiple service-disabled veterans. Having control reside in multiple individuals can make things a little more complicated, though. SBA Office of Hearings and Appeals recently examined a situation where multiple service-disabled veterans shared control of a company, but did not have a united front when responding to information requests concerning a company’s eligibility. In Pro-Sphere Tek, Inc., CVE-162 (Aug. 31, 2020), SBA considered an appeal of a Department of Veterans Affairs (VA) Center for Verification
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