Going 1099 is a book that teaches you how to become a solo federal sub-contractor and gain control of your working life, earn more money and unlock more free time. I wrote it because quite a few people have asked me how they can become a 1099. I figured it was best to write a single book that I can send them and that I can share with others who are interested. This newsletter goes out Monday - Friday and covers topics that will help you succeed in starting and maintaining successful 1099 career.
When the prime plays hardball
On of our projects, the government client wanted to bring on one of our current employees. No problem, we submitted a high but fair billable rate to the prime PM. This rate is just a bit below what my partner bills and is in the same LCAT. The prime sent back a low-ball call counter that was 30% lower. What my partner did at this point was to text the government client and update him on the situation. The client said that in these situations the prime usually just cautions him about paying too much and then he just approves the rate anyway. So we stuck to our guns. I don't know how this will turn out, but we suspect the prime (a private equity backed mega-corp) is just trying to improve their bottom line off the backs of their subs. It's not personal. But if you're new to the 1099 world, you may not be used to a prime trying to take advantage of you and you may get insulted or just write them off entirely. The best thing to do in these situations is to make sure you have and use your leverage. In our case, it's a good relationship with the government client. In a solo 1099 situation, you can have a good client relationship but you can also get leverage by finding alternate projects, having a good amount of savings, or just be willing to stay where you are. No deal is better than a bad deal. So don't get thrown off by "hardball" prime negotiation tactics. Keep calm and carry on. If you're interested in learning how to get your first solo 1099 federal sub-contract, check out my book: |
I'm Dale, the author of Going 1099
Going 1099 is a book that teaches you how to become a solo federal sub-contractor and gain control of your working life, earn more money and unlock more free time. I wrote it because quite a few people have asked me how they can become a 1099. I figured it was best to write a single book that I can send them and that I can share with others who are interested. This newsletter goes out Monday - Friday and covers topics that will help you succeed in starting and maintaining successful 1099 career.
When a prime calls and asks for your helpSource I switched projects over a year ago, and the prime hired someone for my position. The prime PM called me recently and mentioned that their employee wasn't performing well on a project that I had worked on and asked if I would be interested in coming back. Now, I had already worked on this project as a sub/1099 so I don't have to negotiate that part. However, they only have four months left on the contract and need to make their client happy, so...
The prime PM when I pitch $1,000/hourSource It's normal to worry about coming in too high in a billable rate negotiation. There is some risk that you'll throw out a number that is too far away from a realistic number for the prime. But, if you take some precautions this risk is low. Here is what you can do to avoid that situation: Let the prime offer the first number. They will probably be on the low end but at least you'll know whether you're $10/hour apart or $60/hour Do your research. You...
Don't let this happen to you!Source One of the concerns I had when going 1099 was managing my security clearance. Specifically, I was worried it would expire and without a company to "hold" it, I wouldn't be able to get it back. This is a legitimate concern, so you should be particularly diligent about it. A few points on this: Make sure the prime (or at least one prime) "owns" your clearance profile in DISS Build a good relationship with the FSO Keep tabs on when you need to submit for a...