Business Proposal

Last week a friend of mine whom I've worked with in the past asked me about federal contracts.  Specifically, as a veteran, did I have a better chance at being awarded a federal contract than he would as a non-veteran owned business.

Yes, I would.  He then asked me if there was some way I could prove I was a veteran, to which there is -- a DD214.

He then explained he heard about a federal contract coming up for proposal requests from a company he has not worked with in the past, who cold-called him to see if he wanted to submit a proposal for the contract.  So, he wanted to know if he could get a better inside line by putting me on the payroll and claiming veteran's status.

Instead I told him to talk to, and arranged a meeting with, another company I have done business with in the past that has only worked federal contracts and is a disable-veteran owned business.  As a disabled-veteran Gus business, Gus automatically gets to the top of the list for consideration of the contract and he has a strong history of providing services to the DoD with positive results.

It seemed like a match made in heaven: my friend Gus submits for and manages the contract then hires my other friend as a subcontractor to perform the duties to which he has been doing for more than 20 years here in the Denver area.  Or, a company with a good history of obtaining and delivering on federal contracts and a company with a proven history in the field.

Today, my friend, the owner of the first company, called and said he was going to partner with the company he's never worked with before because he thinks they have a better chance of being awarded the contract as they're a larger company.  I didn't like it, but I understand it to a point.  I was vouching for the other company that I have worked with in the past, who has a history of receiving federal contracts.  Heck, I was vouching for both of them to each other!

However, he still wants my friend Gus to do all the leg work to get him (and the other company) the contract. He wants Gus to put together the proposal and administer the contract, but doesn't want to pay him or me for it.  I was flabbergasted!  He doesn't want to partner up, choosing instead to partner with a company he's never worked with in the past, but still wants my connections and Gus' experience without paying for them.

I'm thinking about submitting for the contract anyway and either sub-contracting it out to another company or hiring him at a much lower rate than he would have gotten.

I'm so friggin frustrated right now!

I ask myself all the time how this guy's in business.  Aside from giving the cart away with the horse all the time, I can't imagine why companies hire him.