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Adding a Single Contractor to an Existing Govt Contract

by atalba, Window Shopper

  • Created: January 19, 2011, 10:50 am
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3 comments

We are a small business with an existing Federal Govt contract. We'd like to add an individual as a contractor to us, to extent our capabilities fulfilling our current contract. How do we do that? This individual maintains his own services business, but we would like for him to perform services under our contract. Can we set up a limited partnership, so this individual is acting as an employee of our business? Or do we need approval for this individual to act as Federal Government subcantractor?

Tags: Discuss Popular Topics, Government Contracting
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Razor Communications | Window Shopper | 3/15/2011 - 3:47 pm

Hi Guys You don't have to go through any 'business formatting' or let someone else into your ownership and vice versa. All you need to do is sign a simple teaming agreement between your company and another. This allows you as the contract holder to be in control of your contract, plus allow your business partner to use the contract as a selling tool. We are always looking for another strategic partner. Thanks Steve

riverasierra | Window Shopper | 3/10/2011 - 4:27 pm

It depends. If you have a fixed cost contract, you can subcontract as you see fit as long as you remain primarily responsible to the government for contractual deliverables. If the work that this person would do is work that you specifically said would be done by you, you would be substituting a 'key personnel' which requires approval. It is best not to make this person an employee since he/she runs a separate company. Since you already have the contract, you are not extending your capacity; merely your ability to perform. José A. Rivera, JD President & CEO Rivera, Sierra & Company, Inc.
José A. Rivera, JD President & CEO Rivera, Sierra & Company, Inc. jrivera@riverasierra.com

riverasierra | Window Shopper | 3/10/2011 - 4:27 pm

It depends. If you have a fixed cost contract, you can subcontract as you see fit as long as you remain primarily responsible to the government for contractual deliverables. If the work that this person would do is work that you specifically said would be done by you, you would be substituting a 'key personnel' which requires approval. It is best not to make this person an employee since he/she runs a separate company. Since you already have the contract, you are not extending your capacity; merely your ability to perform. José A. Rivera, JD President & CEO Rivera, Sierra & Company, Inc.
José A. Rivera, JD President & CEO Rivera, Sierra & Company, Inc. jrivera@riverasierra.com