Should you bid with a company?

by Dale Davidson

As a 1099 or aspiring 1099, you may get the opportunity to team with a company that is bidding on a government contract.

There are a few pros and cons to doing this.

Pros:

  • If the prime wins, you will have a guaranteed gig
  • If you like your current work, you don't have to commit to the new gig right away since it usually takes a while for these contracts to be awarded
  • Depending on how early you are in the process, you can offer to help the prime write the proposal, which could be a good learning experience
  • You can continue to do your current work and look for other gigs in the meantime; being on a team is a free option
  • You may have the option to hire people or can negotiate guaranteed spots

Cons:

  • The prime may not win, in which case you don't have a gig
  • They may want you to sign an exclusive teaming agreement (which you can negotiate), which cuts off other teaming options
  • If the prime wins and you decided NOT to take the gig, it may hurt the relationship with the prime a bit

Overall I'd say the pros outweigh the cons. But here are some guidelines if you go down this route:

  • Don't bid yourself out on too many speculative contracts. You can only support one at a time
  • Don't sign an "exclusive" teaming agreement without getting some concessions. Negotiate things like a better rate or a Facility Clearance sponsorship so you can manage your own clearance and hire people with clearances
  • Make sure you keep looking for other 1099 gigs while the government responds to the proposals. Don't stop your networking efforts

Want the full playbook? Check out Going 1099.

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