What to negotiate other than billable rate

Negotiating a billable rate is important because that's what will impact your income the most.

But, there are a few other things you could negotiate depending on your goals (work less, hire more people, etc.)

• Work schedule/hours: You may want to work less and the client may be flexible. Might as well ask.
• Facility Clearance (FCL): If you want to hire cleared employees and manage your own clearance, ask the prime to sponsor your FCL.
• Work share: If the prime wants you enough, you can negotiate a guaranteed work share, which means they guarantee your company at least X # of spots you can fill with your own employees.
• Time to find a replacement: You may want to leave the project and replace yourself. You should ask for a minimum of 30 days to replace yourself before the prime takes the position back to give you an opportunity to hire someone. Standard is around 2 weeks.
• Structure: If the contract permits, you can negotiate a firm fixed price contract (FFP) instead of a time & materials (T&M) contract. If you're efficient, you can dramatically increase your effective hourly rate.

In the end you want to structure the entire package in a way that is conducive to your goals, not just one element like billable rate.

Want the full playbook? Check out Going 1099.