Illegal Government Contracting Passthrough Schemes | Make Sure You Don't Do This 

I thought I read the same thing

Derek Please respond if you see this it's a very important question. From my understanding of what you said you can sub out 100% under 250k. SO if my business makes less the 47 million revenue per year I am a small business? Thank you for always responding

Not just businesses under $150K, if you subcontract to a similarly situated business, you can also be the middleman with no issues. Remember, the Govt wants to ensure that this money ends up with small businesses similarly situated within their set-aside. The $150K threshold is because not that much money will go to big business, as the SBA understands most subcontracting limitations.

So a small business that makes under 47 mill per year must sub to another similar or an 8a, hubzone etc.@@josephcelestine1945

100% agree. The worst part is that companies like yours are getting screwed over on the deal. All you can do is protest but that’s not a popular option for some.

That is STILL a lot of 💰💡📝

Sam doesn't give entities the feeling they are certified. SAM enables you to self-certify. By “self-certifying” and completing solicitation clauses related to your organization’s socio-economic characteristics and size, you certify that your business information is accurate. So, whether anyone is submitting proposals without knowing the required process, is neither here nor there, as the rules and regulations for 'self-certifying' are clearly laid out. The law doesn't have any feelings for those that knowingly commit fraud, hence the penalties that are imposed when those that commit fraud, do so.

If the contract is buy American then you can’t source from China

www.gao.gov/mobile/products/105519

@@GovKidMethod Thanks for the quick response man! Appreciate the link. From what I can see would this "buy american act" apply to all contracts? Or is there a section on beta sam that mentions this on the contract opportunities? Or would I have to mention to them that I am sourcing from countries outside of the U.S and they will tell me if they can still buy or not depending on there specific parameters? Sorry if this is a dumb question. As mentioned VERY NEW haha Really appreciate you and the value you are giving! Thanks Derek! :)

@@zacharisatosha7108 every solicitation has different clauses and far clauses referenced within it. You have to read the contract clauses. Sometimes it will be in there other times it’s not. That’s the only true way to get your answer.

Contact an attorney and they will advise you.

Simplified only applies to small biz contracts over the SAT (currently 250k). Similarly situated must share the same small business program. 8a to 8a. You can’t mix and match 8a to SDVOSB, that doesn’t satisfy the requirement. Remember, if the gov is trying to send money to veteran owned businesses, then the money needs to go to veteran owned businesses. That’s the reality check that will keep you compliant.

If the contract is under the SAT, Limitations on Subcontracting does not apply.

1) make sure it applies to you (dollar value) 2) if it does, perform the minimum percentage with your company before having a subcontractor do the whole job

Only the prime needs to be registered :)

Easy day! Thank you sir!

@@GovKidMethod follow up. I'm a small business registered in SAM, I team with another small business not registered in Sam, I can go above the 50 percent amount for a service business, what is the highest percentage I can allow the other sub to do? Can I do ten allowing sub to do 90?

There are no parallels between what I’m discussing in this video and being a consultant. As a consultant, the award still goes to the company, not the consultant. The regulation then applies to the company the contract was awarded to. I’m not a proponent of the “govcon consultant” model- the way it’s being used recently and it’s going to be confusing for those to navigate who don’t know what they’re doing

@@GovKidMethod ok i got it, main thing is the examples you gave the individuals were taking the money. Which the the funds are for the companies winning the contracts. Got it💪🏾💪🏾👍🏽👍🏽

My content is focused on Federal contracts

It’s best to not look for loop holes. There are enough opportunities to do this legally without having to resort to other methods.

Ppp😊😊😊😊😊ppppppppppppppp😊p😊pollp

Ppp

50 percent of profit?

If it’s under the SAT it doesn’t apply. No limit to quantity of contracts. No one knows when the SAT will change again

Do part of it yourself

@@GovKidMethod is managing the contract doing part of the work? Like project management?

@GovKidMethod answer the question above please

This is called reselling, its legal.

No issue with this

Being registered in SAM will do nothing to protect you if you are participating in an illegal pass through scheme.