Government Contracting | The Middleman Strategy & New Court Decisions
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- Опубликовано: 29 сен 2024
- Curtis A. Merriweather, Jr., Ph.D., was named a Game-changer by the White House Policy Advisor for Entrepreneurship and Innovation in 2020. He has secured more than $1B+ in contract ceiling. On this channel, Curtis will provide practical techniques, tips, and tricks that will aid your entrepreneurial journey.
Dr. Curt discusses recent court filings around the middleman approach to executing contracts. He cautions against taking advice from social media platforms such as Clubhouse, Facebook, Instagram, TitTok, and RUclips, as it can lead to compliance issues and potential legal troubles. The middleman approach involves winning a federal contract and delegating the majority of work to someone else while taking a cut of the profits. The middleman strategy violates the Limitations on Subcontracting 48 CFR § 52.219-14 and the broader Code of Federal Regulation (CFR). Please be careful and heed the counsel discussed in this video. Avoid embracing this strategy to prevent contract termination, federal suspension, federal debarment, and/or civil liabilities.
Court Cases
Case 1. Spartan Medical Inc. & Junius J. Dion DBA Risen Video Productions
Case Link: bit.ly/3xUwF45
Case 2. Hawaii Ocean & Sun Travel Case
Case Link: bit.ly/3S3H2tf
Chapters:
00:00: Episode Preview
01:08: Welcome
01:54 Learn GovCon
02:30 Support the Channel
02:51 Topic Introduction
03:59 Caution/Warning
05:04 Implications
07:05 Spartan Medical & Risen Video Productions
08:03 Legal Commentary
13:27 Hawaii Ocean & Sun Travel
19:51 LaunchPad Program
Key Takeaways:
Key Takeaways from Today’s Video:
1. The Middleman Strategy: A Cautionary Tale
- Misunderstanding the Limitations ofthe Subcontracting Clause can be detrimental.
- New government contractors often overlook control requirements.
- Cases like the protest of Spartan Medical highlight the pitfalls of not performing any part of the required services.
- The importance of forming LLCs or S Corps instead of sole proprietorships for better legal
protection.
2. Legal Summaries & Real-World Examples
- Learn from recent court decisions to avoid costly mistakes.
- Understand why the control requirements are crucial for maintaining eligibility as a service-disabled veteran-owned small business (SDVOSB).
3. The Importance of Accurate Information**
- Avoid misinformation and always consult with experienced legal professionals.
- Ensure that your business practices comply with federal regulations to prevent losing valuable contracts.
Why You Should Avoid the Middleman Strategy:
- It can lead to legal disputes and the loss of contracts.
- The strategy often fails to meet the federal requirements for subcontracting and control.
- Building a solid business foundation requires understanding and complying with all relevant laws and regulations.
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Please feel free to follow me on other platforms:
Follow me on Instagram (IG):
/ drcurtisjr
Follow me on Medium to read my blog posts: / cmerriweatherjr
To take a government contracting class, please use the following link:
www.8figuregovc...
Please feel free to follow me on other platforms:
Follow me on Instagram (IG):
/ cmerriweatherjr
Follow me on Medium to read my blog posts: / cmerriweatherjr
To take a government contracting class, please use the following link:
www.8figuregovc...
www.8figuregovc...
1. Federal Acquisition Regulation (FAR):
www.acquisitio...
2. Limitations on Subcontracting 48 CFR § 52.219-14 FAR
www.acquisitio...
3. Department of Labor (DoL) Fair Labor and Standards Act (FLSA)
www.dol.gov/ag...
4. Misrepresenting Socioeconomic Status13 CFR § 121.1004
www.ecfr.gov/c...
5. Misrepresentating Size Status 13 CFR § 121.108
www.law.cornel...
This RUclips channel is a news reporting and educational site covered under Copyright Disclaimer Under Section 107 of the Copyright Act 1976, allowance is made for "fair use" for purposes such as criticism, comment, news reporting, teaching, scholarship, and research. Fair use is a use permitted by copyright statute that might otherwise be infringing. Non-profit, educational or personal use tips the balance in favor of fair use. No copyright infringement intended.
#middleman #governmentcontractor #governmentcontracting #govcon #federalcontracting #govcon #govcon101
Thanks for speaking on it, brother! There's a reason I steer clear of anyone looking to move fast and 'partner' with anyone just because of a given certification. Value and principle-alignment helped me navigate the commercial space well, and I've zero intention of letting that falter in the government contracting space. It's a real shame to feel like the majority of what I see in many GovCon support/training groups, feels unethical, at best.
Yes, it is very unfortunate. However, I will always do my best to be ethical and responsible with the information I share.
Ty.
@@govconlearning You are most welcome!
Dr. Curtis, I recommended your services and channel to a woman-owned, 40 year old textile firm out of NY. She mentioned her frustration at not knowing where to start in GovCon. I pointed her your way, letting her know she'd be in excellent hands. I hope she contacts you. You are appreciated, brother.😊
Thank you, Brother! I truly appreciate it and I will definitely point her in the right direction.
@@DrCurtisJr You're welcome, sir!!!:)
Man, I was following a few people who I felt wasn’t telling the truth. And then I stumbled on this…thanks for being honest. Do you do mentoring?
I am glad you found value in the content, and I work to provide honest content. We have a mentoring program entitled the 8-Figure GovCon 5X Program Bundle. It has 25-30 hours of on-demand content and live sessions with me monthly. Here is the link to the program which provide two payment options: www.8figuregovcon.com/store
Thanks for the information, sir. I am new to this world and am strictly learning by consuming content right now. Everything out there seems to be videos embellishing this strategy. It seemed fishy. Glad I found you early on in my journey into this space. Thanks!
You are most welcome and I am glad you found out early too.
The goal is to recruit, recruit, recruit!!!!
@@allenwhite1971 Yes Sir! Entrepreneurs have to develop real business capabilities!
❤❤❤
@@Claudia-ck8dx Glad you found this content helpful!
All Guru's aside, I'm just curious why you say it's not allowed at all if the SBA website says a Prime can hire Subs that are similarly situated to meet performance requirements? Is that not true?
@@MoneyMatrixStrategies I NEVER said subbing wasn’t allowed. I said Primes cannot sub out 100% of the work. The Prime should be performing at least 51% of the work as outlined in the solicitation. There are three significant violations present when subbing out the majority of the work: (1) Limitations of Subcontracting, (2) Ostensible Subcontractor rule, and (3) control provisions. I will take it a step further and add that most who claim to partner with similarly situated organizations do not -- instead they find the most willing participant regardless of NAICS & SBA Size Standards.
@@DrCurtisJr Oh I see, so the Guru's aren't mentioning that part. I never doubted your sincerity just wanted some clarification on the difference between Subbing the work the right way and the wrong way. Your vids are much appreciated brother.
@@MoneyMatrixStrategies No worries! I am glad that you are finding the content helpful.
@@DrCurtisJr of course, so it's safe to assume the same applies to local gov con as well
@@MoneyMatrixStrategies The rules mentioned are specific to federal contracts, but you will have to determine the rules that apply to state and local contracts. However, please note that differences may exist from state to state.