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by nazgul 4337 days ago
Why are the forced to hire subcontractors, and a certain # of them? Do you know what the thinking is behind that?
1 comments

The overall idea behind being "forced" to hire subs is that it helps promote smaller, local businesses. In the past this worked out very well, because the subs brought in some very knowledgeable people. I believe the old number was 25% of the people, and you could pull from anywhere. If you had a 20 person team, you could have 15 LM, 2 from Company X, and 3 from Company Y.

On DCPS, the problem is that LM is forced to hire 45% (FORTY-FIVE) of the subs through one specific subcontractor. That company had a previous contract with SSA, and SSA liked them. Since the sub essentially lost their work with SSA to LM, and they know LM was contractually obligated to hire through them, they stuffed us with a ton of below average folks.

On the face of it, I agree with the idea of a large contractor having to sub out some of the work to the smaller players; it's just that LM overplayed their hand trying to get this contract, and got screwed for it. But that's another story on how LM management is trying to make revenue numbers for bonuses...