MAIL BAG: THE WRONG SUB CAN LEAVE A BAD TASTE IN YOUR MOUTH
Sometime reader P. Manning of Denver, CO writes, “We discovered that one of our subcontractors has been providing untrained newbies, but billing us for experienced veterans. How do we make this right with the customer and get rid of the sub?” First, good for you all for having systems in place to discover this problem, P. Many prime contractors provide loose, if any, subcontractor oversight. As you point out, though, making things right with the customer is your responsibility as the prime contractor. My first recommendation is to bring in competent counsel that can help you assess the scope of the problem and develop a proposed remediation plan to your federal customer. Unless the sub can truly change its colors and practices, you may need to terminate your agreement with them and find another company. If the customer says the sub has to go, that pretty well answers part of the question. Be prepared for litigation if you do terminate that company. Remember, though, that a good defense can mean the difference between winning and being an also-ran.