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  1. #1

    Default Contracting Company Did Not Follow Agreement

    My question involves labor and employment law for the state of: Oregon

    I was working as a W2 employee for a contracting company that had me working at a government office. I had the same position for 11 years, using the same contracting company. Two months ago, I was told that my 3 year recompete was going to be occurring soon. Every 3 years, this government agency has a policy to open back up existing contract positions for a recompete. This gave me an opportunity to see if other vendors could offer a better rate. I found another vendor that was offering the same salary, but including vacation and paid holidays which I didn’t have before.

    Prior to allowing this new contracting company to represent me, I insisted that they create an agreement document stating how much they were going to bill the government agency along with what they would offer me for salary. They did create that document with the information requested.

    I agreed to let them represent me, and they submitted our proposal (I never got to see what numbers they actually submitted). Long story short, because the rates they submitted were too high, I was never shortlisted and wasn’t even able to interview for my own position (historically, a vast majority of recompete incumbents are rehired). Needless to say I was shocked.

    The government agency won’t tell me what rates the contracting company submitted, in our agreement, we have a backup plan of using my existing rate to ensure I should have been selected. Based on conversations with the government office, I’m under the impression that the contracting company never did submit me at that rate.

    I’m wondering what my legal options are?
    I’ve submitted a FOIA request with the government agency requesting documentation showing what rates were submitted by this company on my behalf. I’ve read through all of the paperwork I filled out with them, it doesn’t say anything about them having the right to submit any rate without notifying me.

    Any thoughts?

    THanks in advance for taking the time to read this and posting any information you think may help!

    As you can imagine, losing a job I’ve had for 11 years because this company decided to try to squeeze more money out of the contract has been a pretty rough pill to swallow.

  2. #2
    Join Date
    Feb 2008
    Posts
    1,179

    Default Re: Contracting Company Did Not Follow Agreement

    vacation time and paid holidays cost money too.....did you think that the contracting company wasn't going to add those hours into the contract and that it wasn't going to increase your overall cost to the government in the contract? Did you know what the prior company billed the government for you? Did the new vendor promise you in any way that they would 100% definitely get you your current position at the new rate? Did they even have the ability to quote two different rates for you? Do other employees work through contractors and get paid timeoff?

    Just as a mathematical example, a normal 40 hr per week employee has 2080 hours per year. Say you were expected to work 2000 of those at a cost of $20 per hour for a total of $40k per year.....but got 2 weeks off unpaid, that is going to be less than 2080 paid for $20 per hour at $41600.

    Sounds like you and the new contracting company priced yourself out of the job. Especially since you were notified what they were going to ask as the new rate (actually you insisted on knowing it and having it in writing) for your work.

  3. #3

    Default Re: Contracting Company Did Not Follow Agreement

    Yes, I know exactly what my prior contracting company was billing the government agency on my behalf. The difference between that number and my salary was $18. I know the margin % based on overhead and other costs was very low, but different vendors may have different costs, hence I tried to find one willing to take a small profit.

    Yes, I have in writing that the new contracting company was going to submit me at two agreed upon rates.

    Yes, during this recompete process vendors are supposed to be allowed one initial offer, if it’s rejected, one follow up offer. That’s why the agreement I insisted they write up included those two offers.

    The main issue I’m concerned with is that the new contracting company never submitted me with my backup rate (2nd offer in our agreement) which was my existing rate. I worked with two other contractors that have the same job title and who recompeted recently and are getting the same rate I was making (which was my existing rate). I’m very confident that, had the new contracting company submitted me at that rate, as we had agreed to, I would have my position today.

  4. #4
    Join Date
    Feb 2008
    Posts
    1,179

    Default Re: Contracting Company Did Not Follow Agreement

    wait, you mean the prior contracting company only made $18 off of you the whole year? or do you mean per hour? looking at this from the other side, if they put someone else forward that they were taking a very low percentage, it's going to be tough for any other (new) contracting company to compete when costs such as PTO are added to the hourly cost.

    You say there is a follow up offer, but do they have to do so? I am finding where they may often ask more questions, but do they HAVE to do so? Or were they so out of the ballpark that it wasnt' required? Do you know the % difference between the two rates? Is this an LPTA contract? (see here for a high level explanation of going with the lowest bid but technically acceptable) While you found a contracting company that wanted to make more, that didn't mean the government agreed to pay more in the end.

    All I can suggest is taking all the paperwork to a local employment attorney familiar with recompetes and have them review the agreement you made with the 2nd contracting firm. That said, they may not have had full control of the process.

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