The Xentity Partner Network of independent consultants has been a very fruitful approach since launched in 2002. We rely on bringing in subject matter experts to help our projects succeed. We realize that there are several drivers for wanting to partner with a company – working with great people, working on interesting problems, and being compensated well.
WANT TO GET STARTED RIGHT AWAY?
For government, as an independent consultant, accessing contract vehicles is the hardest part for clients to get access to you. If you are looking to test your pipeline or network out with this model, get familiar with our accelerated Contract Vehicles.
Xentity has invested heavily in business management and these contract vehicles to make accessing talent fast, and as easy as Government procurement can get – in some cases, in less than one month.
Seriously, take a glance, learn our Contract Vehicles and give it a try with one of your prospective clients. If they are not very excited about the capability (e.g. 8(a)) to access you and a talented set of folks along with you so fast, at those prices, then we need to know as something is wrong.
- Summarize the new need to the client that you discovered
- Outline your high-level solution
- Once aware and familiar, and you inquire how they can access you, you can have a proven 8(a) partner or partner who is uniquely qualified for sole source as well as has multiple GWACS (CIO-SP3, GSA Schedules, more) with whom you could work with to deliver the solution.
The standard rate is intended for the independent consultant who is looking to partner every so often, get work for themselves part-time, and is focused on personal short-term cash flow.
Our rate negotiations are simple. We want to bring niche quality subject matter expertise to our customer – fast. Xentity uses Cost-Plus Accounting as guided by DCAA to calculate our overhead, which factors can vary by project. Over time, through improving our partnership, we can find ways to lower our overhead on future engagements and increase your rates.
Let us know factors what you will need built into your rate to help us build in the most appropriate overhead and fee:
- Rates by Multiple roles
- Complexity of task, deliverables
- T&M, FFP, LHTO rate impacts
- Project risks such as new to client, Xentity
- Project requirements such as furnished equipment, travel, and admin oversight requirements
- Terms such as NET, volume discounts
- Management Support needed for Quality, Schedules, Expenses, Reporting
Usually, over a week, we can discuss, review and achieve a master services agreement that can be updated annually. We do not haggle as we simply present the best offer we are allowed and afforded to offer.
Federal Government Rate Factors
A top rule by SBA is that Xentity, as an active participant in the Small Business Administration 8(a) Business Development program, CANNOT be a broker in any Federal Government contract. This means that Xentity cannot pay a rate for an independent consultant or any foreign entity equal to or higher than Xentity takes in. http://www.sba.gov/content/are-brokers-eligible-8a-bd-program . This means for Federal Government leads, your rate must fall within our Schedules or Standard Price List (see Contracts page) and the cost build up there-in. There are also factors that may impede achieving our schedule rates such as published discounted or prime contractors where costs have been reduced, thus lower rate is charged. We will negotiate within full good faith, not just out of good merit, ethics, and integrity, but because we have to. We must maintain very specific forward rate pricing structures that fully details our allocation of overhead, administration, fringe, and direct rate costs. So, our direct rate offered to you will be EXACTLY the maximum of what we can pay, and we will offer the best possible value rate to you.
Shareholder Rate Factors
Just like you, we are a for-profit entity. We target a reasonable fee to mitigate our risk. If we mitigate our risk, the fee helps us afford risk when future issues occur – and on complex process or technology projects, they do occur as you know. This also allows us, if managed well, to reinvest the resulting profit into our corporate structure via shareholder guidance. Given such, if our fee is reduced, through negotiations, that means our capability to absorb possible risk is severely reduced. Thereafter, our costs are what drives our rate negotiations
We’ve been there. And we have studied how to transition top talent into our team environment.
Independent consulting can have its advantages: Your own boss, flexible schedules, selecting your work. But it can have its dropbacks as well: feast or famine work schedules, administration, no bennies, payroll tax, work-life balance strains, hero-based income model. Differences between Employment and Independent Consultant to consider:
- Quality of life: One of our major objectives is to give you some of your personal time back. We’ve been there. Cut Out Administration Time. Look again at the billable rate and time balance. Unify Corporate needs, collaborate to increase capability.
- More strategic focus and resources: Balance your Client Portfolio. Build Mission Teams and Team Leaders, not vigilantes. Get help from our junior staff begging for mentorship. Opportunities for Service Practice Growth and further Passive Income. Grow a practice, garner more residual bonus.
- Federal Market Business expansion: By bringing your consulting services into Xentity, you are positioned to experience significant business expansion in Government services. Our Prime Contract Marketing capability is top-notch. Command Prime rates to new and existing accounts.
- Reasonable Compensation: Yes, it goes down, because you are back to 40-50 hours, but per hour relativity is higher. Lower Tax bracket, pre-tax savings, remove the ~7% payroll tax, Passive and Residual Earning Power , Corporate Accounts, and more.