Hiring my standby team

Why would it be mandatory to pay in advance of winning a subcontract? To me it doesn’t make any sense and would likely be an unnecessary and unreasonable cost if you are seeking reimbursement from the government through the prime contractor for a cost reimbursement subcontract.  

What is the purpose of the prime contract and also the subcontract? Are the prime and subcontracts cost reimbursable type? EDIT: What is the purpose for “standby” of personnel prior to winning a subcontract? In another thread and here, I think you are alluding that there will  be standby costs after you win the subcontract. Please elaborate. Thanks. For example, do you have to have staff on hand waiting for some task or work to perform after award of your subcontract?

joel hoffman said:

Why would it be mandatory to pay in advance of winning a subcontract? To me it doesn’t make any sense and would likely be an unnecessary and unreasonable cost if you are seeking reimbursement from the government through the prime contractor for a cost reimbursement subcontract.  

What is the purpose of the prime contract and also the subcontract? Are the prime and subcontracts cost reimbursable type? EDIT: What is the purpose for “standby” of personnel prior to winning a subcontract? In another thread and here, I think you are alluding that there will  be standby costs after you win the subcontract. Please elaborate. Thanks. For example, do you have to have staff on hand waiting for some task or work to perform after award of your subcontract?

If for example I am in connection with a prime contractor who has already been awareded a contract, the standby team will have to be familiar with the responsibilities required by the prime contractor through an agreement which will document the responsibilities for both the sub and the prime contractor.

It is for that reaosn I asked, will I need to pay my staffing firm in advance for the time it has taken them to familiarise themselves with the contract requirements and at the same time potentially have a conference between the 2 teams.

Don’t know. It depends upon the terms of your contract with the prime and your contract with the employment agency.