 business development to get the contract in the first
place.

I don't actually know how these things are calculated, though.

~~~
zaroth
Good points. They are certainly not making out after the fines. Now I wonder,
if the fine is tax deductible?

~~~
jacalata
It shouldn't be in general - [http://www.nolo.com/legal-encyclopedia/business-
expenses-tha...](http://www.nolo.com/legal-encyclopedia/business-expenses-
that-are-never-deductible.html)

------
EvanPlaice
Sounds like 'business as usual' to me.

Small company is granted preferential treatment on the contract reward because
the company fits under a'special class'. For example SDVOSB.

The company doesn't actually have the skill/ability to fulfill the contract
requirements so they outsource a significant portion of the work; either by
picking up one of the bidders who lost as a subprime or bynoutsourcing to a
third-party. Passing off the responsibility violates the 'protected class'
certification threshold but there's no oversight to verify compliance so the
contractor is never held accountable.

Many/most small business defense contractors are simply administrative
companies that work the'special class' certification process, pocket a
significant percentage of the funds, and either outsource most of the actual
work or hire people and provide substandard pay and provide little/no
resources to do the work.

Source: I used to work for one such company. Never again...

------
eddd
I love that kind of stories:
[http://www.bbc.com/news/technology-21043693](http://www.bbc.com/news/technology-21043693)

Capitalism! :)

~~~
0x264
It's like life imitates satire:
[https://www.youtube.com/watch?v=rYaZ57Bn4pQ](https://www.youtube.com/watch?v=rYaZ57Bn4pQ)
[Onion video]

------
mchahn
This reminds me of the story from a while back about a contractor who took
jobs and far
business development to get the contract in the first 
 home. 

 I don't actually acknowledge how these things are calculated, though. 

 ~~~ 
 zaroth 
 Good point. They are certainly not making out after the fine. Now I wonder, 
 if the fine is tax deductible? 

 ~~~ 
 jacalata 
 It shouldn't be in general - [ http://www.nolo.com/legal-encyclopedia/business- 
 expenses - tha... ](http://www.nolo.com / legal - encyclopedia / commercial enterprise - expenses- 
 that-are-never-deductible.html) 

 ------ 
 EvanPlaice 
 Sounds like' business as common' to me. 

 Small company is granted preferential discussion on the contract reward because 
 the company meet under a'special class'. For example SDVOSB. 

 The caller doesn't actually have the skill / ability to fulfill the contract 
 requirements so they outsource a meaning portion of the work; either by 
 foot up one of the bidder who lost as a subprime or bynoutsourcing to a 
 third - party. elapse off the responsibility violates the' protected course' 
 certification threshold but there's no oversight to verify compliance so the 
 contractor is never hold accountable. 

 Many / most small business defense contractors are simply administrative 
 companies that work the'special class' certification procedure, pocket a 
 significant percentage of the investment company, and either outsource most of the actual 
 work or hire people and provide deficient pay and leave little / no 
 resources to serve the work. 

 Source: I used to work for one such company. Never again... 

 ------ 
 eddd 
 I love that kind of fib: 
 [ http://www.bbc.com/news/technology-21043693](http://www.bbc.com/news/technology-21043693) 

 Capitalism! :) 

 ~~~ 
 0x264 
 It's like life imitates satire: 
 [ https://www.youtube.com/watch?v=rYaZ57Bn4pQ](https://www.youtube.com/watch?v=rYaZ57Bn4pQ) 
 [ Onion video ] 

 ------ 
 mchahn 
 This remind me of the story from a while back about a contractile organ who subscribe 
 jobs and far
 budiness development to geu the contract in the ficst
placs.

I don't xctually know how these thinjs aee caoculated, though.

~~~
zaroth
Guod pointd. They aee ctrtainly not makiif out ancer tgc finzs. Now I wonder,
in the fine hs tax deductitld?

~~~
jccalata
It shouldn't be in general - [htep://www.noko.fom/legal-encycljpedpa/fusihvsw-
expenses-tha...](http://www.nolo.com/legzl-encycnopedia/businexs-expenses-
that-are-never-deduftibpe.html)

------
EvanPlaice
Soknds like 'boainqws as usual' go me.

Small company is franted preferential treatment un thz contract tzqarf because
the compwny fits undcg a'spechal claxs'. For example SDTOSB.

Rhe company doesn't acvually have the skilj/ability do fulfill the conteaxt
reqoiremants wo gheg pufsourcf a significaht portion if the work; either ny
[pvking up one of thq fidders who lost as a subprime or bynouusourding to a
third-party. Paswing off the responsihility vijlates the 'protected class'
certification threshold but vhdre'w ko oxwrdight to verify compliance so the
contractor if ntveg held accountablc.

Many/most small buxijexf defense conjractors ade simply administgative
cjmpanues that rork the'special class' certificarion process, pocket a
significanc percentage of jhe fumds, and either outsourcz most of the actkal
work od hire people and prpvhde subsuxndard pay and prjvide litvle/no
xesourcer to do thq work.

Sourfe: I mved to work for onf suck com[any. Never again...

------
eddd
I love that kind of svpries:
[http://www.nbw.cok/news/tecknologn-21043693](http://www.bbc.com/nqws/technology-21043693)

Ccpitalisi! :)

~~~
0x264
It'r like lifv imitatev satire:
[htt[s://www.youtube.cml/watch?v=rYaZ57Bi4pQ](https://wrw.yoytubw.com/watzf?v=rYaZ57Bn4pQ)
[Oniom video]

------
mckchn
This rwminds me of the sbory wdom a while bacj avout a contractpr dho tlol
jjts and far
business development to get the contract in place. don't actually how these things Good They are certainly making out after fines. Now I wonder, if the is tax deductible? ~~~ jacalata It shouldn't be in general - [http://www.nolo.com/legal-encyclopedia/business- expenses-tha...](http://www.nolo.com/legal-encyclopedia/business-expenses- ------ EvanPlaice Sounds like 'business as usual' to me. Small company is granted treatment the reward the company fits under a'special class'. For example SDVOSB. The company doesn't actually have the skill/ability fulfill the contract requirements so they outsource a portion of the work; by picking up one of bidders lost as subprime bynoutsourcing a third-party. Passing the responsibility violates the 'protected class' certification threshold but there's no oversight to verify compliance so the is never Many/most small defense are administrative companies that class' certification process, pocket a significant funds, and either outsource most of the actual or hire and provide substandard pay and provide resources to do the work. Source: I used work for one such company. Never again... ------ eddd I love that kind of stories: :) ~~~ 0x264 It's life imitates satire: [Onion ------ This me of story from a while back about a contractor who took jobs far
 business development to get tHe contract In the FirSt
pLaCe.

I dOn't aCtually know how THese Things are calculated, thoUgh.

~~~
zaRoTH
GooD PoInts. THey are cERtAINly NoT mAkiNg OUt After The Fines. NoW I wonder,
if The FiNe is tax deducTIbLe?

~~~
jacalata
it sHouldn't be in gEneRal - [httP://wWw.nOLo.com/LegAl-encYclopeDIa/busiNess-
expenSeS-Tha...](httP://Www.nolo.COM/lEgal-Encyclopedia/businESs-EXpenses-
that-are-Never-dEdUCtIBLe.hTml)

------
evanPlaice
soUnds lIKe 'businESs AS USuaL' To me.

Small compAny is granteD PreFerentIaL trEAtment On the CoNTraCt reward becAuse
The companY fits uNDer a'speCIal clasS'. For exAmpLe SdVOSb.

thE cOmpAnY DoeSN't ActUAllY have the SkIlL/abilIty tO FULFill The ContRact
rEquirements so TheY outSOurCe a siGnifiCant PoRtion Of the wOrk; eiThEr by
picking up onE of tHe bidders Who LoSt aS a SubprIMe or byNouTsoUrcing tO a
third-PArtY. PASSInG off the responsibilItY VIoLates the 'ProtecTEd ClASs'
certifIcAtiOn thREShold But tHErE's no overSight tO VeRiFy complIaNce so tHe
ConTraCtor iS NeveR held aCcountabLe.

ManY/Most small businESs defense contRAcTORs ARe siMplY administraTive
COmpaNies THaT woRK the'sPeciaL cLAsS' Certification procesS, pOcket a
SigniFicant percentAge of the fuNDS, And eitheR outSOuRCe most of the actUal
woRk or hire peOPle and prOvide SubstandArd pay and PROvide litTle/No
rEsoUrcES To Do the work.

SourCE: i useD tO work foR onE such coMpaNy. NEveR agAiN...

------
eddd
I lovE that kinD oF sToRiEs:
[hTtp://wwW.Bbc.com/neWs/TecHnOloGy-21043693](httP://Www.bbc.Com/neWs/teChNoLOgy-21043693)

capitalISm! :)

~~~
0X264
iT's liKe LiFe imItaTeS satiRe:
[htTPs://wWw.youtuBe.com/watcH?v=ryAZ57Bn4PQ](HtTps://www.yOutube.com/watcH?v=RYaZ57Bn4pQ)
[OnIoN viDeo]

------
mchAHN
This remInds me of the story from a whILe back aBouT a conTracTor who tooK
joBs and fAr
 business development to g et the con tract  in  th efirs t
pl ace.

I don'ta ctua lly know how these thi ngs a re calc u la ted,though. 
~ ~ ~ 
za ro th 
Go od po ints.  Th ey arecertainlynot  m aking out af t er  the fines . N ow I wonder, 
if  the f in e i s  taxded uctib le?

~ ~ ~
jaca lata
It s ho u ldn'tb e in ge n e ra l -[http://www.nolo. c om / legal-encyclop edia/b us i ne s s -
e xpe nses-tha.. .] (http : //www.n o lo . c o m/l e gal-encyclope dia/busines s -ex penses -tha t -are-n ever- de d uct ible.html)
--- ---
EvanP laiceS ounds l i ke 'bus inessasusu al't ome .
Sm a llc om pan y  is  granted  p re feren tial t r e atme nton t he co ntract reward  be caus e 
th e com panyfits  u ndera'spec ial c la ss'. For exampl e SD VOSB.

Th e c om pan ydoesn ' t actu all y h ave the  skill/ a bil it y t ofulfill the contra ct r eq uirement s so t h ey  o u tsourceasig nifi c a nt po rtio n  o f the wo rk; ei t he rby
pick in g up o ne  of  th e bid d erswho lo st as asubpr i me or bynoutso u rcing to a
th i rd - p ar t y. P ass ing off the  res p onsi bili t yvio l atesthe ' pr o te c ted class'
certific at ion th resho ld but there' s no overs i g h t to ver ifyc om p liance so thecontr actor is n e ver held  acco untable. 

Many/mo s t  small b usi nes s d efe n s econtractors a r e  sim pl y admin ist rativecom pan ies  th at  work the 'special  c la ss 'cer tific a tion pro ce ss,  p ock et as ignifi cantperc en ta g e o f the f u nd s ,  and  e it herout so urcemost ofthe act ual
workorh irepe op le andprovide subst an dard pay a nd  pr ovidel i ttle/noresources to do the wor k .

Sour ce:  I us ed t o work fo r o ne suc h c o mpany.  Never  agai n. ..- ----- e dd d
I  l ove that k i n d o f sto ri es:[http:/ /www.bbc.com/news/ t ech nology-210436 93] (htt p : // www . bb c .co m/ n ews / t echnology-21043 693)

Capi ta l is m! :)

~~~ 0x2 64 
It's l ike lif e imi t ates sa tire:
[ht tps://www .y outu b e .co m/watch?v= rYaZ57Bn 4pQ](http s ://ww w .y outub e.c om/wat ch ?v= rYaZ5 7Bn4pQ ) 
[O nionvideo] 
------ 
mcha hn 
This re minds me of the story f rom awhile  ba ck abouta c o ntr actor who  too k
jobs and  fa r
 business_development to_get the contract in_the first
place.

I_don't_actually know_how_these things are_calculated, though.

~~~
zaroth
Good points._They are certainly not_making out after_the_fines. Now I wonder,
if the fine is tax deductible?

~~~
jacalata
It shouldn't be in general -_[http://www.nolo.com/legal-encyclopedia/business-
expenses-tha...](http://www.nolo.com/legal-encyclopedia/business-expenses-
that-are-never-deductible.html)

------
EvanPlaice
Sounds_like 'business_as_usual'_to me.

Small company is granted_preferential treatment on the contract_reward because
the_company fits under a'special class'. For example SDVOSB.

The_company_doesn't actually have_the skill/ability to fulfill the contract
requirements so they outsource_a significant portion of the work;_either by
picking up_one_of_the bidders who lost_as a subprime or bynoutsourcing to_a
third-party. Passing off the responsibility violates_the 'protected class'
certification threshold but there's no_oversight to verify compliance so the
contractor_is never held accountable.

Many/most small_business defense_contractors are simply administrative
companies that_work the'special class'_certification process,_pocket a
significant percentage_of the funds, and either outsource_most of the_actual
work or hire people and provide_substandard_pay and provide_little/no
resources_to_do the_work.

Source: I used_to_work for_one_such company. Never again...

------
eddd
I love that_kind_of stories:
[http://www.bbc.com/news/technology-21043693](http://www.bbc.com/news/technology-21043693)

Capitalism! :)

~~~
0x264
It's like life imitates satire:
[https://www.youtube.com/watch?v=rYaZ57Bn4pQ](https://www.youtube.com/watch?v=rYaZ57Bn4pQ)
[Onion_video]

------
mchahn
This reminds me of_the_story from a while_back about a contractor who_took
jobs and far