Small federal contractors who refuse to cut their bid price and instead build bonding capacity through the federal mentor protege program can grow from $3 million to $25 million without sacrificing profit margins.
David Rambhajan shares how he capped his personal indemnification at $250,000 inside a mentor-protege agreement with a $1.5 billion company, protected his bonding and retained earnings, and used a six-month payroll runway to wait out competitors racing to the bottom on price.
The result was $25 million to $35 million in revenue, built on work won at the right margin, not the cheapest bid. Host: Eric Coffie, GovCon Giants / Federal Help Center.
CHAPTERS 00:00 Sponsor: Mendi Media 00:49 Welcome and intro 01:15 How David entered the federal mentor-protege program 01:47 The $250K indemnification negotiation 02:37 The sharpshooter framework for decisions 04:03 Growing from $3M to $25M 07:38 Why refusing to lower your bid is the strategy 09:21 Waiting out competitors with retained earnings 10:13 $10M at 5% or $5M at 10%: the margin question 10:53 Outro and community
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