Govcon Giants

291: Government Contract Trap: Why 'Up to 49%' Means ZERO Work for You with Nichole Atallah


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In this episode of Govcon Giants, I sit down with Nichole to unpack one of the biggest traps in government contracting: the subcontract. Too many small businesses rush to sign on the dotted line with a prime contractor without truly understanding what's inside those pages. I've been there myself—stuck paying for a stolen $50,000 generator because of one clause buried in my subcontract. That's why I call the subcontract your bible—ignore it, and it can wipe out your business. We break down how teaming agreements differ from subcontracts, why "up to 49%" language will crush your workshare, and how dispute resolution clauses can force you to fight in Alaska or even under UK law.

Nichole also explains how misclassifying 1099 workers, ignoring the Service Contract Act, or blowing Davis-Bacon wage rules can lead to back wages, false claims, and even suspension or debarment. We're talking real consequences—lawsuits, millions in liability, or your entire business on the line. But it's not all doom and gloom. We share practical strategies: how to negotiate better terms, what insurance really covers, and how to prove your value to primes so they can't just swap you out. If you're a small business in GovCon, this is the episode you can't afford to skip.

Facebook: https://www.facebook.com/pages/category/Lawyer---Law-Firm/Pilieromazza-PLLC-1409089725979001/

LinkedIn account: https://www.linkedin.com/in/nichole-devries-atallah-9068377/

LinkedIn corporate: https://www.linkedin.com/company/pilieromazza-pllc

Twitter handle: https://twitter.com/pilieromazza

Company Website: https://www.pilieromazza.com/practice-areas/

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Govcon GiantsBy Eric Coffie

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