RE: What is a reasonable cut that a contracting company should take?

From: Robert G. Ferrell (rferrellat_private)
Date: Tue Dec 17 2002 - 09:03:55 PST

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    At 10:31 AM 12/17/02 -0500, David Humphrey wrote:

>The last bit of information I can contribute is this; I managed to
>negotiate a rate with a local IT consulting firm that caters to a
>relatively normal (and at this time, stable) market - health care.  They
>have a formula something like this; 33% of contract award is to go to
>the sales staff for digging up the opportunity, 33% of the contract is
>fed back to the firm for overhead and base salaries, and 33% of the
>contract is finally awarded to the engineers actually doing the job!
>They were willing to bottom-out the hourly rate for such contracts at
>$75/hr. directly to me.

My last contract position was in 1996-97, but at that time I was getting about
40% while working for a fairly large IT services firm on a DoD contract.

RGF

Robert G. Ferrell
rgferrellat_private

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