Yeah we won the contract! Oh shoot now we have to hire everyone.

The Recruiter's Guide To Contingent Offers

Bill Meeboer

Bill Meeboer

Global Talent Acquisition Director @ Microsoft

Published Jul 14, 2017

Government contracting, ain't it grand? It's one of the more confusing employment marketplaces second only to applying for a job with the federal government itself. It has it's share of headaches like unexpected contract losses, funding cuts and scope changes but for millions in the US workforce the opportunity to serve the interests of national security in exchange for an opportunity to build a stable career are a big draw. And while there's been no shortage of technical brain drain exiting for more cash lucrative work in silicon valley the reality is (despite what your LinkedIn news feed indicates) there are scores of talented individuals working in tech, manufacturing, logistics and business operations that keep our country and allies safe. After all, do you know any other customers on planet earth with a $550B (pentagon alone) annual budget? And while federal contracting work may have lost some of its luster it's hard to argue that some of modern civilization's greatest breakthroughs were funded by government projects that later made their way out to the commercial sector like the internet, GPS and more importantly WD-40.

Unfortunately in the years I've been leading hiring and recruiting teams in this industry I've noticed a big lack of relevant information on what amount to a huge portion of job postings and offer letters that go out the door from prime and subcontracting companies - they are CONTINGENT UPON CONTRACT AWARD. You see what I did there? Yeah a lot of companies will make sure you see that in big bold letters both on the job ad and your offer letter and also make sure you don't give notice, move your family and buy a new tie for a job they don't have yet on a contract they don't own yet. Oh they didn't do any of that? It's more common than you think. There are pitfalls a plenty for both company and applicant. Take heart fair job seeker, with a little knowledge of common contracting practices and federally regulated hiring rules you can navigate applying, interviewing and accepting solid offer on a brand new program. Here are a few steps, in very particular order, to get you dangerous:

  1. The Job Decryption (I mean Description) - This one should be pretty obvious but sometimes you have to dig. When companies bid on new contracts they assess the talent holes in their bid and will proactively post openings for skills they don't have enough of. I've always guided proposal teams that 3-6 months out from contract award is the max you should really do this but unbelievably some companies will do this up to a year out or more! Look for language like "pending future funding," "Contingent on contract award," "future funded" and even slang words like "over the horizon." This is your first tip off the job you are about to apply for doesn't exist yet. A quick note here - why apply to this at all you ask? It's hard enough to go through the job hunt process already! I agree and empathize but think of it like buying a house pre-contruction in a hot neighborhood. It's not exciting when it's a dirt lot with a bunch of streamers and wacky blow up dancing guy in front of a sales trailer but come next spring when all those pretty houses complete - they're all SOLD! Getting in early can be a good thing.
  2. R&D - Research and Decide (then apply) - before you click apply it may interest you to know that multiple companies (sometimes dozens depending on contact value) bid on federal work so you actually can figure out who is publicly trying to fill their talent pools for the contract with a little cyber elbow grease. Try copying 3-4 sentences from the job description and paste/search them in a job aggregator like Indeed.com or Google's new Jobs feature. This works because some companies are lazy and literally cut/paste their job descriptions from the federally issued RFP (Request for Proposal.) You may find a company where you have better connections than the first posting you found. Also, do some cyber sleuthing to find out which company is the incumbent - or current holder of the contract. Contractors have gotten better at using generic language but there are always hints like undecipherable code words. I once worked for a business group that names all of their pursuits at an unnamed intelligence agency after frozen pizza brands and heavy metal bands. I spent a lot of nights and weekends slaving away on the DiGiorno bid and finding candidates for the Metallica proposal. You could also search FedBizOpps - the free to anyone database of awarded and pending/future government contracts but set aside some free time - it's not exactly user friendly.
  3. The Phone Screen / Interview - Not all contractors and their staffing teams are created equal. You need to know some critical questions to ask once you've applied and get the initial call. First, ask them as much about the contract as they will tell you, projected award date, agency, their past performance with the agency, the amount of work they are currently performing for this customer, work locations (they might and can switch them post award if the customer directs it), relocation options, pay (more on this later) and a crucial question to ask - is this position a designated "KP" for the bid? A "KP" stands for "Key Person" or "Key Personnel." These are the folks that MUST be named in the proposal response and usually critical to the program. Most companies bid their current employees but if they are getting into new or adjacent market business they may need fresh talent. If you come across one of these are you are in the pole position. On occasion if the bid is large enough a company may find the money to hire/secure your employment to harden their case for their bid. Conversely beware some companies drive their staffing teams to work a 110% solution - meaning they will extend more offers than they actually need anticipating drop off between proposal submission and contract award. It seems unethical but it's fact based like overselling a flight given a good percentage will drop out and find other jobs before the work is awarded. I've honestly never gotten to a contract award where we had too many accepted offers that as a percentage of candidates take other jobs during source selection. KP slots are not handled this way and candidates can usually negotiate a stronger offer.
  4. The Offer..or is it? - After a less than rigorous interview process (note - make sure you at a minimum interview with someone who will be working the contract once awarded) you will either get one of two documents - an LOI (letter of intent) or a contingent offer. They are VERY different documents offering different levels of commitment between parties. An LOI typically lists a generic version of the proposal name and your "commitment" to work for XYZ Corp upon contract award. All this effectively does is allows them to submit your resume/name to the government with your permission. Heck they may not even list the job or any compensation info in this document. Proceed with caution. If you sign an LOI with one company but later get a full blown contingent offer from another on the same program you may have just locked yourself out. Any ethical/competent federal contractor would not knowingly submit someone with knowledge they were going to be bid by a competitor - both companies may have their bids thrown out or at the very least questioned by the source selection committee and it won't end well for you. The contingent offer will look just like a regular offer letter including job title, work location and detailed compensation info including salary, sign on and relocation but it will have a very sternly worded language stating the position is contingent upon contract award and/or customer funding of the position. This will likely be buried right between the requirements to complete a background and/or drug test and any security clearance requirements for the position. Make sure you recognize at this point you are NOT locked into a cell phone contract! You have rights and options to look for other work. Aside from pursuing the same job with a competing bidder you have a provisional agreement to work for someone based on a future event that hasn't occured yet. Conversely the company has no obligation to you either until a program award.
  5. The award announcement - One of the best things about federal contracting is the transparency. You can set up news alerts on any number of official government agency websites to feed you award info. DoD is especially easy Daily DoD Contract Award Updates. Note that any contract with mostly classified work scope or intelligence based work won't apply as this type of work is not required to be disclosed for obvious reasons, you'll be at the mercy of the company you applied to for info so don't be afraid to ask if there's been any word.
  6. I Protest!! You just got the call - the company won and everyone is so excited to get started! Not so fast....in this day and age of hyper-competitive federal contracting almost any contract award can be protested by another bidder within 10 days of the original announcement. And it can be for dozens of reasons, I've seen a bid thrown out for using the wrong font size or being one page too long. Often it's unrealistic pricing or perceived unfair decision criteria. The other punch in the gut is the GAO (Government Accountability Office) has 100 days to uphold or throw out the protest. If they uphold it they don't just award to the other guy - THEY START ALL OVER! The moral of the story is to cross your fingers for 10 business days post announcement to ensure you are in the clear prior to setting a firm start date and giving notice/moving for the new role AND ask to speak to the Program Manager just to be safe.

A few parting thoughts. I've seen contingent hiring executed extremely well, providing a smooth transition into a new or re-competed program and impacting countless careers in a positive way. I've also seen it done so poorly it drove recruiters to quit mid proposal and candidates swear off working in the federal space altogether. The biggest issue is lack of communication and what you need to understand is once a bid is submitted it's radio silence from the government so no news to the company means no news to you. At the end of the day you the candidate are the consumer and buyer beware. It's never been easier to do your homework and make an informed decision of your own. This type of job hunting can be great for exploring your options but downright heart-breakingly stressful if you are on the ropes financially and unemployed. It's always a good idea to find a seasoned recruiter who's worked in this market for more than one presidential administration to help you read the tea leaves.

Happy hunting out there!

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