RKT Technologies, Inc.
A Consulting and Technical Services Company Since 1979.

e-mail info@rkt-tech.com

Eric Poole, Technical Consultant

89 Old Nashua Road
Londonderry, NH 03053-3611
E-Mail: eric@rkt-tech.com
Phone: (603) 437-1811

(last revision: 8/4/2012)

Most of our work is done as a direct relationship between RKT Technologies, Inc. and our client, with no contract technical service agency, broker, or "job shop" involved. However, my personal and our corporate relationship with contract technical service agencies goes back 42 years, I recognize and appreciate the tremendous value of the services that such agencies provide to high-technology industry, and I am pleased and happy to work with them and their clients whenever and wherever needed.

All work is accepted only on the basis as a contract to RKT Technologies, Inc. (an arrangement commonly referred to as a "corp-to-corp" to distinguish it from "W-2" ... contractor is an employee of the agency ... or "1099" ... contractor is an un-incorporated independent). We do not work as W2 employees of the agency.

Certain events in recent years have unfortunately made it necessary to re-emphasize that at RKT Technologies, Inc. our primary responsibility and concern is always to the client, and only secondarily to the broker or "job shop", even in cases where the broker or job shop is paying our invoices.  Any conflicts that may arise between the best interests of the client and those of the broker. as regarding the services we provide, are always resolved in favor of the client.

It is indeed unfortunate that, in recent years, a few technical service firms, brokers, and "job shops" have seen fit to take advantage of certain economic situations in an attempt to negotiate us down on the billing rate while still charging the full billing rate to their clients, thereby engaging in price-gouging against both the client company and the consultant. We regret that this has been the case and that, as a result, we have had to set up these guidelines.

The fact is, we know approximately what the brokers should be charging in order to provide themselves with an adequate profit margin, and that figure is generally in the rage of a 30 to 35 percent markup from the consultant's rate.   Thus, if the consultant or contractor is receiving $100 per hour, the agency should normally be charging the client no more than about $130 to $135 per hour. Regrettably, we have found that a few of the brokers and "job shops" are attempting to charge 40, 45, or even 50 percent markups, which we consider excessive and unfair to both the client and the contractor, for the reasons indicated below.

In negotiating terms with brokers and "job shops", I have been told serveral times, that the shop's markup is "irrelevant", "a trade secret", and "none of my business".  This is an illogical concept.   If we quote the broker a rate of $120 per hour, and the broker attempts to mark it up 50 percent to $180 per hour, then the broker is creating an expectation in the mind of the client that may not always be justified.   Because it is not justified, such an expectation may not be fully satisfied, through no fault of either the consultant or the client but often with detrimental effects on the reputation of the former and the work-flow of the latter.

One would think that it would be in the best interests of the broker to make sure that this situation did not arise.   However, we have found that in a few instances, this was not the case.   Thus, it has been necessary to establish the policy that brokers and "job shops" who wish to represent RKT Technologies, Inc. to clients should be prepared, upon request and on a confidential and non-disclosure basis, to disclose to us their percentage of markup for any particular contract.  If the markup appears excessive (which usually means if it's in excess of approximately 35 percent), we will propose to enter into good-faith discussions with the broker to see on what basis a higher markup is justified ... and if it cannot be justified, we will decline to be represented to that client by that broker.

We are very confident that the brokers and "job shops" with whom we deal will be truthful with us in disclosing markup percentages.   In any case, the job shop's markup is almost never difficult to determine after the job has begun, and so in the extremely remote and unlikely event that a broker should try to deceive us, we would certainly find out about it sooner rather than later.

In closing, let me emphasize once again that 42 years of experience has proven to me that the vast majority of brokers and "job shops" are reputable and ethical firms which would never engage in any sort of price-gouging directed at either the consultant or the client.  As usual, though, the few "bad apples" spoil the barrel, and so it is with deepest regret that we have had to establish these policies to protect our clients.

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