Rex Yiannis LLC

Tag: Procurement Risk

  • The Silent Profit Killer

    The Silent Profit Killer

    Prevailing Wage vs. Market Rate

    The allure of a substantial contract with the San Diego Unified School District or a local municipality is undeniable. It promises guaranteed payment and steady volume. Yet, for many HVAC small businesses, winning that first prime contract is the beginning of a financial crisis.

    The reason? A fundamental misunderstanding of Prevailing Wage (California DIR) and Davis-Bacon (Federal) labor rates.

    The Math of Disaster

    In the private sector, your bid is based on your market labor rate. It is $35 to $45 an hour for a lead technician. In the public sector, you do not set the rate; the government does. If the DIR classification for a specific site dictates a rate of $68/hour plus significant fringe benefits, your profit margin quickly disappears. This happens if you bid based on your standard rate. This occurs instantly as soon as your crew steps on site.

    The Administrative Burden

    Beyond the hourly rate, the administrative cost of compliance is steep. Weekly Certified Payroll Reports are mandatory. One error in these reports can freeze your payments. It can also lead to penalties that far exceed the profit of the job.

    Strategic Takeaway

    Government contracting is not just about moving air; it is about managing data. Before you bid, you must calculate your “Burdened Labor Rate” specifically for the relevant wage determination. If your back office isn’t built to handle the paperwork, the contract isn’t an asset; it’s a liability.

  • Cybersecurity Best Practices for Government Suppliers

    Cybersecurity Best Practices for Government Suppliers

    The supply chain is increasingly recognized as a critical vulnerability point for cyber threats, especially for government operations. Rex Yiannis, LLC supplies essential parts and services. We understand that our digital security is an extension of our commitment to national security. Protecting the integrity of our data and systems is as crucial as delivering physical components.

    We implement robust cybersecurity protocols, continuously assessing our digital infrastructure against evolving threats. Our commitment includes securing data exchange. We also safeguard sensitive procurement information. We make sure that our operational technology (OT) is resilient against cyber intrusion. This proactive approach minimizes risk. It provides peace of mind. It reinforces our position as a trusted, compliant partner in the federal and state contracting ecosystem.

    In an era where every link in the chain can be a target, Rex Yiannis is your secure partner. He remains vigilant. He is dedicated to protecting not just your supply, but your digital security as well.