Breaking in to the government market can be difficult, especially for a smaller company. I’ve written before about partnering and teaming as a strategy for businesses without much government contract experience to expand their contracting resumes. Subcontracting with a prime on a government contract is another way to benefit from another company’s experience while building your own. It’s not always easy to find prime contractors, though, and subcontractors new to the game may have trouble building the contacts they need. I’ve compiled a list of websites that list prime contractor information. Researching these tried-and-tested primes is a jumping-off point for subcontractors to find more contract opportunities. Read more…
Part 19 of the FAR is devoted to regulations for the Small Business Subcontracting Program and subcontracting plans. Basically, it says that for any contract over the simplified acquisition threshold, the contractor receiving the award must agree to make provisions for subcontracting by small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone Small Business, small disadvantaged business, and women-owned small business concerns. The prime contractor proves willingness to comply with the Small Business Subcontracting Program by submitting a subcontracting plan. For contracts over $550,000 ($1 million for construction), the prime contractor selected for the award must provide an acceptable subcontracting plan or be considered ineligible for the contract. Read more…
When subcontracting on government jobs, your subcontracting agreement is entirely with the prime; contractually you have no relationship with the government at all. In many ways, this puts you at an advantage. Dealings with government agencies are very carefully regulated, and can involve a lot of red tape, bureaucratic forms, and administrative procedure to get anything done. For subcontractors, these administrative woes are often reduced. While there might still be a chain of command and certain administrative requirements, they will usually be much less stringent with a prime contractor than when dealing directly with a government agency. Read more…
Many subcontractors get the majority of their work from previously established relationships with prime government contractors. Prime contractors usually have a network of subcontractors who provide products and services that the prime needs to subcontract out on a regular basis. Maintaining these professional relationships is crucial to a subcontractor’s business, so when it comes time for a subcontracting plan to drive new business, subcontractors often look for new primes to align themselves with. However, there’s no need to wait for prime government contractors to contact you about the contract of your dreams. Read more…
In order to be competitive when bidding on a subcontract, pricing is a major factor that will come into play. Nevertheless, be sure not to sell yourself short and make sure you have all the essential subcontract pricing considerations under your belt. Here are some requirements, costs and other subcontract pricing factors you should take into account before you sign a contract. Read more…