Federal subcontracting
Most companies do not win their first federal work as a prime. They do it as a subcontractor to someone who already holds the contract, because there is no past performance requirement standing in the way and no proposal to write.
2,460
solicitations are open right now set aside for small business, out of 10,680 in total. Every large award that is not set aside has a prime who may need what you sell, and those never appear as opportunities you can bid on.
Prime versus subcontractor
The prime holds the contract with the government and carries the liability. A subcontractor works for the prime, is paid by the prime, and usually has no contractual relationship with the agency at all.
The practical difference is what it takes to start. A prime needs registration, past performance and a proposal. A subcontractor needs a prime who believes you can deliver.
When a subcontracting plan is required
Any contract over $750,000, or over $1.5 million for construction, awarded to a business that is not small, requires a small business subcontracting plan with real percentage goals. That requirement is why primes actively look for small firms, and it is the leverage you have when you approach them. They are not doing you a favour.
SUBNet
The SBA runs SUBNet, where primes post subcontracting opportunities directly. It is thinly used compared with SAM, which cuts both ways: less work posted, and far fewer people looking at it. Worth checking precisely because it is unfashionable.
How to actually get in
Find who holds the prime contracts in your NAICS codes, which is public information, and approach their small business liaison officer with a capability statement aimed at the specific work they hold. Large primes are required to have one of these people and they are usually easy to reach.
Questions people ask
What is the difference between a subcontractor and a contractor?
The contractor, or prime, holds the agreement with the government. The subcontractor works for the prime and is paid by them, not by the agency.
When is a small business subcontracting plan required?
Contracts over $750,000, or $1.5 million for construction, awarded to firms that are not small.
Do I need SAM registration to subcontract?
Not strictly, but almost every prime will ask for it, and you need it the moment you want to prime anything yourself.
Does subcontracting count as past performance?
Yes, and it is the usual way a firm builds a record before winning anything directly. Keep the contract numbers and the reference names.
What is SUBNet?
The SBA's subcontracting opportunity board, where prime contractors post work they need subcontractors for.
Related
Capability statement · How past performance is scored · Find your NAICS codes · Browse open solicitations