FedBiz’5 Podcast | Episode 34: Get Started by Subcontracting

Get Started by Subcontracting

Why would a business want to subcontract under a prime contractor for the federal government? It can open the door to many more contracting opportunities allowing you to build a past performance track record and help you create relationships within the federal government.

In this episode we are discussing getting started in federal contracting by subcontracting to a prime contractor. This is a good way to open the door to more contracting opportunities and build experience within the federal contracting marketplace.

First and foremost, it’s a great way to increase corporate revenue. Secondly, if you’re new to the business of government contracting, it’s a good way to get your feet wet and gain some important government contracting experience. It’s also a fantastic way to get into a government agency that you’ve been targeting.

There are many ways to find vendors that have contracts, especially multiple contracts within a particular agency. A database such as the Market Intel can provide you information on who buys what you sell within the government, as well as who they bought from previously. And so, when you do find a vendor with multiple awards, they are typically well liked and well respected within that agency and would make a perfect teaming partner.

In addition to providing insight into buyers and competitors (who are also potential teaming subcontracting partners), you also get instant access to open opportunities, upcoming opportunities, and ‘hidden’ future opportunities not visible to the public.

By subcontracting, it allows companies that cannot otherwise bid on contracts the opportunity to be able to participate in these awards. Now, this can take place either because of the contract size or certain other requirements for the contract as placed by the government.

The primary advantage of subcontracting is it can open the door to many more contracting opportunities. Now, these could be opportunities on large contracts. Say for example, you’re a small business, and you could never bid a large multi-million dollar contract on your own. Well subcontracting to a company that can meet those requirements would at least allow for you to take home part of the revenue associated with that award.

There are also set-aside contracts that the government issues for certain socio-economic conditions. For example, these set-aside requirements may be for businesses that are veteran-owned, woman-owned, minority-owned, HUBZone, or 8(a) disadvantaged to bid on contracts. So, if you’ve come across a situation where there’s a set aside, and you don’t qualify or you’re not certified under that particular set aside, finding a prime that does qualify would certainly be a way for you to get involved in that contract. Conversely, prime contractors are always looking for set-aside qualified small businesses to participate as subcontractors in their contracts as may be required by federal guidelines under large contracts.

Other advantages include building your past performance track record and developing relationships and references. Subcontracting gives you exposure to both program staff and contract staff within agencies. In addition, working with a good prime contractor can teach you a lot about the ins-and-outs of government contracting.

To find prime contractors it’s important to network and speak with contracting and small business liaison officials at the government agencies that you’re looking to work with. Ask questions about specific contracts and vendors in your industry and then reach out to these vendors directly with your Capability Statement to discuss how you can help them better fulfill their contracts.

Research is important. Other areas to find prime contractors are researching vendors already on a GSA Schedule or GWAC (government wide acquisition contracts). These vendors are already pre-vetted for government contract awards and can help you get into opportunities closed for general bidding.

When subcontracting, it’s important that you find the right fit. By right fit, you want to work with a prime contractor that has similar goals and values as you. Think of it as a partnership.

FedBiz Access (“FedBiz”) has a fulfillment team that takes the time to understand your business and ask questions to ensure you have a solid engagement plan. 

FedBiz offers proprietary marketing packages that can help you target prime contractors, as well as direct buyers within the federal government. FedBiz is a leading government contracting business development and marketing firm that offers research and engagement strategy coaching, registrations, set-aside certifications, and GSA Schedules.

FedBiz has over 22 years of experience working with thousands of companies worldwide to help them win over $35.7 billion in awards. From registration to award, FedBiz helps businesses succeed in the government marketplace.