How to Become a Subcontractor
By Debbie Gregory.
Prime contractors work directly with the government. They are responsible for ensuring that the work is completed as defined in the contract. But most prime contractors work with subcontractors. In fact, some government contracts actually require large companies to subcontract with a small business. This creates more opportunities for small businesses to get involved in federal contracting.
So, what do you need to do to become a subcontractor?
The first step is to make sure you have all of your company’s registrations and ID numbers. This includes your Dun & Bradstreet (DUNS) registration, your System of Award Management (SAM) registration, including your NAICS codes (a free and user-friendly process) and any other designations that may qualify your business for set-asides, such as veteran-owned, service disabled veteran owned, woman owned, minority owned, etc. Keep in mind that a 51% ownership stake is required on the part of one or more of the business owners to be certified as eligible for one or more of the set-asides.
Make sure you have access to sufficient financing to cover the period between beginning the work and receiving invoice payments. You will likely be required to demonstrate the availability of this financing prior to being awarded a subcontract.
Next, identify the major prime contractors that do significant work for federal agencies where there may be a logical fit for the services you provide. There are a number of ways to identify these potential targets such as FBO.gov and the Department of Defense’s (DoD) Subcontracting Opportunity Directory.
Research the company and identify not only the contracts they have performed but also their small business and diversity initiatives, main mission and vision. Identify the Small Business Liaison Officer or Diversity Officer within the company and ask specific questions about identifying bidding opportunities. Have a targeted capabilities statement ready, identify the areas that you believe you could assist with, note specific projects that they worked on and discuss where you would be an asset.
Be sure to follow up. Remember, there is one of them and thousands of you, so you have to make sure you do what it takes to make them know YOU.
Veteran and Military Business Owners Association, VAMBOA,
