A prime contractor enters into contracts directly with the client, which in this case is the federal government. The subcontractor would enter into an agreement with the prime contractor (Prime) to provide goods and/or services to the prime contractor so that it can meet the requirements of the original government contract. This is an excellent opportunity for the subcontractor to gain valuable experience in public procurement and build its reputation with various government agencies. Outsourcing is a fantastic way for you to facilitate public procurement at your own pace while participating in the multi-billion dollar market. The SUB-Net database identifies subcontracts and opportunities published by major prime contractors and other non-federal agencies. Use SUB-Net to look for outsourcing opportunities with the federal government and prime contractors. DoD Outsourcing Program Do you need a quick start guide that identifies regulatory requirements for outsourcing plans? See “The Basics of Subcontracting”. Participants understand the rights and obligations related to the execution and management of subcontracts arising from the terms of government contracts and FAR and develop the skills necessary to use and maintain these rights during the execution and management of subcontracts, starting with the development of technical, quality and delivery requirements through a Specification. It is important to ensure that all your liability insurance licenses and records are in order. Prime contractors prefer subcontractors who are organized and operate with precision. Also prepare a competency statement.
This is the one-page marketing document you need as a government contractor or contractor to describe your services. To become a prime contractor, a company must first register with the System for Award Management (SAM). Federal contract opportunities can be searched through FedBizOpps and GSA Schedules. Outsourcing options can be found in the Subcontracting Network database and in historical procurement information available in the Federal Government Procurement Database – Next Generation. Outsourcing is a great way to work with government and a lucrative path to profitability for any small business. Consultants – It`s easy to confuse consultants with subcontractors. Consulting services are defined in the Federal Procurement Regulations (FAR) as “provided by persons who are members of a particular profession or who have special skills and who are not officers or employees of the Contractor. Examples include services purchased from a contractor or subcontractor to improve their legal, economic, financial or technical situation. Specialized and advisory services are generally acquired to obtain information, advice, opinions, alternatives, conclusions, recommendations, training or direct support such as studies, analyses, evaluations, links with government officials or other forms of representation. “Other differences between GSA CTAs and master and subcontracting agreements are listed below: We`ll look at some of the intricacies of selling to contractors in future articles.
For now, it`s important to understand a critical distinction – the difference between prime contractors and subcontractors, often referred to as “bonuses” or “subs.” There are several sources that prime contractors will use, including: Pingback: What is a Prime and a Sub? | Government Sales Insider – The government aggregator`s GSA contractor association agreements offer another team opportunity. There, the Contractors` Association Agreement (CTA) allows contractors to use their GSA schedule to develop a solution for the government and does not create a separate legal entity, but allows contractors to meet buyer requirements by combining the supplies and services of each team member`s separate schedule contract in response to a buyer`s request for quotation. Perhaps you are a little intimidated by the prospect of working with the government. You want an ideal scenario where you can get into the lucrative public procurement business and be able to take matters into your own hands at your own pace. The definitions I have given above are by no means exhaustive. There is a vast world of entrepreneurs facing government, all working together at different times for different reasons. However, the general dynamics of one or more primes with different subcontractors tend to apply to the entire federal procurement system. Prime Contractor – The company wins a tender for a contract with the government. Remember that prime contractors need to know your business.
You`ll want to know: USASpending.gov USASpending.gov contains details about outsourcing. You can use USASpending.gov to link subcontractors to master orders and identify prime contractors who subcontract in your area. .