How to Get Started as a Subcontractor to Build Experience for Prime Contracting
Entering the federal marketplace as a prime contractor can be challenging for small businesses, especially those without a strong track record of past performance. A strategic approach to gaining the necessary experience is to start as a subcontractor for large prime contractors. This allows small businesses to build their past performance, understand federal contracting processes, and develop relationships within the industry. Below is a step-by-step guide to successfully positioning your business as a subcontractor.
Step 1: Understand the Role of a Subcontractor
A subcontractor provides goods or services to a prime contractor who holds a direct contract with a federal agency. Large prime contractors often need small businesses to meet federal subcontracting requirements, making this an excellent entry point for businesses new to government contracting.
Step 2: Register Your Business Properly
Before pursuing subcontracting opportunities, ensure that your business is properly registered:
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Register for a Unique Entity Identifier (UEI) in the System for Award Management (SAM.gov).
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Register in the Small Business Administration’s (SBA) Dynamic Small Business Search (DSBS) to increase visibility among prime contractors looking for small business partners.
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Certifications & Set-Asides: Determine if your business qualifies for small business set-aside programs, such as 8(a), HUBZone, Woman-Owned Small Business (WOSB), or Service-Disabled Veteran-Owned Small Business (SDVOSB), as prime contractors often seek businesses with these designations to meet subcontracting goals.
Step 3: Identify Potential Prime Contractors
Large prime contractors regularly seek small business partners to fulfill subcontracting requirements. Here’s how to find them:
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Visit SAM.gov and search for awarded contracts in your industry to see which companies are winning federal contracts.
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Use the SBA’s SubNet  to find subcontracting opportunities.
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Look at the GSA’s Subcontracting Directory and agency-specific small business offices for a list of large primes that have subcontracting needs.
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Attend government contracting events, industry days, and networking meetings to connect with prime contractors and procurement officers.
Step 4: Develop a Strong Capability Statement
A capability statement is a marketing tool that outlines your company’s qualifications and experience. A strong capability statement should include:
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Company Overview: Business name, UEI, certifications, and contact details.
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Core Competencies: Clearly define what your business specializes in.
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Past Performance: If you have prior experience with commercial or local government contracts, highlight it.
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Differentiators: What makes your company unique?
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NAICS Codes: The industry classification codes relevant to your services.
Step 5: Build Relationships with Prime Contractors
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Direct Outreach: Research prime contractors in your industry and introduce your business through emails, calls, and LinkedIn connections.
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Attend Matchmaking Events: Many government agencies and industry groups host matchmaking sessions where small businesses can meet large primes.
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Utilize APEX Accelerators and the SBA: APEX Accelerators and the Small Business Administration (SBA) offer guidance and help small businesses connect with prime contractors.
Step 6: Respond to Subcontracting Opportunities
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Regularly check SubNet, SAM.gov, and agency websites for subcontracting opportunities.
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Look for Sources Sought Notices and Requests for Information (RFIs) that indicate upcoming opportunities where prime contractors may be looking for partners.
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If a prime contractor posts an opportunity, respond with a tailored proposal highlighting how your company can support their contract.
Step 7: Perform Well & Gather Past Performance
Once you secure a subcontracting role:
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Deliver quality work on time and within budget.
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Maintain clear and professional communication with the prime contractor.
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Request performance reviews or references that can be used for future federal opportunities.
Step 8: Leverage Experience to Bid as a Prime
After gaining subcontracting experience, use your past performance and relationships to bid on small prime contracts:
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Start with smaller contracts such as Simplified Acquisition Procedures (SAP) contracts.
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Explore set-aside contracts if you qualify for SBA programs.
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Register for government-wide acquisition contracts (GWACs) and agency-specific multiple-award contracts.
Conclusion
Becoming a federal prime contractor takes time, but starting as a subcontractor is an effective way to gain experience, develop credibility, and position your business for direct federal contracts. By following these steps, small businesses can build a strong foundation in government contracting and ultimately grow into a successful prime contractor.
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