When considering how to enter the government marketplace, most companies first think about doing business directly with federal, state or local government agencies. However, contracting directly with a government entity involves many steps and likely involves the requirement that a business has a record of established experience.
For less experienced and smaller businesses, there may be a simpler, faster, and less burdensome way to break into the government market — subcontracting.
The subcontracting route allows a company to do business with the government indirectly, through a prime contractor, on smaller pieces of work and involving fewer requirements. A subcontractor is answerable to a prime contractor, who is held responsible by the government for overall work performance.
Subcontracting with a prime contractor can be a profitable experience and growth opportunity that results in enhanced capability, qualifications, capacity and past performance. These factors contribute to the increased likelihood of future success in government contracting.
Companies seeking subcontracting opportunities must develop a strategy to achieve success in this arena. For guidance, see “Becoming a Subcontractor” found on the PTAC Contracting Tools page.
For assistance with your government subcontracting efforts, please contact the PTAC at SAP&DC at ptac@sapdc.org.
