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4 Perks of Being a Subcontractor

 

4 Perks of Being a Subcontractor

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If you’re interested in doing business with the federal government but would like to try it out first, you should strongly consider subcontracting. As a subcontractor, you can perform part of the work on another company’s contract (of the ‘prime’ contractor) without dealing directly with the government. SBA has outlined a few perks as to why you could consider entering the subcontracting world.

Fewer administrative obligations

As a subcontractor, you won’t have to deal with the government directly, that’ll be solely up to the prime contractor, who communicates with the contracting officer within a particular agency. As the subcontractor your only administration responsibility lies between you and the prime contractor.

Lower business development costs

Another big benefit of subcontracting is the lowered cost of doing business development (BD). Someone else is taking care of capture management, identifying and assessing potential opportunities with the government, and outlining the approach to go after them.

Getting more work

If you offer a specialized service that can be applied broadly as a small piece of another larger project, it’s a great way to gain experience and work that you wouldn’t be able to get otherwise. Many government contracts have various needs and required skills, so you can benefit by potentially earning more work across a range of contracts that need your specific service.

Gaining past performance

Working with partners (prime contractors)  will allow you to gain past performance that you might not be able to gain elsewhere because they've already developed relationships. Building up your past performance is like a track record to use when you go after future work. You have a better chance at winning work when you have a credible record.

 

 

You can check out more information about subcontracting at SBA.gov

 

 

Can the GSA Office of Small Business Utilization (OSBU) help in any way? If you have any questions, please feel free to submit them via our  OSBU Contact Form.  

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