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Is Subcontracting Right For You?

The Office of Small Business Utilization (OSBU) wants you to find and secure contract opportunities with the Federal Government. One way to grow your business is through subcontracting.

How can you find subcontracting opportunities?  Check out GSA’s Subcontracting Directory.  The directory is compiled from award data indicating a subcontracting plan was required.  Be sure to check out GSA’s eLibrary, too. You can find a list of contractors related to your field who may need your products or services. Click on the appropriate category for a listing of contractors by socio-economic size status.  “Other than small businesses” are marked with “o” and most likely meet the threshold for a subcontracting plan.

Are there contractors that you have successfully subcontracted with previously  in the private sector? See if they are listed in GSA’s eLibrary for partnering opportunities.  Do you offer IT related services?  If so, check out the list of GSA’s GWAC industry partners.

FedBizOpps advertises upcoming major acquisitions where you may be able to assist the prime contractor in meeting its small business subcontracting goals, and add to the prime contractor’s solution to the government’s need.  Major acquisitions often contain an evaluation factor for small business participation.

Be sure to utilize the free advice offered by your local Procurement Technical Assistance Center and the SBA Commercial Marketing Representative.  Each can provide advice on how to market yourself to federal prime contractors.

The statute requires that “any contractor receiving a contract for more than the simplified acquisition threshold must agree….that small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business and women-owned small business concerns will have the maximum practicable opportunity to participate in contract performance consistent with its efficient performance.” A subcontracting plan is required for “other than small business” (OTSB) when the total value of the acquisition, inclusive of all options, exceeds $700,000 ($1.5 million for construction.)  OSBU and the Small Business Administration (SBA) review subcontracting plans to ensure OTSB contractors are maximizing practicable opportunity for small businesses.  Small businesses have the opportunity to get a share of the contract dollars through subcontracting. It’s a great way to enhance your company’s value and add to your overall success.

The government's expectations regarding subcontracting plans are found in the Federal Acquisition Regulations subpart 19.7.


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