Working With Prime Contractors

Header image: U.S. Air Force photo by Senior Airman Grace Turpin

Quick Answer

Small businesses work with prime contractors as subcontractors and suppliers on federal contracts. Large primes on contracts over $900,000 ($2 million for construction) must submit small business subcontracting plans with goals that include service-disabled veteran-owned small businesses (SDVOSBs). To win that work, register in SAM, keep your SBA profile current, and find primes through SBA's subcontracting tools.

How Prime Contractors And Subcontractors Work Together

The SBA's prime and subcontracting guide explains the split. Prime contractors work directly with the government, manage subcontractors, and are responsible for completing the work as defined in the contract. Subcontractors work for other contractors instead of directly for the agency, which lets businesses that are not ready to prime still participate in federal procurement.

For a PPE supplier, that can mean supplying helmets, vests, and gloves to a general contractor on a U.S. Army Corps of Engineers project, or to a facilities contractor on a base. The prime holds the contract. You hold the relationship with the prime.

Why Prime Contractors Need Small Business Subcontractors

It is the law. Under FAR Subpart 19.7, negotiated and sealed-bid contracts expected to exceed $900,000 ($2 million for construction) with subcontracting possibilities require the apparent winner, if it is other than small, to submit an acceptable subcontracting plan. Without an approved plan, the offeror is ineligible for award.

The plan, governed by FAR 52.219-9, sets goals for subcontracting to small businesses, small disadvantaged businesses, women-owned small businesses, HUBZone small businesses, veteran-owned small businesses, and SDVOSBs. FAR 19.7 states that failure to comply in good faith is a material breach of contract and can lead to liquidated damages. Primes have real incentive to find qualified small partners.

The government-wide SDVOSB goal is now at least 5 percent of all prime contract and subcontract dollars each fiscal year, under 15 U.S.C. 644(g), up from the earlier 3 percent. Learn more in what is an SDVOSB?.

How To Find Prime Contractors For Subcontracting Work

• Register in SAM.gov. It is the starting point for any federal work.
• Complete your profile in SBA's Small Business Search. Primes use it to find subcontractors. SBA recommends a full profile with certifications, a capabilities narrative, keywords, NAICS codes, and past performance.
• Watch SubNet. Large businesses post subcontracting opportunities there.
• Use SBA's Directory of prime contractors with subcontracting plans, listed on the SBA subcontracting page, to target primes with goals to meet.
• Get help from an APEX Accelerator (formerly a PTAC) for free counseling on finding primes.
• Attend industry days and small business events hosted by agencies and large primes.

What Prime Contractors Look For In A Subcontractor

• The right certifications. SDVOSB status must be certified through SBA's Veteran Small Business Certification for it to count.
• Clean registration and NAICS alignment. Your size must fit the NAICS code the prime chooses for the subcontract.
• Compliance readiness. Primes flow down FAR clauses, such as the Section 889 telecom prohibition (FAR 52.204-25) and Buy American or TAA requirements for supplies.
• Reliable delivery. A prime's schedule is your schedule. Stock, lead times, and responsiveness win repeat work.
• Past performance. Even small orders build the record that leads to bigger ones.

Limitations On Subcontracting For Small Business Primes

The rules also run the other way. When a small business wins a set-aside, FAR 52.219-14 limits how much it can pass to firms that are not similarly situated. For supplies, other than from a nonmanufacturer, it cannot pay more than 50 percent of the amount paid by the government, excluding materials, to such subcontractors. For services, the limit is 50 percent; for general construction, 85 percent; for special trade construction, 75 percent. SBA's rule is at 13 CFR 125.6. Small primes look for similarly situated partners, such as other SDVOSBs, on SDVOSB set-asides. See federal procurement set-asides.

Mentor-Protégé And Teaming With Prime Contractors

SBA's Mentor-Protégé Program lets an experienced firm mentor a small business, with joint ventures that can compete for set-asides. Teaming agreements and joint ventures are other common structures. Get legal review before you sign.

Prime Contractor And Subcontracting Key Statistics

• $900,000 ($2 million for construction): the threshold for required subcontracting plans (FAR 19.7).
• 5 percent: minimum government-wide SDVOSB goal for prime and subcontract dollars (15 U.S.C. 644(g)).
• 50 percent: maximum share of a small business supply set-aside, excluding materials, paid to non-similarly situated subcontractors (FAR 52.219-14).

PPE Supply For Prime Contractors

BDG Safety supplies primes on federal jobs with Type II safety helmets, hi-vis vests, gloves, and eye protection, with GSA and SDVOSB credit. See how to buy.

Related Government Procurement Resources

Government PPE purchasing. How agencies buy PPE.

FAR requirements explained. The rules behind the contract.

Supporting veteran-owned businesses. Why SDVOSB partners matter.

Frequently Asked Questions About Working With Prime Contractors

Q: Does my SDVOSB subcontract count toward a prime's goals?

A: Yes, if you are certified and small for the NAICS code of the subcontract.

Q: Do I need a GSA Schedule to work with primes?

A: No. Primes buy commercially. A GSA Schedule helps when agencies buy direct.

Q: Who do I contact at a large prime?

A: Start with the small business liaison officer. Most large primes list one.

Q: Can a prime drop a small sub after award?

A: Primes must make good faith efforts to meet their plan, and FAR requires them to notify the contracting officer in some cases. Get commitments in writing.

Partner With BDG Safety On Your Next Federal Contract

BDG Safety works with primes to fill PPE needs on federal projects and help them meet SDVOSB subcontracting goals. Call (619) 992-7621 or email info@bulldoggroup.net. BDG Safety is a Navy-veteran-founded, certified Service-Disabled Veteran-Owned Small Business (SDVOSB) that supplies Type II safety helmets and PPE to contractors, agencies, and the U.S. Army Corps of Engineers. Real people who know the gear, no phone menus. Open a B2B account or see how to buy.

Explore more guides in the BDG Safety Resource Center.