Working with Large Federal Prime Contractors is a great way to start working with federal agencies and to learn the ins and outs of federal contracting. Large Primes gain benefit in working with SBA Certification Holders, VA Verification Holders as well as firms that have obtained a GSA Contract so they completing Step 1 in the process is advisable before setting up your Subcontractor Registrations.
The SBA also has the OSDBU (Office of Small & Disadvantaged Business Utilization) that also helps firm in their subcontracting efforts. It has been our experience that large prime’s prefer firms that have sought them out and therefore go to their own directories first for eligible candidates before contacting the SBA.
For this service we need one of our specialists to walk through your product or service offering, agreement on who are the best Large Prime matches for your firm and provide you with a quote for this service. It is best if you book a call on our website or call and have us schedule an appointment.
Small businesses can often complete the less technically or less capital-intensive parts of a Federal Contract. In these instances, the Federal Government would like the Large Prime to bring in small businesses to help on the contract to foster growth within the economy.
Some government contracts require large equipment or teams of highly skilled people that only large contractors can provide. However, in even the most technical work there is almost always a need for subcontractors.
When the contract is large enough, generally over $650,000 the Large Prime is required to submit a subcontractor plan which lays out how the Large Prime intends to meet their small business inclusiveness goals. Because of this even if a small organization does not have the ability to obtain an SBA Certification or VA Verification the small business should self-certify as small for the NAICS code in which they operated and are small. This will aid any large business wanting to use them as a subcontractor because if a small business fails to do this, they can not be counted for purposes of this small business inclusiveness plan.
If a large business fails to meet their subcontractor inclusiveness goals, then they lose points which can move them for example "Excellent" to "Very Good" which could either cost them future awards or lower the markup they can charge and still win the solicitation.
Note: Large businesses can have a small business be part of the subcontractor inclusiveness plan but when it is time to preform the work utilize another small business vendor without penalty. So, keep the reputation of the Large Prime in mind before you spend a great deal of setup work with a Prime.