Government subcontractors are companies that are a second or third tier supplier to a primary government contractor. Subcontracting or teaming with a prime contractor can be a profitable experience as well as a growth opportunity for a business.

To determine if a firm has the capacity to be a government contractor, SAP&DC recommends taking the time to work through a self-assessment tool that can be found at this web site under the title "Getting Started/Is Government Contracting for You?"

Firms that decide they are not ready to bid competitively for prime contracts can consider subcontracting opportunities. The experience gained from subcontracting can prepare businesses to eventually become prime contract bidders.  Subcontracting is an opportunity for less-experienced businesses to get their feet wet and enhances their chances of potentially becoming a prime contractor.

Firms interested in subcontracting should review the following before the first call is made.

1.     Research the company you are approaching.

• Use a company’s web site to gather information.

• Are there non-negotiable insurances or certifications required to do business with them? If yes, can you comply with them? If you already have them, then let them know.

• Find out if they realize their need for your product or service? If not, be prepared to convince them that they need your product or service.

2.     Be specific about yourself

• Don't say “We do everything:” THIS IS VERY IMPORTANT! What can you offer to make a company more cost effective?

• Develop a plan and find your niche.  What separates you from the competition?

• Don’t capitalize on your HUBZone, Woman-Owned, Disabled Veteran, etc., status.  Although, this is important and helpful it doesn’t tell anything about the company.

• Keep them up to date on your capabilities and product lines.

3.      Look to form long-term relationships

• Develop an alliance.

• Suggest teaming arrangements that benefit both parties long term.

• Enter only teaming agreements that promote your company, as a valuable partner.

• Meet with people that can assist you in accomplishing your goal, such as the administrative staff.

• Save time by speaking to the right people.

• Be aware that owners or inventors don't always have marketing skills.

4.      Making a presentation during your visit

·      Request overviews containing active contracts or projects, proposed contracts or projects and future markets.

·      Prepare for EDI! Electronic Data Interface.  Keep your Pro-Net records current.  Make sure the person listed as the prime contact is knowledgeable about your business and reliable.

·      If you are a service company, the basic rule of thumb for Power Point presentations is:  5 Minutes - 5 Slides – 5 Bullets per slide.  Focus on what you do and know your market. A 30-second speech can make or break you.

·      Show financial stability.

·      Be competitive and know your competition.

·      Be active in the professional community, go to trade shows.

·      Follow up.

The federal government publishes a list of Major Prime Contractors at:

http://www.sba.gov/?gopher?/Government-Contracting/Subcontracting-Directory

The Small Business Administration manages a web-site and database for both Primes to announce needs and Subcontractors to announce capabilities at:

http://web.sba.gov/subnet/