Prime and subcontracting

Prime contracting

Prime contractors work directly with the government. They manage any subcontractors and are responsible for ensuring that the work is completed as defined in the contract.

To become a prime contractor, you must first register your business with the System for Award Management (SAM). You can search for federal contracting opportunities through SAM and GSA Schedules.

You can find historical award information on SAM.gov and USAspending.gov.

Subcontracting

Unlike prime contractors, subcontractors do not work directly with the government, but instead work for other contractors. This allows contractors that are not prepared to work directly with a federal agency to still participate in Federal procurements.

Some government contracts require “other than small” businesses, including large businesses, to subcontract with a small business. This creates more opportunities for small businesses to get involved in federal contracting.

Awards with small business subcontracting plans

Federal contracts awarded to other than small businesses (OTSBs) over a certain dollar threshold must contain a small business subcontracting plan. In this plan, which follows the requirements of FAR 52.219-9, the prime contractor sets goals for what it plans to subcontract to small businesses, small disadvantaged businesses, women-owned small businesses, HUBZone small businesses, veteran-owned small businesses, and service-disabled veteran-owned small businesses. A listing of contractors with subcontracting plans can be found at SBA’s Directory of Federal Government Prime Contractors with a Subcontracting Plan.

Some federal agencies maintain subcontracting websites that include directories of large prime contractors so that small businesses know what contractors may have subcontracting opportunities:

• LYNX| Department of War is the next-generation market research and supplier intelligence platform for small businesses of the Defense Industrial Base
• DOT Subcontracting Directory | US Department of Transportation
• Find opportunities | GSA
• Subcontracting Directory | USDA (.PDF)

In an effort to locate small business subcontractors, any large business can post a notice of a subcontracting opportunity, including the solicitation, to SBA’s subcontracting database, SUBNet. Prime contractors wanting to post a subcontracting opportunity should email subcontracting@sba.gov for additional information. Small businesses can also search and view these posted subcontracting opportunities.

Prime contractors also use the Small Business Search (SBS, formerly the Dynamic Small Business Search) to find small businesses. Small businesses should ensure that their profile in SBS is complete including socioeconomic representations and certifications, a capabilities narrative, keywords, NAICS codes, and performance history.

Contact an APEX Accelerator (formerly known as a Procurement Technical Assistance Center) for more help finding small businesses subcontracting opportunities.

Limitations on subcontracting

Under certain kinds of set-aside contracts, small business prime contractors are required to perform minimum levels of work.

Subcontracting limitations are part of the governing rules and responsibilities that all contractors should be familiar with.

The limitations on subcontracting are fully defined in 13 CFR 125.6.

Subcontracting rules and regulations

The rules and regulations that govern the subcontracting program are fully defined in the Code of Federal Regulations, the Federal Acquisition Regulations, and supplements that are individually published by federal agencies.

Here are some of the most used subcontracting program regulations:

• 13 CFR 121.404: When is the size status of a business concern determined?
• 13 CFR 121.410: What are the size standards for SBA’s Section 8(d) Subcontracting Program?
• 13 CFR 121.411: What are the size procedures for SBA’s Section 8(d) Subcontracting Program?
• 13 CFR 125.3: What types of subcontracting assistance are available to small businesses
• FAR 19.7: The Small Business Subcontracting Program
• FAR 52.212-5: Contract Terms and Conditions Required to Implement Statutes or Executive Orders — Commercial Items
• FAR 52.219-8: Utilization of Small Business Concerns
• FAR 52.219-9: Small Business Subcontracting Plan
• FAR 52.244-6: Subcontracts for Commercial Items

Training and education

Check SBA’s upcoming events to find training on various federal contracting topics (coming soon).

Need help?

A Procurement Center Representative (PCR) can assist with the pre-award aspects of small business subcontracting plans.

A Commercial Market Representative can provide assistance with subcontracting plan compliance after contract award.

Prime contracting questions can be sent to contracting@sba.gov.

If you have questions about SAM.gov, visit the Federal Service Desk.