Doing Business with Large Prime Contractors

Stephanie LewisStephanie LewisActing Deputy Area Director Acting Deputy Area Director

U.S. Small Business Administration U.S. Small Business Administration Government Contracting, Area V Government Contracting, Area V

(TX, OK, LA, NM, CO, AR)(TX, OK, LA, NM, CO, AR)

The Prime Contractor’s Requirements

Public Law 85‑536. – Passed in 1958, this legislation authorized a voluntary

subcontracting program. – required large contractors receiving contracts over $500,000

with substantial subcontracting opportunities to establish a program which would enable minority business concerns to be considered fairly as subcontractors or suppliers.

Public Law 95‑507. – Passed in 1978, it changed the participation of large

contractors from voluntary to mandatory.– Changed the language of the law from "best efforts" to

"maximum practicable opportunities."

Today’s Subcontracting Plan

A Small Business Subcontracting Plan is required for any federal contract awarded over $550,000 to a large business in which there will be further subcontracting.

Sets forth 11 elements detailing how they will seek and utilize small businesses under the contract. Also includes goals for each small business group.

Subcontracting Plan Goals

Small Business (SB) Small Disadvantaged Business (SDB)* Women-Owned Small Business (WOSB) HUBZone Small Business (HUBZone SB)* Veteran-Owned Small Business (VOSB) Service-disabled VOSB

– * must be certified by SBA, others are self-certification

– Subcontracting plans do not have 8a goals

SBA’s Role

PCRs Procurement Market Representatives– Pre-award: reviews the subcontracting plan and

provides advisory comments to the Contracting Officer.

CMRs Commercial Market Representatives– Post-award: monitors prime contractors

compliance with their subcontracting plans through periodic compliance reviews. Share the results with the Contracting Officer.

When can I be selected as a subcontractor?

1. Prior to a subcontracting plan being developed.

or 2. While the large business is developing its

subcontracting plan. or 3. After the prime contractor has received

contract award.

When can I be selected as a subcontractor?

1. Prior to subcontracting plan being developed Continuous marketing Developing leads and contacts Get pre-qualified if required Identification of upcoming procurements – interested bidders lists, pre-solicitation

meetings

2. While a subcontracting plan is being developed Prime contractors often search for subcontractors when they are developing their

subcontracting plan Make sure to have a current profile in the CCR/Dynamic Small Business Search

3. After the prime contractor has received the award Ongoing contracts Prime Contractor did not identify subcontractors when it bid

– YOU ARE LOOKING FOR THEM AT THE SAME TIME THEY ARE LOOKING FOR YOU

Resources to Help Small Resources to Help Small Businesses Obtain SubcontractsBusinesses Obtain Subcontracts

1. Commercial Market Representatives (CMRs)

2. Subcontracting Opportunities Directory

3. SUB-Net

4. “Interested Vendors List” in FedBizOpps

5. Dynamic SB Search in CCR

How Does One Locate a CMR?How Does One Locate a CMR?

From the SBA Government Contracting Home Page (www.sba.gov/gc), click on “Contacts & Representatives” and then click on “SBA’s CMRs”

Contact CMRs to discuss prime contractors in their area and what might be a good match for your business

Where is the Subcontracting Where is the Subcontracting Opportunities Directory?Opportunities Directory?

The Subcontracting Opportunities Directory is a listing of federal large business prime contractors that have subcontracting plans.

From the SBA Government Contracting Home Page click on “Contracts and Representatives,” then click “Subcontracting Opportunities Directory.”

Click on the state(s) where you seek to market your product or service.

SUB-NetSUB-Net

SUB-Net is a electronic bulletin board used by prime contractors who are looking for small business subcontractors

From the SBA Government Contracting Home Page (www.sba.gov/gc), click on “SUB-Net”

Click on the state(s) where you seek to market your product or service.

FedBizOpps.gov

FedBizOpps.gov is a posting site used by Contracting Officers to post sources sought notices, solicitations, and awards

Go to www.fedbizopps.gov

Dynamic Small Business Search

Database of small businesses Indicates an interest in doing federal work Located inside the Central Contractor Registration Free marketing tool -- Purchasers can find out a lot

about you without even contacting you Don’t under-estimate the value of this database

– Don’t skimp, fill in complete information Go to www.ccr.gov

– To create a profile, click on “Start New Registration”– To locate a business, click on “Dynamic SB Search”

What Makes a Good Subcontractor?What Makes a Good Subcontractor?

Understand every detail of the statement of work (SOW) as it applies to your subcontract

Understand the Government’s expectations at the prime contract level

Meet the terms & conditions of your subcontract, especially with respect to price and delivery

Keep the lines of communication open – Don’t let problems fester– Don’t let your customer ever be surprised!

What are the Major Prime Contractors What are the Major Prime Contractors Looking for in a Subcontractor?Looking for in a Subcontractor?

Firms that can provide products or services cheaper or better (more efficiently) than if they were made or performed in-house

Good references Socio-economic status

– Firms that can help a prime contractor to meet its socio-economic goals on Government contracts are always a bonus

SBA’s Key Internet AddressesSBA’s Key Internet Addresses

SBA’s Home Page: www.sba.gov (includes a link to SUB-Net)

Government Contracting: www.sba.gov/GC

SDB: www.sba.gov/sdb HUBZone: www.sba.gov/hubzone Women: www.womenbiz.gov

– Also www.women-21.gov Vets: www.sba.gov/VETS/