Subcontracting can present small businesses with opportunities that might otherwise be unachievable because of capital, staffing, limited resources, or experience. Malyszek & Malyszek works to develop new initiatives on subcontracting issues.
Due to legislative obligations, federal prime contractors award billions of subcontracting dollars annually. Subcontracting allows small and underprivileged businesses to significantly impact the federal procurement preference programs. Any federal contractor receiving a contract for more than the simplified attainment threshold must agree in the contract that small businesses (including service-disabled veteran-owned, veteran-owned, disadvantaged, HUB Zone, and women-owned businesses), will have the maximum practical opportunity to participate in the contract consistent with its efficient performance.
Large prime contractors receiving a federal contract exceeding $650,000 ($1.5 million in the case of construction), and that offer subcontracting opportunities, must create subcontracting plans with goals that provide opportunities to these small businesses.
The Small Business Administration (SBA) hosts the Subcontracting Network website, Sub-Net, where prime contractors may post subcontracting opportunities. These opportunities are often reserved for small business and may include solicitations or other announcements, including sources pursued notices for teaming as partners or subcontractors on future contracts. Sub-Net allows small business to search for opportunities by NAICS code, SIC code, generic description, or solicitation number.
Get involved in the early stages of procurement and be prepared for projects that are within your area of skill. Once a procurement possibility has been publicized as full and open competition, seek out any potential for subcontracting opportunities. If a subcontracting plan is required, try to decide who the potential bidders are and contact firms to establish their intention to bid.
To increase your chances of obtaining subcontracting opportunities, a subcontracting arrangement can be established with more than one potential bidder for the same requirement. Try to have your small business included in the subcontracting plan when a proposal is submitted to an agency.
Before committing to a subcontracting opportunity carefully evaluate how it would benefit your small business. Assess your capabilities and consider:
• What is your cost to enter the arena?
• What do each of you bring to the table?
• Will partnering with this firm aid in your success?
Call Malyszek & Malyszek today for more information about various subcontracting opportunities.