Ongoing Growth
Scaling from Sub to Prime: How to Make the Leap
If you're a small or mid-sized manufacturing company, you’ve probably heard about the difference between "subcontractor" and "prime" status in government contracting. Making the jump from sub-contractor to prime contractor can seem daunting, but with the right approach, it's a manageable and rewarding step forward.
Understanding the Difference: Sub vs. Prime
As a subcontractor, your company works under a prime contractor, fulfilling part of a larger contract. Typically, you’re paid for specific tasks or components, and your role is vital but limited. Being a prime contractor means your company holds the main contract with the government, responsible for the entire project, including managing subcontractors and ensuring deliverables are met on time and within budget.
Why Aim to Become a Prime?
Control Over Contracts: As a prime, you negotiate directly with the government, giving you more control over project scope and profit margins.
Long-Term Growth: Prime status can open doors to larger contracts and better opportunities for future work.
Market Credibility: Being a prime signals to the government and other clients that your business is capable and trustworthy.
Steps to Make the Transition from Sub to Prime
1. Build a Solid Performance Record
Before moving up, ensure you have a reputation for reliable delivery, quality work, and good communication. Prime contractors are scrutinized, and your track record can make or break your chances.
2. Understand Contracting Requirements
Familiarize yourself with the Federal Acquisition Regulation (FAR) and agency-specific rules. Know what certifications, systems, and documentation you'll need, such as the System for Award Management (SAM.gov) registration, past performance evaluations, and financial stability.
3. Improve Financial and Organizational Capacity
Primes look for companies that can handle larger scopes and more comprehensive management. Ensure your business has the financial stability, skilled personnel, and project management processes necessary to take on bigger responsibilities.
4. Develop Capabilities and Niche Expertise
Specialize in a niche where you can demonstrate excellence. Having a unique expertise or technology can distinguish you as a valuable prime candidate.
5. Network and Build Relationships
Attend industry days, government outreach events, and small business conferences. Engage with prime contractors and understand what they look for in potential partners or future primes.
6. Pursue Mentor-Protégé Programs
The Small Business Administration (SBA) offers programs where larger, experienced firms mentor smaller firms. These relationships can provide valuable guidance, resources, and eventual subcontracting opportunities to prove your capabilities.
7. Bid on Prime Contracts
Start small by bidding on contracts suited to your size and capabilities. Use subcontracting experience as proof of your performance, and gradually take on larger contracts as you grow confident.
Additional Resources
SAM.gov — Register your business to be eligible for federal contracts.
Final Thoughts
Changing your status from subcontractor to prime is not an overnight process. It requires preparation, testing your capacity, and building strong relationships. But the payoff—more control, bigger contracts, and a stronger market reputation—is worth the effort. Keep your focus on quality, reliability, and strategic growth, and your company can successfully make the leap from sub to prime.