The federal government actively supports small businesses by creating opportunities for them to participate in federal contracting through both prime and subcontracting roles.
Prime Contracting Overview
Prime contractors establish a direct working relationship with the government. Their responsibilities include managing subcontractors and ensuring contract completion according to specifications. To become a prime contractor, businesses must:
- Register with the System for Award Management (SAM)
- Search opportunities through SAM and GSA Schedules
- Review historical awards in Federal Procurement Database Systems
Understanding Subcontracting
Unlike prime contractors, subcontractors work for other contractors rather than directly with the government. This arrangement provides an entry point for contractors not yet prepared for direct federal agency interaction.
Small Business Opportunities
Many federal contracts require "other than small" businesses to include small business subcontracting plans. These plans must outline goals for various small business categories including:
- Small disadvantaged businesses
- Women-owned small businesses
- HUBZone small businesses
- Veteran-owned small businesses
- Service-disabled veteran-owned small businesses
Compliance Requirements
Compliance Reviews
Prime contractors with subcontracting plans may undergo compliance reviews to verify adherence to:
- Relevant regulations
- Required processes
- Established procedures
- Subcontracting plan commitments
Reporting Requirements
Large businesses must submit regular reports through the Electronic Subcontract Reporting System (eSRS), including:
| Report Type | Due Date |
|---|---|
| Mid-year Report | April 30 |
| Annual Report | October 30 |
| Summary Report | October 30 |
Finding Opportunities
Several resources are available to help businesses find subcontracting opportunities:
- GSA's Subcontracting Directory for Small Businesses
- DOT Subcontracting Directory
- SBA's SUBNet database
- Dynamic Small Business Search (DSBS)
- APEX Accelerator assistance