The General Services Administration (GSA) Office of Small and Disadvantaged Business Utilization (OSDBU) wants small businesses to be aware of subcontracting opportunities that could lead to larger Federal contracts.
Speaking during the ACT-IAC Unlocking Subcontracting Opportunities for Small Business virtual event today, Deputy Associate Administrator at OSDBU Amy Lineberry presented the best advantages of subcontracting and the impact it has on prime contractors.
“Whether you’re a startup business or a seasoned small business, there’s a place for both in subcontracting,” Lineberry said. “If you’re a small business, you can start your path in Federal procurement troops and contracting and if you’re a seasoned small business subcontracting can provide additional opportunities for winning more Federal work while minimizing administrative obligations and lowering business development costs.”
Lineberry also pointed out that subcontracting can be a profitable experience for small businesses and provide an additional revenue stream. Being in a position to secure subcontracting opportunities also has an impact on prime contractors and obtaining larger opportunities.
“When a large business is awarded a contract and when the total value of the contract exceeds the threshold, the large business is required to adhere to a subcontracting plan,” Lineberry explained. “In those subcontracting plans, the large business is required to establish subcontracting goals for each small business category. These written plans become a commitment to the government that large businesses will make a good faith effort to meet the small business and socioeconomic small business goals agreed to end the plan.” Lineberry added that this, in part, is a reason prime contractors have incentive to work with small businesses.
In securing a subcontracting opportunity, Lineberry mentioned that small businesses should do their best to “sell” themselves to the prime. By using capability statements, a small business can highlight core competencies, past performance, and experience.