Transcript Doing Business with Large Prime Contractors Stephanie Lewis

Doing Business with Large Prime
Contractors
Stephanie Lewis
Acting Deputy Area Director
U.S. Small Business Administration
Government Contracting, Area V
(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





2.
While a subcontracting plan is being developed


3.
Continuous marketing
Developing leads and contacts
Get pre-qualified if required
Identification of upcoming procurements – interested bidders lists, presolicitation meetings
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
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
Businesses 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?
 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
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-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?
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
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 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/
