If you are a small business that’s getting ready to register with the System for Award Management (SAM), you’re probably excited about bidding on government contracts. For those just starting out however, subcontracting actually can be your best option, and here’s why.
It’s Easier
If you’ve been having any trouble figuring out your System for Award Management registration, you aren’t alone. Just getting registered to do business with the federal government can be tricky, but learning how to bid on contracts is even more complicated.
Subcontracting can be much easier for newbies, because the Prime Contractor is the one bidding on the job. You simply complete one portion of it, but you will learn a great deal along the way.
Lower Risk
With subcontracting, you actually are working for the Prime Contractor. This main contractor is the one that who is truly responsible to the government and it’s likely an entity that has worked with various government agencies before. It’s not uncommon for a beginning contractor to make a few mistakes along the way, but if you subcontract, you’ll have a sort of guide and mentor in the form of your Prime Contractor.
It’s Ideal For Small Businesses
If you qualify as a small business, it’s important to note that the government sets aside a portion of government contracting jobs just for small businesses. Prime Contractors also often are required to use subcontractors that qualify as small businesses.
There are plenty of subcontracting jobs available, and if you qualify as a woman-owned small business or veteran-owned small business or another type of small business, you may have an easier time acquiring a subcontracting job.
Before you get started with the System for Award Management process, here are a few helpful facts about subcontracting:
1. Many Prime Contractors Must Use Subcontractors
For certain contract awards, a Prime Contractor must use subcontractors, specifically small businesses. Typically, if a Prime Contractor is trying to win a bid of $650,000 or more, they will be required to use subcontractors.
Why? Because the government truly wants to help small businesses succeed and grow, so requiring small business subcontracting helps to support these businesses. It also tends to improve the quality of a project as these subcontractors provide expertise in a niche industry.
2. Subcontracting Regulations Are Less Stringent
Prime Contractors have to jump through quite a few hoops in order to score a government contractor, but subcontractors typically do not have to meet the same regulations and it’s often easier for subcontractors to arrange their payment plans. After all, a small business is less likely to be able to wait as long as a Prime Contractor for payment.
3. There Are Many Sources Of Subcontracting Jobs
Once you’ve handled your System for Award Management registration, you’ll want to start looking for possible jobs. For subcontracting jobs, there are several places to look. For instance, the General Services Administration (GSA) has a subcontracting directory, as does the Small Business Administration (SBA).
The FedBizOpps.gov website is another source, and you can search for all types of contracting jobs in many different ways. There are also third-party services that can help you find subcontracting jobs and even help you learn how to write bids and RFPs (Request for Proposal).
4. State & County Contractor Jobs Are Available
After you are registered with the federal government, don’t forget to register with your state and county governments to do business with these agencies, as well. There are many contractor opportunities, including subcontractor jobs, to be had at the state, county and local level.
Additionally, many state governments will host free or low-cost workshops and events for government contractors and these can provide you with a wealth of helpful information. You also will want to find your area PTAC (Procurement Technical Assistance Center). These centers help small businesses in many ways, not just with government contracts, but they definitely can help you in those early stages, when you are learning the ropes.
Understanding The System For Award Management
Before you can dive into the world of government contracting, you’ll need to register with the System for Award Management. This is a centralized database that includes all approved government contractors. Even if you want to try to win a subcontracting job, you will need to be registered in this database.
This is where we come in. We are a third-party registration service that handles System for Award Management (SAM) registrations and renewals for all types of businesses. Whether you are a small business with just a few employees or a Fortune 500 company, we can handle the arduous registration process.
SAM registrations can take 10 to 20 hours to complete, and few business owners can spare that amount of time to wade through the mire of government-speak one finds during the registration process. Rather than deal with the difficulties of SAM registration, our team of registration experts quickly can handle the process for you.
To get started, simply click on the New Registrations tab on our home page, and fill out our quick contact form. A registration specialist will contact you as soon as possible, and we’ll get started on your System for Award Management registration.