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Subcontracting can be an excellent way to dive into the world of federal contractor jobs. While learning the ropes of subcontracting can be somewhat easier than attempting to win contracts as a prime contractor, it’s essential to familiarize oneself with various intricacies of this field.

Teaming agreements are one important aspect of subcontracting. These agreements not only lay the groundwork for collaboration between a prime contractor and subcontractors but also set the terms, conditions, and expectations for the relationship. Navigating the world of federal contracts without a clear grasp of teaming agreements can lead to missed opportunities and potential pitfalls, making them an indispensable component for anyone considering a role as a subcontractor.

What Is Subcontracting?

Before we explain the intricacies of teaming agreements, let’s first take a quick look at the concept of subcontracting. Subcontracting, in the context of government contracting jobs, refers to the practice where a primary or “prime” contractor delegates a portion of their government contract work to another entity, known as a subcontractor.

Instead of handling all aspects of a federal contract, the prime contractor can collaborate with one or more subcontractors to fulfill certain tasks or deliverables specified in the contract. This joint venture allows prime contractors to leverage the specialized skills, expertise, or resources of subcontractors to meet the comprehensive requirements of the contract.

Recognizing the potential benefits and opportunities this presents, especially for small businesses, the Small Business Administration (SBA) established SubNet. SubNet is a platform where prime contractors can post subcontracting opportunities, and small businesses can search and pursue these openings.

By offering a centralized location for subcontracting opportunities, the SBA’s SubNet facilitates connections between prime contractors and potential subcontractors, streamlining the subcontracting process and promoting participation from a diverse range of businesses.

What Are Teaming Agreements?

Teaming agreements in the context of federal government contracting refer to agreements between two or more companies that decide to join forces and collaborate on a specific government contract opportunity.

These agreements allow team partners to combine their strengths, capabilities, and resources to improve their chances of winning and successfully executing a government contract. They can be particularly advantageous for smaller companies that, on their own, may lack the necessary resources, experience, or capabilities to pursue larger or more complex contracts.

Here are some key points about teaming agreements in federal government contracting:

The Prime Contractor & Subcontractor Relationship: In most teaming agreements, one company will serve as the prime contractor, while the others will be subcontractors. The prime contractor submits the bid to the government and, if awarded the contract, will have the primary responsibility for its execution. The subcontractors will provide specified services, products, or solutions as a part of the contract.

Distribution of Work: The agreement will specify how the work will be divided among the parties. It might delineate responsibilities based on the strengths and expertise of each company. This ensures that each team member has a clear understanding of their role.

Duration & Scope: The teaming agreement should be specific about its duration, usually tied to the length of the particular contract or bid they’re pursuing. The scope of work for each party should also be detailed to avoid conflicts and misunderstandings.

Terms & Conditions: Like any other agreement, a teaming agreement will include terms and conditions governing the relationship between the parties, including payment terms, intellectual property rights, confidentiality clauses, and provisions for dispute resolution.

Compliance with Federal Regulations: Federal government contracts often come with specific regulations and requirements. The teaming agreement should ensure that all parties are aware of and agree to comply with these regulations.

Exclusivity: Some teaming agreements may include exclusivity clauses, preventing parties from teaming up with others or bidding independently for the same government contract.

Contingency: Teaming agreements are typically contingent on the prime contractor being awarded the contract. If the government does not award the contract to the prime contractor, the teaming agreement typically becomes null and void.

Benefits to Small Businesses: Teaming can be particularly beneficial for small businesses, including those classified as Small Disadvantaged Businesses (SDB), Women-Owned Small Businesses (WOSB), and Service-Disabled Veteran-Owned Small Businesses (SDVOSB). By teaming up with larger companies, these small businesses can gain access to opportunities they might not be able to pursue on their own.

Teaming agreements in federal government contracting provide a strategic mechanism for companies to collaborate and compete more effectively for government contracts. They allow firms to pool their resources and expertise, enhance their offerings, and meet the specific requirements and standards set by the federal government.

Get Started With SAM Registration

If you plan on bidding on any federal contractors (not as a subcontractor), you will need to register with the System For Award Management (SAM). This database contains pertinent information about all government contractors, and you must have an active listing in the System for Award Management to work for any federal agency.

If you limit yourself to only subcontracting jobs, you may not need to complete your SAM registration. However, some prime contractors might prefer that you have an active SAM registration and if you see any opportunities of interest as a prime contractor, you cannot bid on them unless you have an active SAM account.

The government spends billions of dollars every year on government contracts and while subcontracting can be very lucrative, it’s not the only option for small businesses. Many government contracts are set aside specifically for small business owners, so we do recommend that all business owners complete SAM registration so that they are free to bid on both subcontracting opportunities as well as traditional government contract jobs.

At Federal Contractor Registry, we can help you get started with government contracting by completing your SAM registration quickly and 100% accurately. We also will help you sign up with the SBA and determine if you qualify for any SBA set-asides, such as HUBZone certification or Woman-Owned Small Business (WOSB) certification, etc. These types of prime contracts can be much easier to win than larger government contractors because the government must limit the contractors to those that meet the small business set-aside requirements.

In addition to completing your SAM registration and helping you get started with the SBA, we also will help you attain your Unique Entity Identifier (UEI), which is a fairly recent requirement for new SAM registrants. We also will help you prepare the SAM notarized letter, which must be mailed to the Federal Service Desk. This letter identifies your company’s Entity Administrator, which is the person authorized to make changes to your SAM account.

Whether you want to bid on subcontracting jobs or prime federal contractor jobs, we highly recommend completing your SAM registration. While handling SAM registration on your own can be a daunting task, our team of SAM registration specialists can complete the process for you without any hassles or difficulty. If you would like us to complete your SAM registration, just click on the green New Registration tab on our homepage and we will get the process started as quickly as possible.

Imagine working on some of the nation’s most pressing projects, from bolstering cybersecurity to pioneering space exploration or even improving public health infrastructure. With federal contractor jobs, these opportunities and more are at your fingertips.

Yet, many misunderstandings shroud this line of work, casting a shadow over the vibrant and diverse landscape of federal contractor jobs. These misconceptions often deter talented professionals from exploring a realm that offers not only a wide array of exciting projects but also the chance to make a difference. Let’s debunk several common misconceptions about federal contractor jobs and shed some light on the reality of this dynamic career path.

Federal Contractors Mostly Work In Defense

Many people mistakenly believe that most federal contractor jobs exist within the Department of Defense. While this agency certainly spends a great deal on government contracts, there are hundreds of other agencies that will need to use a government contractor, so DOD contracts are never going to be your only option.

Additionally, many people believe you must have security clearance to work with the DOD. This is true for some types of contracts, but if you are simply providing goods and supplies and some basic services, security clearances often are not needed. When you complete your System for Award Management (SAM) registration, many people opt not to work with DOD because they are worried about security clearances, but this is usually not an issue.

Only Large Companies Win Federal Contracts

If you own a small business, becoming a federal contractor can be an outstanding way to boost your business. While the huge contracts typically are reserved for large corporations, such as Lockheed Martin and Boeing, the government sets aside a percentage of all federal contractor jobs specifically for small businesses.

These contracts are known as set-aside contracts and there are several different types of set-asides, including the Woman-Owned Small Business (WOSB) and Veteran-Owned Small Business (VOSB) designations, as well as programs for anyone belonging to a historically disadvantaged group, such as Native Americans, African Americans, people with disabilities and much more.

Even if you don’t qualify under any of these types of set-asides, general small businesses and businesses located in Historically Underutilized Zones (HUBZones) also can qualify for many set-asides.

There’s Little Diversity With Government Contracts

When people think about government contracts they often think about defense contracts or perhaps FEMA disaster jobs or other types of disaster relief jobs, but the government needs a huge range of goods and services. No matter what type of business you have, it’s likely that you can find government contracting jobs that fit what you provide.

Government Contracting Is Too Bureaucratic

To be fair, getting started with government contracting can seem a bit daunting. There’s a lot to learn about bidding procedures and rules and the government rarely makes decisions as quickly as a private sector company could. However, once you are familiar with the process, it can be a great way to supplement your business income and the government always pays its bills, which is a huge bonus.

We find that attaining that first government contract can take about a year for most businesses. However, once you start working with one agency and get the feel for government contracting and begin building a government resume, it becomes easier and easier to work with federal agencies.

Of course, we also highly recommend that you don’t simply focus on federal government contractor jobs. There are many excellent and profitable opportunities to be had at the state, county and local levels as well. Register with your state’s procurement agency and look into all of the opportunities available near you, as well. There’s definitely more out there than fed contracts.

Marketing Is Not Necessary

This is a huge myth. Advertising and marketing is often the best way to attract new clients in the private sector, but it’s also crucial when bidding on government contracts. While you do have to follow all of the rules and regulations outlined in the RFPs, RFQs and RFIs, etc., and there is a set procedure to the bidding process, this doesn’t mean that you should not be marketing to potential government clients.

The first step is to create a top-notch capability statement, which is a unique type of resume specifically designed to be given to government agencies. We also recommend dedicating a page on your website just for government contracting. Keep in mind that marketing to government agencies is much different than marketing to companies in the private sector.

With the government, the goal is to procure goods and services to meet the needs of federal agencies and, in turn, the American people. Procurement agents also have to follow strict rules, so your marketing needs to indicate that you understand the goals and directives set forth by federal and state laws and that you can help agencies achieve their goals, which don’t include making a profit.

Get Started As A Federal Contractor

Whether you want to work as a federal contractor or for your state government, you will need to complete your System for Award Management (SAM) registration and be assigned a Commercial and Government Entity (CAGE) code.

SAM is the central database that includes information about all government contractors and if you wish to do business with the federal government, either as a contractor or subcontractor, SAM registration is required.

Federal procurement agents as well as state procurement agents will ask for your CAGE code as part of the contract bidding process so that they can view your SAM listing and ensure that you have an active SAM account. If your account is inactive, the government cannot work with you.

If you are nearing the expiration date (it expires every year), some agents also will put your company at the bottom of the pile, so to speak, because if it expires during the contract, the government is unable to continue doing business with you and can be left in a lurch.

While the United States government does not charge a fee for SAM registration or SAM renewal, the process can be extremely difficult and time-consuming. Many people simply opt to hire a SAM registration service to complete the process. We are hired by small, mid-size and even Fortune 500 companies every year to complete SAM registration. It’s similar to hiring an accountant rather than trying to complete your taxes on your own.

If you want to get started bidding on federal contractor jobs, the team at Federal Contractor Registry can help. We also can help you sign up with the Small Business Administration and complete SAM-related tasks such as applying for the new Unique Entity Identifier (UEI) and completing the SAM notarized letter requirement. To get started, just click on the green New Registration tab on our home and fill out our quick contact form.

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