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September 22, 2004

Why Be a Subcontractor?

I once had a client tell me that he didn't want to participate in bids as a subcontractor. He was only interested in being the prime contractor -- the top dog, so to speak. I thought this was rather odd, since his company was a small business that actually didn't have much business. By not wanting to be a subcontractor, he was missing out on opportunities that could help his business grow.

Serving as a subcontractor is not only for new or small businesses and organizations. Lots and lots of large businesses -- major companies whose names we all know -- participate in subcontractors in government contracts. There's nothing demeaning about it. There are many good reasons why subcontracting can be good for you. For example:

  • Subcontracting can provide your business or organization with the opportunity to break into government work by piggybacking on the experience and qualifications of an established contractor.

  • Serving as a subcontractor may get you a piece of the pie of a grant or contract that's important to you. So what if it's not the main piece -- you're still a player.

  • Your company or organization may specialize in an area that doesn't fit into the specific categories of expertise sought by the government. But that specialty area may be a subset of a larger business category.

  • A project may be so large or diverse that no one contractor can handle it by themselves -- they may thus need a subcontractor(s) to provide skills and expertise that they don't possess.

  • Subcontracting can enable your business or organization to gain additional valuable experience and qualifications that you can leverage to get even more business down the road -- both as a sub and a prime.


    • So be on the lookout for subcontracting opportunities. If you are aware of a contract or grant in the making, contact companies or organizations that you think might be bidding. If they are planning to bid or thinking about bidding, tell them straight out that you would like to participate as a sub, and make a case for what you can contribute, and why and how you can help them win.

    Posted by Deborah at September 22, 2004 07:47 PM





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