Doing Business with Large Prime Contractors

1. 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)

2. 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."

3. 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.

4. 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-disabledVOSB • * must be certified by SBA, others are self-certification • Subcontracting plans do not have 8a goals

5. 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.

6. 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.

7. When can I be selected as a subcontractor? • 1. Prior to subcontracting plan being developed • Continuous marketing • Developing leads and contacts • Get pre-qualified if required • Identification of upcoming procurements – interested bidders lists, pre-solicitation meetings • 2. While a subcontracting plan is being developed • 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 3. 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

8. 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

9. 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

13. 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.

18. 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.

23. 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

30. 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”

32. 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!

33. 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

34. 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/