If you are just getting established or if you just don't want to be a prime, you can still build a $10 million revenue stream by repeatedly subcontracting on existing federal contracts.
Subcontracting on a contract that is already awarded and managed by a prime contractor is a faster and easier path to federal revenue.
Subcontracting by the Numbers
As the image shows, your company can subcontract under another small business, or you can subcontract for a large prime contractor.
Either way, the other company has the federal contract – you are just on their team.
Subcontracting is right for you, if:
you want to develop experience and build performance history
you don't want the bureaucratic responsibilities required to manage a government contract
Prime contractors with awarded contracts frequently need specialized subcontractors and add FTEs to a project as often, and as long as necessary, to fulfil the government's needs and meet their deadlines.
REVENUE BY THE NUMBERS:
FOCUS on only one federal agency, one core competency
IDENTIFY 10 potential teaming partners to build strategic relationships with
GOAL: To secure 4 subcontracting opportunities per year per teaming partner (total = 40 opportunities)
Example for tech services company (double annual rate = annual rate)
Average rate of $100 hours FTE = $200,000 annual
5 FTE = $1M; 50 FTE = $10M
Spread across 5 years = $2M per year
Faster if your firm is larger
Opportunity: 8a STARS III contract and subcontracting partners ($50B contract vehicle with 1000 participating companies) The 8(a) STARS III GWAC is a small business set-aside contract that provides flexible access to customized IT solutions from a large, diverse pool of 8(a) industry partners. Learn more here8(a) STARS III Contract Overview
ROADMAP for SMALL BUSINESS SUBCONTRACTING
To succeed in subcontracting, you must hyper-focus on your strongest core competency and be able to communicate this expertise clearly.
Determine your business maturity level
Determine your core competency
Primary Agency: Choose only one agency to target
Primary Location: Determine where you want to grow geographically
Contract Vehicles: Determine which vehicles align to your target agency and core competency
Capability Statement: Create a fresh statement highlighting your contribution to a partner’s team
Call Plan Template: Follow a structured plan to standardize your call objectives and questions
SB POCs: Research ideal small business partners
Large POCs:Research ideal large business partners
Industry Day: Attend industry days at target agency to learn and network
Intro Calls: Schedule intro calls to begin new relationships
Regular Meetings: Schedule recurring meetings every 2-3 weeks as appropriate
General NDA: Once you start conversations with another firm, ask for a signed NDA
Supplier Portals: Register in large prime and agency internal vendor databases
Identify Ops: Bring opportunities to discuss with teaming partners
Open Reqs: Research open positions with teaming partners to see where you might fit on their current contracts
Contract Vehicles: Get on teaming partners contract vehicles
Reusable Content: Create reusable content for proposals
We are committed to helping small businessĀ owners build strategic relationships withĀ federal buyers and potential teaming partnersĀ that lead to federal contracting revenue.
8(a) certified small business owners
women-owned small businesses (#wosb)
veteran-owned (#vosb) and
service-disabled veteran-owned small businesses (#sdvosb)
GovCon Chamber
Neil McDonnell
President
Neil brings 20+ years experience as a small business federal contractor, personally winning and supporting numerous government contracts for the US Army, Navy and Air Force, HHS, VA, DOT, DOI, DOE, the Executive Office of the White House and numerous large prime contractors.