Quite often, prime companies have the need, but not the actual technical expertise, to do a job. If you are a top-notch engineer or technical person, you can do quite well as a subcontractor—and you get to create your own hours and vacation time!
To improve your chances of being chosen as a subcontractor to a prime for the government key areas to consider include being selective in your bidding, being flexible in dealing with prime contractors, and effectively selling yourself as the best choice.
You have reached the point where you've done all you can do to prepare to be a subcontractor to a prime government contractor by exploring the numerous opportunities through various sources and laying the groundwork, by doing your homework on prospective primes and the competition. You may have even considered making changes to your operations to better position your company to compete. All that's left is to sign a deal. Is there anything else you should do?
Final steps you can take to get that signature on the dotted line include bidding selectively and wisely, focusing on providing "best value," and putting your best foot forward.
No business—large or small—is going to win all of the contracts they try for. And subcontracting work is no different. Statistics show that, at best, you will win less than one-third of the contracts you bid on.
With that in mind, in order to seal the deal, our advice is to bid only when you are sure that you have a reasonable chance of success; in other words, only under the following conditions:
The philosophical criteria that prime contractors use for awarding subcontracts has changed. It used to be that if you were qualified and were low bidder, you would probably win the subcontract. These days, that is no longer true. The prevailing philosophy that governs a prime's decision as to which company will win is no longer "lowest price," but rather "best value."
How, then, is "best value" defined? That's a tough question with no clear-cut answer. Often best value is some combination of quality, price, and performance. It also could be said to be what makes the best business sense. For example, the fact that a prospective subcontractor never missed a delivery schedule could be more important to a prime than the fact that it is a bit higher on price. Even if its price isn't the lowest, when you throw it all together, it is.
Other issues could also factor in, depending on the prime's specific needs or special requirements. For example, a prime looking for creative ways of improving production efficiencies would favor the sub that does a good job and offers that creativity over a sub that just does a good job. To another prime with special training needs, one sub's training experience would probably give that sub an advantage over another that didn't have that experience or didn't offer that added feature.
Therefore, we can say two things, for sure, about best value: (1) it varies from prime to prime, depending on their individual needs and requirements, and (2) lowest price alone just doesn't do it any more.
Note that the procurement philosophy for the government has also changed to best value. That's why doing your homework to find out what your customer's needs are (be it the government or a prime) and focusing on those needs is so important.
Quite often, prime companies have the need, but not the actual technical expertise, to do a job. If you are a top-notch engineer or technical person, you can do quite well as a subcontractor—and you get to create your own hours and vacation time!
Tipping the scales in your favor. As much as primes are looking for quality products at reasonable prices, they are also looking for subcontractors that can help them hold up their end of the bargain with the government and make the contract go smoothly.
Is there anything that could tip the scales in your favor? You can greatly improve your chances of getting the job if you can show that you are willing and able to learn the prime's protocols, do the required conferencing and follow-ups, and familiarize yourself with any required contract details and forms.
As a sub, timing is crucial and communication is essential. Let the prime know that you are aware of this and are ready to satisfy their needs in these areas as well.
Lastly, all things being equal, most primes will choose the subcontractor that they think they can work with the easiest and the best.
Be what a prime looks for in a sub. Becoming a subcontractor takes hard work, persistence and a thick skin for rejection. Even when you do everything "right," you may still be passed over simply because you don't fit the profile of what the prime is looking for.
In deciding whether to use a sub, and which sub is right for the job, primes look at a variety of issues. Should they make or buy? Is it going to be less expensive for them to go out of plant to get the work done? Are there union issues? Is the technology such that they can only buy or use a sub? Does the potential subcontractor have the needed technical ability and qualifications to do the work? Are there socioeconomic considerations in making a decision, like using small, minority-, women-, service-disabled-, and/or veteran-owned, businesses?
Our advice, then, is to prepare yourself and your company to look and function its best so you are ready to take advantage of an opportunity when it comes along. If you are serious about turning the opportunity into a subcontract, be prepared to burn the midnight oil.
The following is a review of the actions that will help prepare you to select the primes that match your capabilities and make the best first impression on your potential customer. This list does not include every possible action, nor will every action on the list be appropriate for your situation. But you can use it as a guide as you move through the process. Good luck!