Glossary term
Subcontractor
A firm performing part of a contract under agreement with the prime rather than with the government.
A subcontractor has no privity of contract with the government — its relationship is with the prime. Subcontracting is the most realistic entry path into federal work for a firm without past performance, and subcontract experience can be cited as past performance in later proposals. Get the scope and payment terms in writing before performance starts.
Categories
- business
Related terms
- Prime ContractorThe contractor holding the contract directly with the government and accountable for all performance under it.
- Teaming AgreementAn agreement between firms to pursue an opportunity together, typically as prime and subcontractor.
- Small Business Subcontracting PlanA plan large-business primes must submit committing to small-business subcontracting goals on large contracts.