Subcontractor
Also called: sub, subcontract, first-tier sub, lower-tier subcontractor, subbing to a prime
A subcontractor is a firm that performs part of a government contract under an agreement with the prime contractor (or with a higher-tier sub) rather than with the government itself.
FAR 44.101 defines subcontract and subcontractor broadly: any purchase order or agreement under a prime contract for supplies or services counts. The subcontract is a commercial contract, so the prime's terms, payment schedule and dispute process govern, with federal clauses flowed down where the FAR requires it (cybersecurity, labor standards, Buy American, among others). The government pays the prime, and FAR 52.232-40 and the Prompt Payment Act push primes to pay small subs promptly, but enforcement is the sub's own job.
What to check: the flow-down clauses and whether you can meet them, the payment terms (pay-when-paid clauses are common and legal in most states), the scope in the subcontract against the prime contract's statement of work, the bond or insurance the prime wants, and your right to a copy of the payment bond on a Miller Act job. Ask for a teaming agreement before the bid and a subcontract immediately after award.
What it is not: a lesser status. Most firms' first federal revenue and first past performance come as a sub.
See also: Prime contractor, Teaming agreement, Miller Act, Limitations on subcontracting
Questions that use this term
Search allI'm trying to bid on a county RFQ for HVAC filter replacement at a few local public buildings. The due date is in twelve days. I've got my SAM.gov...
A subcontractor in government contracting is a firm that performs work for a prime contractor, which holds the direct contract with the government....
Hey everyone, we're a small landscaping company with nine employees, and we've been trying to get into government work this year. Our main target is...
Luis, while Priya is correct that there isn't a central federal portal for post-award subcontracting opportunities, you can also look for...
Nadia is right about identifying mandatory flow-down clauses, and you need to look at the FAR for federal contracts; state and local contracts will...
SAM.gov registration typically takes about 10 business days to become active after all required documentation is submitted, but it can take longer...
My firm, an SDVOSB, recently won a federal set-aside for court reporting services, NAICS 561492. We have the court reporters, but this particular...
My company, a landscaping firm, has only ever done fixed-price contracts for city parks and school grounds. We just got a call from a prime...