Background

Pursuant to Public Law 95-507, and subsequent legislative requirements, large prime contractors 

receiving Federal contract awards valued over $700,000 ($1.5 million for construction) are 

required to establish plans and goals for subcontracting with small businesses, veteran-owned 

small businesses, service disabled veteran-owned small businesses, HUBZone small businesses, 

small disadvantaged businesses and women-owned small business concerns. More information 

on the government's subcontracting program can be found under the Federal Acquisition 

Regulations Subpart 19.7. Quite often, smaller companies fill niches that complement a prime 

contractor’s services. Subcontracting can present small businesses with opportunities that might 

otherwise be unattainable because of limited resources, staffing, capital, or experience. 

Subcontracting Strategies 

More than 50% of SEC subcontracting opportunities historically have been awarded to small 

businesses. The following strategies are provided in order to assist Small Businesses in 

identifying and understanding potential subcontracting opportunities: 

• Review the SEC Enterprise Vehicle Directory posted on this website: Many of these 

contracts have subcontracting opportunities. Small Businesses are encouraged to pursue 

subcontracting opportunities directly with the Prime Contractors, both large and small. 

• Research information on prime contractors and subcontracting opportunities through a 

variety of internet sources, such as:

 The Small Business Administration (SBA) Subcontracting Network: The Small Business 

Administration (SBA) hosts the Subcontracting Network website, Sub-Net, where prime 

contractors may post subcontracting opportunities. These opportunities are often reserved 

for small business and may include solicitations or other announcements, including 

sources sought notices for teaming as partners or subcontractors on future contracts. SubNet allows small business to search for opportunities by SIC code, NAICS code, generic 

description, or solicitation number.

 The SBA's Subcontracting Opportunities Directory: SBA also has a Subcontracting 

Opportunities Directory that lists, by state, prime contractors with a subcontracting plan.

 The System for Award Management: The System for Award Management (SAM) is the 

primary vendor database for the U.S. Federal Government. The SAM collects, validates, 

stores and disseminates data in support of agency acquisition missions. All vendors are 

encouraged to register in SAM. 
• Network: Develop a network of potential firms that you can call on to work together on SEC 

and other federal opportunities. Meet and speak with other primes and subcontractors to learn 

from their experiences and evaluate potential teaming opportunities. Seek out prime 

contractors that may have a need for your small business’s expertise, or who have prior 

experience working with the SEC. 

• Be proactive: Get involved in the early stages of procurement and be prepared for projects 

that are within your area of expertise. Once a procurement possibility has been identified, 

seek out any potential for subcontracting opportunities. Try to determine who the potential 

bidders are and contact firms to determine their intention to bid. Try to have your small 

business included in the subcontracting plan when a proposal is submitted. To increase your 

chances of obtaining subcontracting opportunities, a subcontracting arrangement can be 

established with more than one potential bidder for the same requirement.

• Be Strategic: Before committing to a subcontracting opportunity, carefully evaluate how it 

would benefit your small business. Assess your capabilities, and those of the prime, and then 

consider the pros and cons of entering into a legally binding arrangement. 

• Know the qualities of a desirable subcontractor: Often, a prime contractor expects to partner 

with a small business that will suggest and execute effective solutions, and clearly indicates

how it can contribute to the project's overall success.

• Research the prime contractor before soliciting it for a partnership: Research the company’s 

profile and mission in order to become familiar with its corporate capabilities and vision. A 

successful subcontracting opportunity is advantageous for both the small business and the 

prime.

• Seek partnering opportunities with other small and socio-economically disadvantaged 

organizations: Quite often, complex contract requirements can be met by consolidating the 

overall capabilities of two or more small businesses.