One of the most unknown and underutilized government marketing strategies is registering as a subcontractor with major prime contractors, the “General Dynamics of the world”. Federal Contracts won by Large Federal Primes with a value over $750,000 require a subcontracting plan, meaning a percentage of the business must go to small business subcontractors. As a result, Large Federal Prime Contractors spend over $80 billion per year with small businesses.  

Small Business Prime Market Size

Most Small Businesses are chasing down the $120 billion per year in federal prime contracts. However, most small businesses are overlooking the other massive bucket which is subcontracting.

Federal Contracting Goals for WOSB Holders 

Primary Contract – 5% of all Federal Procurement will go to WOSB firms in this capacity.

Subcontracting – 5% of all Large Prime Contract dollars will be subcontracted to WOSB firms.

Meeting Primary Goal 2020

The SBA in recent years has done a good job of meeting the Primary Contract Goal with $27.2B in Federal Prime Contract dollars spent with WOSB firms, which is 4.85% narrowly missing the 5.00% goal by .15%.

Under Subcontracting Goal 2020

The SBA has been having less difficulty in meeting the subcontracting goal of 5.0%, which is coming in at 5.62% or $23.3B exceeding the target by .62%.

Here are some links to Large Federal Prime Contractors that industry experts such as Fedvital have had success adding firms to the subcontractor directory.