What Is a Subcontractor in Government Contracting?
A subcontractor is a business hired by a prime contractor to do part of a government contract. Your customer is the prime, not the agency.
Subcontractor in plain English
Subcontracting is a common way to build federal past performance without winning a contract on your own.
Primes find subcontractors through SBA's SubNet, agency outreach events and their own supplier portals. Many ask subs to register in SAM.gov so they can confirm size and certifications.
On set-asides, the prime must follow the limitations on subcontracting, which caps how much of the work it can pass to subcontractors that aren't similarly situated.
Related terms
- Prime contractor: A prime contractor is the business that holds a contract directly with the government. It's responsible for all the work, including any it subcontracts.
- Subcontracting plan: A subcontracting plan is a large prime contractor's written commitment to goals for using small businesses as subcontractors on a federal contract.
- Limitations on subcontracting: The limitations on subcontracting rule caps how much of a set-aside contract a small business can pay other firms to perform. On services, the cap is 50%.
- Past performance: Past performance is your record on previous contracts. Agencies use it to judge how likely you are to do a new job well.
Put it to work
Looking for another term? Browse the full glossary or the government contracting glossary guide.