Don’t Let This Be Your House
This house is the house of many who are struggling with their small businesses right now. I have sent my workers to take it away and replace it with a win-win house of prosperity.
This house is owned by someone who does subcontracts with the Government. This is a win-win house of prosperity.
It may seem like a whole lot of extra trouble to do subcontracts with the Government but remember: The process for doing well with your subcontracts is easily taught. The government always pays its bills!
There is a big demand for GOOD subcontractors who know what they are doing.
You need to do a good job and build a significant past performance. The key is to manage your contracts like projects and to learn the metrics and analyses that keep things easily monitored and controlled.
And when you are at the end of the subcontract, you need to close it out. This means that it is done and you are not billing incorrectly on your final payment.
So, you need to stay in compliance with the regulations regarding subcontracts in the Federal Acquisition Regulations (FAR). This is accomplished by understanding the FAR and looking up the clauses that are given in the subcontract.
Subcontracting opportunities are listed on various databases. These databases exist in an effort to keep a supply of small businesses available for the Government and to be assured that small business will get 30% of the Government contracts awarded. This is a regulation!
Past performance can be documented through a method called The Subcontract Project. Anyone with project management experience can easily follow this methodology. Bid on opportunities and network with other small businesses. Involve yourself with forming teams of competent vendors that join together and create an effective work plan. When you win, you will need to manage your subcontract from the very start.
With templates and good old fashioned hands on experience, you can become a certified subcontractor and this will make the Prime look twice at you in its hunt for small businesses to subcontract. After all, you have been trained and have demonstrated your knowledge of the things that matter the most to your Prime contractor.
Subcontracts are also negotiated regarding terms of payment. You can, as a subcontractor, negotiate for net 30 or even payment bimonthly based on the fact that you are a small business.
The Statement of Work is given to establish the explicit expectations of the work you will do. Follow it and your other terms and conditions. Then document your success! The most important part of the proposal, aside from the actual financial bid, is proof that you have done well in the past and will continue to do well with the new assignments from the Prime contractor.
In order to prosper more in this economy, put yourself where the money is. Understand that it is mandatory that you, as a small business, are sought to do work that the Government has to offer.
How long does it take to make the transition into Government subcontracting? Simple! It could be one day or months, depending upon your level of understanding of the process and the project of a subcontract.
You must be registered as being approved to do work for the Government by being registered on www.sam.gov . There are codes and other formalities but you can be guided through the steps move through it quickly. Once you are in www.sam.gov , you are visible to all Primes looking for someone who does your work.
Subcontracting is said not to be as lucrative as being a Prime and contracting directly with the Government. In my opinion and with my experience, although your profit may be lower- in the long run, you will do well to become a popular subcontractor and reap the rewards of your past performance and naturally progress into the position of bidding directly to the Government.
Consistently working and consistently getting paid is a more lucrative choice. There are no collection agencies necessary in your life when working for the Government. There is no advantage to withhold money from you in this industry as you are always working under strict regulations. So, you won’t be calling on collection agencies with Federal Government subcontracts.
Reach out to me if you are interested in The Subcontract Project class. Sign into my website at www.thecontractnavigator.com . Dates and times will be sent to you.
Contract Connections Administration Services, LLC
Cheryl Ann De Pace, Director of Operations