Subcontracting is one of the best ways to enter government contracting. Large federal contracts over $750,000 require prime contractors to submit small business subcontracting plans with goals for small business, 8(a), WOSB, SDVOSB, and HUBZone subcontracting. This creates opportunities for small businesses to gain experience and past performance without winning prime contracts. The SBA SubNet database lists subcontracting opportunities.
A large defense contractor wins a $50M IT modernization contract. Their subcontracting plan allocates 35% to small businesses. They hire a small cybersecurity firm as a subcontractor to handle the security assessment portion for $3M.
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