WOSB and Subcontracting for Large Federal Primes

One of the most unknown and underutilized government marketing strategies is registering as a subcontractor with major prime contractors. Federal Contracts won by Large Federal Primes with a value over $700,000 require a subcontracting plan. 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 this other massive bucket that makes up 40% of contracts.

Federal Contracting Goals for WOSB Holders

Primary Contract – 5% of all Federal Procurement will go to WOSBs firms in this capacity. Subcontracting – 5% of all Large Prime Contract dollars will be subcontracted to WOSB firms.

Meeting Primary Goal

The SBA in recent years has done a good job of meeting the Primary Contract Goal with $22.9B in Federal Prime Contract dollars spent with SDVOSB firms which is 4.75% narrowly missing the 5.00% goal by .25%.

Under Subcontracting Goal

The SBA has been having less difficulty in meeting the subcontracting goal of 5.0% which is coming in at 5.5% exceeding the target by .5%.
Therefore WOSB firms should, at the least, do the minimum amount to avail themselves to large firms (registering with them) that are failing to meet their WOSB requirements. There are firms such as fedvital.com that assist with hundreds of Subcontractor Registrations.
Here are some links to Large Federal Prime Contractor’s that we have had success with adding firms to their subcontractor directory.