Written by JULIANNE GEIGER
Monday, February 21, 2011
GUAM - As the federal government awards more and more prime contracts to support the military expansion in Guam, local businesses have an increasing opportunity to benefit from the buildup, even if they are not a current federal government contractor. In the multi-part series entitled Federal Government Contracting 101, GuamBuildupNews.com will walk businesses through the federal contracting process.
In this fourth article of the series, GBN offers readers a guide to partnering with prime contractors to benefit from the multiple contracts awarded during the military buildup in Guam.
Volume 4: Buildup Prospects without a Federal Contract
Having a contract with the federal government isn't the only way to share in the wealth during the Guam buildup. Many businesses that have successfully secured a federal contract will now be looking to maximize their profit and efficiency during the buildup—an objective that can be met farming out certain aspects of the work to local businesses.
Subcontracting allows businesses who are not federal contractors to share in the wealth without the full responsibility of being a prime contractor. Although prime contractors reap significant benefits, they also are responsible for a great deal of work. Prime contractors must submit a winning proposal, obtain the award, provide periodic progress reports, control costs to meet the budget, follow an agreed-upon timeline, generate government invoices, and manage subcontractor risk.
Subcontractors, on the other hand, usually come into the process after the prime contractor has completed several of the major steps. The proposal to the prime contractor is often less involved, and overall project management is significantly less burdensome.
Large federal contractors can provide local small businesses with significant business opportunities. Prime contractors on Guam such as Black Construction, DZSP 21, dck Pacific Guam, and Watts Constructors are likely to seek out subcontractors to fulfill awarded projects pertaining to the buildup.
Finding subcontracting opportunities or partners during the building can be as easy as visiting the U.S. Small Business Administration Subcontracting Network, which lists potential opportunities for subcontracting or usaspending.gov, which lists the top federal contractors—a major source for small business subcontracts.
The Guam Procurement Technical Assistance Center (PTAC) also offers federal contracting information and assistance to local businesses. The PTAC is hosting a no-fee workshop on government subcontracting at the UOG School of Business on February 22nd. The workshop will focus on the basics of subcontracting including advantages and disadvantages, how to identify local subcontracting opportunities, strategies for marketing to prime contractors, and tips for submitting winning subcontracting bids. Additional subcontracting assistance can be found on PTAC's Web site or by calling (671) 735-2552.
GuamBuildupNews.com will continue to demystify government contracting in GBN's series Federal Government Contracting 101.
Image used in this article courtesy Luigi Diamanti / FreeDigitalPhotos.net
- 28/02/2011 14:41 - Federal Contracting 101: Doing Business on Guam with the Department of Defense
- 25/02/2011 09:25 - Federal Contracting 101: Joint Ventures in Military Buildup Reach Out to Small Business on Guam
- 23/02/2011 15:08 - Federal Contracting 101: Military Contracts Require Guam Businesses to Know the Federal Rulebook (FAR)
- 22/02/2011 14:32 - Federal Contracting 101: More Guam Businesses May Qualify for Service-Disabled Veteran-Owned Designation
- 21/02/2011 17:55 - Federal Contracting 101: New Women-Owned Set Asides In Time for U.S. Military Expansion on Guam
- 18/02/2011 13:18 - Federal Government Contracting 101: HUBZone Program Gives Advantage to Guam Businesses in Military Buildup
- 17/02/2011 12:35 - Federal Government Contracting 101: Understanding 8(a) Set Asides for Guam Small Business
- 16/02/2011 10:47 - Federal Government Contracting Opportunities on Guam: Not Just for the Big Guys