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, 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, 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. will continue to demystify government contracting in GBN’s series Federal Government Contracting 101.


Image used in this article courtesy Luigi Diamanti /