UKWhat is the difference between a prime contractor and a subcontractor?
The prime holds the contract with the government and is legally responsible for delivery. Subcontractors work for the prime, not the government. Subbing is the fastest way for new firms to build federal past performance without winning their own award first.
The prime contractor signs the contract, carries compliance responsibility, and invoices the government. Subcontractors deliver parts of the scope under an agreement with the prime — the government has no direct contractual relationship with them.
Large primes carry small business subcontracting goals, which makes certified small firms genuinely valuable teammates. Many successful contractors deliberately start as subs to build past performance, then graduate to priming set-aside work.
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