From FedMarket.com
Don't Get Stuck as a Subcontractor
By Richard White
Nov 5, 2007,
13:23
Small businesses need to get their first federal contract to become part of the club of insiders - those companies with contracts - that the federal government favors when it buys products and services. Vendors who don't have approved federal price lists usually have to start out as a subcontractor to an existing federal contractor, commonly called a "prime contractor," in order to close a sale. Contracting officers can elect to have a prime contractor execute a subcontract with your business as a way to close a deal under the rules. Convoluted as it may sound, many federal sales are closed using commercial subcontracts.
For example, let's assume your company hopes to sell a product or service to an end user at a particular federal agency. The agency may decide that the best way to close your sale is through a subcontract with a trusted prime contractor (as opposed to going through a lengthy and expensive public bid process). The prime contractor may already have a contract with the agency or have an approved price list that can be used to close the sale. The use of the "sub to a prime" approach to making a purchase is quick and painless for federal buyers. They are usually more than willing to pay the overhead that a prime contractor tacks on to subcontract costs.
Subcontracting is a valid way to close a sale but it has drawbacks. The primary drawback is that acting as a subcontractor to a prime contractor doesn't give your business its first step toward achieving insider status. When acting as a subcontractor, your company does not have a contract with the federal government. Instead your business has a commercial contract with the prime contractor. The prime contractor controls your company's prices, your sales growth, and your destiny with the federal customer. A savvy prime contractor also insulates the federal customer from its subcontractors so the subcontractors never really achieve insider status. Small businesses need a GSA Schedule contract to get out from underneath a prime contractor so they can contract directly with the federal government. Companies holding a Schedule contract have a far better chance of selling directly to the federal government than those which don't
Fedmarket.com's GSA Proposal Preparation eLab has helped hundreds of companies obtain GSA approval.
Seminars Teach You about GSA Schedules
Our Workshop Results in a Ready to Submit GSA Proposal
Are you ready to gain access to the government marketplace?
Without a GSA Schedule your company is at a disadvantage to sell to the government. Why? Buyers prefer to purchase through GSA. The GSA schedule purchase system is a quick, efficient buying mechanism. Buyers can stay out of trouble, reduce their workload, and make federal end users happy. Vendors who have done business with the government in the past are being urged by buyers to become GSA Schedule holders if they want to continue to sell to the government.
Where do you start?
To become a GSA Schedule contractor, a vendor must first submit an offer in response to the applicable GSA Schedule solicitation. The GSA proposal document you must submit for approval is a lengthy and complicated document; you can see for yourself by visiting the GSA.gov site and downloading the schedule that fits your business.
Do you need past experience in contracting to complete the proposal offering?
No, upon completion of your GSA eLab workshop registration, Fedmarket.com will send each registrant explicit, detailed guidelines outlining the corporate data each registrant should gather in advance and bring to the GSA eLab sessions. Our instructors will contact each attendee to discuss the schedule and RFI prior to the eLab. When you arrive at the eLab our instructors will walk attendees through the offer preparation process.
The Result of the Event: A completed GSA schedule offer in an electronic format.
Sign-up for our GSA Proposal Preparation eLab today!
Register Online - Click Here
Selling Small/Winning BIG!
Time: 9:00 a.m. - 4:30 p.m.
Cost: $500
Date: Thursday, November 15, 2007
Location: The Federal Sales Academy, Bethesda, Maryland
Sick of being the sub? Tired of being held at arms length from the federal customer? Are you ready to start closing business as the prime? This class packs a punch with insight on sales techniques and streamlining the proposal process!
If you fit these preferences - - Small Business, 8(a) Disadvantaged Business, Woman-Owned Business, Veteran-Owned Business, Disabled Veteran-Owned Business, HUBZone Business - - this class is for YOU! !
Learn from the proven Winners at the Federal Sales Academy! Our founder has sold over $250 Million to the Government ($100M in the past 2 years under a small business set aside!)
If we can do it -- so can you!
Now It's About Prime Time You Sign Up and Start Winning!
Register Online - Click Here
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