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Fifty government contractors maintain roughly 50% of all prime contracting dollars.  This means that small businesses have a great opportunity to thrive in the Federal subcontracting arena.  On contracts more than $650,000 large contractors and subcontractors submit subcontracting plans containing specific percentage goals for small businesses, HUBZone small businesses, small disadvantaged businesses, and women-owned small businesses.  

Teaming or subcontracting with a prime contractor can be a profitable experience as well as a growth opportunity for your business. If, after assessing the capabilities and capacity of your business, you conclude that you are not ready to bid competitively for prime contracts, consider the opportunities available through subcontracting. The experience gained from performing as a subcontractor can assist you in responding to solicitations as a prime contractor. Subcontracting, however, should not be viewed only as an opportunity for less-experienced business, but also as a vehicle to enhance your qualifications to become more competitive to perform as a prime contractor.

In government contracts, "teaming arrangement" refers to means by which companies agree to work together to obtain and perform a contract. There are two methods of teaming arrangements.  One somewhat less used method is where the teaming entities form a new legal entity in which each team member has some ownership interest. The new entity may be a partnership or joint venture. Another method is where one teaming partner agrees to submit the offer to be a prime contractor but pre-selects the other teaming partner(s) as proposed subcontractor(s). Thus, a "teaming partner" or "team member" has two possible roles in the contract - either it is a part owner of the entity that proposes to enter into a contract or it is a proposed subcontractor.

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