What is Sub-Contracting?
GovParts is considered a Prime Contractor. We work directly with the government and are responsible for ensuring the work is completed as defined in the contract. It is the prime contractors responsibility to control quality and compliance with its sub-contractors.
Unlike prime contractors, subcontractors do not work directly with the government, but instead work for other contractors. Subcontracting creates more opportunities for small businesses to get involved with federal contracting.
There are several different situations in which sub-contracting is the best option for a company, but we have identified the top 4 we see in the companies we work with.
The number one reason we see small businesses moving to sub-contracting is the paperwork and compliance regulations. Paperwork for contracts can be daunting to say the least. From an outsiders perspective, it can be perceived as not worth the hassle for getting into contracting. There can be hundreds of documents that are filed and maintained for even the smallest of contracts. In turn with paperwork comes compliance. Ever changing regulations and procedures are tough to keep up with and even implement for a small business.
When you are sub-contracting for GovParts, we only pass down the required paperwork and compliance pertaining to your small portion of the contract. The abundance of the regulations and paperwork lie solely with us, leaving you as a company to focus on the work being performed.
When working with Made to Print (MTP) items, all criteria for the manufacturing of said parts is laid out in Military Standards, Aerospace Standards and detailed drawings. While this makes design and engineering much easier for the government, it can be extremely time consuming for a manufacturer to determine correct procedures and compliance to procedures, if they are new to the industry.
We have extensive experience in the technical requirements of MTP items and offer that assistance to our sub-contractors, so that you can be clear on whats expected and acceptable in manufacturing.
Time and Personnel, is a common reason why most small business do not enter into the federal market. Along with the paperwork, compliance and technical requirements, a prime contractor also must seek open solicitations for bid, quote, write proposals. And that is all pre-award. If your doing well in this process, you might expect to win 20-30 percent of the contracts quoted. This can quickly devour man hours and personnel that most small businesses cant afford.
At GovParts, we build a company profile and enter it into our proprietary system that matches your capabilities to open solicitations for bid. We also refine those matches even more by examining the prints and requirements to make sure what we send you for quote is tuned to your companies capabilities. These findings, along with target pricing, are what you will be sent for quote. Our vendors experience a hit rate on quoting of over 50 percent using our method, saving valuable quoting time.
One of the toughest areas of government contracting can be the packaging and labeling specifications. Equally as important as manufacturing the parts correctly is the packaging of the parts. There are strict standards on labels and packages. Incorrect labels and packaging is the #1 reason for returned item, stalled payment, and low quality scores. Along with conforming packaging, a company must become familiar with Military Shipping Labels, Radio Frequency Identification Labels, and Unique Item Identification Labels.
GovParts either handles all packaging and labeling in our facility prior to shipment of provides all necessary packaging and labels to our vendors. We control all necessary specifications for each contract and provide all shipping requirements on behalf of the contracts.