XL EaglePrime vs Sub (Prime Contractor vs Subcontractor)
Prime vs Sub stands for Prime Contractor vs Subcontractor. The prime contractor signs the contract with the government and is fully responsible for the results. A subcontractor signs with the prime and performs part of the work.
The prime handles bidding, government communication, invoicing and compliance. The sub focuses on doing its part well and gets paid by the prime.
Why it matters to a small contractor
Being a sub lets you build federal experience with less paperwork and risk. Many small trades sub for years, then use that past performance to prime their own bids.
Example
A janitorial company subs to a prime on a $400,000 federal cleaning contract. After three years of strong performance, it primes a $150,000 set-aside contract on its own.
Prime vs Sub: common questions
Who is responsible if the sub does poor work?
The prime is responsible to the government. The prime can then hold the sub to its subcontract.
Does subcontract work count as past performance?
Often yes. Many solicitations accept relevant subcontract experience.
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