Glossary / Business
Prime contractorPrime
The prime contractor is the party that signs the contract with the government. It is accountable for performance, compliance, invoicing and reporting, whether it does the work itself or through subcontractors. Primes above certain thresholds must submit small-business subcontracting plans and report against them, and they flow down the contract's clauses to their subcontractors. Being a prime is what counts as past performance in most evaluations, which is why firms work toward their first prime award even when subcontracting pays sooner.
Why it matters to your pipeline
Prime work is where the margin, the relationship with the buyer and the past-performance credit sit. It is also where the compliance burden sits. A first-time seller usually reaches prime status through small set-aside buys or simplified acquisitions, after a subcontract or two has taught it the buyer. GovSmith's vCM plans that sequence with the client.
When this term shows up in an opening GovSmith finds for you, your vCM explains what it means for that pursuit and does whatever it calls for. You decide; we do the work.
Example
After two years as a subcontractor on a Navy base-operations contract, an electrical firm wins a $1.4M set-aside as the prime for a lighting retrofit at the same installation. Its subcontract work was the past performance that qualified it.
Find out what applies to you
Some terms will matter to your business right away and some won’t for years. A vCM can tell you which are which.