Contractors vs. Subcontractors in GovCon

Contractors vs. Subcontractors in GovCon

What’s the difference between a contractor and a subcontractor in GovCon?

 

Let’s break it down!

Contractor:

A company or individual that directly contracts with a government agency to provide goods or services.

Key Points:

  • Directly involved with the government.
  • Holds primary responsibility for contract performance.
  • Often responsible for managing subcontractors.

Subcontractor:

A company or individual that contracts with a prime contractor to provide specific goods or services needed to fulfill the primary contract.

Key Points:

  • Works under the direction of the prime contractor.
  • Has a more specialized role within the project.
  • Often responsible for fulfilling specific tasks or deliverables.

Visualizing the Relationship:

A company or individual that contracts with a contractor to provide specific goods or services needed to fulfill the primary contract.

Key Points:

  • Government Agency: The entity that awards the contract.
  • Prime Contractor: The primary party responsible for the contract.
  • Subcontractor: Provides specific goods or services to the prime contractor.

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