Reference · Contracting basics & process
Prime contractor
Prime contractor (vs subcontractor)
A prime contractor is the company that holds the contract directly with the government and is responsible for delivering the whole requirement. It may perform some work itself and subcontract the rest to specialty subcontractors below it.
What it is
The prime is the government's counterparty — accountable for performance and payment. Subcontractors have a contract with the prime, not the government, and the prime manages and flows down applicable requirements to them.
Why it exists
It gives the government a single accountable party for a large or multi-discipline effort, while letting specialists participate as subs.
Who it applies to
Both roles matter to a specialty firm: it may sub to a prime on one project and prime a smaller job on another. Knowing who the likely prime is tells a specialist who to build a relationship with.
Frequently asked
What is the difference between a prime contractor and a subcontractor?
A prime contractor holds the contract directly with the government and is accountable for the whole requirement; a subcontractor has a contract with the prime, not the government, and performs a portion of the work. The prime manages its subs and flows down applicable contract requirements to them.
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