The Subcontractor’s Edge
How Small Businesses Can Thrive in
Government Contracting
Your Gateway to Government Contracts
You’ve learned about government contracting, how to get contract-ready, and when agencies are spending big. Now, let’s unlock another crucial pathway for businesses, especially here in the Greater Los Angeles area: subcontracting.
Just last week, nearly $50 million in federal grant funding was announced for noise and infrastructure projects at LAX, Van Nuys, and Hollywood-Burbank airports—a wave of work that will ultimately be awarded to primes and their subs.
For many small businesses, massive projects like these might feel out of reach. But here’s the secret:
Prime contractors rarely go it alone. They look for trusted subcontractors—specialists like you—to help deliver complex upgrades and meet local participation goals.
Subcontracting isn’t just a buzzword. It’s often the most direct entry point into government contracting work, especially in the Greater LA area, where multi-million-dollar projects are always on the horizon.
In this article, you will learn:
What a subcontractor is and how the chain of command works
Why prime contractors rely on subcontractors
The benefits and challenges of being a subcontractor
Key Factors for subcontractor success
How to position your business for opportunities like the upcoming airport upgrades
What Is a Subcontractor? Understanding the Chain of Command
A subcontractor is an individual or business hired to handle a specific part of a larger government contract awarded to a prime contractor (prime). Instead of working directly for the government, you’re hired by the prime to deliver specialized services or products.
Think of government contracting like a military chain of command, where roles and responsibilities flow from the top down..
Examples in the Greater Los Angeles Area:
Construction: A prime that’s building a new LA County facility hires a first-tier subcontractor for significant electrical work, who may then hire a second-tier specialist for low-voltage installations.
IT: A prime that’s developing a software app for a state agency subcontracts user experience design to a first-tier sub, who then hires a second-tier specialist for cybersecurity testing.
Professional Services: A consulting prime working for the City of LA subcontracts market research to a first-tier sub, who might engage a second-tier firm for survey design.
Aerospace/Defense: A prime contracted to manufacture aircraft components subcontracts precision machining to a first-tier partner, who uses a second-tier subcontractor for specialized coatings.
Subcontractors often work under primes, forming a clear chain of command in government projects.
Understanding your place within this structure is essential. It helps you know:
Who you’ll be reporting to
What rules apply to you
How to position your business for opportunities
Why Prime Contractors Partner with Subcontractors
Primes don’t do everything themselves. They rely on subcontractors for:
✅ Specialized Expertise: You bring niche skills that the prime doesn’t have in-house.
✅ Capacity and Workload: Large projects are often too much for a single firm to handle.
✅ Local Reach: Primes need partners who understand the local landscape and community.
✅ Risk Mitigation: Spreading work among partners reduces risk.
✅ Meeting Set-Aside Goals: This is a huge opportunity for small businesses like yours.
Many California contracts require primes to work with certified small businesses, such as:
Disadvantaged Business Enterprises (DBE)
Small Business Enterprises (SBE)
Disabled Veteran Business Enterprises (DVBE)
Local Small Business Enterprises (LSBE)
Primes actively look for qualified small businesses to help meet these requirements and stay competitive.
The Advantages of Subcontracting
Subcontracting can be a smart way for small businesses to enter the government marketplace. Some key advantages include:
Lower Barriers to Entry: You’re not dealing directly with all the agency’s complex requirements.
Less Risk: Primes handle the bigger contract obligations, allowing you to focus on your trade.
Steady Work: Once you’re known as a reliable sub, primes often call you for future projects.
Experience Without Overhead: Subcontracting helps you learn the government contracting world without investing in large compliance systems upfront.
Build Relationships: Working under primes introduces you to new contacts and potential future partners.
Subcontracting isn’t just a stepping stone—it’s a solid business model for many small businesses.
The Pros and Cons of Being a Subcontractor
While subcontracting can definitely help small businesses grow, it’s not all smooth sailing. Let’s take a look at some of the upsides—and the challenges—you’ll want to keep in mind:
Subcontracting offers real opportunities—but it’s important to weigh the trade-offs.
Navigating Subcontracting: Challenges and Strategies
If you’re considering subcontracting, keep these strategies in mind to navigate the challenges successfully. Here’s how to handle some of those challenges like a pro:
Negotiate clear payment terms. Avoid cash flow surprises.
Understand your obligations. Know what you’re signing.
Build strong communication. Stay connected with your prime.
Maintain cash reserves. Handle delayed payments confidently.
Keep certifications current. Appeal to primes seeking diverse partnerships.
Subcontracting isn’t perfect, but if you plan carefully, it can be a powerful way to grow your business.
Key Considerations for Success as a Subcontractor
Flow-Down Clauses
Much of the prime’s contract flows down to you. Even if you didn’t negotiate those terms directly, you’re still responsible for following them.
💡Pro Tip: Read and understand every clause in your subcontract.
Clear Scope of Work
Your subcontract should precisely spell out:
What you’re delivering
Deadlines
How you’ll be paid
This helps avoid disputes later.
Payment Terms
Push for written, clear invoicing and payment schedules. It’s critical for your cash flow.
Know Your Place in the Chain
Your contract may be:
Directly with the prime contractor (if you’re a first-tier subcontractor), or
With another subcontractor (if you’re a second-tier or lower sub).
Either way, you won’t be contracting directly with the government agency unless you’re the prime.
But remember, even though you’re not directly contracting with the government, the agency still oversees the entire project and can hold both primes and subcontractors accountable for compliance.
💡Pro Tip: Always read your subcontract carefully so you know:
Who your contract is with
What compliance rules apply
Whether “flow-down” clauses from the prime’s contract affect your responsibilities
Compliance and Certifications
Compliance means following all the laws, rules, and contract terms when working with the government, even if you're a subcontractor. This can include:
Reporting Requirements: Submitting progress or payment reports to your prime.
Labor Laws: Following wage laws like California’s prevailing wage requirements for public works projects.
Safety Regulations: Meeting Cal/OSHA standards—which are often stricter than federal OSHA—for worker safety.
Business Practices: Avoiding conflicts of interest, maintaining good records, and following ethical guidelines.
Even if you’re not the prime, these requirements often flow down into your subcontract. Not following them could put your business—and the prime—in hot water.
Certifications—official documents that prove your business qualifies for specific programs or set-asides—help you stand out as a subcontracting partner, particularly when primes are looking to meet specific goals, such as DBE, SBE, DVBE, or LSBE participation.
These certifications can give you a competitive edge when primes look for partners to meet subcontracting goals.
Note on Certifications:
Many small businesses believe that getting certified—like DBE, SBE, DVBE, or LSBE—is the key to winning government contracts. While they can help you stand out, certifications are not a magic ticket.
The real question isn’t just whether you should get certified, but which certifications are truly relevant for the types of contracts you want to pursue. Different agencies value different certifications, and I’ve seen businesses spend significant time and money chasing certifications that ultimately didn’t help them secure work.
While working as an SBDC advisor, I helped many businesses untangle these decisions, figuring out which certifications matched the agencies and contracts they were targeting.
To help you navigate this complex landscape and stop chasing the wrong certs, I've created The Subcontractor's Certifications Guide. This quick, free resource will help you understand what truly matters, so you can choose wisely and unlock California contracts.
Insurance and Bonding
Government contracts often require subcontractors to carry specialized insurance or bonding, such as:
General Liability insurance
Workers’ Compensation
Professional Liability or Errors & Omissions
Performance Bonds or Payment Bonds (especially in construction)
Always verify these requirements before submitting your price. Insurance and bond costs can significantly impact your bid, and underestimating them could wipe out your profit.
Requirements typically originate in the agency’s solicitation documents. The prime contractor then includes these requirements in their bid package to subcontractors.
Once you’re selected for the job, review the final subcontract carefully to confirm:
The specific coverage types and limits you’re responsible for
Whether your policy needs to list the prime or agency as an additional insured
How certificates of insurance will be managed
💡Pro Tip: Work with an insurance broker who understands and has experience in government contracting. They can help you estimate these costs upfront and avoid gaps in coverage later.
Understanding these requirements early protects both your pricing and your business.
How to Find Subcontracting Opportunities in Greater Los Angeles
Ready to get started? Here’s how to find work as a subcontractor in LA—and how to make those connections count.
Network Relentlessly
Networking isn’t just about handing out business cards. In government contracting, it’s how you get on a prime’s radar and build a lasting relationship.
✅ Start Local:
Attend local government contracting conferences, industry days, and matchmaking events. Many are free or low-cost and full of primes looking for qualified partners.
Look for informational meetings about upcoming projects (sometimes called pre-solicitation or industry outreach meetings). These are often held months before official bids are published and are excellent places to meet prime contractors early.
Have a digital Capability Statement ready to share—either hosted on your website or linked via a QR code on your business card.
✅ Look for programs run by:
APEX Accelerators (formerly PTACs): They frequently host small business events and matchmaking sessions.
Local chambers of commerce: Great for meeting primes in your region.
Industry associations: They often hold specialized networking sessions for your trade.
💡Pro Tip: Consider adding a QR code to your business card that links directly to your Capability Statement or a special “Government Contracting” page on your website. It saves paper and makes sharing your qualifications fast and professional.
Explore Prime Contractor Portals
Major primes working on local infrastructure projects like LA Metro and LAX include:
Skanska USA
Walsh Group
Turner Construction
Clark Construction
Tutor Perini
Flatiron West
Kiewit Infrastructure West
PCL Construction
✅ Action Step:
Visit these companies’ websites and look for sections like “Subcontractors,” “Supplier Diversity,” “Vendor Portal,” or “Vendor Registration.”
Register your business—even if you don’t see an immediate project. It helps get your company on their radar for future opportunities.
💡Pro Tip: Upload your Capability Statement as part of your profile, or include a link to it on your business website.
Tap Into Government Resources
There’s a whole ecosystem of free or low-cost help available to small businesses looking to get into government contracting. Please don’t feel you have to figure it all out alone.
✅ APEX Accelerators (formerly PTACs):
Offer free, one-on-one counseling for government contracting.
Can help you identify target agencies, practice your pitch, and understand paperwork.
Often know which primes or agencies are active locally.
✅ Small Business Development Centers (SBDC):
Provide free business consulting on topics like marketing, financials, and government contracting basics.
Many SBDCs in California have staff experienced in helping businesses navigate certifications or government bid processes.
✅ SCORE:
Offers free mentoring from experienced business professionals.
While not government-contracting specialists, they can help with business planning, capability statements, and marketing strategies.
✅ Local Agencies:
The City of LA, LA Metro, and LA County all run programs to connect small businesses with contracting opportunities.
Sign up for their newsletters to hear about upcoming projects and events.
✅ California DGS (Department of General Services):
Oversees state small business and DVBE certification programs.
Publishes official resources and step-by-step guides for applying.
✅ U.S. Small Business Administration (SBA):
Offers a huge library of free online courses and webinars covering topics like:
Business planning
Government contracting basics
Financial management
Marketing your business
Hosts local workshops and training events through its district offices.
Provides resources tailored specifically for small business owners entering the government marketplace.
💡Pro Tip: Many agencies host free informational meetings even before a project is publicly bid. Attending these can help you connect with primes and learn about upcoming opportunities early.
Leverage Databases Strategically
If you’re looking for subcontracting opportunities—or just trying to understand where work might be happening—it helps to browse public agency databases. These show upcoming bids, awarded contracts, and sometimes even lists of primes already working on projects.
✅ Los Angeles County:
Check out the LA County “Doing Business” portal for current solicitations and awarded contracts.
Great for local construction, facilities, and services work.
✅ LA Metro:
Their vendor portal lists major infrastructure and transit projects.
Includes details about upcoming procurements and awarded prime contractors.
✅ City of Los Angeles (now known as RAMP, formerly BAVN)
Lists city-specific solicitations across all departments.
Many smaller opportunities that are perfect for local subs.
✅ California State Contracts Register (CSCR):
Lists opportunities at the state level.
Can be challenging to navigate, but worth exploring if you’re ready for state work.
💡Pro Tip: Use these databases not only to find active bids, but also to see:
Who the primes are on recently awarded projects
The types of projects happening in your trade
Trends in agency spending that might align with your services
Focus Your Efforts
Many small businesses feel they must be everything to everyone in government contracting. But trying to chase every opportunity can be overwhelming and often leads to frustration.
Instead:
✅ Choose just 2–3 agencies (city, county, or state) that buy what you sell.
✅ Focus your energy on:
Researching their typical projects
Registering in their specific vendor portals
Attending their networking events (including informational meetings)
Following their news and upcoming bids
This is especially important if you’re a small team or working solo. It’s far better to build strong relationships with a few agencies than spread yourself thin trying to pursue everything at once.
💡Pro Tip: Think about your time and resources. If you only have a few hours a week to dedicate to government contracting, pick fewer agencies and go deeper rather than wider.
Bottom line: There’s no single “subcontracting job board” for the Greater Los Angeles area. Success stems from building strong relationships, maintaining visibility, and staying proactive. Focus your time where it matters most—and you’ll make more meaningful progress.
Be Proactive
Primes don’t usually work in your exact trade—they’re looking for specialists to complete pieces of their larger projects. Focus on:
Identifying prime contractors managing big jobs where your services fit into the scope.
Registering in their vendor portals.
Reaching out early to explain how you can help their team meet goals.
💡Pro Tip: Look for primes who need your specialty, not primes who do what you do.
Local Bid Portals
Start familiarizing yourself with:
RAMP LA (Regional Alliance Marketplace for Procurement) — the City of LA’s official portal
PlanetBids — used by many agencies in Southern California
Important: PlanetBids isn’t one universal system. Each agency has its own separate PlanetBids site.
Registering with one agency doesn’t give you access to any others. You’ll need to sign up separately for every agency whose projects you want to see or bid on.
Paid Portals
In construction, check out:
The Blue Book
PlanHub
ConstructConnect
In IT and professional services:
GovWin
DemandStar
BidNet Direct
These can be helpful once you’re ready to scale, but often come with hefty subscription costs.
Your Subcontracting Journey Starts Now!
Subcontracting is one of the most effective ways for small businesses to enter the government market. Whether you’re looking to grow, build relationships, or gain valuable experience, it could be your edge.
Ready to explore subcontracting? Drop your questions below—I’d love to help.
🔗 Before you dive in, download my free Subcontractor Readiness Checklist to see if your business is prepared—and discover your next steps toward becoming a competitive partner.
Let’s get your house in order—because readiness is your best strategy!
Stephanie
Stephanie Clark-Ochoa
Government Procurement Strategist and founder of Clark-Ochoa Business Services.
Through her newest initiative, Help 4 LA Subs, she offers practical tools, insights, and training to help micro and small businesses in the Greater Los Angeles area become government-ready.
🟣 Visit the blog: www.clarkochoa.com/biz-ready
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