Teaming Agreements: Prime vs. Sub — Which Should You Be?

Every SDVOSB faces this question on every opportunity: prime or sub? There's no universal answer — but there is a framework.

Prime when you have

• Direct relevant past performance at this dollar value
• Program management capacity for the full scope
• Cash flow to carry 30–60 day receivables
• A set-aside advantage that requires you be the prime

Sub when you have

• Specialized technical capability the prime needs
• Limited capture budget — subbing costs ~10% of priming
• Desire to build past performance in a new domain
• Risk tolerance that can't absorb a lost prime bid

Negotiating workshare

Target 51% workshare as prime (required for most SDVOSB set-asides). As sub, push for 25–30% minimum workshare with a letter of intent that survives contract award.