Jan 1, 2025
What is a Subcontract? What is the Difference Between Prime Contracting vs Subcontracting?
Subcontracting is a contract between the main contractor and the subcontractor, where the subcontractor is expected to complete a specific task or a specific portion of the project for the prime contractor. Unlike the prime contractors, the subcontractors do not work directly with the government but for and under the other contractors. Thus, subcontracts help contractors who are not directly involved with the Federal agency still participate in the Federal procurement process. Also, some government contracts will require other small and large businesses to subcontract with the other businesses to create more opportunities for small businesses and to involve themselves in the federal contracting process. Who is a Subcontractor? A subcontractor is a contractor who has been specifically hired to complete certain tasks offered by the prime contractor on the project. The subcontractors will be specialists in specific tasks such as electrical systems, window installation, software programming, etc. Since the subcontractors perform more specialized work, they render their service only when required and not consistently throughout the project window. There are chances for a project to have only subcontractors and not prime contractors, especially when the owner of the property is managing the contracting work onsite. Sub-contracting and a subcontractor […]
Dec 12, 2024
What is a UEI Number? Importance and How to Get a UEI Number?
For small businesses that wish to do business with the Federal government, they would require a unique identifier number for their business. This is known as the UEI. The government provides this number, which is similar to the tax ID number. This is of tremendous use in identifying the businesses that are eligible for receiving federal grants, awards, and contracts. The UEI number is optional for businesses that work exclusively with individual consumers and private companies. However, if the business plans to pursue contracts with the federal government, then the UEI will be required. Introduction of the UEI number for Federal contracts Businesses are required to obtain the UEI number to be eligible to access federal awards and grants. In April 2022, the federal government replaced its old identifier, namely the Data Universal Numbering System number or the DUNS, with the UEI. At present, all of the Integrated Award Environment Systems from the Federal government make use of the UEI numbers instead of the DUNS number. Thus, all the businesses and entities that wish to perform business with the federal government must register for their UEI. Difference Between the UEI and the DUNS Number The UEI is completely different from […]
Nov 19, 2024
What is Federal Government Micro Purchase Threshold: A Guide for Contractors
The Federal Government’s micro purchase threshold is $10,000, which means that authorized agencies can buy goods and services directly from contractors without having to go through a very competitive bidding process. The Micro purchase threshold is the lowest limit for Federal government purchases of commercial goods and services. Introduction to Micro Purchase Threshold Micro purchase refers to the acquisition of supplies and services with the help of simple acquisition procedures, the aggregate amount of which should not exceed the micro purchase threshold. Convenience checks will not be issued for an amount that is in excess of one-half of the micro purchase threshold under the Simplified Acquisition Procedures. There are, however, certain exceptions that are levied on the Micro Purchase Threshold of certain industries, which are as follows. Purpose of Micro Purchase Threshold The Micro Purchase Threshold is an important component in the process of Federal procurement. This is especially important for contractors and businesses that seek to collaborate and work with the Federal Government. The MPT or the micro purchase threshold refers to the maximum amount in dollars that the Federal agencies are able to spend without actually having to undergo the very elaborate and competitive bidding process and the […]