Unlocking The Ultimate Government Contract Niche: Subcontracting In 2025!

Many companies dream of landing lucrative government contracts, but the road to becoming a prime contractor is often filled with challenges, from writing proposals to managing compliance and accounting. For many businesses, subcontracting offers an ideal entry point into government contracting—and it can be just as profitable, if not more, when approached strategically.

Here’s how one of my clients recently secured a nine-figure government contract as a subcontractor—and the key steps to make this work for your business.

Why Subcontracting Works

Subcontracting comes with its share of advantages. As a subcontractor, you’re not responsible for the heavy lifting of managing the contract, writing the proposal, or handling all compliance requirements. Instead, you focus on delivering your specific piece of the work. Even major companies often choose to subcontract when it makes sense strategically.

For example, you might not have the necessary contract vehicle—such as GSA Schedule or NASA SEWP—but by partnering with a prime contractor who does, you can still participate in government opportunities.

Key takeaway: Subcontracting allows you to gain past performance, build relationships, and generate revenue without bearing the full burden of being a prime contractor.

The #1 Mistake Companies Make in Subcontracting

The biggest mistake companies make is assuming that sending out cold emails to prime contractors already on government contracts will lead to work. While this “spray and pray” approach might occasionally yield results, it’s far from efficient.

Instead of blindly emailing companies offering your services, you need to approach subcontracting with strategy and preparation.

The Strategic Subcontracting Approach

1. Start Early: Identify Opportunities in Advance
   Begin by searching for opportunities on platforms like SAM.gov, focusing on Sources Sought Notices or Requests for Information (RFIs) related to your expertise. These notices help government agencies identify potential vendors before an official solicitation is released.

   Find an opportunity where your company can handle a portion of the work—maybe 50–80%—and prepare a response to that notice. As part of this process, engage with the government office directly by asking clarifying questions. This communication not only helps you understand the opportunity but also establishes your presence with the contracting office.

2. Research Potential Partners
   Once you’ve identified an opportunity, research companies with relevant past performance in that space. For example, if you’re targeting an opportunity with the Air Force Lifecycle Management Center and specialize in advertising, look for companies that have previously delivered advertising services to that specific office.

3. Reach Out with Value
   Instead of cold emailing these companies to “ask for work,” approach them with a specific opportunity. Say something like:

   • “Hi, I’m in communication with [agency/office] regarding an upcoming opportunity in [field, e.g., advertising]. We can handle part of the work, but I believe your expertise complements this well. Would you be open to a quick conversation about partnering on this?”

   This approach positions you as a valuable collaborator bringing an opportunity to the table, rather than someone simply asking for help.

4. Protect Your Position
   Avoid sending too much detail in your initial outreach—such as a direct link to the opportunity. Instead, give general information about the opportunity (e.g., the agency or the type of work involved) and offer to discuss further. This ensures you remain a critical part of the process and keeps the door open for partnership discussions.

Why This Works

By bringing an opportunity to a potential prime contractor, you’re flipping the script. Instead of “begging” for work, you’re seen as someone providing value. This drastically increases the likelihood of a response and opens the door to meaningful partnerships.

When done right, this approach often leads to a 60% or higher response rate—far more effective than blanket cold emails.

Your Next Steps

If you’re serious about entering the world of government contracting, consider joining a certification or coaching program to master the process. One of my clients, for example, used this subcontracting strategy to land a major consulting gig with a software company in the intelligence community. Others have closed multi-million-dollar deals in just a few months of applying these techniques.

Subcontracting can be a powerful way to grow your business while navigating the complexities of government contracting. Take the time to build relationships, approach opportunities strategically, and watch as doors begin to open.

For more guidance on winning contracts and growing your government business, check out our programs at DODcontract.com.

Pro Tip: Don’t underestimate the power of networking and persistence. With the right strategy, subcontracting could be your key to long-term success in government contracting.