What is a Prime vs. Subcontractor?
Also known as: Prime contractor, Subcontractor
By the GovPrimer teamUpdated January 1, 2026
Definition
The prime contractor holds the contract directly with the government and is accountable for performance. A subcontractor works for the prime, not the government, performing part of the scope. Both roles are valid paths into federal work, with different risk and reward.
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Prime vs. sub at a glance
- Prime — contracts directly with the agency, gets paid by the government, carries full performance responsibility and the customer relationship.
- Subcontractor — contracts with the prime, performs a portion of the work, builds past performance with lower risk and barrier to entry.
- Many firms start as subs to build past performance, then grow into prime roles.
Frequently asked questions
Can subcontract work count as past performance?
Yes. Relevant subcontract work can be cited as past performance on future bids, though prime experience generally carries more weight because it shows full contract responsibility.
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