GREATER BALTIMORE BLACK CHAMBER OF COMMERCE
Debra is accompanied by Special Secretary Jimmy Rhee, Governor's Office of Minority Affairs during a gathering with the Greater Baltimore Black Chamber of Commerce to discuss strategies to connect small, minority and women-owned businesses to state contracting and procurement opportunities.
Subcontracting – An Industry Perspective
Whether you are a small or minority business, a consultant or a large organization, the market needs your specific expertise. Industry trends are showing growth in virtually every business sector. These major trends provide opportunities for small and minority companies to consider subcontracting on a large government procurement which they otherwise could not bid due to limited capacity.
Minority subcontracting is now big business due to legislation requiring minority participation on government procurement. With some exceptions and extenuating circumstances, government procurement include either a minority business participation percentage or a goal up to 29%. Therefore, Prime Contractors bidding on these opportunities have the responsibility to seek minority participation in order to be awarded government contracts. From an industry perspective, this requires mastering some challenging market dynamics for both the Prime and the Minority subcontractor.
Tips for Mastering subcontracting from a Minority Business Enterprise Perspective:
- Carefully review and negotiate the terms of the Sub-contract agreement before you begin working on the project. Consult with the government agency MBE liaison regarding any questions or concerns you may have.
- Own your responsibility on the contract by doing quality work. Your reputation for doing a good job will win future opportunities.
- Be a team player. Minority business owners we are accustomed to being in control. As the sub-contractor you are responsible for a set of deliverables, but you are not in control of the process. Learn to be patiently persistent. Performing as a sub-contractor often feels like walking a tight rope. Think of it as an opportunity to develop those interpersonal skills and as training ground for becoming the Prime Contractor.
- Keep good financial records for reporting purposes. As part of the monitoring process, government agencies require the MBE subcontractor to provide monthly invoice reports to ensure the Prime is in compliance with payments to the MBE.
The Governor’s Office of Minority Affairs is helping small, minority and women business owners compete for State contracting opportunities with a new live workshop series entitled Ready, Set, GROW! To register for the next Ready, Set, GROW! workshop series go to http://www.goma.maryland.gov