Focus on Providing Best Value
If you're hoping to seal the deal on some subcontracting work, there are things you can do to improve your chances.
The philosophical criteria that prime contractors use for awarding subcontracts has changed. It used to be that if you were qualified and were low bidder, you would probably win the subcontract. These days, that is no longer true. The prevailing philosophy that governs a prime's decision as to which company will win is no longer "lowest price," but rather "best value."
How, then, is "best value" defined? That's a tough question with no clear-cut answer. Often best value is some combination of quality, price, and performance. It also could be said to be what makes the best business sense. For example, the fact that a prospective subcontractor never missed a delivery schedule could be more important to a prime than the fact that it is a bit higher on price. Even if its price isn't the lowest, when you throw it all together, it is.
Other issues could also factor in, depending on the prime's specific needs or special requirements. For example, a prime looking for creative ways of improving production efficiencies would favor the sub that does a good job and offers that creativity over a sub that just does a good job. To another prime with special training needs, one sub's training experience would probably give that sub an advantage over another that didn't have that experience or didn't offer that added feature.
Therefore, we can say two things, for sure, about best value: (1) it varies from prime to prime, depending on their individual needs and requirements, and (2) lowest price alone just doesn't do it any more.
Note that the procurement philosophy for the government has also changed to best value. That's why doing your homework to find out what your customer's needs are (be it the government or a prime) and focusing on those needs is so important.
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Work Smart
Quite often, prime companies have the need, but not the actual technical expertise, to do a job. If you are a top-notch engineer or technical person, you can do quite well as a subcontractor--and you get to create your own hours and vacation time!
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