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HomeAnswersSubcontracting vs Prime Contracting: Which Path Is Right for You?
Eligibility

Can a subcontractor become a prime contractor on the same contract?

Short Answer

Can a subcontractor become a prime contractor on the same contract? Generally no, due to organizational conflict of interest concerns. However, you can transition from sub to prime on future recompetes if you exit the current team.

Detailed Answer

Subcontractor to prime transition: **On Same Contract:** - Generally not allowed during contract - OCI (organizational conflict of interest) concerns - May have access to proprietary information - Prime relationship creates conflict **On Recompete/Follow-on:** - Can compete as prime - Must exit current teaming arrangement - May still have OCI issues to mitigate - Timing of transition matters **Building Toward Prime:** - Gain experience as sub - Build direct customer relationships - Develop independent capabilities - Exit sub role before recompete **Best Practices:** - Document your independent work - Establish information barriers - Consult OCI rules carefully - Consider timing strategically

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Key Terms

subcontractprime contractororganizational conflict of interest

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