Prime Contractor
ProcurementDefinition
A contractor that has a direct contractual relationship with the government or purchasing organization.
More Information
Prime contractors hold the contract and are responsible for overall performance. They often subcontract portions of work to other businesses. In federal contracting, primes may have subcontracting goals requiring them to use small and diverse suppliers. Being a prime contractor requires significant capabilities, bonding, and past performance.
Example
A large construction company serves as prime contractor on a $50 million federal building project, subcontracting HVAC work to diverse suppliers.