How do you determine subcontractor status versus vendor status?

Answer 1

There is not "one" single answer - there are variations based on regulatory requirements and state and/or federal contract provisions. It is extremely important to check your prime contract to determine if the prime contract defines subcontractors, vendors, or both. The Government Contracts Reference Book (Nash, Schooner, O'Brien) provides the following definitions: SUBCONTRACTOR: Any person or organization that furnishes supplies or services under a prime contract. VENDOR: A seller of goods. Those definitions aren't necessarily helpful in determining status. I've shepherded numerous clients through numerous government audits, and here's my best advice: A vendor provides off-the-shelf, commercially-available goods or services. The vendor will provide these same goods or services to anyone who pays the vendor. A subcontractor is a person or organization who assists in the prime contractor in performing programmatic functions. The subcontractor is somewhat of a "partner" for the prime contractor and provides goods or services specifically tailored to meet the programmatic needs of the prime contract.