The PrimeWIN Prime Contractor Incentives provides cash incentives to federal prime contractors who subcontract work to Oklahoma businesses. The program operates under the overall guidelines of the Oklahoma Quality Jobs program.

Prime contractors (prime) may receive a cash rebate of up to 2% of the reimbursed labor amount as outlined in the qualified federal contract for total qualified labor hours performed (not just taxable wages) within Oklahoma by the employees of the prime and any subcontractor (sub) which is assigned work under a qualified federal contract. Although the prime qualifies for the program based on projected labor hours, the program is performance-based allowing the prime to be paid only for the actual labor hours. Actual performance in total qualified labor hours worked determines the amount of the net benefit rate. This agreement may last for up to 10 years. Other program criteria exist.

How it works

The prime must indicate its interest to the Oklahoma Department of Commerce, which will qualify the prime as meeting the participation criteria for the program. Formal application follows later in the process.

After qualifying, the prime begins work with the Federal Contract Verifier, currently University Multispectral Laboratories (UML), a Oklahoma State University-affiliated national center for research, development, evaluation, training, and certification. Together the prime and UML establish spend plans whereby amounts of work are identified that will be performed under the qualified federal contract by both the prime the sub(s). They will also complete a Quality Jobs Program application, projecting the number and type of jobs that will be involved, the labor hours of those jobs, and other required supporting documentation to create a formal application packet. Qualified federal contractors that are aware of multiple contracts or task rrders may elect to bundle these activities under one project by waiting for a specific project start date. Notification of contract activity, however, must be disclosed in real-time to be eligible.

The application packet is then forwarded to Commerce for formal consideration and either approval or denial. Commerce may ask for other supporting documents as needed in consideration of the applicant. Commerce will perform a cost-benefit analysis in the approval process, which will determine the maximum benefit dollars that will be available to the prime under the agreement.

Upon approval, Commerce will create a contract stating the program elements and present it for signature to the prime and UML.

On a quarterly basis, the prime and UML will track total qualified labor hours worked by both the prime and sub(s) under the specified qualified federal contract. UML will verify those hours for use in the preparation of Quality Jobs Program claims by the prime and also for claim documentation at the Oklahoma Tax Commission.

Threshold Requirements:
The prime must have a contract with an agency or instrumentality of the U.S. government to perform services in the State of Oklahoma. FEMA contracts issued as a direct result of a natural disaster not included. The qualifying work may be performed by an Oklahoma sub or Oklahoma employees of the prime. The sub(s) must be reimbursed a qualified labor rate of at least $26 per hour, regardless of the county where the project is located. Interested primes are strongly encouraged to review the Quality Jobs Program Guidelines.

Benefit Payments:
Cash payments to the prime are considered ordinary income for income tax purposes. Primes are urged not to consider any potential future benefit payments under this program as cost off-sets when bidding on federal contracts. Applicants are not eligible for benefit payments until signing a program contract with the state of Oklahoma.

Disclaimer
The materials contained on this website have been prepared by the Oklahoma Department of Commerce for informational purposes only and do not constitute legal or tax advice. This information is subject to change based on judicial interpretation and legislative action. The application of the information is subject to your unique facts and circumstances. YOU SHOULD NOT ACT UPON ANY INFORMATION CONTAINED IN THESE MATERIALS WITHOUT SEEKING YOUR OWN PROFESSIONAL LEGAL AND TAX ADVICE.