Small business subcontracting plan
Also called: Subcontracting plan, SB subcontracting plan
Updated
What is Small business subcontracting plan?
A small business subcontracting plan is the plan an other-than-small business must submit on federal contracts above a dollar threshold, setting goals for subcontracting to small, small disadvantaged, women-owned, HUBZone, veteran-owned and service-disabled veteran-owned businesses. FAR subpart 19.7 sets the rules, and performance against the plan is reported and tracked.
When a plan is required and what it holds
FAR 19.702 requires a plan from other-than-small offerors when the expected contract value exceeds a threshold (higher for construction) and subcontracting opportunities exist; small businesses are exempt. Thresholds are adjusted for inflation from time to time, so check the current text. The plan lists percentage and dollar goals for each small business category, the principal products and services to be subcontracted, how sources will be found, and who will administer the plan (FAR 19.704).
In a negotiated competition the plan is often due with the proposal or before award, and some solicitations evaluate small business participation as a separate factor alongside it.
Why it matters to small businesses too
Primes report progress in the government's subcontracting reporting system, and a prime that fails to make a good faith effort can face liquidated damages (FAR 52.219-16). That gives large primes a real reason to find capable small partners, which is why a clear capability statement and the right certifications matter when you approach a prime.
When you are the prime, a credible plan names real partners and real work, backed by teaming agreements, not goals copied from the last bid.
Small business subcontracting plan in ProposalWorkspace
ProposalWorkspace data calls ask each teaming partner for what the proposal needs from them, through a private portal link with no account, and check the answers against the RFP. Packages and uploads land in the proposal's documents, ready for the volumes that name your partners.
Small business subcontracting plan: questions and answers
Do small businesses need a subcontracting plan?
No. The requirement applies to other-than-small businesses. A small business may still be asked about planned subcontracting or small business participation in some solicitations.
What happens if a prime misses its subcontracting goals?
Missing a goal is not by itself a breach, but failing to make a good faith effort to meet the plan can lead to liquidated damages and affects past performance evaluations.
ProposalWorkspaceReady when the next RFP drops.
Set up in minutes
Plans from $99 a month, billed yearly. Subscribe today or book a demo with our team.