Small Business Guide

Subcontracting Plans

Any contractor receiving a contract for more than the simplified acquisition threshold must agree in the contract that small business, veteran-owned small businesses, service-disabled veteran-owned small business, HUBZone small business, small disadvantages business and women-owned small business concerns will have the maximum practicable opportunities to participate in contract performance consistent with its efficient performance.

Acquisitions above $650,000 ($1,500,000 for construction) awarded to companies other than small businesses shall require an approved subcontracting plan from the apparent successful offeror or bidder. The plan must be submitted and accepted before the contract may be awarded. Failure to carry out subcontracting obligations may result in adverse actions.

Subcontracting is one approach to obtaining past performance and business opportunities. The Federal government does not have a relationship with the subcontractors. However, the terms and conditions in the prime contract usually flow down to the subcontract.

Small business concerns are exempt from submitting subcontracting plans.