Your subcontracting plan (FAR 52.219-9 / FAR 19.704) sets goals by socio-economic category. Treat those percentages as commitments you will be measured against.
Prime contractor guide to federal subcontracting compliance
Federal subcontracting compliance is a lifecycle: plan, source, document, and report. This guide walks a prime contractor through each stage and the FAR references that govern them.
1. Adopt the plan
2. Source and solicit small businesses
Actively find and solicit qualified small businesses in the NAICS codes your plan covers. This is where a requirement-driven search saves time versus manual directory lookups.
3. Document good-faith effort
When a goal cannot be met, contracting officers expect evidence you tried — solicitations sent, responses received, and why awards did or did not happen. See good-faith effort documentation.
4. Report through SAM.gov
File Individual Subcontract Reports (ISR) and Summary Subcontract Reports (SSR) through SAM.gov Subcontracting Plan Reporting. Clean category data makes filing painless — see ISR & SSR data prep.
Watch limitations on subcontracting
On set-aside awards, FAR 52.219-14 limits how much work can be subcontracted outside similarly situated entities. Confirm the rules for your contract type with counsel or your contracting officer.
Frequently asked questions
Is subcontracting compliance the same on every contract?
No. Requirements vary by contract type, dollar value, and whether the award is a set-aside. Always confirm the specific clauses in your contract with your contracting officer.
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