Under FAR 19.702 and the clause at FAR 52.219-9, other-than-small primes generally need a subcontracting plan when a contract exceeds the simplified acquisition threshold and has subcontracting possibilities. Small businesses are exempt. The specific thresholds and requirements are set in the FAR, so always confirm with your contracting officer.
What is a small business subcontracting plan?
A small business subcontracting plan is a document large prime contractors must submit and follow on many federal contracts. It sets goals for how much of the subcontracted work will go to small businesses in specific socio-economic categories.
Who needs one
What the plan contains
- Percentage goals for small business, small disadvantaged business, HUBZone, SDVOSB, and WOSB participation.
- The total dollars planned for subcontracting.
- A description of how the prime will find and solicit small businesses.
- Recordkeeping and reporting commitments (ISR/SSR via eSRS).
Why the goals matter after award
The plan is a commitment, not a formality. Contracting officers evaluate performance against the goals, and shortfalls without a documented good-faith effort can affect past-performance ratings. That is why sourcing and outreach documentation matter — see subcontracting plan compliance.
Frequently asked questions
What is the difference between FAR 52.219-9 and FAR 19.704?
FAR 19.704 describes what a subcontracting plan must contain; FAR 52.219-9 is the contract clause that requires the plan and its execution. They work together.
Do small businesses need a subcontracting plan?
No. Subcontracting plan requirements apply to other-than-small (large) primes. Small business primes are exempt from the FAR 52.219-9 plan requirement.
Related resources
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