Under FAR 19.702 and the clause at FAR 52.219-9, other-than-small primes generally need a subcontracting plan when a contract is above the simplified acquisition threshold and has subcontracting possibilities. Small businesses are exempt. Dollar thresholds and rules are set in the FAR. Always confirm with your contracting officer.
Small Business Subcontracting Plan Explained
A small business subcontracting plan is a document that many large prime contractors must submit and follow on federal contracts. It sets goals for how much subcontracted work will go to small businesses in specific certification categories.
Who needs one
Large primes on bigger contracts usually need a plan; small business primes do not.
What the plan contains
The plan lists goal percentages, dollars, sourcing methods, and reporting plans.
- 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 contact small businesses.
- Recordkeeping and reporting commitments (ISR and SSR through SAM.gov Subcontracting Plan Reporting).
Why the goals matter after award
The plan is a real commitment — missed goals need proof you tried.
The plan is a commitment, not paperwork. Contracting officers check performance against the goals. Shortfalls without a documented good-faith effort can hurt past-performance ratings. That is why sourcing and outreach records 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.
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