Subcontracting Plan

A subcontracting plan is a document required for federal contracts over $750,000 ($1.5 million for construction) that details how a large business prime contractor will provide subcontracting opportunities to small businesses. The plan establishes goals for subcontracting to various small business categories.

The plan must include percentage goals for Small Business, Small Disadvantaged Business, Women-Owned Small Business, HUBZone, Veteran-Owned, and Service-Disabled Veteran-Owned Small Business. It must also describe the methods used to identify potential small business subcontractors and the monitoring procedures to track achievement.

Subcontracting plans are reviewed and approved by the contracting officer and the Small Business Administration. Failure to make good faith efforts to meet subcontracting goals can result in liquidated damages. For proposal evaluation, a strong subcontracting plan demonstrates commitment to the government's socioeconomic objectives.