Subcontracting Plan

Government Programs

Definition

A required plan for federal contracts over $750,000 describing how a contractor will use small business subcontractors.

More Information

Large businesses and small businesses bidding on bundled contracts must submit subcontracting plans with goals for using small businesses, including specific categories (SDB, WOSB, SDVOSB, HUBZone). Plans must describe outreach efforts, the administrator responsible, and methods for identifying potential subcontractors. Failure to comply with subcontracting plans can result in liquidated damages.

Example

A prime contractor submits a subcontracting plan committing to award 25% of subcontract dollars to small businesses.