Part 19 of the FAR is devoted to regulations for the Small Business Subcontracting Program and subcontracting plans. Basically, it says that for any contract over the simplified acquisition threshold, the contractor receiving the award must agree to make provisions for subcontracting by small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone Small Business, small disadvantaged business, and women-owned small business concerns. The prime contractor proves willingness to comply with the Small Business Subcontracting Program by submitting a subcontracting plan. For contracts over $550,000 ($1 million for construction), the prime contractor selected for the award must provide an acceptable subcontracting plan or be considered ineligible for the contract.

While subcontractors are not responsible for drafting or enacting subcontracting plans, it’s still important to be familiar with the rules governing them. Small businesses such as those listed above should note the many ways that subcontracting plan regulations attempt to level the playing field.

Read More