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Federal Contracting Glossary

Small Business Subcontracting Plan

A required plan, under FAR 52.219-9, showing how a large prime will provide subcontracting opportunities to small and socioeconomic businesses.

Definition

A small business subcontracting plan is a document large prime contractors must submit, under FAR 52.219-9, on contracts expected to exceed the applicable threshold that offer subcontracting opportunities. The plan sets percentage goals for subcontracting to small businesses overall and to specific socioeconomic categories — small disadvantaged business (SDB), women-owned small business (WOSB), service-disabled veteran-owned small business (SDVOSB), and HUBZone firms.

Subcontracting plans support the government's statutory socioeconomic goals. On negotiated procurements the plan is typically evaluated and then incorporated into the contract, and the prime reports actual achievement (for example through eSRS). Falling short of agreed goals can carry consequences, so credible, well-supported commitments matter.

How this affects your proposal

Build specific, defensible subcontracting commitments into the proposal from the start. Named small-business teammates with real, scoped roles outscore generic goal percentages and signal that you can actually deliver on the plan.

Common questions about small business subcontracting plan

Who has to submit a subcontracting plan?

Generally large (other-than-small) prime contractors on contracts above the FAR threshold that offer subcontracting opportunities. Small businesses are exempt from the FAR 52.219-9 plan requirement.

Are subcontracting goals enforced?

Yes — the plan is incorporated into the contract and achievement is reported (e.g., via eSRS). Good-faith failure to meet goals can affect past-performance evaluations and, in some cases, the contract itself.

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See all federal contracting terms in the GovCon glossary, or read our long-form federal contracting guides.