Any business concern, other than a small business, responding to a solicitation or an invitation to bid to perform a contract that is expected to exceed $750,000 (or $1.5 million for construction) and that has subcontracting possibilities must submit a subcontracting plan. The business concern must agree in the contract that small businesses, veteran-owned small businesses, service-disabled veteran-owned small businesses, HUBZone small businesses, small disadvantaged businesses, and women-owned small business concerns will have the maximum practicable opportunity to participate in contract performance consistent with its efficient performance. (Reference Federal Acquisition Regulation Subpart 19.7).

The U.S. Department of Commerce is focused on helping small business concerns grow and learn through subcontracting opportunities. Whenever possible, our contracting officers negotiate aggressive small business subcontracting goals with a concentration on core or value-added work with the large business prime contractors.

For more information, visit SBA Subcontracting.