FAR requires a subcontracting plan only in specific high-value, subcontracting-capable awards, with exceptions for set-asides and 8(a) contracts.
Summary
When does FAR require a small business subcontracting plan? FAR requires a subcontracting plan only in specific high-value, subcontracting-capable awards, with exceptions for set-asides and 8(a) contracts.
According to FAR 19.708, the contracting officer inserts 52.219-8, Utilization of Small Business Concerns, in solicitations and contracts expected to exceed the simplified acquisition threshold, unless the acquisition is a personal services contract or the work, including all subcontracts, will be performed entirely outside the United States and its outlying areas. When subcontracting opportunities exist and the action is expected to exceed $900,000, or $2 million for construction of any public facility, FAR 19.708 requires 52.219-9, Small Business Subcontracting Plan, unless the acquisition is set aside or carried out under the 8(a) program. FAR 19.702 also states that contractors above the simplified acquisition threshold must agree that listed small business and socioeconomic concerns will have the maximum practicable opportunity to participate, and it reflects a policy of timely payment to subcontractors.
Confirm whether the solicitation or contract exceeds the relevant threshold and offers subcontracting possibilities.
Verify whether the action is a set-aside, an 8(a) acquisition, a personal services contract, or work performed entirely outside the United States and its outlying areas.
Use 52.219-8 when required, and add 52.219-9 when the subcontracting-plan conditions are met. Use the alternate identified by FAR 19.708 when the acquisition method or reporting status requires it.
Make sure internal procedures support timely payment to covered subcontractors and any required subcontracting-plan commitments.
FAR does not treat every large contract the same. The subcontracting-plan requirement depends on threshold, subcontracting opportunity, and the stated exceptions in FAR 19.708.