What is the subcontracting plan required for contracts expected to exceed for Subcontracting plan?

$900,000, per FAR 19.702 This figure was read from that source on 2026-08-04; thresholds are revised, so check the citation before relying on it in a bid.

Wages, bonds and the rulebook

What is a small business subcontracting plan?

A subcontracting plan is the document a large prime must submit committing to subcontract a share of the work to small businesses, required under FAR 19.702 when a contract is expected to exceed $900,000, or $2 million for construction, and subcontracting possibilities exist.

Also written as: small business subcontracting plan, FAR 19.702, SF 294.

The obligation falls on other-than-small primes. FAR 19.702(a)(1) requires the plan for contracts expected to exceed those thresholds where subcontracting possibilities exist, in negotiated acquisitions and in sealed bidding alike, and for modifications that push an existing contract past the figure.

The plan sets percentage goals for subcontracting to small businesses and to each of the socioeconomic categories, names the person responsible, and commits to reporting. FAR 52.219-9 is the clause that carries it into the contract, and the reporting is real and audited.

For a small business this is a demand signal. A large prime with a subcontracting plan has committed goals it must report against, which makes it materially more receptive to a certified small subcontractor than it would be commercially. The plans are a reason to approach primes on large awards in your trade.

What this means when you bid

If you are small, the primes on big awards in your NAICS code have small-business goals to hit. That is the opening for a subcontracting conversation.

Subcontracting plan: the published figures

Each figure below was read from the regulation cited beside it on 2026-08-04. Thresholds are adjusted for inflation and changed by statute — follow the citation and confirm the figure in effect on your solicitation's date before you rely on it.

Subcontracting plan required for contracts expected to exceed: $900,000
Subcontracting plan threshold — construction: $2 million

Subcontracting plan compared with the terms it gets confused with

Subcontracting plan vs Limitations on subcontracting

A subcontracting plan obliges a large prime to push work OUT to small businesses; the limitations on subcontracting cap how much a small prime on a set-aside may push out.

What Limitations on subcontractingmeans →

Where this definition comes from

Federal contracting is one of the few fields where the authoritative answer is free, public and one click away. These are the sources this page is built from — go and read them.

FAR 19.702→
Statutory requirements.
FAR 52.219-9→
Small business subcontracting plan.
FAR Part 19→
Small business programs.

This page explains a term in plain English and cites the authority it comes from. It is not legal advice, and the regulation governs where this page and the regulation differ.

Free tools for government contractors

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Subcontracting plan— common questions

What is a small business subcontracting plan?: A subcontracting plan is the document a large prime must submit committing to subcontract a share of the work to small businesses, required under FAR 19.702 when a contract is expected to exceed $900,000, or $2 million for construction, and subcontracting possibilities exist.
What is the difference between Subcontracting plan and Limitations on subcontracting?: A subcontracting plan obliges a large prime to push work OUT to small businesses; the limitations on subcontracting cap how much a small prime on a set-aside may push out.
What is the subcontracting plan required for contracts expected to exceed for Subcontracting plan?: $900,000, per FAR 19.702 This figure was read from that source on 2026-08-04; thresholds are revised, so check the citation before relying on it in a bid.
Why does a subcontracting plan matter when you are bidding?: If you are small, the primes on big awards in your NAICS code have small-business goals to hit. That is the opening for a subcontracting conversation.