How a subcontracting plan can benefit you

Introduction

Subcontracting plans can create opportunities for small businesses. If you’re a small business looking to work with the federal government, subcontracting can be a valuable way to get started.

Large federal contractors are often required to create subcontracting plans that include goals for working with small businesses. These plans can open the door to new partnerships and contracting opportunities.

This training explains what subcontracting plans are, how they work, and how your business can benefit.

1: What is a subcontracting plan?

A subcontracting plan is a requirement for certain large federal contracts. It outlines how a prime contractor will provide opportunities to small businesses.

These plans typically include:

• Goals for subcontracting with small businesses
• Categories of small businesses (such as women-owned or veteran-owned)
• Strategies for finding and working with small business partners

Subcontracting plans are required for most contracts over a certain dollar threshold when awarded to large businesses.

2: Why subcontracting plans matter for small businesses

Subcontracting plans are designed to increase small business participation in federal contracting.

What this means for you:

• Large businesses are actively looking for small business partners
• There are structured opportunities to participate in federal work
• You can gain experience working on federal contracts

Subcontracting can be a strong entry point if you’re not ready to compete as a prime contractor.

3: Types of small businesses

Subcontracting plans often include goals for working with different types of small businesses, including:

• Small disadvantaged businesses (including 8(a))
• Women-owned small businesses (WOSB)
• Service-disabled veteran-owned small businesses (SDVOSB)
• HUBZone small businesses

If your business qualifies under one or more of these categories, you may have additional opportunities.

4: How subcontracting plans are used

When a large business is awarded a federal contract, they must:

• Make a good faith effort to meet their subcontracting goals
• Report on their progress
• Demonstrate outreach to small businesses

Agencies review these efforts to ensure compliance.

5: How your business can benefit

Subcontracting can help you:

• Build past performance in federal contracting
• Develop relationships with prime contractors
• Learn how federal contracts work
• Position your business for future prime contracts

Many small businesses start as subcontractors before becoming prime contractors.

6: How to find subcontracting opportunities

To take advantage of subcontracting opportunities to:

• Research large contractors in your industry
• Network and attend small business outreach events
• Connect with small business specialists
• Explore subcontracting directories and databases

Building relationships is the key to finding opportunities.

7: Tips for getting started

• Clearly describe your capabilities and services
• Highlight any certifications (if applicable)
• Be prepared to explain how you add value
• Follow up with potential partners after initial contact

Start exploring subcontracting opportunities

 Connect with a small business specialist 

 Attend small business outreach events 

 Explore subcontracting resources