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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
Traveler reimbursement is based on the location of the work activities and not the accommodations,
unless lodging is not available at the work activity, then the agency may authorize the rate where
lodging is obtained.
Unless otherwise specified, the per diem locality is defined as "all locations within, or entirely
surrounded by, the corporate limits of the key city, including independent entities located within
those boundaries."
Per diem localities with county definitions shall include"all locations within, or entirely
surrounded by, the corporate limits of the key city as well as the boundaries of the listed counties,
including independent entities located within the boundaries of the key city and the listed counties
(unless otherwise listed separately)."
When a military installation or Government - related facility(whether or not specifically named) is
located partially within more than one city or county boundary, the applicable per diem rate for the
entire installation or facility is the higher of the rates which apply to the cities and / or counties,
even though part(s) of such activities may be located outside the defined per diem locality.