Subcontract Plans for Small Biz Get OMB Okay
Published Date: 3/13/2025
Notice
Summary
If you’re a contractor working with the government and your contract is over $750,000, you need to submit a plan showing how you’ll include small and diverse businesses as subcontractors. This notice asks for approval to keep collecting this info, with comments due by April 14, 2025. It helps make sure small businesses get a fair shot at government work without adding extra costs or delays.
Analyzed Economic Effects
5 provisions identified: 1 benefits, 4 costs, 0 mixed.
Subcontracting Plan Thresholds
If you are a prime contractor, you must submit an acceptable subcontracting plan for any contract expected to exceed $750,000 (or $1,500,000 for construction of a public facility). The plan requirement applies when the contract has subcontracting possibilities and is required by FAR 52.219-9 and section 8(d) of the Small Business Act.
Requirements to Include Small Businesses
Subcontracting plans must provide maximum practicable opportunities for small businesses, including veteran‑owned, service‑disabled veteran‑owned, HUBZone, small disadvantaged, and women‑owned small business concerns. The plan must include the specific elements called for by section 8(d) of the Small Business Act and FAR subpart 19.7.
Documented Annual Administrative Burden
The information collection estimates 30,365 respondents, 49,296 total annual responses, and 112,704 total annual burden hours for these subcontracting plan and reporting requirements. These figures summarize the aggregate annual time cost of complying with the collection.
Annual and Semiannual Reporting Rules
Contractors with subcontracting plans must file an annual Summary Subcontract Report (SSR) through the Electronic Subcontracting Reporting System (eSRS). Contractors with individual plans must also submit semi‑annual Individual Subcontract Reports (ISR) via eSRS, unless the contract is not reported in FPDS in which case they use Standard Form 294.
Explain Not Using Promised Small Subcontractor
If a prime contractor does not use a small business subcontractor that it relied on in its proposal or subcontracting plan, the prime must provide a written explanation to the contracting officer describing why it was unable to do so. This requirement stems from section 1322 of the Small Business Jobs Act of 2010 (15 U.S.C. 637(d)(6)).
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Key Dates
Department and Agencies
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