A small business subcontracting plan is required when a large business wins a federal contract expected to exceed $900,000, or $2 million for construction of a public facility. Short answer: the template below follows the required elements of FAR 52.219-9, section by section. Copy the outline, fill in your numbers, and check it against the solicitation before you submit. For when a plan is required and how the different plan types work, see our small business subcontracting plan guide.
Before you start: who needs a plan
- Required: other-than-small businesses on negotiated or sealed-bid federal contracts above $900,000 ($2 million for public facility construction), when subcontracting opportunities exist.
- Not required: small businesses, personal services contracts, and contracts performed entirely outside the United States and its outlying areas.
- Thresholds changed on October 1, 2025. They were $750,000 and $1.5 million before that. Older templates still show the old numbers.
Small business subcontracting plan template
Use these headings in this order. Each one maps to a required element of FAR 52.219-9, so a contracting officer can check your plan against the clause line by line.
1. Contract information
Offeror name, UEI, CAGE code, solicitation number, contract type, period of performance and total contract value. State whether this is an individual, master or commercial plan.
2. Subcontracting goals
Show each goal in dollars and as a percentage of total planned subcontracting dollars, not of the contract value. A simple table works:
| Category | Planned dollars | % of subcontract dollars |
|---|---|---|
| Total planned subcontracting | $4,000,000 | 100% |
| Small business (SB) | $1,600,000 | 40% |
| Small disadvantaged business (SDB) | $200,000 | 5% |
| Women-owned small business (WOSB) | $200,000 | 5% |
| HUBZone small business | $120,000 | 3% |
| Veteran-owned small business (VOSB) | $120,000 | 3% |
| Service-disabled veteran-owned (SDVOSB) | $120,000 | 3% |
Example figures only. The subcategories are counted inside the small business total, and one firm can count in more than one category. Check the solicitation and the agency’s goals before setting yours.
3. Principal supplies and services to be subcontracted
List what you will buy and mark which items you expect to source from each category. Agencies want to see that the goals come from real work packages.
4. How you developed the goals
Explain your method: past subcontracting history, market research, the number of certified firms available by NAICS code, and the size of each work package.
5. How you identify potential sources
Name the databases and outreach you use, such as SAM.gov, the SBA Small Business Search, trade associations, matchmaking events and your own vendor lists. See how primes find small business subcontractors.
6. Indirect costs
State whether the goals include indirect costs such as overhead purchases, and how you calculated their share.
7. Program administrator
Give the name, title and contact details of the person who runs the program, and list their duties: setting goals, outreach, internal training, monitoring and reporting.
8. Equitable opportunity
Describe what you do so each category gets a fair chance to compete: outreach before award, breaking large packages into smaller ones, reasonable bid deadlines and attending outreach events.
9. Flow-down
Commit to including the Utilization of Small Business Concerns clause in your subcontracts. Lower-tier subcontracts above the threshold need their own plans.
10. Reports and cooperation
Commit to cooperate with studies and surveys, to file individual subcontract reports (ISR) twice a year and summary subcontract reports (SSR) once a year, and to make sure your large subcontractors with plans do the same.
11. Records you will keep
List the records you keep: source lists, solicitations and the firms that responded, why small businesses were not selected, outreach contacts and internal guidance. These records double as your good faith effort documentation.
12–13. Using the small businesses in your proposal
Commit to a good faith effort to use the small businesses you relied on in your proposal, at the same or greater scope, amount and quality. If you fall short, you must explain why in writing to the contracting officer within 30 days of contract completion.
14. No restrictions on subcontractors
State that you will not prohibit subcontractors from discussing payment or utilization matters with the contracting officer.
15. Timely payment
Commit to paying small business subcontractors on time, and to notifying the contracting officer of any reduced or late payments.
FOR PRIME CONTRACTORS
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Mistakes that get plans sent back
- Goals calculated as a share of the contract value instead of planned subcontracting dollars.
- Category goals that add up to more than the small business total because the overlap is not explained.
- Boilerplate methods with no link to the actual work packages.
- Old thresholds or old clause language copied from a past proposal.
- No named administrator, or one who has never seen the plan.
What we would do in your position
- Build the goals from the bill of materials, not from last year’s percentages.
- Line up certified firms before you set the goals, so the numbers are achievable.
- Keep the plan and your outreach log together. The same records support your reports and any compliance review.
- Hand it to a specialist if the deadline is tight. GERC writes subcontracting plans for prime contractors, runs the outreach and can join your team as a certified, woman-owned small business. See how we work with primes or book a call.
Subcontracting plan template: frequently asked questions
Is there an official small business subcontracting plan template?
The FAR does not prescribe a form. A plan must contain every element listed in FAR 52.219-9, so the best template follows those elements in order. Some agencies publish their own formats, and when they do, use theirs.
What is the subcontracting plan threshold in 2026?
A plan is required for other-than-small businesses on contracts expected to exceed $900,000, or $2 million for construction of a public facility. The thresholds rose from $750,000 and $1.5 million on October 1, 2025.
Are subcontracting goals a percentage of the contract value?
No. Goals are stated in dollars and as a percentage of total planned subcontracting dollars.
Do small businesses need a subcontracting plan?
No. Small business concerns are exempt from the subcontracting plan requirement.
What reports does a subcontracting plan require?
Under an individual plan, contractors file an individual subcontract report twice a year and a summary subcontract report once a year. Commercial plans file one annual summary report.
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Prefer to talk now? Call (909) 454-7076 or email info@gercconsulting.com.