Small Business Programs (Part 19)

FAR 52.219-9

Small Business Subcontracting Plan

Requires non-small primes to submit a formal Small Business Subcontracting Plan with quantitative goals across the small-business socioeconomic categories: SB, SDB, WOSB, HUBZone, VOSB, SDVOSB. Plans are evaluated, approved, and incorporated as contract terms. Performance is reported via the Individual Subcontract Report (ISR) and Summary Subcontract Report (SSR) in eSRS.

FAR / DFARS Part
FAR Part 19 — Small Business Programs
Prescribed By
FAR 19.708(b) — Required in solicitations expected to exceed $750K ($1.5M for construction) and offered to other than small business concerns.
Flow-down to Subcontracts

Not directly flowed down, but each large prime must require its other-than-small subs to submit their own plans on subs > thresholds (52.219-9(d)(10)).

What this clause requires

  • 1Quantitative subcontracting goals (dollars and percentages) for each socioeconomic category.
  • 2Description of methods to ensure subs are afforded equitable opportunities.
  • 3Designation of an employee responsible for the plan's administration.
  • 4Cooperation with SBA, agency Office of Small Business Programs, and CO during reviews.
  • 5Semi-annual ISR (per-contract) and annual SSR (across all federal work) in eSRS.
  • 6Liquidated damages may apply for failure to make good-faith efforts (FAR 52.219-16).

When this clause applies

Large primes (other than small) on contracts > $750K, or > $1.5M for construction. Three plan types: individual, master, commercial.

Alternates

Alt IUsed with the Individual Subcontract Report (ISR) requirement.
Alt IIUsed with the Summary Subcontract Report (SSR) requirement and an approved master plan.
Alt IIIUsed with a commercial subcontracting plan.
Alt IVUsed when the contract is for indefinite quantity or other circumstances requiring revised reporting.

Common pitfalls

!Setting unrealistically high goals — failure to meet them risks Liquidated Damages under 52.219-16.
!Forgetting eSRS reporting deadlines — semi-annual ISRs and annual SSRs are required and tracked.
!Naming a single point-of-contact who leaves without successor — administrative non-compliance.
!Treating the plan as boilerplate — agencies (especially DOD) increasingly score plans rigorously during source selection.

Proposal-team checklist

  • ☐Benchmark category goals against the agency's prior award data (use FPDS-NG to research norms).
  • ☐Identify named small-business subs in the plan with signed teaming agreements.
  • ☐Outline a tracking process for sub-payments and category spend (most agencies require monthly internal reporting).
  • ☐Designate primary and backup Subcontracting Plan Administrators.

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FAQ

Are small businesses required to submit a subcontracting plan?

No. The clause applies only to 'other than small business concerns.' Small primes are exempt.

Can I use a master plan?

Yes. Master plans approved by the cognizant agency can be referenced across multiple contracts (Alt II). They simplify administration.

What are Liquidated Damages under 52.219-16?

If the prime fails to make a 'good faith effort' to meet the plan's goals, the agency can assess liquidated damages equal to the dollar amount by which the prime failed to meet the goals. 'Good faith effort' is judged by documented outreach and tracking, not just whether goals were achieved.

Related clauses

FAR 52.219-8
Utilization of Small Business
FAR 52.219-14
Limitations on Subcontracting
FAR 52.219-28
Small Business Rerepresentation

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Reference content based on the Federal Acquisition Regulation and DFARS as of June 2026. Always verify the current clause text at acquisition.gov before relying on it for an actual submission. Educational reference; not legal advice.