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SMALL BUSINESS SUBCONTRACTING
Subcontracting opportunities play a vital role in enabling small businesses including SDVOSB and VOSB to build valuable experience, forge partnerships, and access significant Federal contracting opportunities.
When a Federal contract is awarded to an other than small business (or commonly referred to as a large business), exceeds a certain threshold, e.g. $750K ($1.5 million for construction), and subcontracting possibilities exist, the contract is required to include a small business subcontracting plan. The subcontracting plan must include the percentage goals for utilizing small business, and socio-economic categories of small business including SDVOSB and VOSB as subcontractors, the total dollars planned to be subcontracted, and the methods used to develop and achieve these goals. The small business subcontracting plan requirement ensures that small businesses have maximum practicable opportunities to participate in Federal contracts.
Subcontracting is a strategic entry point for small businesses looking to grow in the Federal marketplace. If offers a valuable opportunity to gain insight into agency operations and customer needs by working alongside experienced prime contractors. Subcontracting also helps build relevant past performance - often a critical factor in winning future prime contracts. In an environment where procurements shift toward larger, longer-term contracts, subcontracting provides a practical path for small businesses to stay competitive, demonstrate capability, and position themselves for future success.
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