Office of Procurement, Acquisition and Logistics (OPAL)
Small Business Subcontracting Plans
Federal contractors are required to maintain an acceptable subcontracting plan if they are an other than small business (including all subsidiaries and affiliates, both foreign and domestic) and the estimated dollar value of the base contract and all option periods exceeds, or is expected to exceed, $750,000.
Contractors that meet this criteria must establish a subcontracting plan with specific dollar and percent goals for subcontracting to small, HUBZone small, small disadvantaged, small women-owned, Veteran-owned small, and service-disabled Veteran-owned small business firms. This plan must be in place prior to contract award. The requirement to submit a subcontracting plan does not apply to:
- Small businesses
- Contracts under the prescribed dollar amounts
- Prime contracts not offering subcontracting possibilities
- Contracts to be performed entirely outside the United States
Commercial vs. Individual Plans
| Plan Type | Description | eSRS Reporting Requirements |
|---|---|---|
| Commercial | A subcontracting plan that covers the company’s fiscal year and that applies to the entire production of commercial items sold by either the entire company or a portion thereof (i.e. division, plant, or product line). A commercial plan is the preferred type of subcontracting plan for contractors furnishing commercial items. |
Annual |
| Individual | A subcontracting plan that covers the entire contract period and has goals that are based on the company’s planned purchases of products and services needed to support a specific Federal contract (i.e. VA Federal Supply Schedule contract). | Semi-Annual |
VA Subcontracting Goals
The 2024 VA subcontracting goals are based upon total procurement dollars expended and are the suggested minimum goals for VA administered subcontracting plans.
- 17.5% — Small Business
- 7.0% — Veteran Owned Small Business
- 5.0% — Service Disabled Veteran Owned Small Business
- 5.0% — Small Disadvantaged Businesses (includes Section 8(a))
- 5.0% — Woman-Owned Small Business
- 3.0% — Historically Underutilized Business (HUB) Zone Small Business
Subcontracting Plan Training
Review the VA FSS Subcontracting Plan Preparation Guide (PPTX, 1.52 MB, 56 slides) (11/05/2024) for detailed information on how to complete the VA FSS Subcontracting Plan Template!
Subcontracting Plan Template
Download the current VA FSS subcontracting plan template (10/2024).NOTE: This is a suggested format only. Other formats are acceptable; however, all elements required by FAR 52.219-9 must be included for your plan to be processed and approved.
Reporting Requirements
electronic Subcontracting Reporting System (eSRS)
Contractors are required to report all subcontracting achievements through the eSRS. For an overview of eSRS and step-by-step instructions on how to submit the required reports:
Summary Subcontract Report (SSR) – applies to all planholders
- Download the eSRS Overview and Reporting Guide for SSRs (09/2024, PPTX, 46 pages, 612 KB)
- Listen to the eSRS Overview and Reporting Guide for SSRs webinar (09/2024)
Individual Subcontract Report (ISR) – applies only to individual planholders
- Download the eSRS Reporting Guide for ISRs if you are an individual planholder (09/2024, PPTX, 35 pages, 1.32 MB)
- Listen to the eSRS Overview and Reporting Guide for ISRs webinar (09/2024)
Subcontracting Plan Review & Approval Process
- Receipt: Submit your proposed submit subcontracting plan to the FSS subcontracting plan administrator. Email all plans to the FSS Subcontracting Plan Help Desk.
- FSS Review: Plans are reviewed in the order they are received. The FSS subcontracting plan administrator will work with your firm to make adjustments or updates to your proposed plan.
- SBA Review: Your plan will then be reviewed by the Small Business Administration (SBA). SBA’s comments will be considered and may be incorporated into your plan.
- Approval and Incorporation: Your plan will be incorporated into your solicitation award package or into your contract via contract modification.
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