As a small business owner, you may have heard of the small business subcontracting plan. This is a requirement that the federal government imposes on certain businesses that are awarded contracts. However, there are times when a small business subcontracting plan is not required.
First, it is important to understand what a small business subcontracting plan is. It is essentially a plan that outlines how a small business will subcontract a portion of the work on a federal contract. The plan must include specific goals and benchmarks related to subcontracting with various types of businesses, such as women-owned, minority-owned, and veteran-owned businesses. The government requires this plan to ensure that small businesses have opportunities to participate in federal contracts and to promote diversity in the federal contracting workforce.
Now, let`s take a look at when a small business subcontracting plan is not required.
1. The contract is not funded by the federal government.
If a contract is not funded by the federal government, then a small business subcontracting plan is not required. This means that if your business is awarded a contract by a state or local government or a private entity, you do not need to submit a subcontracting plan.
2. The contract is for commercial items.
If the contract is for commercial items, then a small business subcontracting plan is not required. This means that if your business is providing goods or services that are commercially available and used by the general public, you do not need to submit a subcontracting plan.
3. The contract is for less than $700,000 ($1.5 million for construction).
If the contract is for less than $700,000 ($1.5 million for construction), then a small business subcontracting plan is not required. This means that if your business is awarded a contract that falls below this threshold, you do not need to submit a subcontracting plan.
4. The contract is set aside for small businesses.
If the contract is set aside for small businesses, then a small business subcontracting plan is not required. This means that if your business is awarded a contract that is specifically designated for small businesses, you do not need to submit a subcontracting plan.
In conclusion, as a small business owner, it is important to know when a small business subcontracting plan is required and when it is not. If the contract is not funded by the federal government, for commercial items, for less than $700,000 ($1.5 million for construction), or set aside for small businesses, then a subcontracting plan is not required. However, if your business is awarded a federal contract that does require a subcontracting plan, it is important to take the time to create a thorough and well-researched plan that meets all of the government`s requirements.