Sba small business subcontracting plan 2025

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The document is a Small Business Subcontracting Plan template designed to comply with Federal Acquisition Regulations (FAR) requirements. It outlines the necessary information and goals for subcontracting to small businesses, including various categories such as large businesses, small disadvantaged businesses, women-owned small businesses, and others. The plan includes sections for detailing contract values, subcontracting goals, products/services planned for subcontracting, methods for developing goals, and compliance monitoring. It emphasizes the importance of including small business participation in federal contracts.
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Federal law requires a subcontracting plan if the value of contract exceeds a set dollar amountcurrently $750,000. This amount is known as the simplified acquisition threshold.1
If the contract is valued at or above $750,000, you are required to participate in the Small Business Subcontracting Program. The program requires OTSBs to ensure that small businesses receive the maximum practicable opportunity to participate in contract performance.
When you are looking at supply chain procurement, there are three types of subcontractor: Domestic Subcontractors. Nominated Subcontractors. Named Subcontractors.
The IRS suggests you chose one of two capitalization thresholds for fixed-asset expenditures, either $2,500 or $5,000. The thresholds are the costs of capital items related to an asset that must be met or exceeded to qualify for capitalization. A business can elect to employ higher or lower capitalization thresholds.
A QSB is an active domestic C corporation with gross assets not exceeding $50 million when and immediately after the stock is issued. This valuation is based on the original cost of the assets.

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Ensuring all parties know their responsibilities and obligations is important to any project. The subcontractor agreement helps everyone avoid confusion, arguments, and legal matters that may arise without a written contract.
Revenue Procedures 2021-45 and 2022-38, section 3.31, increased the threshold for the gross receipts test for small business to $27 million for 2022 and $29 million for 2023.

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