Every year, the U.S. federal government establishes goals for the awards of prime contracts and subcontracts to small business concerns. While agencies are responsible for achieving these goals by awarding prime contracts to small businesses, contractors that are “other than small” are obliged to ensure that the small business subcontracting goals are met. Contractors that compete for a contract worth $750,000 or more ($1.5 million for construction contracts) must submit a small business subcontracting plan that specifies how a contractor will attract small businesses and will ensure that such businesses have a maximum practicable opportunity to subcontract. FAR 19.702. In the plan, contractors must indicate separate dollar and percentage goals for small businesses, provide a list of services and supplies to be subcontracted, and describe methods for securing small business subcontracts. FAR 19.704.
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