What is a Small Business Subcontracting Plan?
A Small Business Subcontracting Plan is required for all federal contracts (not grants) and subcontract awards over $950,000 total costs. Federal law requires recipients of federal funding over the threshold to commit to spend a percentage of the project costs with specific vendors that qualify under small business categories determined by the Small Business Administration.
The SBSP functions as a Purchasing Plan that projects the percentage of costs allocated under an award to small/disadvantaged businesses. Once a SBSP is awarded, the University reports its compliance with the Plan on a semi-annual basis to the federal government.
Who Qualifies?
UMB, Office of Strategic Sourcing and Acquisition Services is committed to support small businesses of all types to fully participate in the process of spending funds when buying goods and services for federal projects.
Statutory FAR requirements:
If you have questions or concerns regarding developing a Small Business Subcontracting Plan, please contact:
Please Note
SBSP requirements are only required on federal contracts or subcontracts exceeding $950,000. SBSP are not required when the award is issued as a grant or cooperative agreement. Please consider below these questions to determine if a SBSP is required under a federal contract:
- Will the award be issued as a contract (opposed to a grant or cooperative agreement)?
- Will the budget, over the project’s multiple years, exceed $950,000 in total cost?
If RFP/Solicitation meets the above criteria, please have the Principal Investigator complete and sign the required documentation for processing and return directly to the contact person above. Please allow 5-10 business days for processing of all SBSP, which will require an approved final budget for the Plan.