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Small Business Subcontracting Plan

Small Business Subcontracting

Small businesses play a critical role in the U.S. economy by encouraging innovation, making markets more competitive, and providing about half of all private sector U.S. jobs. As a major consumer of U.S. goods and services, the U.S. government recognizes the importance of leveraging its tremendous purchasing power to benefit small businesses.

A small business subcontracting plan is a material part of a GSA Schedule contract that explains how an “Other Than Small Business” contractor will provide small businesses (SB), Veteran-Owned Small Businesses (VOSB), Service-Disabled Veteran-Owned Small Businesses (SDVOSB), Small Disadvantaged Businesses (SDB), Women-Owned Small Businesses (WOSB), and Historically Underutilized Business Zone (HUBZone) small business concerns with the maximum practicable opportunity to participate in the performance of a federal contract or subcontract. “Other Than Small Business” (OTSB) includes large businesses, state and local governments, non-profit organizations, public utilities, educational institutions, and foreign-owned firms that receive Federal contracts, if any portion of the contract is to be performed in the United States.

GSA Schedule contractors are offered the choice of an Individual Subcontracting Plan or a Commercial Subcontracting Plan:

Commercial Plan:

  • The preferred type of plan for GSA Schedule contractors offering products
  • Based on company-wide spend / subcontracting activity (both commercial and government-related)
  • Negotiated annually based upon the company’s fiscal year and satisfies requirements for all government contracts—only one plan is required regardless of the number of federal contracts held
  • Requires one SSR annually

Here’s a template example for a Commercial Small Business Subcontracting Plan.

Individual Plan:

  • The preferred type of plan for GSA Schedule contractors offering services
  • Based on subcontracting activity under a specific GSA Schedule contract and can include either Direct or Indirect spend
  • Negotiated at the time of award for the entire contract period of performance (may or may not include option periods)
  • Requires two ISR and one SSR annually

Here’s a template example for an Individual Small Business Subcontracting Plan

Progress Reporting

All progress reports must be submitted via the Electronic Subcontracting Reporting System at

Summary Subcontracting Report (SSR):

  • Submitted annually following the end of the government fiscal year by October 30th
  • Shows subcontracting awards (subcontracting costs incurred by the contractor) during the fiscal year involved

Individual Subcontracting Report (ISR):

  • Submitted semi-annually by April 30th and October 30th
  • Shows subcontracting costs incurred under the specific GSA Schedule contract and is a cumulative report, showing all costs incurred since inception of the contract