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Teaming & Subcontracting
Prime/sub structures, teaming vs JV, limitations-on-subcontracting math
What wins points
Create a compliant subcontracting plan that respects the 50 % services and 85 % construction limits and includes all required FAR 52.219‑9 goals.
What gets bids disqualified
Exceeding the statutory percentages or submitting an incomplete subcontracting plan will cause technical disqualification.
Evaluator's view
Verify that each small‑business category has separate dollar and percent goals and that subcontractor spend stays below the 50 %/85 % caps.
Teaming & Subcontracting
What this is
A concise guide for small‑business owners on how to structure prime/sub contracts, understand teaming versus joint ventures (JVs), and comply with the FAR 52.219‑14 limitations‑on‑subcontracting requirements.
When you need it
- Any solicitation that is set‑aside for small businesses (SBA, HUBZone, SDVOSB, etc.) and requires a subcontracting plan (see FAR 52.219‑9).
- Situations where you intend to prime a contract but must outsource work to other small‑business concerns.
- When evaluating whether a JV or a teaming agreement is permissible under the solicitation’s terms.
How to fill it in
- Identify the solicitation clauses – Look in Section L of the solicitation for FAR 52.219‑9 (Small Business Subcontracting Plan) and FAR 52.219‑14 (Limitations on Subcontracting). If either is absent, note that a plan is not required.
- Determine prime/sub structure – Decide whether you will:
- Act as the prime contractor and issue subcontract(s).
- Form a joint venture (JV) where each partner shares responsibility for the whole contract.
- Use a teaming agreement where a larger prime contracts with the government and your firm is a lower‑tier subcontractor.
- Calculate allowable subcontracting percentages –
- For services, you may not exceed 50 % of contract value paid to non‑similarly situated subcontractors (see FAR 52.219‑14).
- For construction, the limit is 85 % of contract value paid to such subcontractors (see FAR 52.219‑14). - Apply the appropriate limit to each portion of the contract (services vs. supplies vs. construction).
- Complete the Subcontracting Plan (if required) – Use the template in FAR 52.219‑9 (quoted below) and fill in:
- Total dollars planned for subcontracting.
- Dollars/percent for each small‑business category (SB, VOSB, SDVOSB, HUBZone, SDDB, WOSB).
- Methodology for goal development and source‑list identification.
- Document the teaming arrangement – Include:
- Names of all partners, their NAICS codes, and SBA size standards.
- Responsibilities of each partner (prime vs. subcontractor vs. JV member).
- Flow‑down clauses required by FAR 52.219‑9/14.
- Add placeholders for solicitation‑specific data – Insert
[PLACEHOLDER]wherever the solicitation dictates exact dollar limits, page limits, or performance dates.
Template
# Teaming & Subcontracting Plan – [Project Name] ## Contract Information - **Solicitation #:** [PLACEHOLDER] - **Contract type:** [Prime / JV / Teaming] - **Awarded value:** $[PLACEHOLDER] - **Period of performance:** [PLACEHOLDER] ## Subcontracting Structure | Role | Partner | NAICS | Size Standard | % of total work | |------|----------|-------|---------------|-----------------| | Prime (you) | Your Company | xxx | xx employees / $yy million | 100% | Sub‑1 | [Partner A] | xxx | SB | [PLACEHOLDER]% | Sub‑2 | [Partner B] | xxx | HUBZone | [PLACEHOLDER]% | ... | ... | ... | ... | ... | ## Limitations on Subcontracting (FAR 52.219‑14) - Services: **≤ 50 %** of contract value to non‑similarly situated entities. - Construction: **≤ 85 %** of contract value to non‑similarly situated entities. *Any exceedance must be documented and approved by the Contracting Officer.* ## Subcontracting Plan (FAR 52.219‑9) The Offeror must include a subcontracting plan that provides separate dollar and percentage goals for each small‑business category (SB, VOSB, SDVOSB, HUBZone, SDDB, WOSB) as required by FAR 52.219‑9. *Insert your calculated goals and methodology here.* *Insert your calculated goals and methodology here.* ## Outreach & Source List - SAM database search for NAICS xxx. - SBA Dynamic Small Business Search (DSBS). - Industry trade association directories. - Direct outreach to veteran‑owned, HUBZone, women‑owned networks. ## Compliance Assurance - Designated subcontracting officer: **[Name]**, contact **[email]**. - Quarterly review of subcontracting performance against goals. - Flow‑down clause inclusion in all subcontracts > $[PLACEHOLDER].
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