As a professional, I understand the importance of crafting articles that answer specific questions. That`s why in this article, we`ll be discussing the question, ”What is the dollar threshold for a subcontracting plan?”
First things first, let`s define what a subcontracting plan is. It`s a requirement for government contractors to submit a detailed plan on how they will utilize small businesses and disadvantaged businesses in their procurement process. This is done to ensure that a fair portion of federal contract dollars are awarded to small and disadvantaged businesses.
Now, to answer the question at hand. The dollar threshold for a subcontracting plan is determined by the value of the contract. The Federal Acquisition Regulation (FAR) states that any contract over $750,000 ($1.5 million for construction) requires a subcontracting plan.
This means that if a government contractor is awarded a contract valued at over $750,000 (or $1.5 million for construction), they must submit a detailed plan on how they will utilize small and disadvantaged businesses in their procurement process.
It`s important to note that even if a contract falls below the dollar threshold, the government contractor is still strongly encouraged to utilize small and disadvantaged businesses in their procurement process.
In conclusion, the dollar threshold for a subcontracting plan is based on the value of the contract. Any contract over $750,000 ($1.5 million for construction) requires a subcontracting plan. However, even if a contract falls below this threshold, government contractors are still encouraged to utilize small and disadvantaged businesses in their procurement process.