Research and Sponsored Programs

Office of the Vice Chancellor for Research

Small Business Subcontracting Plan (SBSP)

Page Updated: January 24, 2024

The federal government has detailed regulations requiring contractors to treat small businesses fairly and provide maximum opportunity for their participation in federal contract work (FAR 19.7 – The Small Business Subcontracting Program).

Under federal law, a small business is defined as an independently owned and operated entity thatis not dominate in its field of operation and that meets certain size standards. The size standards are defined in 13 CFR 121 and FAR Subpart 19.102. Small businesses may include:

• Veteran-owned small business
• Service-disabled veteran-owned small business
• HUBZone small business
• Women-owned small business

For certain federal contracts, the sponsor will require a Small Business Subcontracting Plan (SBSP).This plan outlines specific goals for subcontracting to various types of small businesses and details the process for reaching those goals and reporting progress.

Federal law requires a subcontracting plan if the value of contract exceeds a set dollar amount—currently $750,000. This amount is known as the “simplified acquisition threshold.¹”

For more details, visit...

 FAR 19.702 – Statutory Requirements

 FAR 52.219-8 – Utilization of Small Business Concerns

 FAR 52.219-9 – Small Business Subcontracting Plan

¹The simplified acquisition threshold relevant to the SBSP is defined in the Federal Acquisition Regulations (FAR)

It is the responsibility of the department to work with Business Services to complete the small business subcontracting plan. Please reach out to Eric Thompson, Procurement Manager eric.thompson@wisc.edu in Business Services-Purchasing for assistance.

Steps to create a Small Business Subcontracting Plan (SBSP) when required by the contract:

• Step 1:  If the sponsor or RSP notifies you that your contract needs a SBSP, review your contract to understand the reporting requirements (i.e. FAR 52.219-8 and 52.219-9). RSP will assist when it is time to report.
• Step 2: Develop your SBSP. Obtain an SBSP template from the sponsor. For assistance completing the SBSP template, the department/PI should contact Eric Thompson, eric.thompson@wisc.edu in Business Services.
• Step 3: Sign and submit your SBSP to the sponsor and send a final copy preaward@rsp.wisc.edu and attach at copy in RAMP. Sending the finalized SBSP will complete the award agreement and allow RSP to move forward with the award execution.

Elements required to process an Small Business Subcontracting Plan (SBSP):

1. The name of the granting agency.
2. The official title of the project as given by the granting agency.
3. The official solicitation or contract number the granting agency has assigned.
4. The date range for the project, with any Option Years broken out.
5. Clarification of whether we are the prime contractor or a sub-contractor for the prime.
6. The name and contact information (including e-mail) of the person at the granting agency who expects to receive the SBSP plan, along with their preferred method of receipt (original via FedEx vs. e-mailed “.pdf” of the signed document.
7. The SBSP template that the granting agency is expecting we use for our plan submittal.
8. The deadline for when the final plan must be submitted. Note: It’s strongly recommended to start at least three weeks prior to deadline.
9. The final budget summary page, along with an indication of whether the budget has been accepted yet or not.
10. The travel budget breakout page.
11. The materials and supplies budget break out page.
12. The equipment budget break-out page.
13. Any consultant, company or individual of any planned sub-contractor that is on your budget for the project.
14. A listing of the known vendor names from which you intend to purchase materials, supplies, or equipment from and the estimated spend with that vendor. Note: Please include the city name for the vendor’s home office if readily available.
15. The name and contact information for the departmental grant administrator who will be tracking or ordering the items for this grant.

Locating new small business vendors or determining if your established vendors are small businesses is the most confusing part of SBSP development. On campus, the Purchasing Department maintains a master vendor file, and commonly used small business vendors list. For assistance, contact 608-262-1526.

A source for finding potential vendors is the CCR website: https://dsbs.sba.gov/search/dsp_dsbs.cfm?CFID=29471&CFTOKEN=78cdb15467361a7b-6A5BD770-E333-FF1A-938ACBA04CBF9391

The federal government’s Office of Small and Disadvantaged Business Utilization https://www.commerce.gov/osdbu (SADBU) is another means of locating businesses within these special categories. Many government contracting sites have SADBU representatives who are eager to assist in small business plan preparation and in identifying potential small business sources.

Additionally, the U.S Government system (www.sam.gov) can be used to confirm that an entity is registered to conduct business with the federal government, and to confirm the size and small business status of the entity.

Other reference websites:
SBA website: http://www.sba.gov/
Small Disadvantaged Business | U.S. Small Business Administration (sba.gov)
https://www.sba.gov/federal-contracting/contracting-assistance-programs/hubzone-program
Diversity Business: http://www.diversitybusiness.com/
MBE’s on Wisconsin State Contracts: http://vendornet.state.wi.us/vendornet/wocc/Mbebltn.asp