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52.219-9 / Basic

Far 52.219-9 small business subcontracting plan. basic (sep 2023) (current).

As prescribed in 19.708(b), 

1) Insert the clause at 52.219-9, Small Business Subcontracting Plan, in solicitations and contracts that offer subcontracting possibilities, are expected to exceed $750,000 ($1.5 million for construction of any public facility), and are required to include the clause at 52.219-8, Utilization of Small Business Concerns, unless the acquisition is set aside or is to be accomplished under the 8(a) program. When-

  (i) Contracting by sealed bidding rather than by negotiation, the contracting officer shall use the clause with its Alternate I;

  (ii) Contracting by negotiation, and subcontracting plans are required with initial proposals as provided for in 19.705-2(d), the contracting officer shall use the clause with its Alternate II;

  (iii) The contract action will not be reported in the Federal Procurement Data System pursuant to 4.606(c)(5), or (c)(6), the contracting officer shall use the clause with its Alternate III; or

  (iv) Incorporating a subcontracting plan due to a modification as provided for in 19.702(a)(1)(iii), the contracting officer shall use the clause with its Alternate IV.

(2) Insert the clause at 52.219-16, Liquidated Damages-Subcontracting Plan, in all solicitations and contracts containing the clause at 52.219-9, Small Business Subcontracting Plan, or the clause with its Alternate I, II, III, or IV.  

Small Business Subcontracting Plan (Sep 2023)

      (a) This clause does not apply to small business concerns.

      (b) Definitions . As used in this clause—

      Alaska Native Corporation ( ANC ) means any Regional Corporation, Village Corporation, Urban Corporation, or Group Corporation organized under the laws of the State of Alaska in accordance with the Alaska Native Claims Settlement Act, as amended ( 43 U.S.C. 1601 , et seq. ) and which is considered a minority and economically disadvantaged concern under the criteria at 43 U.S.C. 1626(e)(1) . This definition also includes ANC direct and indirect subsidiary corporations, joint ventures, and partnerships that meet the requirements of 43 U.S.C. 1626(e)(2) .

      Commercial plan means a subcontracting plan (including goals) that covers the offeror ’s fiscal year and that applies to the entire production of commercial products and commercial services sold by either the entire company or a portion thereof ( e.g., division, plant, or product line).

      Commercial product means a product that satisfies the definition of “ commercial product ” in Federal Acquisition Regulation (FAR) 2.101 .

      Commercial service means a service that satisfies the definition of “ commercial service ” in FAR 2.101 .

      Electronic Subcontracting Reporting System (eSRS ) means the Governmentwide, electronic, web-based system for small business subcontracting program reporting. The eSRS is located at http://www.esrs.gov .

      Indian tribe means any Indian tribe , band, group, pueblo, or community, including native villages and native groups (including corporations organized by Kenai, Juneau, Sitka, and Kodiak) as defined in the Alaska Native Claims Settlement Act ( 43 U.S.C. 1601 et seq.), that is recognized by the Federal Government as eligible for services from the Bureau of Indian Affairs in accordance with 25 U.S.C. 1452(c) . This definition also includes Indian-owned economic enterprises that meet the requirements of 25 U.S.C. 1452(e) .

      Individual subcontracting plan means a subcontracting plan that covers the entire contract period (including option periods), applies to a specific contract, and has goals that are based on the offeror 's planned subcontracting in support of the specific contract, except that indirect costs incurred for common or joint purposes may be allocated on a prorated basis to the contract.

      Master subcontracting plan means a subcontracting plan that contains all the required elements of an individual subcontracting plan , except goals, and may be incorporated into individual subcontracting plans , provided the master subcontracting plan has been approved.

      Reduced payment means a payment that is for less than the amount agreed upon in a subcontract in accordance with its terms and conditions, for supplies and services for which the Government has paid the prime contractor.

      Subcontract means any agreement (other than one involving an employer-employee relationship) entered into by a Federal Government prime Contractor or subcontractor calling for supplies or services required for performance of the contract or subcontract .

      Total contract dollars means the final anticipated dollar value, including the dollar value of all options .

      Untimely payment means a payment to a subcontractor that is more than 90 days past due under the terms and conditions of a subcontract for supplies and services for which the Government has paid the prime contractor.

      (c)(1) The Offeror , upon request by the Contracting Officer, shall submit and negotiate a subcontracting plan, where applicable, that separately addresses subcontracting with small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns . If the Offeror is submitting an individual subcontracting plan , the plan must separately address subcontracting with small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns , with a separate part for the basic contract and separate parts for each option (if any). The subcontracting plan shall be included in and made a part of the resultant contract. The subcontracting plan shall be negotiated within the time specified by the Contracting Officer . Failure to submit and negotiate the subcontracting plan shall make the Offeror ineligible for award of a contract.

           (2)(i) The Contractor may accept a subcontractor's written representations of its size and socioeconomic status as a small business, small disadvantaged business, veteran-owned small business, service-disabled veteran-owned small business, or a women-owned small business if the subcontractor represents that the size and socioeconomic status representations with its offer are current, accurate, and complete as of the date of the offer for the subcontract .

                (ii) The Contractor may accept a subcontractor's representations of its size and socioeconomic status as a small business, small disadvantaged business, veteran-owned small business, service-disabled veteran-owned small business, or a women-owned small business in the System for Award Management (SAM ) if–

                     (A) The subcontractor is registered in SAM ; and

                     (B) The subcontractor represents that the size and socioeconomic status representations made in SAM are current, accurate and complete as of the date of the offer for the subcontract .

                (iii) The Contractor may not require the use of SAM for the purposes of representing size or socioeconomic status in connection with a subcontract .

                (iv) In accordance with 13 CFR 121.411, 126.900, 127.700, and 128.600, a contractor acting in good faith is not liable for misrepresentations made by its subcontractors regarding the subcontractor's size or socioeconomic status.

      (d) The Offeror ’s subcontracting plan shall include the following:

           (1) Separate goals, expressed in terms of total dollars subcontracted, and as a percentage of total planned subcontracting dollars, for the use of small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns as subcontractors. For individual subcontracting plans , and if required by the Contracting Officer , goals shall also be expressed in terms of percentage of total contract dollars , in addition to the goals expressed as a percentage of total subcontract dollars. The Offeror shall include all subcontracts that contribute to contract performance, and may include a proportionate share of products and services that are normally allocated as indirect costs . In accordance with 43 U.S.C. 1626 :

                (i) Subcontracts awarded to an ANC or Indian tribe shall be counted towards the subcontracting goals for small business and small disadvantaged business concerns , regardless of the size or Small Business Administration certification status of the ANC or Indian tribe ; and

                (ii) Where one or more subcontractors are in the subcontract tier between the prime Contractor and the ANC or Indian tribe , the ANC or Indian tribe shall designate the appropriate Contractor(s) to count the subcontract towards its small business and small disadvantaged business subcontracting goals.

                     (A) In most cases, the appropriate Contractor is the Contractor that awarded the subcontract to the ANC or Indian tribe .

                     (B) If the ANC or Indian tribe designates more than one Contractor to count the subcontract toward its goals, the ANC or Indian tribe shall designate only a portion of the total subcontract award to each Contractor. The sum of the amounts designated to various Contractors cannot exceed the total value of the subcontract .

                     (C) The ANC or Indian tribe shall give a copy of the written designation to the Contracting Officer , the prime Contractor, and the subcontractors in between the prime Contractor and the ANC or Indian tribe within 30 days of the date of the subcontract award.

                     (D) If the Contracting Officer does not receive a copy of the ANC ’s or the Indian tribe ’s written designation within 30 days of the subcontract award, the Contractor that awarded the subcontract to the ANC or Indian tribe will be considered the designated Contractor.

           (2) A statement of–

                (i) Total dollars planned to be subcontracted for an individual subcontracting plan ; or the Offeror 's total projected sales, expressed in dollars, and the total value of projected subcontracts , including all indirect costs except as described in paragraph (g) of this clause, to support the sales for a commercial plan;

                (ii) Total dollars planned to be subcontracted to small business concerns (including ANC and Indian tribes );

                (iii) Total dollars planned to be subcontracted to veteran-owned small business concerns ;

                (iv) Total dollars planned to be subcontracted to service-disabled veteran-owned small business;

                (v) Total dollars planned to be subcontracted to HUBZone small business concerns;

                (vi) Total dollars planned to be subcontracted to small disadvantaged business concerns (including ANCs and Indian tribes ); and

                (vii) Total dollars planned to be subcontracted to women-owned small business concerns .

           (3) A description of the principal types of supplies and services to be subcontracted, and an identification of the types planned for subcontracting to-

                (i) Small business concerns;

                (ii) Veteran-owned small business concerns ;

                (iii) Service-disabled veteran-owned small business concerns ;

                (iv) HUBZone small business concerns;

                (v) Small disadvantaged business concerns ; and

                (vi) Women-owned small business concerns .

           (4) A description of the method used to develop the subcontracting goals in paragraph (d)(1) of this clause.

           (5) A description of the method used to identify potential sources for solicitation purposes ( e.g. , existing company source lists, SAM , veterans service organizations, the National Minority Purchasing Council Vendor Information Service, the Research and Information Division of the Minority Business Development Agency in the Department of Commerce, or small, HUBZone , small disadvantaged, and women-owned small business trade associations). A firm may rely on the information contained in SAM as an accurate representation of a concern's size and ownership characteristics for the purposes of maintaining a small, veteran-owned small, service-disabled veteran-owned small, HUBZone small, small disadvantaged, and women-owned small business source list. Use of SAM as its source list does not relieve a firm of its responsibilities ( e.g. , outreach, assistance, counseling, or publicizing subcontracting opportunities) in this clause.

           (6) A statement as to whether or not the Offeror included indirect costs in establishing subcontracting goals, and a description of the method used to determine the proportionate share of indirect costs to be incurred with–

                (i) Small business concerns (including ANC and Indian tribes );

                (v) Small disadvantaged business concerns (including ANC and Indian tribes ); and

           (7) The name of the individual employed by the Offeror who will administer the Offeror 's subcontracting program, and a description of the duties of the individual.

           (8) A description of the efforts the Offeror will make to assure that small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns have an equitable opportunity to compete for subcontracts .

           (9) Assurances that the Offeror will include the clause of this contract entitled "Utilization of Small Business Concerns" in all subcontracts that offer further subcontracting opportunities, and that the Offeror will require all subcontractors (except small business concerns) that receive subcontracts in excess of the applicable threshold specified in FAR 19.702 (a) on the date of subcontract award, with further subcontracting possibilities to adopt a subcontracting plan that complies with the requirements of this clause.

           (10) Assurances that the Offeror will–

                (i) Cooperate in any studies or surveys as may be required;

                (ii) Submit periodic reports so that the Government can determine the extent of compliance by the Offeror with the subcontracting plan;

                (iii) After November 30, 2017, include subcontracting data for each order when reporting subcontracting achievements for indefinite-delivery, indefinite-quantity contracts with individual subcontracting plans where the contract is intended for use by multiple agencies;

                (iv) Submit the Individual Subcontract Report (ISR) and/or the Summary Subcontract Report (SSR), in accordance with paragraph (l) of this clause using the Electronic Subcontracting Reporting System (eSRS ) at http://www.esrs.gov . The reports shall provide information on subcontract awards to small business concerns (including ANCs and Indian tribes that are not small businesses), veteran-owned small business concerns , service-disabled veteran-owned small business concerns , HUBZone small business concerns, small disadvantaged business concerns (including ANCs and Indian tribes that have not been certified by the Small Business Administration as small disadvantaged businesses), women-owned small business concerns , and for NASA only, Historically Black Colleges and Universities and Minority Institutions . Reporting shall be in accordance with this clause, or as provided in agency regulations;

                (v) Ensure that its subcontractors with subcontracting plans agree to submit the ISR and/or the SSR using eSRS ;

                (vi) Provide its prime contract number, its unique entity identifier , and the e-mail address of the Offeror ’s official responsible for acknowledging receipt of or rejecting the ISRs, to all first-tier subcontractors with subcontracting plans so they can enter this information into the eSRS when submitting their ISRs; and

                (vii) Require that each subcontractor with a subcontracting plan provide the prime contract number, its own unique entity identifier , and the e-mail address of the subcontractor’s official responsible for acknowledging receipt of or rejecting the ISRs, to its subcontractors with subcontracting plans.

           (11) A description of the types of records that will be maintained concerning procedures that have been adopted to comply with the requirements and goals in the plan, including establishing source lists; and a description of the offeror ’s efforts to locate small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns and award subcontracts to them. The records shall include at least the following (on a plant-wide or company-wide basis, unless otherwise indicated):

                (i) Source lists ( e.g., SAM ), guides, and other data that identify small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns .

                (ii) Organizations contacted in an attempt to locate sources that are small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, or women-owned small business concerns .

                (iii) Records on each subcontract solicitation resulting in an award of more than the simplified acquisition threshold , as defined in FAR 2.101 on the date of subcontract award, indicating-

                     (A) Whether small business concerns were solicited and, if not, why not;

                     (B) Whether veteran-owned small business concerns were solicited and, if not, why not;

                     (C) Whether service-disabled veteran-owned small business concerns were solicited and, if not, why not;

                     (D) Whether HUBZone small business concerns were solicited and, if not, why not;

                     (E) Whether small disadvantaged business concerns were solicited and, if not, why not;

                     (F) Whether women-owned small business concerns were solicited and, if not, why not; and

                     (G) If applicable, the reason award was not made to a small business concern.

                (iv) Records of any outreach efforts to contact-

                     (A) Trade associations;

                     (B) Business development organizations;

                     (C) Conferences and trade fairs to locate small, HUBZone small, small disadvantaged, service-disabled veteran-owned, and women-owned small business sources; and

                     (D) Veterans service organizations.

                (v) Records of internal guidance and encouragement provided to buyers through-

                     (A) Workshops, seminars, training, etc.; and

                     (B) Monitoring performance to evaluate compliance with the program’s requirements.

                (vi) On a contract-by-contract basis, records to support award data submitted by the offeror to the Government, including the name, address, and business size of each subcontractor. Contractors having commercial plans need not comply with this requirement.

           (12) Assurances that the Offeror will make a good faith effort to acquire articles, equipment, supplies , services, or materials, or obtain the performance of construction work from the small business concerns that it used in preparing the bid or proposal, in the same or greater scope, amount, and quality used in preparing and submitting the bid or proposal. Responding to a request for a quote does not constitute use in preparing a bid or proposal. The Offeror used a small business concern in preparing the bid or proposal if–

                (i) The Offeror identifies the small business concern as a subcontractor in the bid or proposal or associated small business subcontracting plan, to furnish certain supplies or perform a portion of the subcontract ; or

                (ii) The Offeror used the small business concern's pricing or cost information or technical expertise in preparing the bid or proposal, where there is written evidence of an intent or understanding that the small business concern will be awarded a subcontract for the related work if the Offeror is awarded the contract.

           (13) Assurances that the Contractor will provide the Contracting Officer with a written explanation if the Contractor fails to acquire articles, equipment, supplies , services or materials or obtain the performance of construction work as described in (d)(12) of this clause. This written explanation must be submitted to the Contracting Officer within 30 days of contract completion.

           (14) Assurances that the Contractor will not prohibit a subcontractor from discussing with the Contracting Officer any material matter pertaining to payment to or utilization of a subcontractor.

           (15) Assurances that the offeror will pay its small business subcontractors on time and in accordance with the terms and conditions of the underlying subcontract , and notify the contracting officer when the prime contractor makes either a reduced or an untimely payment to a small business subcontractor (see 52.242-5).

      (e) In order to effectively implement this plan to the extent consistent with efficient contract performance, the Contractor shall perform the following functions:

           (1) Assist small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns by arranging solicitations , time for the preparation of bids, quantities, specifications, and delivery schedules so as to facilitate the participation by such concerns. Where the Contractor’s lists of potential small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, and women-owned small business subcontractors are excessively long, reasonable effort shall be made to give all such small business concerns an opportunity to compete over a period of time.

           (2) Provide adequate and timely consideration of the potentialities of small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns in all "make-or-buy" decisions.

           (3) Counsel and discuss subcontracting opportunities with representatives of small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, and women-owned small business firms.

           (4) Confirm that a subcontractor representing itself as a HUBZone small business concern is certified by SBA as a HUBZone small business concern by accessing SAM or by accessing the Dynamic Small Business Search (DSBS) at https://web.sba.gov/​pro-net/​search/​dsp_​dsbs.cfm .

           (5) Provide notice to subcontractors concerning penalties and remedies for misrepresentations of business status as small, veteran-owned small business, HUBZone small, small disadvantaged, or women-owned small business for the purpose of obtaining a subcontract that is to be included as part or all of a goal contained in the Contractor’s subcontracting plan.

           (6) For all competitive subcontracts over the simplified acquisition threshold , as defined in FAR 2.101 on the date of subcontract award, in which a small business concern received a small business preference, upon determination of the successful subcontract offeror , prior to award of the subcontract the Contractor must inform each unsuccessful small business subcontract offeror in writing of the name and location of the apparent successful offeror and if the successful subcontract offeror is a small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, or women-owned small business concern .

           (7) Assign each subcontract the NAICS code and corresponding size standard that best describes the principal purpose of the subcontract .

      (f) A master subcontracting plan on a plant or division-wide basis that contains all the elements required by paragraph (d) of this clause, except goals, may be incorporated by reference as a part of the subcontracting plan required of the Offeror by this clause; provided-

           (1) The master subcontracting plan has been approved;

           (2) The Offeror ensures that the master subcontracting plan is updated as necessary and provides copies of the approved master subcontracting plan , including evidence of its approval, to the Contracting Officer ; and

           (3) Goals and any deviations from the master subcontracting plan deemed necessary by the Contracting Officer to satisfy the requirements of this contract are set forth in the individual subcontracting plan .

      (g) A commercial plan is the preferred type of subcontracting plan for contractors furnishing commercial products and commercial services . The commercial plan shall relate to the offeror ’s planned subcontracting generally, for both commercial and Government business, rather than solely to the Government contract. Once the Contractor’s commercial plan has been approved, the Government will not require another subcontracting plan from the same Contractor while the plan remains in effect, as long as the product or service being provided by the Contractor continues to meet the definition of a commercial product or commercial service . A Contractor with a commercial plan shall comply with the reporting requirements stated in paragraph (d)(10) of this clause by submitting one SSR in eSRS for all contracts covered by its commercial plan. A Contractor authorized to use a commercial subcontracting plan shall include in its subcontracting goals and in its SSR all indirect costs , with the exception of those such as the following: Employee salaries and benefits; payments for petty cash; depreciation ; interest; income taxes; property taxes; lease payments; bank fees; fines, claims , and dues; original equipment manufacturer relationships during warranty periods (negotiated up front with the product); utilities and other services purchased from a municipality or an entity solely authorized by the municipality to provide those services in a particular geographical region; and philanthropic contributions. This report shall be acknowledged or rejected in eSRS by the Contracting Officer who approved the plan. This report shall be submitted within 30 days after the end of the Government’s fiscal year.

      (h) Prior compliance of the offeror with other such subcontracting plans under previous contracts will be considered by the Contracting Officer in determining the responsibility of the offeror for award of the contract.

      (i) A contract may have no more than one subcontracting plan. When a contract modification exceeds the subcontracting plan threshold in FAR 19.702 (a), or an option is exercised, the goals of the existing subcontracting plan shall be amended to reflect any new subcontracting opportunities. When the goals in a subcontracting plan are amended, these goal changes do not apply retroactively.

      (j) Subcontracting plans are not required from subcontractors when the prime contract contains the clause at FAR 52.212-5, Contract Terms and Conditions Required to Implement Statutes or Executive Orders- Commercial Products and Commercial Services , or when the subcontractor provides a commercial product or commercial service subject to the clause at FAR 52.244-6, Subcontracts for Commercial Products and Commercial Services , under a prime contract.

      (k) The failure of the Contractor or subcontractor to comply in good faith with (1) the clause of this contract entitled "Utilization Of Small Business Concerns;" or (2) an approved plan required by this clause, shall be a material breach of the contract and may be considered in any past performance evaluation of the Contractor.

      (l) The Contractor shall submit ISRs and SSRs using the web-based eSRS at http://www.esrs.gov . Purchases from a corporation, company, or subdivision that is an affiliate of the Contractor or subcontractor are not included in these reports. Subcontract awards by affiliates shall be treated as subcontract awards by the Contractor. Subcontract award data reported by the Contractor and subcontractors shall be limited to awards made to their immediate next-tier subcontractors. Credit cannot be taken for awards made to lower tier subcontractors, unless the Contractor or subcontractor has been designated to receive a small business or small disadvantaged business credit from an ANC or Indian tribe . Only subcontracts involving performance in the United States or its outlying areas should be included in these reports with the exception of subcontracts under a contract awarded by the State Department or any other agency that has statutory or regulatory authority to require subcontracting plans for subcontracts performed outside the United States and its outlying areas .

           (1) ISR . This report is not required for commercial plans. The report is required for each contract containing an individual subcontracting plan .

                (i) The report shall be submitted semi-annually during contract performance for the periods ending March 31 and September 30. A report is also required for each contract within 30 days of contract completion. Reports are due 30 days after the close of each reporting period, unless otherwise directed by the Contracting Officer . Reports are required when due, regardless of whether there has been any subcontracting activity since the inception of the contract or the previous reporting period. When the Contracting Officer rejects an ISR, the Contractor shall submit a corrected report within 30 days of receiving the notice of ISR rejection.

                (ii)(A) When a subcontracting plan contains separate goals for the basic contract and each option , as prescribed by FAR 19.704 (c), the dollar goal inserted on this report shall be the sum of the base period through the current option ; for example, for a report submitted after the second option is exercised, the dollar goal would be the sum of the goals for the basic contract, the first option , and the second option .

                     (B) If a subcontracting plan has been added to the contract pursuant to 19.702 a)(1)(iii) or 19.301-2 (e), the Contractor's achievements must be reported in the ISR on a cumulative basis from the date of incorporation of the subcontracting plan into the contract.

                (iii) When a subcontracting plan includes indirect costs in the goals, these costs must be included in this report.

                (iv) The authority to acknowledge receipt or reject the ISR resides–

                     (A) In the case of the prime Contractor, with the Contracting Officer ; and

                     (B) In the case of a subcontract with a subcontracting plan, with the entity that awarded the subcontract .

           (2) SSR .

(i) Reports submitted under individual contract plans–

                     (A) This report encompasses all subcontracting under prime contracts and subcontracts with an executive agency , regardless of the dollar value of the subcontracts . This report also includes indirect costs on a prorated basis when the indirect costs are excluded from the subcontracting goals.

                     (B) The report may be submitted on a corporate, company or subdivision ( e.g. plant or division operating as a separate profit center) basis, unless otherwise directed by the agency.

                     (C) If the Contractor or a subcontractor is performing work for more than one executive agency , a separate report shall be submitted to each executive agency covering only that agency's contracts, provided at least one of that agency's contracts is over the applicable threshold specified in FAR 19.702 (a), and the contractand contains a subcontracting plan. For DoD, a consolidated report shall be submitted for all contracts awarded by military departments/agencies and/or subcontracts awarded by DoD prime contractors.

                     (D) The report shall be submitted annually by October 30 for the twelve month period ending September 30. When a Contracting Officer rejects an SSR, the Contractor shall submit a revised report within 30 days of receiving the notice of SSR rejection.

                     (E) Subcontract awards that are related to work for more than one executive agency shall be appropriately allocated.

                     (F) The authority to acknowledge or reject SSRs in eSRS , including SSRs submitted by subcontractors with subcontracting plans, resides with the Government agency awarding the prime contracts unless stated otherwise in the contract.

                (ii) Reports submitted under a commercial plan -

                     (A) The report shall include all subcontract awards under the commercial plan in effect during the Government's fiscal year and all indirect costs .

                     (B) The report shall be submitted annually, within thirty days after the end of the Government's fiscal year.

                     (C) If a Contractor has a commercial plan and is performing work for more than one executive agency , the Contractor shall specify the percentage of dollars attributable to each agency.

                     (D) The authority to acknowledge or reject SSRs for commercial plans resides with the Contracting Officer who approved the commercial plan.

(End of clause)  

  (j) Subcontracting plans are not required from subcontractors when the prime contract contains the clause at FAR 52.212-5, Contract Terms and Conditions Required to Implement Statutes or Executive Orders- Commercial Products and Commercial Services , or when the subcontractor provides a commercial product or commercial service subject to the clause at FAR 52.244-6, Subcontracts for Commercial Products and Commercial Services , under a prime contract.

      (k) The failure of the Contractor or subcontractor to comply in good faith with (1) the clause of this contract entitled "Utilization Of Small Business Concerns;" or (2) an approved plan required by this clause, shall be a material breach of the contract and may be considered in any past performance evaluation of the Contractor.  

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Legal news and notes for small government contractors

Published by koprince mccall pottroff llc  |  edited by shane j. mccall, far update: good faith in small business subcontracting.

For many contracts, large businesses must establish and have the government approve a subcontracting plan that details the goals and efforts the large prime contractor will take to award subcontracts to various types of small businesses. Well, how does the government hold large businesses accountable for these goals? The FAR will soon have a final rule addressing good faith efforts to comply with a small business subcontracting plan.

Back in late 2019, SBA updated its own rules on subcontracting plans to address. The SBA rules were intended to make it easier to hold large business prime contractors accountable for meeting the goals of their small business subcontracting plans. In line with the  2017 NDAA , SBA updated its rules found at  13 C.F.R. § 125.3(d)  so that it will be a material breach of a contract or subcontract if a contractor with a subcontracting plan fails to comply in good faith with the requirement to submit reports and cooperate with agencies to determine subcontracting plan compliance. 

Now, the FAR has followed suit in a rule effective September 10, 2021. This will eliminate the inconsistencies between the FAR and SBA rules, which is always nice so both contractors and agencies are on the same page when it comes to subcontracting plans. Here’s a little background on the changes.

Small business subcontracting plans are required from large prime contractors when a contract is expected to exceed $750,000 ($1.5 million for construction) and has subcontracting possibilities. These plans are required for the acquisition of commercial items and COTS items.

FAR 19.704 lists what is required in these plans. This includes goals for subcontracting efforts to provide fair opportunities to compete for subcontracts for various types of small business concerns, including small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns. Failure to make a good faith effort to comply with the plan can result in liquidated damages under FAR 52.219-16 .

There are two main changes in the rule. First, all indirect costs, with certain exceptions, are included in commercial plans and summary subcontract report (SSRs). Second, revised FAR 19.705-7 now has examples of a good faith efforts to comply with a subcontracting plan, and examples of a failure to make a good faith effort.

Here are some takeaways from the implementation of this rule.

Material Breach . The comments to the rule make clear that “a failure to make a good faith effort to comply with a subcontracting plan is a material breach, sufficient for the assessment of liquidated damages, and also for other remedies the Government may have.” So, this is not something to be taken lightly by prime contractors operating under a subcontracting plan.

Key Good Faith Actions . The rule provides examples of actions that indicated good faith efforts to comply with the subcontracting plan. Here are a few of those:

• Market research to identify small businesses “through all reasonable means, such as searching SAM, posting notices or solicitations on SBA’s SUBNet, participating in business matchmaking events, and attending preproposal conferences.”
• “Assisting interested small businesses in obtaining bonding, lines of credit, required insurance, necessary equipment, supplies, materials, or services.”
• “Participating in a formal mentor-protégé program with one or more small business protégés.”

Like the SBA rule, the FAR rule now provides examples of actions that could be considered “failure to make a good faith effort to comply with a subcontracting plan” at FAR 19.705-7 . Contractors should take a close look at these examples. But here are some highlights:

• Turning in subcontracting plan reports late.
• Not paying small business subcontractors “terms of the contract” with them.
• Not having a designated employee to monitor the subcontracting plan.
• Failure to maintain records or procedures to show compliance with subcontracting plan requirements.
• Not doing market research (such as outreach, industry days, and database searches) to identify small business subcontractors.
• “If a contractor does not either correct substantiated findings or participate in subcontracting plan management training offered by the Government, it could be perceived by the contracting officer as a failure to make a good faith effort.”

But the rule is clear that agencies need to look at “the totality of the contractor’s actions” and, interestingly, mere failure “to meet its subcontracting goals does not, in and of itself, constitute a failure to make a good faith effort.” And there is an example of what may constitute a valid explanation: if there are no available small business sources for certain types of work.

Rebuttal . Note that there is an opportunity for a contractor to respond to an accusation of failure to make good faith efforts. In the rule on liquidated damages, it states: “Before the Contracting Officer makes a final decision that the Contractor has failed to make such good faith effort, the Contracting Officer shall give the Contractor written notice specifying the failure and permitting the Contractor to demonstrate what good faith efforts have been made and to discuss the matter.” As in most things in dealing with government agencies (and other aspects of life), failure to respond can be taken as an admission of fault.

This new rule is important for both large prime contractors and subcontractors. Prime contractors need to make sure they are making these good faith efforts to comply and provide actual opportunities for subcontractors. By that same token, it’s good for small business subcontractors to know about these rules as well and take advantage of these opportunities. Now that the FAR has been updated, there’s no excuse for large prime contractors not to comply and no excuse for agencies not to enforce these rules.

Questions about this post?  Email us  or give us a call at 785-200-8919 .

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• Clean-Up on Aisle "FAR": Joint Venture and Subcontracting Plan Rules Get Modernized
• Room for Improvement: GAO Reviews Agency Oversight of Small Business Subcontracting Plans
• FAR Final Rule: Increased Micro-Purchase and Simplified Acquisition Thresholds

48 CFR § 19.704 - Subcontracting plan requirements.

(a) Each subcontracting plan required under 19.301 –2(e) and 19.702(a)(1)(i) , (ii), and (iii) shall include—

(1) Separate percentage goals for using small business (including ANCs and Indian tribes), veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business (including ANCs and Indian tribes) and women-owned small business concerns as subcontractors;

(2) A statement of the total dollars planned to be subcontracted and a statement of the total dollars planned to be subcontracted to small business (including ANCs and Indian tribes), veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business (including ANCs and Indian tribes) and women-owned small business concerns, as a percentage of total subcontract dollars. For individual subcontracting plans only, a contracting officer may require the goals referenced in paragraph (a)(1) of this section to be calculated as a percentage of total contract dollars , in addition to the goals established as a percentage of total subcontract dollars;

(3) A description of the principal types of supplies and services to be subcontracted and an identification of types of supplies or services planned for subcontracting to small business (including ANCs and Indian tribes), veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business (including ANCs and Indian tribes), and women-owned small business concerns;

(4) A description of the method used to develop the subcontracting goals;

(5) A description of the method used to identify potential sources for solicitation purposes;

(6) A statement as to whether or not the offeror included indirect costs in establishing subcontracting goals (for commercial plans , see paragraph (d) of this section), and a description of the method used to determine the proportionate share of indirect costs to be incurred with small business (including ANCs and Indian tribes), veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business (including ANCs and Indian tribes), and women-owned small business concerns;

(7) The name of an individual employed by the offeror who will administer the offeror's subcontracting program, and a description of the duties of the individual;

(8) A description of the efforts the offeror will make to ensure that small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns have an equitable opportunity to compete for subcontracts;

(9) Assurances that the offeror will include the clause at 52.219 –8, Utilization of Small Business Concerns (see 19.708(a) ), in all subcontracts that offer further subcontracting opportunities, and that the offeror will require all subcontractors (except small business concerns) that receive subcontracts in excess of $750,000 ($ 1.5 million for construction) to adopt a plan that complies with the requirements of the clause at 52.219 –9, Small Business Subcontracting Plan (see 19.708(b) );

(10) Assurances that the offeror will—

(i) Cooperate in any studies or surveys as may be required;

(ii) Submit periodic reports so that the Government can determine the extent of compliance by the offeror with the subcontracting plan;

(iii) After November 30, 2017, include subcontracting data for each order when reporting subcontracting achievements for indefinite-delivery, indefinite-quantity contracts with individual subcontracting plans where the contract is intended for use by multiple agencies;

(iv) Submit the Individual Subcontract Report (ISR), and the Summary Subcontract Report (SSR) using the Electronic Subcontracting Reporting System (eSRS) ( http://www.esrs.gov ), following the instructions in the eSRS.

(A) The ISR shall be submitted semi-annually during contract performance for the periods ending March 31 and September 30. A report is also required for each contract within 30 days of contract completion. Reports are due 30 days after the close of each reporting period, unless otherwise directed by the contracting officer. Reports are required when due, regardless of whether there has been any subcontracting activity since the inception of the contract or the previous reporting period. When a contracting officer rejects an ISR, the contractor is required to submit a revised ISR within 30 days of receiving the notice of the ISR rejection.

(B) The SSR shall be submitted annually by October 30 for the twelve-month period ending September 30. When an SSR is rejected, the contractor is required to submit a revised SSR within 30 days of receiving the notice of SSR rejection;

(v) Ensure that its subcontractors with subcontracting plans agree to submit the ISR and/or the SSR using the eSRS;

(vi) Provide its prime contract number, its unique entity identifier , and the e-mail address of the offeror's official responsible for acknowledging receipt of or rejecting the ISRs to all first-tier subcontractors with subcontracting plans so they can enter this information into the eSRS when submitting their ISRs; and

(vii) Require that each subcontractor with a subcontracting plan provide the prime contract number, its own unique entity identifier, and the e-mail address of the subcontractor's official responsible for acknowledging receipt of or rejecting the ISRs, to its subcontractors with subcontracting plans;

(11) A description of the types of records that will be maintained concerning procedures adopted to comply with the requirements and goals in the plan, including establishing source lists; and a description of the offeror's efforts to locate small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns and to award subcontracts to them;

(12) Assurances that the offeror will make a good faith effort to acquire articles, equipment, supplies, services, or materials, or obtain the performance of construction work from the small business concerns that the offeror used in preparing the bid or proposal, in the same or greater scope, amount, and quality used in preparing and submitting the bid or proposal. Responding to a request for a quote does not constitute use in preparing a bid or proposal. An offeror used a small business concern in preparing the bid or proposal if—

(i) The offeror identifies the small business concern as a subcontractor in the bid or proposal or associated small business subcontracting plan, to furnish certain supplies or perform a portion of the contract; or

(ii) The offeror used the small business concern 's pricing or cost information or technical expertise in preparing the bid or proposal, where there is written evidence of an intent or understanding that the small business concern will be awarded a subcontract for the related work if the offeror is awarded the contract;

(13) Assurances that the contractor will provide the contracting officer with a written explanation if the contractor fails to acquire articles, equipment, supplies, services or materials or obtain the performance of construction work as described in (a)(12) of this section. This written explanation will be submitted to the contracting officer within 30 days of contract completion;

(14) Assurances that the contractor will not prohibit a subcontractor from discussing with the contracting officer any material matter pertaining to payment to or utilization of a subcontractor; and

(15) Assurances that the offeror will pay its small business subcontractors on time and in accordance with the terms and conditions of the subcontract , and notify the contracting officer if the offeror pays a reduced or an untimely payment to a small business subcontractor (see 52.242 –5).

(b) Contractors may establish, on a plant or division-wide basis, a master subcontractingplan (see 19.701 ) that contains all the elements required by the clause at 52.219 –9, Small Business Subcontracting Plan, except goals. Master subcontracting plans shall be effective for a 3-year period after approval by the contracting officer; however, it is incumbent upon contractors to maintain and update master subcontracting plans . Changes required to update master subcontracting plans are not effective until approved by the contracting officer. A master subcontracting plan , when incorporated in an individual plan, shall apply to that contract throughout the life of the contract.

(c) For multiyear contracts or contracts containing options, the cumulative value of the basic contract and all options is considered in determining whether a subcontracting plan is necessary. If a subcontracting plan is necessary and the offeror is submitting an individual subcontracting plan , the individual subcontracting plan shall contain all the elements required by paragraph (a) of this section and shall contain separate statements and goals based on total subcontract dollars for the basic contract and for each option.

(d) A commercial plan (as defined in 19.701 ) is the preferred type of subcontracting plan for contractors furnishing commercial products and commercial services. The subcontracting goals established for a commercial plan shall include all indirect costs with the exception of those such as the following: Employee salaries and benefits; payments for petty cash; depreciation; interest; income taxes; property taxes; lease payments; bank fees; fines, claims, and dues; original equipment manufacturer relationships during warranty periods (negotiated up front with the product); utilities and other services purchased from a municipality or an entity solely authorized by the municipality to provide those services in a particular geographical region; and philanthropic contributions. Once a contractor's commercial plan has been approved, the Government shall not require another subcontracting plan from the same contractor while the plan remains in effect, as long as the product or service being provided by the contractor continues to meet the definition of a commercial product or commercial service. The contractor shall—

(1) Submit the commercial plan to either the first contracting officer awarding a contract subject to the plan during the contractor's fiscal year, or, if the contractor has ongoing contracts with commercial plans , to the contracting officer responsible for the contract with the latest completion date. The contracting officer shall negotiate the commercial plan for the Government. The approved commercial plan shall remain in effect during the contractor's fiscal year for all Government contracts in effect during that period;

(2) Submit a new commercial plan , 30 working days before the end of the Contractor's fiscal year, to the contracting officer responsible for the uncompleted Government contract with the latest completion date. The contractor must provide to each contracting officer responsible for an ongoing contract subject to the plan, the identity of the contracting officer that will be negotiating the new plan;

(3) When the new commercial plan is approved, provide a copy of the approved plan to each contracting officer responsible for an ongoing contract that is subject to the plan; and

(4) Comply with the reporting requirements stated in paragraph (a)(10) of this section by submitting one SSR that includes all indirect costs, except as described in paragraph (d) of this section, in eSRS, for all contracts covered by its commercial plan . This report will be acknowledged or rejected in eSRS by the contracting officer who approved the plan. The report shall be submitted within 30 days after the end of the Government's fiscal year.

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Did You Know?… Threshold Changes for Small Business Sub Plans

Government policy says that a portion of each federal spending dollar should be used to help small businesses. Federal agencies put this into practice by requiring that large prime contractors submit a plan along with their proposals demonstrating how they will utilize small businesses in the performance of each federal contract. Historically, these plans were required on contracts with large prime contractors if the contract value exceeded $700,000 ($1.5 million for construction.)

Now, that number is changing.

In October, the Federal Register published a final rule from the DoD, GSA, and NASA to amend the Federal Acquisition Regulation on the small business subcontract plan dollar threshold. This rule, titled Inflation Adjustment of Acquisition-Related Thresholds, will increase the dollar threshold for prime contractor subcontracting plans from $700,000 to $750,000 in all industries besides construction. Where the $1.5 million threshold will go unchanged. (Check here for additional details.)

Large primes that meet this criteria must develop a subcontracting plan with specific dollar and percent goals for subcontracting to small businesses, HUBZone small, small disadvantaged, small women-owned, Veteran-owned small, and service-disabled, Veteran-owned small business firms.  Keep in mind that each agency has different goals and each subcontracting plan is unique to the contract.

This change is something that will impact both large and small government contractors.

• Large businesses must realize that the threshold has increased $700,000 to $750,000.
• Small business should take this opportunity to update their research on large prime contractors. Make a point of knowing which ones have small business subcontracting goals and where your business potentially could support them with their government contracts.

Subcontracting plans are instrumental in our small business community and have a significant footprint within our small business economy.

If you’re interested in learning more about subcontracting plans and how you can identify businesses with small business subcontracting plans, please reach out to your area government contracting specialist with the CIRAS Procurement Technical Assistance Center (PTAC). We are happy to assist.

For more, contact Julie Fagle at [email protected] .

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Published: April 18, 2024   |   Last Updated: April 18, 2024

Tas tax tip: small business tax highlights.

The form of business you operate determines what taxes you must pay and how you pay them. There are four general types of business taxes:

• Self-employment

All businesses must file annual income tax returns, except partnerships which file annual information returns. The form you use depends on your business structure ; see Publication 583, Starting a Business and Keeping Records , to decide what forms you should file to report your business income. Publication 509, Tax Calendars , explains when to file returns and make tax payments.

Self-Employment Tax

Self-employment (SE) tax is a social security and Medicare tax primarily for individuals who work for themselves. It is like the social security and Medicare taxes withheld from most employees’ wages by their employers. Your SE tax payments contribute to your coverage under the social security system. This coverage provides you with retirement, disability, survivor, and hospital insurance (Medicare) benefits.

You must file Schedule SE , Self-Employment Tax, with your federal income tax return, Form 1040 or Form 1040-SR, and pay SE tax if either of the following applies:

• Your net self-employment income was $400 or more; or
• You had church employee income of $108.28 or more.

Self-employed individuals in Puerto Rico use Form 1040-PR to compute self-employment tax.

Note :  Self-employed individuals generally must pay SE tax as well as income tax.

Employment Tax

When you have employees, you have certain employment taxes you must pay and forms you must file. Employment taxes include the following:

• Social security and Medicare taxes;
• Federal income tax withholding; and
• Federal unemployment (FUTA) tax.

You must also withhold Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year.

For additional information, refer to  Employment Taxes for Small Businesses and Publication 15, (Circular E), Employer’s Tax Guide .

You may be subject to Excise Tax if you do any of the following:

• Manufacture or sell certain products;
• Operate certain kinds of businesses;
• Use various kinds of equipment, facilities, or products; or
• Receive payment for certain services.

Excise taxes may be imposed on the manufacturer, retailer or consumer, depending on the specific tax.

For additional information, see Publication 510, Excise Taxes .

Estimated Tax

Taxes must be paid as you earn or receive income during the year, either through withholding or estimated tax payments. Estimated taxes are used to pay not only income tax, but other taxes such as self-employment tax.

Individuals, including sole proprietors, partners, and S corporation shareholders, generally must make estimated tax payments if they expect to owe at least $1,000 in tax after subtracting withholding and tax credits. Use the worksheet in Form 1040-ES , Estimated Tax for Individuals, to figure and pay your estimated tax.

Corporations generally must make estimated tax payments if they expect to owe at least $500 in taxes.

Note : S corporations must also make estimated tax payments for certain taxes, but instead use the instructions for Form 1120-S, U.S. Income Tax return for an S Corporation, to figure their estimated tax.

If you pay too little or pay late, you may have to pay an estimated tax penalty even if you are due a refund when you file your tax return.  For more information, see Publication 505, Tax Withholding and Estimated Tax .

Payment Options

You generally must deposit certain excise taxes, corporate income tax, and S corporation taxes before you file your return. You must use an electronic funds transfer (EFT) to make all federal tax deposits (FTDs). Generally, an EFT is made using the Electronic Federal Tax Payment System (EFTPS). If you don’t want to use EFTPS, you can arrange for your tax professional, financial institution, payroll service, or trusted third party to make EFT on your behalf.

For estimated tax purposes, the year is divided into  four payment periods . It’s important to remember that the payment periods are not spread evenly throughout the year. In general, estimated payments are due on April 15, June 15, September 15, and January 15 of the following year. You can mail your estimated tax payments with  Form 1040-ES , pay online , or pay by phone or from your mobile device using the  IRS2Go app . Visit  IRS.gov/payments  to view all payment options.

Ten Federal Tax Tips to Help Small Business Owners

April shouldn’t be the only time you’re thinking about taxes. Keep these tax tips in mind throughout the year so you’re prepared to maximize your deductions and credits.

• Know your limitations and know when you need to ask a professional for help: There are many Online Learning and Educational Products available to help you learn about taxes. For example, the IRS Tax Calendar has important tax dates for businesses. However, if you choose to hire a professional, it is important to choose carefully because you are trusting them with your personal information and relying on them to have the knowledge to help you file an accurate tax return. You are responsible for all the information on your tax returns, no matter who prepares them.

Note: ALL tax return preparers MUST sign their name and enter a preparer tax identification number on your tax return. For your protection, please check that they do this before submitting any documents.

• Keep adequate records: Accurate recordkeeping throughout the year will save you time and help ensure your tax return is correct. Set up a system for receipts. This can be a paper file, or you can use an app to scan and store them; just make sure you are saving them in some way.
• Separate your personal and business finances: Set up a separate bank account and credit card for your business and run only business expenses through those accounts. See Publication 583, Starting a Business and Keeping Records .
• Correctly classify your business: Some business structures enjoy more tax advantages than others. It’s important to choose the business structure that best suits your business. If you’re not sure which to choose, a tax attorney or certified public accountant can help.
• Manage payroll: You can take an online class to learn how to handle payroll. But if you don’t have the time, desire, or knowledge to manage payroll, hire someone to do it for you. To help make sure the company is reputable, see Outsourcing Payroll and Third Party Payers.
• Subscribe to e-News for Small Businesses: The IRS e-News for Small Businesses is a free electronic mail service that offers tax information for small business owners and self-employed individuals, including reminders, tips and special announcements.
• Research small business tax deductions: There is a long list of tax deductions for small business owners. See Publication 535, Business Expenses . A tax deduction is an item you can subtract from your gross income to lower the amount of taxes you owe.
• Self-employment tax deduction: You can deduct one-half (50 percent) of your SE tax as an adjustment to income on your federal income tax return. For tax years after 2017, you will also need to report the amount on Form 1040 Schedule 1, Part II.
• Make your tax payments timely: Anyone who files federal income tax returns and expects to owe more than $1,000 needs to pay estimated tax If you don’t pay enough tax through withholding and estimated tax payments, you may be charged a penalty. You also may be charged a penalty if your estimated tax payments are late, even if you are due a refund when you file your tax return.
• For faster processing, file your returns electronically: Electronic Filing Options for Business and Self-Employed Taxpayers .

TAS resources

• Getting an EIN
• Third Party Arrangements for Employment Taxes
• Choosing a Tax Return Preparer

IRS resources

• Self-Employed Individual Tax Center
• Publication 334, Tax Guide for Small Business
• Need someone to prepare your tax return?

Want to see the next total solar eclipse in 2026? An expert recommends booking travel now.

• 2026 will be Europe's first total solar eclipse in 27 years.
• Travelers worldwide will likely head to Spain, Iceland, and Greenland for the event.
• A hotel expert encouraged travelers to start planning and booking their trips now.

It'll be two decades before the next total solar eclipse hits the US .

Another option: hop on a plane to Europe and turn the 2026 total solar eclipse into a viewing vacation.

Eclipse cartographer Michael Zeiler at GreatAmericanEclipse.com told Space.com that up to 3.7 million people likely traveled for the solar eclipse on Monday.

HotelPlanner's chief communication officer, Philip Ballard, told Business Insider that the eclipse was a major revenue generator for many cities. For places like Austin, Texas, and Rochester, New York, it could have created $1 billion in revenue, Vox reported.

"I would say the total solar eclipse has become a global phenomenon," Ballard said.

Ballard added that the next solar eclipse , which will pass through Iceland, Greenland, and Spain on August 12, 2026, could result in similar tourism and revenue influxes.

And if travelers are considering a trip to Europe for the solar eclipse, Ballard recommends planning your trip now.

Determine your eclipse viewing destination

According to Space.com , 2026 will be Europe's first total solar eclipse in 27 years. Its path will go through Greenland, parts of western Iceland, and northern Spain.

Choosing where to watch the eclipse will be a tough and important decision for travelers.

Iceland and Greenland have some positives. These regions will experience longer totality times, so viewers can watch the eclipse longer. Plus, the sun will be higher in the sky, so finding a spot to watch the eclipse will be less challenging, Space.com reported.

The downside is that these regions are more likely to be cloudy, according to the outlet.

Related stories

While parts of Spain are likely to offer clearer skies, the eclipse's timing will be shorter and closer to the horizon, which means travelers will need to plan and track down a viewing location with unobstructed views of the western horizon, Space.com reported.

Regardless of the destination, according to the outlet, one bonus is that the strongest meteor shower in the Northern Hemisphere will happen the following night, so travelers can pack two events into one trip.

Book flights and hotels far in advance

Ballard encouraged people to book their hotels in their destination of choice as far in advance as possible.

"You should start looking now and booking hotels now because those cities in the path are already going to be at peak season," Ballard said.

Ballard said it's similar to when a Super Bowl city is determined or a Taylor Swift tour date is announced — you immediately see spikes in bookings. He predicts hotel occupancy rates will hit near-record highs, and room prices may double around the solar eclipse date.

Ballard's general rule of thumb is to book international travel at least three months in advance, but since this is such an anticipated event, booking earlier is smart. His advice is to start discussing plans with friends and family. If you decide on a destination, book a refundable room to keep your options open if plans change.

Regarding purchasing a plane ticket, a study from Expedia states that international travel's sweet spot is at least six months in advance.

According to Expedia, travelers who book six months in advance save an average of 10% more than travelers booking within two months or less.

Skip the hassle of planning altogether and book a solar eclipse tour

Another option is to let a tour operator do the work for you. A handful of tour companies have seen the increased interest in the solar eclipse and launched tours designed around the event.

These tours will have predetermined locations to view the eclipse, hotel blocks reserved, and itineraries highlighting both the region and the eclipse.

However, these can sell out quickly. For example, Space and Telescope created an 11-day tour of Spain around viewing the 2026 solar eclipse. The tour has already sold out as of Wednesday, and the waitlist is full.

Other operators, such as Wilderness Travel and Eclipse Traveler, have similar itineraries for the total eclipse in 2026.

Watch: A small Australian town was treated to a rare hybrid solar eclipse

• Main content

Change Number: DFARS Change 03/26/2024 Effective Date: 03/26/2024

252.219-7003 Small Business Subcontracting Plan (DoD Contracts).

Basic . As prescribed in 219.708 (b)(1)(A) and (b)(1)(A)( 1 ), use the following clause:

SMALL BUSINESS SUBCONTRACTING PLAN (DOD CONTRACTS)—BASIC (DEC 2019)

This clause supplements the Federal Acquisition Regulation 52.219-9, Small Business Subcontracting Plan, clause of this contract.

(a) Definitions. As used in this clause—

“Summary Subcontract Report (SSR) Coordinator” means the individual who is registered in the Electronic Subcontracting Reporting System (eSRS) at the Department of Defense level and is responsible for acknowledging receipt or rejecting SSRs submitted under an individual subcontracting plan in eSRS for the Department of Defense.

(b) Subcontracts awarded to qualified nonprofit agencies designated by the Committee for Purchase From People Who Are Blind or Severely Disabled (41 U.S.C. 8502-8504), may be counted toward the Contractor’s small business subcontracting goal (section 8025 of Pub. L. 108-87).

(c) A mentor firm, under the Pilot Mentor-Protege Program established under section 831 of Public Law 101-510, as amended, may count toward its small disadvantaged business goal, subcontracts awarded to—

(1) Protege firms which are qualified organizations employing the severely disabled; and

(2) Former protege firms that meet the criteria in section 831(g)(4) of Public Law 101-510.

(d) The master plan is approved by the Contractor's cognizant contract administration activity for the Contractor.

(e) In those subcontracting plans which specifically identify small businesses, the Contractor shall notify the Administrative Contracting Officer of any substitutions of firms that are not small business firms, for the small business firms specifically identified in the subcontracting plan. Notifications shall be in writing and shall occur within a reasonable period of time after award of the subcontract. Contractor-specified formats shall be acceptable.

(f)(1) For DoD, the Contractor shall submit reports in eSRS as follows:

(i) The Individual Subcontract Report (ISR) shall be submitted to the contracting officer at the procuring contracting office, even when contract administration has been delegated to the Defense Contract Management Agency.

(ii) Submit the consolidated SSR for an individual subcontracting plan to the “Department of Defense.”

(2) For DoD, the authority to acknowledge receipt or reject reports in eSRS is as follows:

(i) The authority to acknowledge receipt or reject the ISR resides with the contracting officer who receives it, as described in paragraph (f)(1)(i) of this clause.

(ii) The authority to acknowledge receipt of or reject SSRs submitted under an individual subcontracting plan resides with the SSR Coordinator.

(g) Include the clause at Defense Federal Acquisition Regulation Supplement (DFARS) 252.219-7004 , Small Business Subcontracting Plan (Test Program), in subcontracts with subcontractors that participate in the Test Program described in DFARS 219.702-70 , if the subcontract is expected to exceed the applicable threshold specified in Federal Acquisition Regulation 19.702(a), and to have further subcontracting opportunities.

(End of clause)

Alternate I.

Alternate I. As prescribed in 219.708 (b)(1)(A) and (b)(1)(A)( 2 ), use the following clause, which uses a different paragraph (f) than the basic clause.

Small Business Subcontracting Plan (DoD Contracts) - Alternate I (DEC 2019)

(a) Definition. As used in this clause -

Summary Subcontract Report (SSR) Coordinator means the individual who is registered in the Electronic Subcontracting Reporting System (eSRS) at the Department of Defense level and is responsible for acknowledging receipt or rejecting SSRs submitted under an individual subcontracting plan in eSRS for the Department of Defense.

(b) Subcontracts awarded to qualified nonprofit agencies designated by the Committee for Purchase From People Who Are Blind or Severely Disabled (41 U.S.C. 8502-8504), may be counted toward the Contractor's small business subcontracting goal (section 8025 of Pub. L. 108-87).

(c) A mentor firm, under the Pilot Mentor-Protege Program established under section 831 of Public Law 101-510, as amended, may count toward its small disadvantaged business goal, subcontracts awarded to -

(d) The master plan is approved by the cognizant contract administration activity for the Contractor.

(i) The Standard Form 294, Subcontracting Report for Individual Contracts, shall be submitted in accordance with the instructions on that form.

(ii) Submit the consolidated SSR to the “Department of Defense.”

(2) For DoD, the authority to acknowledge receipt of or reject SSRs submitted under an individual subcontracting plan in eSRS resides with the SSR Coordinator.

Alternate II. As prescribed in 219.708 (b)(1)(A) and (b)(1)(A)( 3 ), use the following clause, which uses different paragraphs (a) and (b) than the basic clause.

Small Business Subcontracting Plan (DoD Contracts) - Alternate II (DEC 2019)

(a) Definitions. As used in this clause -

Eligible contractor means a business entity operated on a for-profit or nonprofit basis that -

(1) Employs severely disabled individuals at a rate that averages not less than 33 percent of its total workforce over the 12-month period prior to issuance of the solicitation;

(2) Pays not less than the minimum wage prescribed pursuant to 29 U.S.C. 206 to the employees who are severely disabled individuals; and

(3) Provides, for its employees, health insurance and a retirement plan comparable to those provided for employees by business entities of similar size in its industrial sector or geographic region.

(b)(1) Subcontracts awarded to qualified nonprofit agencies designated by the Committee for Purchase From People Who are Blind or Severely Disabled (41 U.S.C. 8502-8504), may be counted toward the Contractor's small business subcontracting goal (section 8025 of Pub. L. 108-87).

(2) Subcontracts awarded to eligible contractors under the Demonstration Project for Contractors Employing Persons with Disabilities (see Defense Federal Acquisition Regulation Supplement (DFARS) 226.72) may be counted toward the Contractor's small disadvantaged business subcontracting goal (section 853 of Pub. L. 108-136, as amended by division H, section 110 of Pub. L. 108-199).

(c) A mentor firm, under the Pilot Mentor-Protege Program established under section 831 of Public Law 101-510, may count toward its small disadvantaged business goal, subcontracts awarded to -

(g) Include the clause at DFARS 252.219-7004 , Small Business Subcontracting Plan (Test Program), in subcontracts with subcontractors that participate in the Test Program described in DFARS 219.702-70 , if the subcontract is expected to exceed the applicable threshold specified in Federal Acquisition Regulation 19.702(a) and to have further subcontracting opportunities.

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