Subcontractor Solicitation Plan for New GSA Contract Proposals

Subcontracting is a common practice in the world of government contracts, especially when it comes to securing a General Services Administration (GSA) contract. It involves partnering with other businesses to fulfill specific parts of a government project. It helps small businesses to partner up with the large vendors and play a critical role in the U.S. economy growth. In this article, we'll explore the essential aspects of subcontracting, specifically focusing on the subcontractor solicitation plan required for new GSA contract proposals.

• Are Subcontracting Plans Required for GSA Orders?
• What is a Subcontracting Plan GSA?
• What is Included in a Subcontracting Plan?
• Is a Subcontracting Plan Required?
• Understanding GSA Schedule Subcontracting Rules 

Are Subcontracting Plans Required for GSA Orders?

Before going through the details of what a subcontractor solicitation plan involves, let’s first address a fundamental question: Are subcontracting plans required for GSA orders?

Yes, subcontracting plans are indeed required for GSA orders. When a business seeks to secure a GSA contract, they must provide a subcontracting plan for small business as part of their proposal. This plan outlines how they intend to include small businesses, particularly those owned by minorities, women, veterans, and other disadvantaged groups, in the performance of the contract.

The U.S. government places great importance on encouraging the participation of small businesses in federal subcontracting opportunities. By requiring subcontracting plans for GSA orders, they aim to create opportunities for these businesses to share in the government procurement marketplace.

Now that we understand the importance of subcontracting plans for GSA orders, let’s delve deeper into what these plans actually entail and what they should include.

What is a Subcontracting Plan GSA?

A GSA subcontracting plan is like a roadmap for businesses looking to win a GSA contract. When a company wants to work with the government through a GSA contract, they have to make a plan that says how they will share the work with other businesses. This sharing is often with small businesses run by people from different backgrounds. The U.S. government wants to give small businesses a chance to be part of big government projects, and that’s why they ask for these plans.

You might wonder who needs to make a plan like this. Well, it’s mostly the bigger businesses. If a business holds a contract above a certain money limit, they have to make a subcontracting plan. It’s a way to make sure that the smaller companies get a piece of the action and work on government projects too. In the next section, we’ll go into more detail about what these plans should contain.

What is Included in a Subcontracting Plan?

Now that we know what a GSA subcontracting plan is, let’s dive into what goes into making one. There are two main types of plans, and they depend on what a business offers to the government. If a business sells products, they use what’s called a “commercial subcontracting plan.” On the other hand, if they provide services, it’s called an “individual plan.” These plans are like the business’s promise to include small companies in their work. Here’s a simple breakdown of what you’ll find in these plans:

1. Commercial Plan (For Product Sellers):

• Describes the products the business is offering to the government.
• Sets goals for how much of the work will go to small businesses.
• Explains how the business will find and involve small businesses in the project.
• 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.

2. Individual Plan (For Service Providers):

• Talks about the services the business will provide to the government.
• Sets targets for how much of the job will be done by small businesses.
• Tells how the business will reach out to and get small businesses involved in the work.
• 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.

Subcontracting plan helps the government see how the work will be shared and how everyone, especially small businesses, will be a part of the project. In the next section, we’ll explore whether having a subcontracting plan is a must and why it’s so important in the world of government contracts.

Is a Subcontracting Plan Required?

Now that we’ve uncovered the basics of what goes into a subcontracting plan, you might wonder if having one is a must. The simple answer? Yes, in most cases, having a subcontracting plan is a requirement when aiming for a GSA contract. GSA has made available a subcontractor plan template for proposers, accessible on GSA’s website. But let’s break it down in straightforward terms.

For GSA contractors, here’s the deal: If your business is not a small one in the main category GSA uses, and your GSA contract is going to be worth more than $700,000 (or $1.5 million if it’s about building stuff), you need to make a plan. This plan is like a promise that you’ll share some of the work with smaller businesses.

it’s a way to make sure smaller businesses, especially those run by different folks like minorities, women, veterans, and others, get a chance to be part of big government projects.

The U.S. Small Business Administration (SBA) plays a role in deciding if a subcontracting plan is necessary. For the bigger contracts, those that go over certain money limits, having a subcontracting plan is a must. The SBA, together with the GSA regulations, sets the rules for these requirements.

So, is it a big deal? Absolutely. Having a subcontracting plan isn’t just a checkbox to mark; it’s a way for businesses to show they’re serious about sharing the work and giving smaller players a shot at the government contracting game. In the next part, we’ll dive deeper into the specifics of GSA Schedule subcontracting rules, providing you with a simple guide to navigate this essential aspect of government contracting. Stick around for more insights on this subject.

Understanding GSA Schedule Subcontracting Rules 

GSA Schedule subcontracting rules are like the guidelines for the game when you’re working with the government. To keep tabs on how well everyone is playing, large businesses need to submit regular reports using the Electronic Subcontract Reporting System (eSRS). Even if there are no active plays, they still need to submit reports. Think of it as sharing the field with different players. If your business is not exactly small and your contract is going to be a good chunk of money (more than $700,000 or $1.5 million for building things), you might need a subcontracting plan. This plan is your way of saying, “Hey, we’re open to teaming up with smaller businesses if there’s a chance.” It’s the fair play strategy, making sure everyone gets a shot at the opportunities. Large businesses need to make sure their subcontractors are also playing by the rules. It’s like ensuring every player, no matter their role, follows the game plan. Prime contractors might need to pass down some of the rules to their subcontractors. They obtain a plan from their commercial market representative, making sure everyone is on the same page. So, if you’re jumping into the GSA contract game, remember the rules – they’re like the referee making sure everyone gets a fair go at winning.

If you are a GSA schedule holder looking for government subcontracting opportunities for your business, experts at Price Reporter – GSA contract specialist, are ready to assist you. We also provide the service to get GSA schedule, if you are not authorized by the General Services Administration yet. feel free to contact us and our team is more than happy to walk you through the process of new GSA contract acquisition.