What Are the Limitations on Subcontracting?

Performance constraints on covered awards

Limitations on subcontracting restrict specified subcontracted performance for covered awards. They are different from small-business subcontracting-plan goals. Satisfying one requirement does not establish compliance with the other.

Do not reduce the rules to one universal percentage or a simple requirement that a prime personally does all the work. Calculations and treatment differ by contract category and applicable provisions.

Review before structuring the team

1. 01Identify the clauses and program requirements applying to the award.
2. 02Determine the contract category and measurement approach.
3. 03Review the role and status of similarly situated subcontractors where relevant.
4. 04Account for downstream subcontracting and work distribution.
5. 05Establish how performance will be tracked and documented.

Status is not a substitute for analysis

A proposed teammate's small-business status or certification does not automatically make every arrangement permissible. Joint ventures, affiliation considerations, and program-specific rules may also matter. Obtain qualified advice for complex structures before promising a workshare.

Manage after award

Monitor actual performance rather than relying only on the proposal's allocation. Changes in scope, personnel, subcontractors, or status can affect compliance. Keep a clear owner for the calculation and records. This guide is a starting review, not a legal determination of a team's eligibility.