When it comes to government contracts, subcontracting plans are an important component of the bidding process. These plans outline the agreements between the prime contractor and subcontractors regarding the work that will be performed under the contract. But what happens when the contract is being performed entirely outside of the United States? Are subcontracting plans still required?
The short answer is no, subcontracting plans are not required for contracts performed entirely outside of the United States. However, it`s important to note that this only applies to contracts that are awarded to domestic prime contractors. If a foreign prime contractor is awarded the contract, it may still be subject to subcontracting plan requirements.
The Federal Acquisition Regulation (FAR) outlines the rules and regulations surrounding subcontracting plans. According to FAR 19.702, a subcontracting plan is required for any contract, other than a small business set-aside, that is expected to exceed $700,000 ($1.5 million for construction). The plan must include specific information about the subcontracting opportunities available and the goals for small business participation.
However, FAR 19.705-5 makes an exception for contracts that are performed entirely outside of the United States. In these cases, the prime contractor is not required to submit a subcontracting plan. This is because the Small Business Administration (SBA) does not have jurisdiction over contracts that are performed outside of the United States.
It`s important to note that even though subcontracting plans may not be required for contracts performed entirely outside of the United States, prime contractors should still consider subcontracting opportunities. Working with local subcontractors can help ensure that the work is completed in a timely and efficient manner, and can help establish relationships that may be valuable for future projects.
In conclusion, subcontracting plans are not required for contracts performed entirely outside of the United States, as long as they are awarded to domestic prime contractors. However, prime contractors should still consider subcontracting opportunities in order to ensure the success of the project and build valuable relationships with local subcontractors.