FAR 19.707—The Small Business Administration’s role in carrying out the program.
Plain-English Summary
FAR 19.707 explains the Small Business Administration’s role in the subcontracting plan program and, just as importantly, its limits. It covers four affirmative SBA functions: helping agencies and contractors carry out subcontracting-plan responsibilities, reviewing certain solicitations before issuance, reviewing negotiated contractual documents and subcontracting plans before execution, and evaluating contractor compliance with subcontracting plans on either a contract-by-contract or aggregate basis. It also states three clear boundaries on SBA authority: SBA may not tell a contractor how much to subcontract, may not direct which concerns receive subcontracts, and may not take over administration of individual prime contracts or subcontracts. In practice, this section matters because it defines SBA as a review-and-advisory participant in the subcontracting plan process, not the contracting officer’s decision-maker or contract administrator. For contracting officers, it means SBA input may be required and should be considered, but the contracting officer retains procurement authority. For contractors, it means SBA may review their plans and performance, but SBA cannot micromanage subcontracting decisions beyond the statutory and regulatory framework.
Key Rules
SBA may assist parties
The SBA may help both agencies and contractors carry out their subcontracting-plan responsibilities. This includes guidance and support related to preparing, implementing, and understanding subcontracting plan requirements.
Preaward solicitation review
For solicitations meeting the dollar thresholds in 19.702(a)(1)(i) or (ii), the SBA may review the solicitation before it is issued. The review must occur within 5 working days, so agencies need to allow time for SBA input in the acquisition schedule.
Preexecution contract review
Before execution of a negotiated contractual document that requires a subcontracting plan, including the plan itself, the SBA may review the document and provide recommendations to the contracting officer within 5 working days. Those recommendations are advisory only and do not bind the contracting officer.
Compliance evaluation authority
The SBA may evaluate whether contractors comply with subcontracting plans. That review may be done on a contract-by-contract basis or, for contractors with multiple contracts, on an aggregate basis across contracts.
No control over subcontracting levels
The SBA is not authorized to prescribe how much a contractor or subcontractor must subcontract. Decisions about the extent of subcontracting remain with the contractor, subject to applicable law, regulation, and contract terms.
No control over subcontract awardees
The SBA may not specify which concerns must receive subcontracts. Contractors retain discretion to select subcontractors, consistent with competition, responsibility, socioeconomic requirements, and other applicable rules.
No contract administration authority
The SBA may not exercise authority over the administration of individual prime contracts or subcontracts. Contract administration remains with the contracting officer and other authorized officials, not SBA.
Responsibilities
Small Business Administration
Assist agencies and contractors with subcontracting-plan responsibilities; review qualifying solicitations and negotiated contractual documents within 5 working days; provide advisory recommendations to the contracting officer; and evaluate contractor compliance with subcontracting plans on a contract or aggregate basis.
Contracting Officer
Provide SBA the opportunity to review qualifying solicitations and negotiated contractual documents when required; consider SBA recommendations as advisory input; and retain responsibility for contract award, execution, and administration decisions.
Government Agencies
Coordinate with SBA as needed in the subcontracting-plan process, build time into acquisition planning for SBA review, and support oversight of subcontracting-plan requirements.
Contractors
Prepare and implement subcontracting plans when required; cooperate with SBA assistance and compliance evaluation; and remain responsible for their own subcontracting decisions and performance under the plan.
Practical Implications
Agencies should plan ahead for the 5-working-day SBA review windows so solicitations and negotiated documents are not delayed at the last minute.
SBA recommendations are advisory, so contracting officers should document their consideration of SBA comments without treating them as mandatory direction.
Contractors should not assume SBA can dictate subcontracting percentages or subcontractor selection; those decisions remain with the contractor, within the bounds of the contract and applicable rules.
Compliance reviews may be done across multiple contracts, so contractors with several subcontracting plans should manage performance holistically, not contract by contract only.
A common pitfall is confusing SBA oversight with contract administration; the contracting officer still controls administration, while SBA’s role is review, assistance, and compliance evaluation.
Official Regulatory Text
(a) Under the program, the SBA may- (1) Assist both Government agencies and contractors in carrying out their responsibilities with regard to subcontracting plans; (2) Review (within 5 working days) any solicitation that meets the dollar threshold in 19.702 (a)(1)(i) or (ii) before the solicitation is issued; (3) Review (within 5 working days) before execution any negotiated contractual document requiring a subcontracting plan, including the plan itself, and submit recommendations to the contracting officer, which shall be advisory in nature; and (4) Evaluate compliance with subcontracting plans, either on a contract-by-contract basis, or, in the case of contractors having multiple contracts, on an aggregate basis. (b) The SBA is not authorized to- (1) Prescribe the extent to which any contractor or subcontractor shall subcontract, (2) Specify concerns to which subcontracts will be awarded, or (3) Exercise any authority regarding the administration of individual prime contracts or subcontracts.