FAR 5.206—Notices of subcontracting opportunities.
Plain-English Summary
FAR 5.206 explains when and how notices of subcontracting opportunities may be sent to the Governmentwide Point of Entry (GPE) to promote competition and broaden participation in federal subcontracting. It covers two categories of entities that may post notices: prime contractors on contracts above the simplified acquisition threshold that are likely to award subcontracts, and subcontractors or suppliers at any tier under contracts above the simplified acquisition threshold when the subcontracting opportunity exceeds $20,000. The section is aimed at increasing opportunities for HUBZone small business, small business, small disadvantaged business, women-owned small business, veteran-owned small business, and service-disabled veteran-owned small business concerns, and at helping primes meet subcontracting plan goals. It also specifies what the notice must include: a description of the business opportunity, any prequalification requirements, and where to obtain technical data needed to respond. In practice, this provision is a market-access tool that helps contractors publicize subcontracting work and helps small businesses find opportunities, while also supporting compliance with subcontracting plan commitments.
Key Rules
Who may post notices
A prime contractor awarded a contract exceeding the simplified acquisition threshold may transmit a notice to the GPE if the contract is likely to result in subcontracts. A subcontractor or supplier at any tier may also post a notice if the subcontracting opportunity exceeds $20,000 and is under a contract exceeding the simplified acquisition threshold.
Purpose of the notice
The notice is intended to seek competition for subcontracts, increase participation by HUBZone, small, small disadvantaged, women-owned small business, veteran-owned small business, and service-disabled veteran-owned small business concerns, and help meet subcontracting plan goals.
Thresholds matter
This section applies only when the underlying contract exceeds the simplified acquisition threshold. For lower-dollar opportunities, this FAR provision does not provide the same notice mechanism.
Required notice content
Each notice must describe the business opportunity, identify any prequalification requirements, and explain where to obtain the technical data needed to respond. The notice should give potential offerors enough information to decide whether they can compete.
Technical data access
If technical data is needed to respond, the notice must tell interested parties where and how to obtain it. This prevents notices from being incomplete or misleading and supports fair access to the opportunity.
Responsibilities
Contractor
If awarded a contract exceeding the simplified acquisition threshold and likely to award subcontracts, the contractor may transmit notices to the GPE to broaden competition and support subcontracting plan goals. The contractor must ensure the notice includes the required information.
Subcontractor or Supplier
At any tier, a subcontractor or supplier may transmit a notice to the GPE for a subcontracting opportunity exceeding $20,000 when the underlying contract exceeds the simplified acquisition threshold. The notice must be complete and accurate.
Potential Small Business Offerors
Review posted notices, assess whether the opportunity fits their capabilities, and follow any stated prequalification requirements and technical data instructions to respond properly.
Agency / GPE
Provide the Governmentwide Point of Entry as the posting venue for these notices and make the notices available for public viewing in support of competition and small business participation.
Practical Implications
This section gives primes and lower-tier subcontractors a formal way to advertise subcontracting work and reach a broader pool of small business firms.
A common pitfall is posting a notice without enough detail—especially omitting prequalification requirements or where to get technical data—which can reduce competition or make the notice noncompliant.
Another issue is misunderstanding the thresholds: the underlying contract must exceed the simplified acquisition threshold, and for subcontractor/supplier notices the opportunity itself must exceed $20,000.
Contractors using this tool should coordinate with subcontracting plan administration so posted opportunities align with small business goals and internal sourcing procedures.
Small businesses should watch for notices that appear to be open competition but actually include qualification gates or technical data access steps that must be completed before responding.
Official Regulatory Text
(a) The following entities may transmit a notice to the GPE to seek competition for subcontracts, to increase participation by HUBZone small business, small, small disadvantaged, women-owned small business, veteran-owned small business and service-disabled veteran-owned small business concerns, and to meet established subcontracting plan goals: (1) A contractor awarded a contract exceeding the simplified acquisition threshold that is likely to result in the award of any subcontracts. (2) A subcontractor or supplier, at any tier, under a contract exceeding the simplified acquisition threshold, that has a subcontracting opportunity exceeding $20,000. (b) The notices must describe- (1) The business opportunity; (2) Any prequalification requirements; and (3) Where to obtain technical data needed to respond to the requirement.