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About Subcontracting

Subcontracting is a great way to work with experienced prime contractors and do business with DHS. The resources on this page cover common questions and answers about subcontracting, as well as descriptions of the Electronic Subcontracting Reporting System (eSRS), an important resource for small business contractors.

Subcontract means any agreement (beyond an employer-employee) entered into by a Government prime contractor or subcontractor calling for supplies and/or services required for performance of the contract, contract modification, or subcontract.

A small business subcontractor cannot exceed the size standard for the North American Industry Classification Systems code that the prime contractor determines best describes the product or service provided by the subcontract. The Small Business Administration provides an Overview of Size Standards. For more information on small business size, visit the U.S. Small Business Administration.

The purpose of the subcontracting program is to provide the maximum practicable subcontracting opportunities for small businesses, including those owned and controlled by veterans, those owned and controlled by service-disabled veterans, businesses in a certified HUBZone, and those owned and controlled by socially and economically disadvantaged individuals, and those owned and controlled by women.

The subcontracting program implements section 8(d) of the Small Business Act, which includes the requirement that the prime contractor will submit a subcontracting plan to the appropriate contracting agency, unless otherwise exempt such as when a small business is awarded a contract that offer subcontracting possibilities by the Federal Government in excess of $750,000 (or in excess of $1,500,000 for construction of a public facility). The Federal Acquisition Regulation sets forth the requirements for subcontracting plans in 48 CFR 19.7 and the clause at 48 CFR 52.219-9.

Subcontracting and Reporting

DHS electronic Subcontracting Reporting Systems (eSRS)

This link accesses the Web-based systems that provide a single point of entry for federal government subcontracting requirements and reports.

Last Updated: 04/25/2024
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