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section5.206

Notices of subcontracting opportunities

Overview

FAR 5.206 establishes the procedures and criteria for prime contractors and subcontractors to publicize subcontracting opportunities on the Government-wide Point of Entry (GPE) to foster competition and satisfy small business participation goals.

Key Rules

  • Eligibility to Post: Notices may be submitted by prime contractors with contracts exceeding the simplified acquisition threshold (SAT) or by subcontractors/suppliers at any tier with opportunities exceeding $20,000.
  • Target Entities: The primary objective is to increase participation from specific small business categories, including HUBZone, small disadvantaged, women-owned, veteran-owned, and service-disabled veteran-owned small business concerns.
  • Purpose: These notices are intended to help contractors meet established subcontracting plan goals and broaden the competitive base for sub-tier requirements.
  • Mandatory Content: Every notice must include a description of the business opportunity, any applicable prequalification requirements, and instructions on how to obtain the necessary technical data for a response.

Practical Implications

  • Compliance Tool: Posting to the GPE (SAM.gov) serves as a primary method for prime contractors to demonstrate "good faith efforts" in meeting the requirements of their formal Small Business Subcontracting Plans.
  • Market Research: For small businesses, this section ensures a centralized location to find high-value subcontracting leads that might otherwise be handled through private, closed-network solicitations.

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