Subcontracting Goal Calculator
For large prime contractors: enter contract value, agency, and contract type to calculate the required SDVOSB subcontracting goal and full small business breakdown for your FAR 52.219-9 subcontracting plan.
Calculate SDVOSB subcontracting requirement
Sets agency-specific SDVOSB subcontracting goal % and plan threshold
Pre-fills the estimated subcontractable percentage
Enter the total prime contract value including all option years
Portion of contract value planned for subcontracting (auto-filled from contract type)
Goal percentages reflect agency-reported FY2025 subcontracting targets derived from SBA annual scorecards and agency small business reports. Actual subcontracting plan goals are negotiated with the contracting officer and may differ by contract and program office. The subcontractable percentage is a planning estimate — verify against your specific cost model and the solicitation's performance work statement. For planning and competitive intelligence use only.
How federal subcontracting plans work
FY2025 SDVOSB subcontracting goals by agency
Agency-published FY2025 SDVOSB subcontracting goal targets. Actual plan goals are negotiated with the contracting officer — these figures represent agency targets reported in SBA annual scorecards.
| Agency | SB Goal | SDVOSB Goal | SDB Goal | WOSB Goal | Plan Threshold |
|---|---|---|---|---|---|
| Dept. of Defense (DoD) | 23% | 3% | 7% | 4% | $1,500,000 |
| Dept. of Veterans Affairs (VA) | 28% | 8% | 5% | 5% | $750,000 |
| Dept. of Homeland Security | 22% | 3% | 5% | 5% | $750,000 |
| General Services Admin. (GSA) | 30% | 3% | 5% | 5% | $750,000 |
| HHS | 26% | 3% | 5% | 5% | $750,000 |
| NASA | 25% | 3% | 5% | 5% | $750,000 |
| Dept. of Energy (DOE) | 20% | 3% | 5% | 5% | $750,000 |
| Dept. of Transportation | 25% | 3% | 5% | 5% | $750,000 |
| Dept. of Agriculture (USDA) | 25% | 3% | 5% | 5% | $750,000 |
| Other Civilian | 23% | 3% | 5% | 5% | $750,000 |
Frequently Asked Questions
What is a subcontracting plan and when is it required for federal contracts?
A subcontracting plan is a commitment by a large business prime contractor to subcontract a specified percentage of work to small business concerns. Under FAR 52.219-9, a subcontracting plan is required when the contract or order exceeds $750,000 (for most civilian agencies) or $1,500,000 (for DoD contracts and construction), and the prime contractor is not a small business. The plan must include percentage goals and corresponding dollar amounts for each small business category: small business (SB), small disadvantaged business (SDB), women-owned small business (WOSB), service-disabled veteran-owned small business (SDVOSB), and HUBZone small business. Individual goals are negotiated with the contracting officer based on the agency's published targets and the nature of the contract.
What SDVOSB subcontracting percentage must large primes include in their plans?
There is no fixed government-wide SDVOSB subcontracting percentage mandated by statute. Instead, each agency publishes annual SDVOSB subcontracting goal targets (typically 3% of planned subcontracting dollars for most civilian agencies), and contracting officers negotiate individual plan goals with each prime contractor based on those targets and the specific contract requirements. The Department of Veterans Affairs has the highest SDVOSB subcontracting goal — typically 8% — due to the Veterans First Contracting mandate under 38 U.S.C. § 8127, which requires the VA to give priority to SDVOSBs and VOSBs across all procurement actions. Goals are expressed as both a percentage of total planned subcontracting dollars AND an absolute dollar amount in the subcontracting plan document.
How is the SDVOSB subcontracting goal dollar amount calculated?
The SDVOSB subcontracting goal dollar amount is calculated by multiplying the total planned subcontracting dollars by the SDVOSB goal percentage. The total planned subcontracting dollars equals the total contract value multiplied by the estimated subcontractable percentage — the share of the contract that will be performed by subcontractors rather than the prime. For a $10 million services contract where the prime estimates 50% is subcontractable, the total planned subcontracting dollars would be $5 million. With a 3% SDVOSB goal, the required SDVOSB subcontracting dollar goal would be $150,000. Both the percentage and dollar amount must appear in the subcontracting plan, and performance is tracked against both metrics in the Individual Subcontracting Report (ISR).
What happens if a large prime contractor fails to meet its SDVOSB subcontracting goal?
Failure to make a good faith effort to comply with a subcontracting plan is grounds for material breach of contract under FAR 52.219-16. The contracting officer can assess liquidated damages equal to the dollar value of the unmet goal. For example, if the plan requires $150,000 in SDVOSB subcontracting and the prime achieves none, the government can assess a $150,000 liquidated damage. Beyond financial penalties, repeated subcontracting plan failures can result in reduced past performance ratings, which affect future award decisions. The threshold for liability is 'good faith effort' — a prime who made documented attempts but faced legitimate market constraints (no qualified SDVOSB subs available in the geographic area or technical specialty) typically has a defensible position. Primes should document outreach, solicitations sent to SDVOSB vendors, and reasons for any gaps in meeting goals.
Can a large prime count SDVOSB teaming arrangements toward its subcontracting goals?
A teaming arrangement itself does not automatically count toward subcontracting goals — what matters is the actual contractual relationship. If the SDVOSB is a formal subcontractor on the contract (i.e., they perform work under a subcontract from the prime and are paid from contract funds), that work counts toward the prime's SDVOSB subcontracting goal in the ISR. However, if the SDVOSB is the prime contractor itself on a different task order from the same IDIQ vehicle, that work counts toward the agency's prime contracting SDVOSB goals, not the large prime's subcontracting goals on a separate award. For joint ventures and mentor-protégé arrangements, work performed by the SDVOSB JV member generally counts toward subcontracting goals if structured and executed correctly. Consult FAR 52.219-9 and the SBA's regulations at 13 CFR Part 125 for definitive guidance on what counts.
What is the Individual Subcontracting Report (ISR) and who must file it?
The Individual Subcontracting Report (ISR) is a semi-annual compliance report filed by prime contractors in the Electronic Subcontracting Reporting System (eSRS) to document actual subcontracting performance against plan goals for a specific contract. ISRs are required for contracts that include FAR 52.219-9 with an individual subcontracting plan (as opposed to a commercial plan, which uses the Summary Subcontracting Report instead). ISRs are due April 30 (covering October 1 through March 31) and October 30 (covering April 1 through September 30), plus a final ISR at contract completion. The ISR shows the cumulative amounts paid to each SB category — including SDVOSB — compared to the goals in the plan. Contracting officers review ISRs and may request explanations when actual performance falls short of plan goals.
What is the difference between prime contracting goals and subcontracting goals for SDVOSBs?
Prime contracting SDVOSB goals measure the percentage of total federal agency contract dollars that are awarded directly to SDVOSB prime contractors, including SDVOSB set-asides and sole-source awards. The government-wide goal is 3% of total prime contracting dollars. Subcontracting SDVOSB goals, by contrast, measure the percentage of a large prime's subcontracted dollars that flow to SDVOSB subcontractors on a specific contract. A single large contract can affect both: the agency's prime contracting SDVOSB score (if the prime is not an SDVOSB) AND the prime contractor's individual subcontracting plan compliance (if the prime has a subcontracting plan with SDVOSB goals). For SDVOSBs seeking business development, both channels matter — pursuing prime contracts directly on set-asides AND positioning as subcontractors to large primes chasing their subcontracting plan compliance.
How does the VA's Veterans First contracting mandate affect subcontracting goals at the VA?
The Veterans Benefits, Health Care, and Information Technology Act of 2006 (38 U.S.C. § 8127–8128) established the VA's Veterans First Contracting Program, which directs the VA to give priority to SDVOSB and VOSB vendors across all acquisitions, not just set-asides. This mandate produces the highest SDVOSB subcontracting goals of any federal agency — typically 8% of planned subcontracting dollars — compared to the government-wide 3% target. Large prime contractors working with the VA should anticipate aggressive SDVOSB subcontracting requirements during plan negotiation and should maintain a robust bench of certified CVE-verified SDVOSB subcontractors. CVE verification (now through SBA's Veteran Small Business Certification program) is required for SDVOSB work to count toward VA Veterans First compliance — uncertified veterans' firms do not satisfy VA Veterans First requirements even if they meet the SDVOSB legal definition.
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