FAR 52.219-8 — Utilization of Small Business Concerns
Requires large business primes to actively seek out small business subcontracting opportunities and treat small business participation as a contractual obligation.
When This Clause Applies
Required in all contracts other than small business set-asides where there are subcontracting opportunities and the contract exceeds the simplified acquisition threshold.
What This Means for Contractors
Large primes must demonstrate good-faith effort to utilize small businesses across categories (SDB, HUBZone, SDVOSB, WOSB, HBCU/MI). This clause is the predicate for FAR 52.219-9 (Subcontracting Plan) — failure to make good-faith effort can result in liquidated damages and negative past performance.
Common Pitfalls
- 1Treating utilization goals as aspirational rather than contractual
- 2Not documenting outreach to small business sources
- 3Failing to consider small businesses for second-tier subcontracts
Related Topics
Related Clauses
Small Business Subcontracting Plan
Requires large business primes (other-than-small) to submit and maintain a Small Business Subcontracting Plan setting specific small business participation goals on contracts above the simplified acquisition threshold.
Liquidated Damages — Subcontracting Plan
Establishes liquidated damages for primes that fail to make good-faith effort to comply with their Small Business Subcontracting Plan.
Continue Your Research
GSA Procurement Guide
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VA Procurement Guide
Veterans First Contracting Program — strongest SDVOSB/VOSB pipeline in the government.
NAICS 518210 — Data Processing, Hosting, and Related Services
Find federal contracts under NAICS 518210. Common agencies, set-asides, contract values.
NAICS 541330 — Engineering Services
Find federal contracts under NAICS 541330. Common agencies, set-asides, contract values.
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