SpendQueryBeta

FAR and DFARS › FAR Part 52: Solicitation Provisions and Contract Clauses › Subpart 52.2

FAR 52.219-10 Incentive Subcontracting Program.

The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.

In plain English

This clause creates an incentive for a contractor to exceed the small-business subcontracting goals it committed to in its subcontracting plan. If the contractor exceeds those goals, it can earn a percentage of the excess dollars, but only if the Contracting Officer decides the excess resulted from the contractor's own efforts. The Government alone decides whether the excess qualifies.

Applies to: Contractors with a subcontracting plan that includes this clause

Key terms: subcontracting plan · subcontracting goals · small business · incentive fee · cost-plus-fixed-fee contract

Written by AI from this section's text. A guide, not legal advice: the text below rules.

The text

As prescribed in 19.708(c)(1), insert the following clause:

Incentive Subcontracting Program (OCT 2014)

(a) Of the total dollars it plans to spend under subcontracts, the Contractor has committed itself in its subcontracting plan to try to award certain percentages to small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns, respectively.

(b) If the Contractor exceeds its subcontracting goals for small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns in performing this contract, it will receive __ [Contracting Officer to insert the appropriate number between 0 and 10] percent of the dollars in excess of each goal in the plan, unless the Contracting Officer determines that the excess was not due to the Contractor's efforts (e.g., a subcontractor cost overrun caused the actual subcontract amount to exceed that estimated in the subcontracting plan, or the award of subcontracts that had been planned but had not been disclosed in the subcontracting plan during contract negotiations). Determinations under this paragraph are unilateral decisions made solely at the discretion of the Government.

(c) If this is a cost-plus-fixed-fee contract, the sum of the fixed fee and the incentive fee earned under this contract may not exceed the limitations in 15.404-4 of the Federal Acquisition Regulation.

(End of clause)

Sections it refers to

Sections that refer to it

← 52.219-9 Small Business Subcontracting Plan. · 52.219-11 Special 8(a) Contract Conditions. →

Rule changes for FAR Part 52

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.

FAR 52.219-10 Incentive Subcontracting Program · SpendQuery