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What is 'Subcontracting'. Subcontracting is the practice of assigning part of the obligations and tasks under a contract to another party known as a subcontractor. Subcontracting is especially prevalent in areas where complex projects are the norm, such as construction and information technology.
A subcontracting plan that covers the entire contract period, applies to a specific subcontract, and has goals that are based on the companyâs planned purchases of products and services needed to maintain a specific Federal contract (i.e. VA Federal Supply Schedule contract).