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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.
Small Business Subcontracting Plans. The Small Business Subcontracting Program is based on Public Law 95-507, which was passed in 1978 to ensure that prime contractors further the goals of increasing participation of small businesses in federal procurement.