What counts as a good faith effort under 52.219-8?

Good faith efforts include soliciting small business quotes, documenting outreach to small business sources, considering all small business bids/proposals fairly, and providing timely notification of award decisions. Keep records of your outreach.

Which small business categories are covered by 52.219-8?

All socioeconomic categories: small business (SB), veteran-owned (VOSB), service-disabled veteran-owned (SDVOSB), HUBZone, small disadvantaged business (SDB), and women-owned small business (WOSB). Each has its own SBA size standards.

Does 52.219-8 require us to set aside specific percentages for small business?

No. That is handled by 52.219-9 (Subcontracting Plan), which sets specific percentage goals. 52.219-8 is the general obligation of maximum practicable use. The two clauses often appear together in contracts above $750,000.

Are there penalties for not using small business subcontractors?

Failure to comply with 52.219-8 combined with a subcontracting plan (52.219-9) can result in liquidated damages, negative past performance ratings, and potential termination. Track your subcontracting spend and document outreach throughout performance.

Medium RiskFARSmall Business

52.219-8 — Utilization of Small Business Concerns

Last updated: 2026-04-09

Researched by the BidStride Research Team

What This Clause Requires

Requires contractors to maximize subcontracting opportunities for small business concerns.

Official Regulation Text

See 48 CFR 52.219-8 for the full regulatory text. This clause requires prime contractors to make maximum practicable use of small business, veteran-owned, service-disabled veteran-owned, HUBZone, small disadvantaged, and women-owned small business concerns as subcontractors.
Source: eCFR, 48 CFR 52.219-8

Compliance Checklist

Make good faith efforts to award subcontracts to small business concerns
Comply with any subcontracting plan required under FAR 52.219-9

Flow-Down to Subcontractors

Flow-down required

This clause must be included in subcontracts with all subcontractors at all tiers where the subcontractor will perform work covered by this clause. Typically appears in contract Sections H, I.

52.219-9Small Business Subcontracting Plan

Frequently Asked Questions

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This summary is for informational purposes only and reflects the BidStride Research Team's plain-English interpretation of the regulation. It is not legal advice and does not constitute an attorney-client relationship. Always consult the official Federal Acquisition Regulation (FAR) or Defense Federal Acquisition Regulation Supplement (DFARS) text and qualified legal counsel for compliance decisions.