Can I sub out a federal job?
Yes, you can hire subs on federal work. But on bids set aside for small businesses, there's a cap on how much of the money can go to them. It's called the limitations on subcontracting (FAR 52.219-14).
The caps, by type of job
On a small-business set-aside, you can't pay subcontractors that aren't "similarly situated" (more on that below) more than this share of what the government pays you:
| Type of contract | Most you can pay those subs | Not counted |
|---|---|---|
| Services (maintenance, janitorial, guard, repairs billed as service) | 50% | |
| Supplies (you're selling products) | 50% | Cost of materials |
| Specialty trade construction (electrical, HVAC, plumbing, roofing...) | 75% | Cost of materials |
| General construction | 85% | Cost of materials |
So on a $100,000 HVAC repair set aside for small business, at most $75,000 (after materials) can go to subs outside the rules, and on a $40,000 janitorial contract, at most $20,000.
"Similarly situated" subs count as you
If your sub has the same small-business status the set-aside requires (for example, another small business on a total small-business set-aside) and is small for the NAICS code you assign to their work, what you pay them doesn't count toward the cap. That's why teaming with another small shop is common.
When the caps don't apply
On unrestricted (full and open) bids there's no cap from this rule: you can run the job and sub most of it. Always read the clauses in the solicitation, though. Some agencies add their own requirements.
Finding a sub
On every bid in Solicity, Find a sub shows small businesses with federal wins in that trade and state, and local shops near the job with their ratings and phone numbers. Handy whether you're filling the gap or teaming with another small business.
General information for trade contractors, checked against the Federal Acquisition Regulation (FAR), the Department of Labor and SBA.gov in October 2026. Rules and dollar limits change, and the bid itself always wins: follow the clauses in the solicitation you're quoting. Not legal advice.
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