What does a contractor's make-or-buy plan indicate about purchased widgets?

The make-or-buy plan developed by a contractor outlines the strategic decision-making process regarding whether to produce goods internally or acquire them from external suppliers. When the plan indicates that widgets will come from subcontractors, it signifies that the contractor has concluded it is more efficient, cost-effective, or resource optimal to source these items from external specialized vendors rather than manufacturing them in-house.

This decision can be influenced by factors including the level of expertise required to produce the widgets, the cost of production versus purchase, available production capacity, and the need for specialized materials or technologies. Hence, selecting to acquire widgets through subcontractors aligns with business strategies that aim to maximize efficiency and profitability.