HUBZone Small Business

The Historically Underutilized Business Zones (HUBZone) program was enacted into law as part of the Small Business Reauthorization Act of 1997. The program falls under the auspices of the U.S. Small Business Administration. The program encourages economic development in historically underutilized business zones - "HUBZones" - through the establishment of preferences.

SBA's HUBZone program is in line with the efforts of both the Administration and Congress to promote economic development and employment growth in distressed areas by providing access to more federal contracting opportunities.

Most federal agencies participate in the HUBZone program. Agencies have the authority to set aside contracts and make sole source awards to HUBZone firms.

Competitive Set-Aside

HUBZone contracts can be awarded if a contracting officer has a reasonable expectation that at least two qualified HUBZone firms will submit offers and that the contract will be warded at a fair market price. (FAR 19.1305)

Sole Source

HUBZone contracts can be awarded if a contracting officer determines that

(a) just one qualified HUBZone firm is able to fulfill the contract;

(b) two or more qualified HUBZone firms are not likely to submit offers; and

(c) the anticipated award price of the proposed contract, including options, will not exceed $3.5 million.

(FAR 19.1306)

Full & Open

Competitive contracts can be awarded with a price evaluation preference. The offer of the HUBZone firm must not be more than 10 percent higher than the offer of a non-HUBZone firm in full and open contract competitions, as well as subcontracting opportunities. (FAR 19.1307)

The federal government has an annual goal of awarding three percent (3%) of all dollars for federal prime contracts to HUBZone firms.

Agency Benefits

The HUBZone sole source vehicle provides agencies a simplified and shortened acquisition procedure:

  • Reduced decision cycle – time required to award a HUBZone sole source contract is usually within days
  • Lowered administrative costs – procurement process and time is reduced to a minimum
  • Credit for promoting participation

How to Access

SoftDev can assist you in navigating the acquisition development strategy as you work with your agency’s Contracting Officer or Contracting Specialist. Contact us for more information on this process.

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