HISTORICALLY UNDERUTILIZED BUSINESS ZONE HUBZone

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HISTORICALLY UNDERUTILIZEDBUSINESS
ZONE(HUBZone)

• Freda H. Hopper
• Small Business Program Office
• November 9, 2005

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HUBZone Empowerment Contracting Program

• Proposed Rule Issued April 2, 1998
• Final Rule Published June 11, 1998

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PURPOSE

• Provide federal contracting assistance for
  qualified small business concerns located in
  historically underutilized business zones
  (HUBZones) to
• Increase employment opportunities
• Stimulate capital investment in those areas
• Empower communities through economic leveraging
  and the multiplier effect

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QUALIFIED AREAS

• Qualified Census Tract
• Qualified Nonmetropolitan Counties
• household income is less than 80
• Unemployment rate is not less than 140 of the
  state-wide average unemployment rate
• Indian reservations (external boundary)

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FEDERAL DEPARTMENTS

• Applicability to all Federal agencies that employ
  one or more contracting officers

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STATUS AS HUBZONE

• Status is determined by the SBA
• SBA issues a Certification and add to list of
  qualified HUBZones http//www.sba.gov/hubzone
• A joint venture
• Except for construction or services, a HUBZone
  proposing to furnish a product that it did not
  manufacture

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EXCLUSIONS

• HUBZone awards do not apply to requirements that
  can be awarded to
• Federal Prison Industries
• Javits-Wagner-ODay Act
• Orders for IDIQ
• 8(a) Program
• Requirements that do not exceed the
  micro-purchase threshold or
• Requirements for commissary or exchange resale
  items

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HUBZone Set-aside Procedure

• Exceeding the simplified acquisition threshold
  for competition restricted to HUBZone concerns
• CO shall consider HUBZone set-asides before
  sole-source or small business awards

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HUBZone Set-aside Procedure (contd)

• To set-aside for competition restricted to
  HUBZone CO must have a reasonable expectation
  that
• Offers from two or more HUBZone
• Award made at fair market price
• Must exceed the micro-purchase threshold but not
  the simplified acquisition threshold for
  competition
• CO receives only one acceptable offer from a
  qualified HUBZone
• If no offers are received the set-aside is
  withdrawn and then offered as a small business
  concern

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HUBZone Sole Source Awards

• HUBZone sole source award
• Only one HUBZone small business concern can
  satisfy requirement
• Cannot exceed
• 5M manufacturing
• 3M for a requirement in any other NAIC code
• Requirement is not being performed by a
  non-HUBZone concern

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HUBZone Sole Source Awards

• Acquisition is greater than the simplified
  acquisition threshold
• Award can be made at a fair and reasonable price
• HUBZone has been determined to be a responsible
  contractor
• SBA has the right to appeal to COs decision not
  to make a HUBZone sole source award

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Price Evaluation Preference

• The price evaluation preference shall be used in
  acquisitions conducted using full and open
  competition. The preference shall not be used
• For simplified acquisition threshold
• Where price is not a selection factor
• Where all fair and reasonable offers are accepted

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Price Evaluation Preference

• COs shall give HUBZones a price evaluation
  preference by adding a factor of 10 percent to
  all offers except -
• Offers from HUBZones that have not waived the
  evaluation preference
• Successful offers from small business concerns
• Offers of eligible products under the Trade
  Agreement Act
• Inconsistent with a Memorandum of Understanding
  or other international agreement with a foreign
  government

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Price Evaluation Preference

• The factor of 10 percent shall be applied on a
  line item basis or to any group of items on which
  award may be made.