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Table of contents
HUBZone PROGRAM STAFF ORGANIZATIONAL CHART
The HUBZone Empowerment Contracting Program is administered by a staff
in Washington, D.C. in cooperation with field staff located in SBA
District Offices around the country. A full listing of those local
District Office staff members [HUBZone liaisons] is available on the
HUBZone web page under "Contacts."
- HUBZone Organizational Chart
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The HUBZone Empowerment Contracting program provides federal
contracting opportunities for qualified small businesses located in
distressed areas. Fostering the growth of these federal contractors as
viable businesses, for the long term, helps to empower communities,
create jobs, and attract private investment.
PROGRAM HISTORY
The HUBZone Empowerment Contracting program was enacted into law as part
of the Small Business Reauthorization Act of 1997. The program falls
under the auspices of the US 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.
HOW THE HUBZone PROGRAM WORKS
The US Small Business Administration (SBA)
regulates and implements the program and
- determines which businesses are eligible to receive HUBZone
contracts,
- maintains a listing of qualified HUBZone small businesses that
Federal agencies can use to locate vendors,
- adjudicates protests of eligibility to receive HUBZone contracts,
and
- reports to the Congress on the program's impact on employment and
investment in HUBZone areas.
PUBLICATION OF FINAL RULE
The
final rule for the HUBZone Empowerment Contracting Program was
published on June 11, 1998. The interim Federal Acquisition Regulation
(FAR) FAC 97-10, FAR Case 97-307 was published on December 18, 1998 to
give effect to the contracting component of the program on January 4,
1999. The comment period for the FAR expired on February 18, 1999.
ELIGIBILITY
A small business must meet all of the following criteria
to qualify for the HUBZone program:
it must be located in a "historically
underutilized business zone" or HUBZone.
it must be owned and controlled by one or more US
Citizens, and
at least 35% of its employees must reside in a
HUBZone.
HISTORICALLY UNDERUTILIZED BUSINESS Zone
A "HUBZone" is an area that is located in one or more of the following:
a qualified census tract (as defined in section 42(d)(5)(C)(i)(I)
of the Internal Revenue Code of 1986);
a qualified "non-metropolitan county" (as defined in section
143(k)(2)(B) of the Internal Revenue Code of 1986) with a median
household income of less than 80 percent of the State median household
income or with an unemployment rate of not less than 140 percent of
the statewide average, based on US Department of Labor recent data; or
lands within the boundaries of federally recognized Indian
reservations.
TYPES OF HUBZone CONTRACTS
A competitive HUBZone contract can be awarded if the
contracting officer has a reasonable expectation that at least two
qualified HUBZone small businesses will submit offers and that the
contract can be awarded at a fair market price.
A sole source HUBZone contract can be awarded if the
contracting officer does not have a reasonable expectation that two or
more qualified HUBZone small businesses will submit offers, determines
that the qualified HUBZone small business is responsible, and determines
that the contract can be awarded at a fair price. The government
estimate cannot exceed $5 million for manufacturing requirements or $3
million for all other requirements.
A full and open competition contract can be awarded
with a price evaluation preference. The offer of the HUBZone small
business will be considered lower than the offer of a non-HUBZone/non-small
business-providing that the offer of the HUBZone small business is not
more than 10 percent higher.
GOALING
The Small Business Reauthorization Act of 1997 increases the overall
government wide procurement goal for small business from 20% to 23%. The
statute sets the goal for HUBZone contracts as follows: 2001 - 2%; 2002
- 2 ½ %; 2003; and each year thereafter - 3%.
AFFECTED FEDERAL AGENCIES
As of October 1, 2000, all Federal agencies are subject to the
requirements of the HUBZone Program.
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