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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 � %; 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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