hubzone_brochure.pdf

April 2008 HUBZone Program www.sba.gov

The U.S. Small Business Administration

Federal Contracting Opportunities for HUBZone Entrepreneurs

Small businesses in high unemployment, low-income areas can receive an economic boost from the U.S. Small Business Administration’s HUBZone contracting program. The HUB-

Zone program provides contracting assistance to small businesses located in economically distressed communities, referred to as historically underutilized business zones or HUBZones, to promote job growth, capital investment and economic development in these areas, including Indian reservations.

Requirements To qualify for the program, a business (except tribally-owned concerns) must meet the following criteria:

• It must be a small business by SBA standards;

• It must be owned and controlled at least 51 percent by U.S.

citizens, or a Community Development Corporation, or an agricultural cooperative or an Indian tribe;

• Its principal off ice must be located within a “Historically Underutilized Business Zone,” which includes lands considered ‘Indian Country’ and military facilities closed by the Base Realignment and Closure Act; and

• At least 35 percent of its employees must reside in a HUBZone.

Computer mapping software available on SBA’s Web site allows f irms to search a database to determine whether they are located in a qualif ied HUBZone. Access the site at www.sba.gov/hubzone.

Select the option “Are You in a HUBZone?”

Existing businesses that choose to move to qualif ied areas are eligible. To fulf ill the requirement that 35 percent of a HUBZone f irm’s employees reside in the HUBZone, employees must live in a primary residence within that area for at least 180 days or be a cur-rently registered voter in that area.

Applying to the Program To apply, companies use the electronic application on the HUB- Zone Web site at www.sba.gov/hubzone.

Primary Benefits The program’s benef its for HUBZone-certif ied companies include competitive and sole source contracting, a 10 percent price evalu-ation preference in full and open contract competitions, as well as subcontract opportunities. The federal government has a goal of awarding 3 percent of all dollars for federal prime contracts to HUBZone-certif ied concerns.

Background

The HUBZone program was enacted into law as part of the Small Business

Reauthorization Act of 1997. The SBA regulates and implements the program, determines which businesses are eligible to receive HUBZone contracts, maintains a listing of qualified HUB-

Zone small businesses federal agencies can use to locate vendors, and adjudi-cates protests of eligibility to receive

HUBZone contracts.

The program applies to all federal departments and agencies. The govern-ment has established a goal of

3 percent of prime contract dollars being awarded to HUBZone businesses.

For additional information:

U.S. Small Business Administration HUBZone Program

409 Third Street, SW – 8th Floor

Washington, D.C. 20416

Phone: 202-205-8885

Fax: 202-205-7167 e-mail: HUBZone@sba.gov

Web site: www.sba.gov/hubzone

SBA programs and services are provided on a nondiscriminatory basis.

www.sba.gov/hubzone http://www.sba.gov/hubzone

There are three types of HUBZone contracts:

• Competitive HUBZone contracts can be awarded if the contracting off icer has a reasonable expectation that at least two qualif ied HUBZone small businesses will submit offers and that the contract will be awarded at a fair market price.

• Sole-source HUBZone contracts can be awarded if the contracting off icer determines that:

• one qualif ied HUBZone small business is responsible to perform the contract,

• two or more qualif ied HUBZone small businesses are not likely to submit offers, and

• the anticipated award price of the proposed contract, including options, will not exceed:

• $5,500,000 for a requirement within the North American Industry Classif ication System (NAICS) code for manufacturing, or

• $3,500,000 for a requirement within all other NAICS codes.

• Full and open competitive contracts can be awarded with a price evaluation preference. The offer of the HUBZone small business must not be 10 percent higher than the offer of a non-small business.

Identifying HUBZone Firms To search for HUBZone f irms, as potential partners in a joint venture or teaming arrangement, go to the Central Contractor Registration (CCR) Web site at www.ccl.gov and use the Dynamic Small Business Search feature.

Want to Know More About Government Contracting?

Opening Doors to Federal Government Contracting—Small Business Opportunities

This publication guides you step-by-step through the procurement process including information on registering your business on the CCR system; SBA’s counseling services; how to identify contracting opportunities; and how to market your business. View and download this publication at www.sba.gov/openingdoors.

Free, Online Federal Contracting Course

SBA’s Small Business Training Network is a virtual campus complete with courses and programs to help the small business owner. Entrepreneurs interested in government contracting should take the free course, Business Opportunities: A Guide to Winning Federal Contracts, providing in-depth information on how to participate in federal contracting programs. View this and other small business courses at www.sba.gov/training.

(mcs-0029) www.crr.gov www.sba/gov/openingdoors www.sba.gov/training