The Historically Underutilized Business Zones (HUBZone) program helps small businesses in urban and rural communities gain preferential access to federal procurement opportunities. The federal government has a goal of awarding 3 percent of all dollars for federal prime contracts to HUBZone-certified small business concerns.
Benefits of a HUBZone Certification:
- Competitive and sole source contracting
- 10% price evaluation preference in full and open contract competitions, as well as subcontracting opportunities
- The federal government has a goal of awarding 3% of all dollars for federal prime contracts to HUBZone certified small businesses
- All branches of the federal government have a 3% HUBZone budgetary target. The purchasing arms of all 600 federal agencies are in constant need of HUBZone qualified firms to perform contracts to meet these budgetary targets
- Large firms bidding on government contracts in excess of $550,000 must provide an allocation for HUBZone firm participation as part of the contract. Therefore, having a HUBZone certification will allow for these subcontracting opportunities
The SBA operates 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
- Reports to the Congress on the program’s impact on employment and investment in the HUBZone areas
- Your business concern’s principle office must be located in a qualified SBA designated HUBZone.
- You business concern must be at least 51% unconditionally and directly owned and controlled by persons who are U.S. citizens
- 35% of your business concern’s employees must reside in a SBA designed HUBZone
- You business concern must be classified as a small business as defined by the SBA
- Certify that when performing a HUBZone contract, at least 35% of your employees continue to reside in a SBA designated HUBZone. If your Concern is owned by an Indian Tribal Government, 35% of your employees engaged in performing that contract must reside within a SBA designated HUBZone. You must “attempt” to maintain the 35% requirement throughout the life of the contract.