HUBZone - Historically Underutilized Business Zone Certified
The Historically Underutilized Business Zones (HUBZone) program was enacted into law as part of the Small Business Reauthorization Act of 1997. The program falls under the auspices of the U.S. 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 SBA regulates and implements the HUBZone program. SBA does the following:
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 HUBZone areas.
19.1306 HUBZone sole source awards.
(a) A contracting officer shall consider a contract award to a HUBZone small business concern on a sole source basis (see 6.302-5(b)(5)) before considering a small business set-aside (see 19.203 and subpart 19.5), provided none of the exclusions at 19.1304 apply; and-
(1) The contracting officer does not have a reasonable expectation that offers would be received from two or more HUBZone small business concerns;
(2) The anticipated price of the contract, including options, will not exceed-
(i) $7 million for a requirement within the North American Industry Classification System (NAICS) codes for manufacturing; or
(ii) $4 million for a requirement within all other NAICS codes;
(3) The requirement is not currently being performed by an 8(a) participant under the provisions of subpart 19.8 or has been accepted as a requirement by SBA under subpart 19.8;
(4) The acquisition is greater than the simplified acquisition threshold (see part 13);
(5) The HUBZone small business concern has been determined to be a responsible contractor with respect to performance; and
(6) Award can be made at a fair and reasonable price.
(b) The SBA has the right to appeal the contracting officer’s decision not to make a HUBZone sole source award.