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How can MBEs participate in the HUB Zone program?
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Posted On: Wednesday December 31st, 2003 at 12:00am EST
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The HUB (Historically Underutilized Business) Zone Empowerment Contracting Program is statutorily authorized to stimulate economic development and create jobs in urban and rural communities by providing Federal contracting preferences to small businesses.
In order to qualify for participation in the HUBZone program, a small business must be located in a "historically underutilized business zone. A "HUBZone" is an area that is located in a qualified census tract or a qualified "non-metropolitan county." These areas are defined in the Internal Revenue Code as having 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. Additionally, to qualify as a HUBZone firm, a business must be owned and controlled by one or more US Citizens, and at least 35% of its employees must reside in a HUBZone.
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. In rare instances sole source HUBZone awards are permitted. However, a sole source contract can be awarded only if two or more qualified HUBZone firms will not likely submit offers and the government estimate will not exceed $5 million for manufacturing or $3 million for all other requirements. Also, price evaluation preferences may be given to HUBZone firms submitting offers on requirements to be filled through full and open competition. A firm that is certified both 8(a) and HUBZone may qualify for additional preference points.
Many MBEs have found that they are located in areas designated as HUBZones and many have successfully applied for HUBZone certification. However, many others have been challenged by the HUBZone residential employee requirement. MBDA and our resource partners can provide counseling to MBEs that seek to achieve HUBZone status. |
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