The HubZone Advantage

The HUBZone certification program is administered by the Small Business Administration (SBA). Its goal is to stimulate economic development and job creation in designated areas with low-income communities by promoting small businesses operating within those areas.

What kinds of companies are Hubzone certified?


HUBZone certified companies deliver all types of capabilities. Becoming a HUBZone certified company takes deliberate effort to achieve certification and ongoing compliance. HUBZone certified companies must be a small business according to SBA standards; 51% owned by US citizens, a Community Development Corporation, an agricultural cooperative, or an Indian tribe; have its principal office located in a HUBZone area; and at least 35% of its employees reside in a HUBZone. 

SBA


Can I sole-source a contract to a HubZone company?

YES! Federal agencies may sol-source any requirements if less than $4.5 million per contracting action. Talk with your contracting officer about leveraging FAR 19.1306. Your contracting officer may want to post a pre-solicitation request for information using a HUBZone set-aside to confirm that there is only one responsive HUBZone company. 

Did you Know?

 HUBZone is the only socio-economic program category that has not met the 3% prime goal since 2010 achieving an average only 2.06% of 69% of the goal. 

 

Why would I set-aside a solicitation for Hubzone companies?

When you set-aside a solicitation for HUBZone companies, there is no limit on the dollar amount of the contracting action, and the 10% price evaluation is not used. 

Qualified, capable, responsible offerors at a reasonable price

Sole-source if less than $4.5 million or set-aside with no limit 

OMB M-22-03 Advancing Equity in Federal Procurement and Executive Order 13985 Advancing Racial Equity and Support for Underserved Communities Through the Federal Government

Credit for both Small Business and HUBZone Prime 

35% or more of Aspis Consulting’s employees live in economically distressed neighborhoods 

How do I sole-source to a Hubzone business?

1. Talk to your contracting officer, and let them know that you’re interested in using FAR 19.1306

2. You don’t need a Justification and Approval (J&A), but GS-15s and above have the authority up to $75M (civilian agencies)

3. Perform market research by informally sharing your requirements, deliverables, schedule, and other project objectives with HUBZone certified companies

4. Ask your contracting officer to post a pre-solicitation notice (FAR 36.213-2) on the System for Award Management (SAM) specifying HUBZone certified companies with your requirements 

5. If only one HUBZone company responds, you may sole-source!

For more information, contact Jeff Wagner at HUBZone@aspis.us