HOW TO SOLE-SOURCE TO A HUBZONE SMALL BUSINESS CONCERN (SBC)
The Historically Underutilized Business Zones (HUBZone) program, created by the Small Business Administration (SBA), provides federal contracting assistance for qualified small business concerns (SBC) located in historically underutilized business zones in an effort to increase employment opportunities, investment, and economic development in such areas. SGS has obtained HUBZone certification in part by employing team members who live in a HUBZone and having the "principal office" located in a HUBZone designated area.
There are three types of HUBZone contracts available for use with this program. One of the HUBZone contracts available is Sole-Source HUBZone Contracts. A contracting officer may award contracts to HUBZone small business concerns on a sole source basis without considering small business set-asides provided:
▪ Only one qualified HUBZone small business can satisfy the requirement ▪ Two or more qualified HUBZone SBCs are not likely to submit offers
▪ The anticipated award price of the proposed contract, including options, will not exceed: $6.5 million for a requirement within the North American Industry Classification System (NAICS) code for manufacturing or $4 million for a requirement within any other NAICS codes
▪ The requirement is not currently being performed by an 8(a) small business concern
▪ The acquisition is greater than the simplified acquisition threshold
▪ The HUBZone small business concern has been determined to be a responsible contractor with respect to performance; and
▪ An award can be made at a fair and reasonable price.
Contact your Contracting Officer, Your Organization’s Small Business Office or Fernando Martinez 910-308-0087 Showcase Government Services (SGS)with questions about how to do business SGS within the HUBZone program.
Subpart 19.13-Historically Underutilized Business Zone (HUBZone) Program 19.1301 General. (a) The Historically Underutilized Business Zone (HUBZone) Act of 1997 (15 U.S.C. 631note) created the HUBZone Program. (b) The purpose of the HUBZone Program is to provide Federal contracting assistance for qualified small business concerns located in historically underutilized business zones, in an effort to increase employment opportunities, investment, and economic development in those areas. 19.1302 Applicability. The procedures in this subpart apply to all Federal agencies that employ one or more contracting officers. 19.1303 Status as a HUBZone small business concern. (a) Status as a HUBZone small business concern is determined by the Small Business Administration (SBA) in accordance with 13 CFR Part 126. (b) If the SBA determines that a concern is a HUBZone small business concern, it will issue a certification to that effect and will add the concern to the List of Qualified HUBZone Small Business Concerns at Only firms on the list are HUBZone small business concerns, eligible for HUBZone preferences. HUBZone preferences apply without regard to the place of performance. Information on HUBZone small business concerns can also be obtained at or by writing to the Director for the HUBZone Program (Director/HUB) at U.S. Small Business Administration, 409 3rd Street, SW., Washington, DC 20416 or at email@example.com. (c) A joint venture may be considered a HUBZone small business concern if it meets the criteria in the explanation of affiliates (see 19.101). (d) To be eligible for a HUBZone contract under this section, a HUBZone small business concern must be a HUBZone small business concern both at the time of its initial offer and at the time of contract award. (e) A HUBZone small business concern may submit an offer for supplies as a nonmanufacturer if it meets the requirements of the nonmanufacturer rule set forth at 13 CFR 121.406(b)(1) and if the small business manufacturer providing the end item is also a HUBZone small business concern. (1) There are no waivers to the nonmanufacturer rule for HUBZone contracts. (2) For HUBZone contracts at or below $25,000 in total value, a HUBZone small business concern may supply the end item of any manufacturer, including a large business, so long as the product acquired is manufactured or produced in the United States. 19.1304 Exclusions. This subpart does not apply to- (a) Requirements that can be satisfied through award to- (1) Federal Prison Industries, Inc. (see Subpart 8.6 ); or (2) AbilityOne participating non-profit agencies for the blind or severely disabled (see Subpart 8.7 ); (b) Orders under indefinite-delivery contracts (see subpart 16.5 ). (But see 16.505 (b)(2)(i)(F) for discretionary set-asides of orders); (c) Orders against Federal Supply Schedules (see subpart 8.4). (But see 8.405-5 for discretionary set-asides of orders); (d) Requirements currently being performed by an 8(a) participant or requirements SBA has accepted for performance under the authority of the 8(a) Program, unless SBA has consented to release the requirements from the 8(a) Program; (e) Requirements that do not exceed the micro-purchase threshold; or (f) Requirements for commissary or exchange resale items. 19.1305 HUBZone set-aside procedures. (a) The contracting officer- (1) Shall comply with 19.203before deciding to set aside an acquisition under the HUBZone Program; (2) May set aside acquisitions exceeding the micro-purchase threshold for competition restricted to HUBZone small business concerns when the requirements of paragraph (b) of this section can be satisfied; and (3) Shall consider HUBZone set-asides before considering HUBZone sole source awards (see 19.1306) or small business set-asides (see subpart 19.5). (b) To set aside an acquisition for competition restricted to HUBZone small business concerns, the contracting officer must have a reasonable expectation that- (1) Offers will be received from two or more HUBZone small business concerns; and (2) Award will be made at a fair market price.