Are You HubZone Qualified

Is your business located in a HUBZone? If you are, it’s really great as it will be easier to get HubZone Certification. You may be wondering why this is important. Well, businesses located in these Historically Underutilized Business Zones - or HUBZones, for short - are eligible to compete for the set aside reserved for HUBZone business.

The Hubzone Program

The HUBZone program is nothing but a re-enactment of a part of Small Business Reauthorization act of 1997. The program is regulated and implemented by the SBA. The SBA also determines which businesses qualify to submit the application of HubZone Certification. But, before everything it’s important for the business to get HubZone Certification.

To qualify to be a HUBZone participant, your business must meet the following criteria:

  1. Your business must be considered small - according to SBA standards
  2. Your business must be located in a HUBZone
  3. The business must be owned and controlled by one or more US citizen, a Community Development Center or an Indian tribe and
  4. At least 35% of the employees of the business must reside in a HUBZone.

This is great news for small businesses who'd like to gain a competitive advantage when it comes to government contracting but don't meet the race, gender or service requirements for certifications like 8(a), WOSB or VOSB. Even established businesses who relocate to a HUBZone can qualify to participate.

Types of HubZone Contracts

So, the next logical question is what advantages does a HUBZone certification provide. Well, s it depends on the kind of contracts you are getting as per your Hubzone Certification.

There are 3 types of HUBZone contracts:

  1. Competitive HUBZone contracts,
  2. Sole Source HUBZone contracts and
  3. Full and Open Competitive contracts.

Awarding HubZone Contracts

Competitive HUBZone contracts can be awarded if the contracting officer is reasonably sure that two or more small business with HubZone Certification will bid on the contract and that the contract will be awarded at fair market price.

A Sole Source HUBZone contract may be awarded if the contracting officer can determine the following:

  1. One qualified HUBZone participant is responsible to perform the contract
  2. Two or more small businesses with Hubzone Certification are not likely to bid and
  3. The anticipated award of the proposed contract, including options, will not exceed $5MM for manufacturing NAICS codes and $3MM for other NAICS codes.

Full and Open Competitive contracts may be awarded with a price evaluation preference. The offer from the HUBZone participant must not, however, be higher than 10% than the offer from a non-small business.

Are You a HubZone Business

Now that you know the basics, check to see if your business is located in a HUBZone. Check out the HubZone map to identify if you come within that jurisdiction. Getting HubZone Certification is important in any case, but HubZone certification is opening doors to unemployment rates and other factors.

     

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