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HISTORICALLY UNDERUTILIZED BUSINESS ZONE (HUBZone) Freda H. Hopper Small Business Program Office November 9, 2005.

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Presentation on theme: "HISTORICALLY UNDERUTILIZED BUSINESS ZONE (HUBZone) Freda H. Hopper Small Business Program Office November 9, 2005."— Presentation transcript:

1 HISTORICALLY UNDERUTILIZED BUSINESS ZONE (HUBZone) Freda H. Hopper Small Business Program Office November 9, 2005

2 HUBZone Empowerment Contracting Program Proposed Rule Issued April 2, 1998 Final Rule Published June 11, 1998

3 PURPOSE Provide federal contracting assistance for qualified small business concerns located in historically underutilized business zones (HUBZones) to: Increase employment opportunities Stimulate capital investment in those areas Empower communities through economic leveraging and the multiplier effect

4 QUALIFIED AREAS Qualified Census Tract Qualified Nonmetropolitan Counties household income is less than 80% Unemployment rate is not less than 140% of the state-wide average unemployment rate Indian reservations (external boundary)

5 FEDERAL DEPARTMENTS Applicability to all Federal agencies that employ one or more contracting officers

6 STATUS AS HUBZONE Status is determined by the SBA SBA issues a Certification and add to list of qualified HUBZones A joint venture Except for construction or services, a HUBZone proposing to furnish a product that it did not manufacture

7 EXCLUSIONS HUBZone awards do not apply to requirements that can be awarded to: Federal Prison Industries Javits-Wagner-ODay Act Orders for IDIQ 8(a) Program Requirements that do not exceed the micro- purchase threshold; or Requirements for commissary or exchange resale items

8 HUBZone Set-aside Procedure Exceeding the simplified acquisition threshold for competition restricted to HUBZone concerns CO shall consider HUBZone set- asides before sole-source or small business awards

9 HUBZone Set-aside Procedure (contd) To set-aside for competition restricted to HUBZone CO must have a reasonable expectation that – Offers from two or more HUBZone Award made at fair market price Must exceed the micro-purchase threshold but not the simplified acquisition threshold for competition CO receives only one acceptable offer from a qualified HUBZone If no offers are received the set-aside is withdrawn and then offered as a small business concern

10 HUBZone Sole Source Awards HUBZone sole source award Only one HUBZone small business concern can satisfy requirement Cannot exceed $5M manufacturing $3M for a requirement in any other NAIC code Requirement is not being performed by a non-HUBZone concern

11 HUBZone Sole Source Awards Acquisition is greater than the simplified acquisition threshold Award can be made at a fair and reasonable price HUBZone has been determined to be a responsible contractor SBA has the right to appeal to COs decision not to make a HUBZone sole source award

12 Price Evaluation Preference The price evaluation preference shall be used in acquisitions conducted using full and open competition. The preference shall not be used For simplified acquisition threshold Where price is not a selection factor Where all fair and reasonable offers are accepted

13 Price Evaluation Preference COs shall give HUBZones a price evaluation preference by adding a factor of 10 percent to all offers except - Offers from HUBZones that have not waived the evaluation preference Successful offers from small business concerns Offers of eligible products under the Trade Agreement Act Inconsistent with a Memorandum of Understanding or other international agreement with a foreign government

14 Price Evaluation Preference The factor of 10 percent shall be applied on a line item basis or to any group of items on which award may be made.


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