1. 1 D.J. Caulfield Area Director/U.S. East Area Director/U.S. East HUBZone Program State of the HUBZone Program **FOCUS on Contracting** HUBZone Overview for U.S. Department of Treasury staff July 17, 2008 State of the HUBZone Program **FOCUS on Contracting** HUBZone Overview for U.S. Department of Treasury staff July 17, 2008

2. 2 What We’ll Be Talking About HUBZone program overview, access HUBZone program overview, access (NOTE: Eligibility covered on Fact Sheet handout)(NOTE: Eligibility covered on Fact Sheet handout) HUBZone contracting methodologies HUBZone contracting methodologies FOCUS: HUBZone Set-asides FOCUS: HUBZone Set-asides Statutes and regulationsStatutes and regulations Quick Search Tool Quick Search Tool Questions and Replies Questions and Replies

3. 3 Program Overview The HUBZone Program = E³ Community Based: Employment Employment Empowerment Empowerment Enterprise Enterprise

4. 4 Access From outset, designed as virtual program available at: www.sba.gov/hubzone From outset, designed as virtual program available at: www.sba.gov/hubzone www.sba.gov/hubzone Covers: Application for Certification Application for Certification Recertification Recertification Program Examinations Program Examinations Contracting Officer Assistance Contracting Officer Assistance

5. 5 HUBZone Contracting HUBZone Contracting Set-aside awards (HUBZone Rule of Two) Set-aside awards (HUBZone Rule of Two) Sole source awards Sole source awards Awards through full and open competition after application of 10% price evaluation preference (PEP). Applied if ‘other than small’ apparent successful offeror. Awards through full and open competition after application of 10% price evaluation preference (PEP). Applied if ‘other than small’ apparent successful offeror. Subcontracting Opportunities Subcontracting Opportunities

6. 6 Federal Government-wide Prime HUBZone Contracting Awards by Fiscal Year FY 1999Goal - 1% Actual - not available FY 1999Goal - 1% Actual - not available FY 2000Goal – 1.5% Actual - $663.3M (.33%) FY 2000Goal – 1.5% Actual - $663.3M (.33%) FY 2001Goal – 2.0% Actual - $1.7 B (.72%) FY 2001Goal – 2.0% Actual - $1.7 B (.72%) FY 2002Goal – 2.5% Actual - $1.7 B (.71%) FY 2002Goal – 2.5% Actual - $1.7 B (.71%) FY 2003Goal – 3.0% Actual - $3.4 B (1.23%) FY 2003Goal – 3.0% Actual - $3.4 B (1.23%) FY 2004Goal – 3.0% Actual - $4.8 B (1.59%) FY 2004Goal – 3.0% Actual - $4.8 B (1.59%) FY 2005Goal – 3.0% Actual - $6.1 B (1.94%) FY 2005Goal – 3.0% Actual - $6.1 B (1.94%) Latest verified FPDS-NG data FY 2006Goal – 3.0% (about $10 billion) FY 2006Goal – 3.0% (about $10 billion) Actual - 2.1% ($7.1 billion)

7. 7 HUBZone Set-Aside Contracts -- Evolutionary Language HUBZone Set-Aside Contracts -- Evolutionary Language Statutory – PL 105-135 Statutory – PL 105-135 Regulatory – 13CFR 126 Regulatory – 13CFR 126 Federal Acquisition Regulation – Subpart 19.13 Federal Acquisition Regulation – Subpart 19.13 ‘HUBZone Rule of Two’

8. 8 SBA Reauthorization (PL 105-135) Title VI – HUBZone Act of 1997 SBA Reauthorization (PL 105-135) Title VI – HUBZone Act of 1997 Public Law 105-135, encompassing HUBZone Act of 1997, contains this clause: Public Law 105-135, encompassing HUBZone Act of 1997, contains this clause: “Notwithstanding any other provision of law, a contract opportunity shall be awarded... on the basis of competition restricted to qualified HUBZone small business concerns if the contracting officer has a reasonable expectation that not less than 2 qualified HUBZone small business concerns will submit offers and that the award can be made at a fair market price.” “Notwithstanding any other provision of law, a contract opportunity shall be awarded... on the basis of competition restricted to qualified HUBZone small business concerns if the contracting officer has a reasonable expectation that not less than 2 qualified HUBZone small business concerns will submit offers and that the award can be made at a fair market price.” Appears in 15 U.S.C. 658(b)(2)(B).

9. 9 Regulatory – 13CFR 126 Regulatory – 13CFR 126 § 126.607 When must a contracting officer set aside a requirement for qualified HUBZone SBCs? § 126.607 When must a contracting officer set aside a requirement for qualified HUBZone SBCs? (a) The contracting officer first must review a requirement to determine whether it is excluded from HUBZone contracting pursuant to §126.605. (a) The contracting officer first must review a requirement to determine whether it is excluded from HUBZone contracting pursuant to §126.605. (b) If the contracting officer determines that §126.605 does not apply, the contracting officer shall set aside the requirement for HUBZone, 8(a) or SDVO SBC contracting before setting aside the requirement as a small business set-aside. (b) If the contracting officer determines that §126.605 does not apply, the contracting officer shall set aside the requirement for HUBZone, 8(a) or SDVO SBC contracting before setting aside the requirement as a small business set-aside. (c) If the contracting officer decides to set aside the requirement for competition restricted to qualified HUBZone SBCs, the contracting officer must: (c) If the contracting officer decides to set aside the requirement for competition restricted to qualified HUBZone SBCs, the contracting officer must: (1) Have a reasonable expectation after reviewing SBA's list of qualified HUBZone SBCs that at least two responsible qualified HUBZone SBCs will submit offers; and(1) Have a reasonable expectation after reviewing SBA's list of qualified HUBZone SBCs that at least two responsible qualified HUBZone SBCs will submit offers; and (2) Determine that award can be made at fair market price.(2) Determine that award can be made at fair market price.

10. 10 FAR 19.1305(a) HUBZone Set-Aside Procedures First paragraph, first sentence: First paragraph, first sentence: A participating contracting officer shall set aside acquisitions exceeding the Simplified Acquisition Threshold for competition restricted to HUBZone small business concerns…A participating contracting officer shall set aside acquisitions exceeding the Simplified Acquisition Threshold for competition restricted to HUBZone small business concerns… HUBZone set-asides shall be considered before HUBZone sole-source awards or small business set- asidesHUBZone set-asides shall be considered before HUBZone sole-source awards or small business set- asides

11. 11 MYTH #1. It’s difficult to identify HUBZone firms when conducting market research to establish a basis for a HUBZone set-aside. MYTH #1. It’s difficult to identify HUBZone firms when conducting market research to establish a basis for a HUBZone set-aside. Reality: It's actually quite simple to identify HUBZone firms through the following sources:Reality: It's actually quite simple to identify HUBZone firms through the following sources: HUBZone Home PageHUBZone Home Page https://eweb1.sba.gov/hubzone/internet/ https://eweb1.sba.gov/hubzone/internet/ https://eweb1.sba.gov/hubzone/internet/ (aka – www.sba.gov/hubzone)(aka – www.sba.gov/hubzone)www.sba.gov/hubzone Use ‘Contracting Officer’s HUBZone Gateway’Use ‘Contracting Officer’s HUBZone Gateway’ Central Contractor Registration/Dynamic Small Business Source System (CCR/DSBSS)Central Contractor Registration/Dynamic Small Business Source System (CCR/DSBSS) http://www.ccr.gov http://www.ccr.gov Four Common Myths That Severely Impact HUBZone Contract Opportunities

12. 12 MYTH #2. The HUBZone portfolio is composed of small, undercapitalized, low-tech service and construction firms. MYTH #2. The HUBZone portfolio is composed of small, undercapitalized, low-tech service and construction firms. Reality: The HUBZone portfolio of over 13,000 firms includes capability in virtually every NAICS code procured by the Federal Government. HUBZone Portfolio includes: Reality: The HUBZone portfolio of over 13,000 firms includes capability in virtually every NAICS code procured by the Federal Government. HUBZone Portfolio includes: 931 firms with annual revenue of $10 million+931 firms with annual revenue of $10 million+ 620 firms with over 100 employees620 firms with over 100 employees 141 clothing manufacturers141 clothing manufacturers 498 machine shops498 machine shops 1,177 computer service firms1,177 computer service firms Four Common Myths Severely Impacting HUBZone Contract Opportunities cont’d

13. 13 MYTH #3. The ‘HUBZone Rule of Two’ does not apply to procurement actions that were formerly set-aside for small business (aka -- historical small business set-asides) MYTH #3. The ‘HUBZone Rule of Two’ does not apply to procurement actions that were formerly set-aside for small business (aka -- historical small business set-asides) Reality: There is no exemption to the ‘HUBZone Rule of Two’ for historical small business set-asides. The ‘HUBZone Rule of Two’ is based upon specific language found in The HUBZone Act of 1997, the FAR, SBA’s regulations, Federal Court rulings and GAO decisions. All historical small business set-asides are subject to the ‘HUBZone Rule of Two’ requirement.Reality: There is no exemption to the ‘HUBZone Rule of Two’ for historical small business set-asides. The ‘HUBZone Rule of Two’ is based upon specific language found in The HUBZone Act of 1997, the FAR, SBA’s regulations, Federal Court rulings and GAO decisions. All historical small business set-asides are subject to the ‘HUBZone Rule of Two’ requirement. MYTH #4. Movement of a historical small business set-aside to a HUBZone set-aside cannot be accomplished until a small business impact study is conducted. If it is determined that the proposed HUBZone set-aside will “impact” a small business (former contract awardee), then the requirement cannot be issued as a HUBZone set-aside. MYTH #4. Movement of a historical small business set-aside to a HUBZone set-aside cannot be accomplished until a small business impact study is conducted. If it is determined that the proposed HUBZone set-aside will “impact” a small business (former contract awardee), then the requirement cannot be issued as a HUBZone set-aside. Reality: Unlike the 8(a) Program, there is no requirement to conduct an impact study when a procurement is moved from a small business set- aside to a HUBZone set-aside Reality: Unlike the 8(a) Program, there is no requirement to conduct an impact study when a procurement is moved from a small business set- aside to a HUBZone set-aside Four Common Myths Severely Impacting HUBZone Contract Opportunities cont’d

14. 14 Quick Market Search Tool Next time you are on CCR’s Dynamic Small Business Search function, try this:

15. 15 Quick Market Search cont’d So how does it work? So how does it work? Basically, you fill in one or two data fields and press ‘Search.’Basically, you fill in one or two data fields and press ‘Search.’

16. 16 Quick Market Search cont’d What do I get for NAICS 323110 (Commercial Lithographic Printing) in less than 3 seconds? What do I get for NAICS 323110 (Commercial Lithographic Printing) in less than 3 seconds?

17. 17 Now it’s time for Now it’s time forthe Questions and Replies The HUBZone Program