Types of HUBZone Contracts
A competitive HUBZone contract
can be awarded if the contracting officer has a
reasonable expectation that at least two qualified
HUBZone small businesses will submit offers and
that the contract can be awarded at a fair market
price.
A sole source HUBZone contract can be awarded
if the contracting officer does not have a reasonable
expectation that two or more qualified HUBZone small
businesses will submit offers, determines that the
qualified HUBZone small business is responsible,
and determines that the contract can be awarded
at a fair price. The government estimate cannot
exceed $5 million for manufacturing requirements
or $3 million for all other requirements.
A full and open competition contract can
be awarded with a price evaluation preference. The
offer of the HUBZone small business will be considered
lower than the offer of a non-HUBZone/non-small
business-providing that the offer of the HUBZone
small business is not more than 10 percent higher.
Goaling
The Small Business Reauthorization Act
of 1997 increases the overall government wide procurement
goal for small business from 20% to 23%. The statute
sets the goal for HUBZone contracts as follows:
1999 - 1%; 2000 - 1 ½ %; 2001 - 2%; 2002
- 2 ½ %; 2003; and each year thereafter -
3%.
Affected Federal Agencies
Until September 30, 2000, the HUBZone
Empowerment Contracting Program applies only to
the procurements of the following Federal agencies:
U.S. Department of Defense (DOD), U.S. Department
of Agriculture (USDA), U.S. Department of Health
and Human Services (HHS), U.S. Department of Transportation
(DOT), U.S. Department of Energy (DOE), U.S. Department
of Housing and Urban Development (HUD), U.S. Environmental
Protection Agency (EPA), U.S. National Aeronautics
and Space Administration (NASA), U.S. General Services
Administration (GSA), and U.S. Department of Veterans
Affairs (VA).
