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HUBZone Empowerment Contracting Program. Proposed Rule Issued April 2, 1998Final Rule Published June 11, 1998. PURPOSE. Provide federal contracting assistance for qualified small business concerns located in historically underutilized business zones (HUBZones) to:Increase employment opportunitiesStimulate capital investment in those areasEmpower communities through economic leveraging and the
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1. HISTORICALLY UNDERUTILIZEDBUSINESS ZONE(HUBZone) Freda H. Hopper
Small Business Program Office
November 9, 2005
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 http://www.sba.gov/hubzone
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-O’Day 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 (cont’d) 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If no offers are received the set-aside is withdrawn and then offered as a small business concern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 CO’s 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.