Historically Under Utilized Business Zone (HUBZone) Program

Summary of the Federal Acquisition Regulation (FAR) – effective May 18, 2012 

HUBZONE SOLE SOURCE PROCEDURES (FAR 19.1306)
  • – Up to $4 million sole source award -
    1. A contracting officer shall consider a contract award to a HUBZone small business concern on a sole source basis (see 6.302-5(b)(5)) before considering a small business set-aside (see 19.203 and subpart 19.5), provided none of the exclusions at 19.1304 apply; and —
      1. (1) The contracting officer does not have a reasonable expectation that offers would be received from two or more HUBZone small business concerns
      2. (2) The anticipated price of the contract, including options, will not exceed—
        1. (i) $6.5 million for a requirement within the North American Industry Classification System (NAICS) codes for manufacturing; or
        2. (ii) $4 million for a requirement within all other NAICS codes;
      3. (3) The requirement is not currently being performed by an 8(a) participant under the provisions of Subpart 19.8 or has been accepted as a requirement by SBA under Subpart 19.8;
      4. (4) The acquisition is greater than the simplified acquisition threshold (see Part 13);
      5. (5)The HUBZone small business concern has been determined to be a responsible contractor with respect to performance; and
      6. (6) Award can be made at a fair and reasonable price
    2. The SBA has the right to appeal the contracting officer’s decision not to make a HUBZone sole source award. 
HUBZONE SET-ASIDE PROCEDURES (FAR 19.1305)
  • No funding limit of set-aside -
    1. (a)The contracting officer—
      1. (1) Shall comply with 19.203 before deciding to set aside an acquisition under the HUBZone Program;
      2. (2) May set aside acquisitions exceeding the micro-purchase threshold for competition restricted to HUBZone small business concerns when the requirements of paragraph (b) of this section can be satisfied; and
      3. (3)Shall consider HUBZone set-asides before considering HUBZone sole source awards (see 19.1306) or small business set-asides (see subpart 19.5). 
    2. (b)To set aside an acquisition for competition restricted to HUBZone small business concerns, the contracting officer must have a reasonable expectation that—
      1. (1) Offers will be received from two or more HUBZone small business concerns; and; 
      2. (2) Award will be made at a fair market price
    3. (c) If the contracting officer receives only one acceptable offer from a qualified HUBZone small business concern in response to a set aside, the contracting officer should make an award to that concern. If the contracting officer receives no acceptable offers from HUBZone small business concerns, the HUBZone set-aside shall be withdrawn and the requirement, if still valid, set aside for small business concerns, as appropriate (see 19.203). 

HUBZone Statement

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