The HUBZone Empowerment Contracting Program
The Small Business Administration (SBA) and Congress have been working together to promote economic development and growth in distressed communities by giving those businesses which are located in such communities opportunities to contract with the federal sector. As a result of this effort the HUBZone Empowerment Contracting Program was created and enacted into law as part of the Small Business Reauthorization Act of 1997. SBA’s final ruling was published on June 11, 1998. The HUBZone Empowerment Contracting Program’s intent is to stimulate economic development and employment in urban and rural communities by establishing contracting preference standards and employment opportunities for small business concerns that are located in and persons that reside in “historically underutilized business zones” better known as “HUBZones”. Small business concerns will have the opportunity to negotiate sole source contracts and participate in restricted competition limited to small business concerns in the program. Such small business concerns will be allowed a 10% Price Evaluation Preference during full and open competition activities. This means that offers of HUBZone small business concerns will be considered lower tha
A "HUBZone" is an area that is located in either (1) a qualified census tract as defined in section 42(d)(5)(C)(i)(I) of the Internal Revenue Code of 1986; (2) a qualified "non-metropolitan county" as defined in section 143(k)(2)(B) of the Internal Revenue Code of 1986 with a median household income of less than 80 percent of the State median household income or with an unemployment rate of not less than 140% of the statewide average, based on US Department of Labor recent data or (3) a boundary that is federally recognized as an Indian Reservations (including land within the external boundaries. 3. Full and Open Competition HUBZone Contracts – are those requirements in which the CO gives HUBZone small business concerns a “price evaluation preference” by adding a factor of 10 percent to the offers of non-HUBZone business entities. Otherwise successful offers from small business concerns, products under the Trade Agreements Act and offers where application of the factor would be inconsistent with a Memorandum of Understanding or International Agreement are exempt from the application of the price evaluation preference. Exempted from HUBZone set-asides are the Federal Prison In
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