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HUBZONE BUSINESSES:

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If your business qualifies, you will often have an advantage in obtaining government contracts. The HUBZone Empowerment Contracting Program helps to stimulate economic development by providing Federal contracting preferences to small businesses that have obtained HUBZone certification.

GSA Small Business GWAC Center has announced its latest contract product designed to promote small business utilization when purchasing technology solutions for the federal government. Contract awards were made to 36 technology firms who are certified by the U.S. Small Business Administration (SBA) as Historically Underutilized Business Zone (HUBZone) firms. These firms represent seven Functional Areas (FA).

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The seven functional areas, designated by the North American Industry Classification System (NAICS) are listed below:

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  • FA1 NAICS 514191 On-Line Information Services

  • FA2 NAICS 514199 All Other Information Services

  • FA3 NAICS 514210 Data Processing Services

  • FA4 NAICS 541511 Custom Computer Programming Services

  • FA5 NAICS 541512 Computer Systems Design Services

  • FA6 NAICS 541513 Computer Facilities Management Services

  • FA7 NAICS 541519 Other Computer Related Services

 

BENEFITS

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  • Federal agencies will be able to fulfill their IT requirements through the utilization of small businesses that are located in a HUBZone.

  • Federal agencies have a statutory goal of 3% of procurement dollars to HUBZone-certified firms each fiscal year effective fiscal year 2003.

  • A variety of technology solutions are offered in 7 specific functional areas.

  • HUBZone credit can be transferred back to client agency via Federal Procurement Data System (FPDS).

  • As an alternative, agency contracting officers who wish to conduct their own procurements may access these contracts by requesting a delegation of authority from a GSA HUBZone GWAC Procuring Contracting Officer.

A HubZone, or Historically Underutilized Business Zone, is a program created by the United States Small Business Administration (SBA) to promote economic development and job creation in historically underutilized areas. The program provides federal contracting opportunities to eligible small businesses located in these designated zones, helping to boost local economies and create jobs in areas that need them the most.

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HubZone Designation Criteria: To be designated as a HubZone, an area must meet certain criteria set forth by the SBA. These criteria include:

  1. Median household income below the national average.

  2. An unemployment rate above the national average.

  3. Located in a qualified census tract, non-metropolitan county, or Indian reservation.

 

Eligibility for HubZone Certification: To be eligible for HubZone certification, a small business must meet the following requirements:

  1. Be a small business as defined by the SBA size standards.

  2. Be at least 51% owned and controlled by U.S. citizens, a Community Development Corporation, an agricultural cooperative, or an Indian tribe.

  3. Have its principal office located within a designated HubZone.

  4. At least 35% of its employees must reside in a HubZone.

 

Benefits of Being in a HubZone:

  1. Federal Contracting Opportunities: HubZone-certified businesses can benefit from set-aside contracts and sole-source awards. The federal government aims to award at least 3% of all federal prime contracting dollars to HubZone-certified small businesses, offering a significant advantage in the competitive federal marketplace.

  2. Competitive Preference: When bidding on contracts, HubZone-certified businesses may receive a price evaluation preference of 10%, making their bids more competitive.

  3. Networking and Assistance: Businesses located in HubZones can benefit from networking events and training workshops provided by the SBA and other organizations, offering valuable resources for growth and development.

  4. Job Creation and Economic Growth: HubZone-certified businesses contribute to local job creation and economic growth by hiring employees from the HubZone, stimulating the local economy and reducing unemployment.

 

Applying for HubZone Certification:

 

Businesses interested in becoming HubZone-certified must apply through the SBA's online certification portal. The application process requires submission of information regarding the business's ownership, principal office location, and employee residency. The SBA reviews applications for compliance with HubZone requirements and, if approved, adds the business to the list of certified HubZone firms.

 

HubZones provide valuable opportunities for small businesses located in historically underutilized areas, offering federal contracting advantages, networking opportunities, and support for economic growth. By participating in the HubZone program, businesses can significantly boost their competitiveness in the federal marketplace and contribute to the revitalization of their local communities.

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