Select your industry below to reveal the average HUBZone firm’s sales for your industry as well as + GSA Combination
|HUBZone Average Sales this Industry||GSA Schedule Sales for a firm with an HUBZone in this Industry||Synergy (Generally adding an HUBZone to a GSA Creates More Sales than from the GSA Schedule Alone)||Synergy Ratio|
|HUBZone Industry Grouping||Total HUBZone Federal Sales||Number of HUBZone Firms||Average HUBZone Sales||GSA Schedule Only Sales HUBZone Firms||Number of HUBZone Firms w/ GSA Schedule||Average HUBZone Sales Directly from the GSA Schedule System||Total Federal Sales HUBZone GSA Contract Holders||Number of HUBzone Firms w. GSA Schedule||Average Total HUBZone Federal Sales for firms with a GSA Schedule||GSA Schedule Sales Advantages|
|Totals / Average||12,527,908,368||6,189||2,024,222||1,183,320,302||888||1,332,568||3,260,843,835||888||3,672,121||1.81|
|Construction General Contractors (GC)||2,665,511,038||742||3,592,333||N/A||N/A||N/A||N/A||N/A||N/A||N/A|
|Management Consulting Services||1,113,013,908||752||1,480,072||225,050,710||179||1,257,267||551,228,944||179||3,079,491||2.08|
|Medical Offices / Doctors Offices||84,331,570||70||1,204,737||N/A||N/A||N/A||N/A||N/A||N/A||N/A|
|Real Estate Firms||94,506,134||24||3,937,756||51,597||1||51,597||80,438||1||80,438||0.02|
|HUBZone Package #1||$1,700||$1,200||0-2 Employees & First 2 Renewal Questionnaire|
|HUBZone Package #2||$2,200||$1,700||3-10 Employees & First 2 Renewal Questionnaire|
|HUBZone Package #3||$2,600||$2,100||10-24 Employees & First 2 Renewal Questionnaire|
|HUBZone Package #4||$3,000||$2,500||25 Employees; Additional $5 each Employee & First 2 Renewal Questionnaire|
|GSA Schedule||$7,100||Save $700 when purchasing a GSA Schedule with a HUBZone|
Participants can receive Sole-Source Contracts up to a ceiling of $3.5 million for products and services, and $5.5 million per contract for manufacturing. The contracting officer must have reason to believe at least two HUBZone firms will bid on the contract.
Example A: In a full and open competition, a qualified HUBZone Small Business Concern submits an offer of $980, a non-HUBZone Small Business Concern submits an offer of $950, and a large business submits an offer of $930. The lowest, responsive, responsible offer would be the large business at $930. However, the Contracting Officer must apply the HUBZone price evaluation preference of 10%. Therefore, the qualified HUBZone Small Business Concern’s offer is regarded as the lowest bid.
|HUBZone Small Business||Small Business – non-HUBZone||Large Business|
Example B: In a full and open competition, a qualified HUBZone Small Business Concern submits an offer of $1040, a non-HUBZone Small Business Concern submits an offer of $1000, and a large business submits an offer of $930. The lowest, responsive, responsible offer would be from the large business. The Contracting Officer must then apply the HUBZone price evaluation preference. In this example, the qualified HUBZone SBC’s offer is more than 10% higher than the large business’s offer and, consequently, the qualified HUBZone SBC does not displace the large business as the lowest, responsive, and responsible offeror. In addition, the non-HUBZone SBC’s offer at $100 does not displace the large business’s offer because a price evaluation preference is not applied to change an offer and benefit a non-HUBZone SBC.
|HUBZone Small Business||Small Business – non-HUBZone||Large Business|
Example 3: In a full and open competition, a qualified HUBZone SBC submits an offer of $98 and a non-HUBZone SBC submits an offer of $93. The CO would not apply the price evaluation preference in this procurement because the lowest, responsive, responsible offer is an SBC.
Joint Ventures up to three contracts can be awarded per joint venture agreement
The Mentor /Protégé program is similar to a Joint Venture: A, firm can only have one per industry; however, size standards are not combined as with Joint Venture Agreements, and a mentor can own up to 40% of an 8(a) firm.
Percentage of Procurement: 5% congressional budget target with the target exceeded for 8(a) firms every year in the past decade.
1. 51% Ownership by a U.S. Citizen
2. The firm must be classified as a small business according to the SBA.
3. Principle office located in a Historically Underutilized Business Zone – look up your principle office location here. http://map.sba.gov/hubzone/maps/
a. Principle location is the location where the most number of employees for the firm work.
b. At least one employee must work at the principal office in the HUBZone on a full-time basis.
c. Typical evidence requirement by the SBA is a lease or mortgage in the firm name, as well as a utility bill.
4. 35% of the firm’s employees must reside within a HUBZone.
a. Definition of an employee is a person who works over 40 hours per month. The employee can be a temporary employee or work for an employee leasing company.
b. Example: A firm has three employees, 7 x .35 = 2.45. Therefore, the firm must have three employees residing in a HUBZone.
c. Normally a copy of an employee’s State ID or State Driver’s License is considered as evidence of where they reside.
5. The owner of the HUBZone firm must be independent meaning they have the right to make current and strategic decisions for the company. Current conditions do not exist that could change the ownership of the firm.
6. The SBA can affiliate a firm if an owner owns more than 10% of the HUBZone firm, as well as owns another firm in a similar industry. If these two firms conduct a material amount of business together, the SBA can affiliate the two businesses. If affiliated the two business combined must be under the SBA size standard and have 35% of the combined employees residing within a HUBZone.
No – as long as your firm maintains eligibility there is no time limit for the HUBZone certification.
Every three years.
Every 10 years as part of the U.S. Census.
13 CFR 121.103 rules apply for HUBZone firms. The SBA will review the following areas to determine HUBZone ownership.
1) Stock ownership to make certain the qualifying party has control of the HUBZone firm.
(2) Convertible securities such as options or debt will be viewed by the SBA as fully exercised.
(3) If common management exists between two firms the SBA can affiliate the two entities.
(4) Identity of interest between individuals or businesses where patterns exist for subcontracting, staff, locations, and other veiled attempts to disguise the true nature of the relationship.
(5) Contractual relationships or economic dependency where one firm represents a large portion of another firm’s revenue or has lent money to another firm.
(6). A new concern with similar ownership and whereby the older firm furnishes the new firm with contracts, technical assistance, indemnification or facilities can create an affiliation.
5. What if 34.5% of my employees reside within a HUBZone?
To be considered eligible for HUBZone certification, more than 35% of the firm’s employees must reside within a HUBZone.