Hubzone

Benefits of HUBZone Certification

Set-Aside Contracts
Sole-Source Contracts
10% price evaluation preference in full and open contract competition as well as in subcontracting opportunities.
3% congressional budget target ($11.1 billion target)
Limited competition (approximately 6,000 firms are certified)

2x Your Federal Sales, Learn Our Strategy of Using a GSA Schedule Contracts to Double Your HUBZone Firm’s Federal Sales

Select your industry below to reveal the average HUBZone firm’s sales for your industry as well as + GSA Combination

Totals / Average

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
Accounting	10,283,956	18	571,331	6,884,126	8	860,516	7,636,882	8	954,610	1.67
Architectural	7,613,047	27	281,965	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Computer Hardware	151,129,326	126	1,199,439	29,457,439	22	1,338,975	103,651,666	23	4,506,594	3.76
Computer Services	3,181,352,111	1,101	2,889,511	595,443,994	422	1,411,005	1,919,801,973	422	4,549,294	1.57
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
Construction Trade	1,031,807,976	642	1,607,178	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Custodial/Landscaping/Janitorial Services	756,260,692	537	1,408,307	21,115,536	36	586,543	83,338,494	36	2,314,958	1.64
Engineering	314,577,945	362	869,000	19,931,960	37	538,702	37,877,443	37	1,023,715	1.18
Environmental	97,924,099	86	1,138,652	733,552	8	91,694	22,796,957	8	2,849,620	2.50
Financial	14,696,428	16	918,527	1,266,631	3	422,210	1,266,631	3	422,210	0.46
Legal	2,187,078	21	104,147	32,840	1	32,840	32,840	1	32,840	0.32
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
Manufacturing	1,415,425,525	520	2,721,972	77,113,473	74	1,042,074	154,982,031	74	2,094,352	0.77
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
Medical Supply	24,107,526	18	1,339,307	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
Security	132,635,734	103	1,287,726	9,494,980	12	791,248	45,640,948	12	3,803,412	2.95
Staffing	49,624,530	82	605,177	1,440	1	1,440	85,473	1	85,473	0.14
Translation	22,410,322	19	1,179,491	924,617	4	231,154	2,748,140	4	687,035	0.58
Whoelsale	42,138,642	110	383,079	3,148,605	13	242,200	4,719,285	13	363,022	0.95
Other	1,316,370,781	2,719	484,138	192,668,802	126	1,529,117	324,955,690	126	2,579,013	5.33

Services	Pricing	With 8(a)	Includes
HUBZone Package #1	$1,800	$1,300	0-2 Employees & First 2 Renewal Questionnaire
HUBZone Package #2	$2,300	$1,800	3-10 Employees & First 2 Renewal Questionnaire
HUBZone Package #3	$2,700	$2,200	10-24 Employees & First 2 Renewal Questionnaire
HUBZone Package #4	$3,100	$2,600	25 Employees; Additional $5 each Employee & First 2 Renewal Questionnaire
GSA Schedule	$7,100		Save $700 when purchasing a GSA Schedule with a HUBZone

Call for a Free Consultation 703-688-3546

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.

Competitive Bid during price value adjustment:

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
Bid	$980	$950	$930
Price Preference	10%	N/A	N/A
Adjusted Bid	$882	$950	$930
	Winner

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
Bid	$1040	$1000	$930
Price Preference	10%	N/A	N/A
Adjusted Bid	$936	$1000	$930
	Winner

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.

Qualifications for HUBZone

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.

HUBZone Frequently Asked Questions

1. Is there a time limit for how long a HUBZone Certified firm can keep its HUBZone Status?

No – as long as your firm maintains eligibility there is no time limit for the HUBZone certification.

2. How often must I recertify my firm?

Every three years.

3. How often is the HUBZone census tracks changed?

Every 10 years as part of the U.S. Census.

4. What would cause an affiliation between my company and another firm?

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.