HUBZone Program

HUBZone Program

The HUBZone Empowerment Contracting Program was enacted into law as part of the Small Business Reauthorization Act of 1997. The program encourages economic development in historically underutilized business zones – “HUBZones” – through the establishment of preferences and is intended to promote economic development and employment growth in distressed areas by providing access to more Federal contracting opportunities.

Mountain Chief Advantage
Section 19.1307 HUBZone qualified companies are eligible for price evaluation preference of up to 10% when bidding on federal contracts. FAR 52.219-4 When submitting a bid, the contracting officer adds a factor of 10% to all other offers applied on a line item basis or to any group of items on which award may be made.

Section 19.1305
HUBZone qualified companies are eligible for contract set-asides and sole-source awards. FAR 52.219-3 The anticipated price of the contract, including options, will not exceed $5M for a requirement within the North American Industry Classification System (NAICS) codes for manufacturing; and $3M for a requirement within any NAICS code.

Contracting Officer’s Advantage
The Government requires Federal Agencies to achieve an award goal of 1.5% to HUBZone concerns. This goal is passed along in the requirements of subcontracting plans.

Prime Contractor’s Advantage
All subcontracting plans for large business Federal contractors must include a HUBZone subcontracting goal; the program provides evaluation credits for prime contractors who achieve their subcontracting targets. Large companies engaged in the federal market can also benefit by partnering with Mountain Chief to pursue HUBZone set-asides for which the large business would not normally qualify.

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