HUB Zone Program
The HUB Zone Empowerment Contracting Program is an initiative
designed to stimulate economic development by providing federal
contracting opportunities to small businesses located in eligible
areas. A HUB Zone is a “historically underutilized business
zone.” Eligible areas cover more than 7,000 urban census
tracts, 900 rural areas, and every federally recognized Native
American reservation. The U.S. Small Business Administration
administers the HUB Zone program and certifies companies for
eligibility.
Contracts, Jobs, and Community Empowerment
The HUB Zone Empowerment Contracting Program is a “place-based”
federal contracting program serving new market communities
with low income or high unemployment. The program provides
both federal prime contract and subcontract benefits.
With its goal of bringing job opportunities and capital
investment to underutilized areas, the HUB Zone program
complements the Empowerment Zones and Enterprise Communities
Initiative. It will serve as a vital tool to empower distressed
areas, build sustainable communities, and promote long-term
economic development and growth.
Eligibility Guidelines:
To qualify for the Hub Zone program, a business must meet
the following criteria:
- It must be a small business by SBA size standards;
- Its principal office must be located within a HUB Zone,
which includes lands on federally recognized Indian reservations;
- It must be owned and controlled by one or more U.S.
citizens. Approved ownership can also be by a Community
Development Corporation or Indian tribe; and
- At least 35% of its employees must reside in a HUB Zone.
Federal Contract Benefits
There are four types of HUB Zone contract opportunities:
- Competitive: Contracts can be set-aside for HUB Zone
competition when the contracting officer has a reasonable
expectation that at least two qualified HUB Zone small
business concerns will submit offers and that the contract
will be awarded at a fair market price.
- Sole-source: HUB Zone contracts can be awarded if the
contracting officer determines that - only one qualified
HUB Zone Small Business is responsible to perform the
contract and two or more qualified HUB Zone Small Businesses
are not likely to submit offers.
- Full and open competitive contracts can be awarded with
a price evaluation preference. The offer of the HUB Zone
small business must not be 10 percent higher than the
offer of a non Hub Zone small business.
- Subcontracting: All subcontracting plans for large business
Federal contractors must include a HUB Zone subcontracting
goal.
| For further information contact |
Dustin Frigy
Director Government Procurement Program
810.600.1432
dfrigy@thegrcc.org
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