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HUBZone Program Offers Opportunities
What is it?
The HUBZone Empowerment Contracting Program, included in the Small Busines Reauthorization Act of 1997 stimulates economic development and creates jobs in low-income communities by providing Federal contracting preference to small businesses that are located in a HUBZone, and that hire employees who live in a HUBZone. Most of the seven Northern New Mexico counties that are serviced by the NNMSA are eligible HUBZones. This program applies to firms that are currently located within HUBZones, start-up businesses that are located in these areas, and existing firms that choose to move their business to qualified areas.
The HUBZone empowerment Contracting Program applies to all Federal departments and agencies with contracting authority that include some of the following:
Dept. of Energy-DOE
Dept. of Agricluture-USDA
Dept. of Defense-DOD
Dept. of Health & Human Services-HHS
Dept. of Transportation-DOT
Environmental Protection Agency-EPA
Generl Services Adminstration-GSA
Dept. of Housing-HUD
Other agencies that include:
Los Alamos National Lab
Sandia National Lab
Kirtland Air Force Base
Bureau of Indian Affairs
US Forest Service
Bureau of Land Management
There are currently 32 HUBZone registered NNMSA members listed on our membership out of the 156 registered in the state of New Mexico.
How does a business qualify?
A small business must meet all of the following criteria to qualify for the HUBZone program:
it must be located in a "historically underutilized business zone"
it must be owned and controlled by one or more US citizens
at least 35% of its employees must reside in a HUBZone
A "HUBZone" is an area that is located in one or more of the following:
-a qualified census tract (as defined in section 42(d)(5)(C)(i)
(I) of the Internal Revenue Code of 1986)z;
-a qualified "non-metropolitan county" ( as defined in section
143(k) (2) (B) of the Internal Revenue Code of 1986) with a
median household income of less than 80% of the of the State
median household income or with an unemployment rate or less
than 140 percent of the statewide average, based on US Dept.
of Labor recent data; or
-lands within the boundaries of federally recognized Indian
reservation
What are the benifits?
Eligible firms enjoy limited competition for set-aside contracting funds within participating agencies, and are able to receive preferential consideration for other types of Federal procurement contracts:
A competititve contract can be awarded if more than one qualified small business will submit offers and the contract can be awarded at a fair market price.
A sole source contract can be awarded if there is a reasonable expectation that only a single qualified small business will submit an offer and the agency determines that the qualified small business is responsible, and that the contract can be awared at a fair price. The government estimate cannot exceed $5 million for manufacturing requirements or $3 million for all other requirements.
A full and open competition contract can be awarded with a price evaluation preference. The offer of the small business will be considered lower than the offer of a non-eligible business-- if the offer of the HUBZone small business is not more than 10 Percent higher.
How does a business apply?
Interested businesses can check to see if they are located in an eligible area, or if an area they are considering for relocaton is eligible, by using the locator information at http://map/sba.gov/hubzone/. Specific information on local designations can be obtained by clicking on the geographic area of interest. If the location is a HUBZone, individual businesses can apply to receive preferences under this program by submitting an on-line application.
How can communities use this program?
Communities can encourage and support the use of this program within their communiities by:
-informing local businesses and business leaders about HUBZone
-becoming familiar with the HUBZone boundaries in their area and
helping businesses access and complete on-line applications and
-making local businesses aware of Federal contract announcements
For More Information
Visit the HUB Zone Web site at www.sba.gov/hubzone.
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