The HUBZone Program stimulates economic development and creates jobs in urban and rural communities by providing Federal contracting preferences to small businesses. These preferences go to small businesses that obtain HUBZone (Historically Underutilized Business Zone) certification from the Small Business Administration (SBA). The program resulted from provisions contained in the Small Business Reauthorization Act of 1997.

HUBZone means a historically underutilized business zone, which is an area located within one or more:

• Qualified census tracts;
• Qualified non-metropolitan counties;
• Lands within the external boundaries of an Indian reservation;
• Qualified base closure area; or
• Redesignated area.

To be a qualified HUBZone small business concern a company must:

• be a small business
• be owned and controlled only by US citizens and/or Indian Tribal Governments
• have the "principle office" located in a HUBZone
• have at least 35% of the company's employees residing in a HUBZone (doesn't have to be the same HUBZone as the company's principal office)
• be certified by the U.S. Small Business Administration

Sole Source Contracts:

The Contracting Officer may award a sole source contract to a HUBZone small business if

• The HUBZone small business is determined to be responsible and capable and there is no reasonable expectation that 2 or more HUBZone small businesses will submit offers.
• The award price of the contract (including options) will not exceed
  • $6.5M for for manufacturing
  • $4M for any other industrial classification
• In the estimation of the Contracting Officer, the contract award can be made at a fair and reasonable price.

Restricted Competition/Set-Asides:

The Contracting Officer MAY set-aside contracts for HUBZone small business if

• There is a reasonable expectation that 2 or more HUBZone small businesses will submit offers, and
• In the estimation of the Contracting Officer, the contract award can be made at a fair and reasonable price.

For additional information:

• Small Business Administration's HUBZone
• 13 CFR 126
• FAR 19.13