Historically Underutilized Business Zone (HUBZone) 

The Historically Underutilized Business Zone (HUBZone) program is administered by the Small Business Administration (SBA) and establishes preferences for awarding federal contracts to small businesses located 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);
• 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 percent of the State median household income or with an unemployment rate of not less than 140 percent of the statewide average, based on US Department of Labor recent data; or
• Lands within the boundaries of federally recognized Indian reservations.

ELIGIBILITY

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" or HUBZone.
• It must be owned and controlled by one or more US Citizens, and
• At least 35% of its employees must reside in a HUBZone.

TYPES OF HUBZone CONTRACTS

A competitive HUBZone contract can be awarded if the contracting officer has a reasonable expectation that at least two qualified HUBZone small businesses will submit offers and that the contract can be awarded at a fair market price.

A sole source HUBZone contract can be awarded if the contracting officer does not have a reasonable expectation that two or more qualified HUBZone small businesses will submit offers, determines that the qualified HUBZone small business is responsible, and determines that the contract can be awarded 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 HUBZone small business will be considered lower than the offer of a non-HUBZone/non-small business-providing that the offer of the HUBZone small business is not more than 10 percent higher.

For more information http://www.sba.govand search HUBZones

Wisconsin Procurement Institute (Federal Government)