All about HUBZone (Historically Underutilized Business Zone) Program

Small businesses in urban and rural areas can benefit from the Historically Underutilized Business Zones HUBZone certification program, which gives them priority access to federal procurement opportunities. HUBZone accredited companies are expected to receive at least 3% of all federal prime contracts, according to the federal government. To fulfill that goal, agencies may set aside contracts for which only HUBZone companies are eligible to bid, or they may award sole-source contracts to HUBZone firms. In some circumstances of full and open contract contests and subcontracting opportunities, contractors may be eligible for a 10% price evaluation preference.

Requirements for the HUBZone Certification Program

A business (excluding tribally held companies) must meet the following conditions to be eligible for the program. They have to:

· To the SBA’s guidelines, you must be a small business.

· A Community Development Corporation, an agricultural cooperative, or an Indian tribe must own and control at least 51 percent of the company.

· Having its headquarters in a “Historically Underutilized Business Zone,” which includes sites designated as “Indian Country” and military bases decommissioned under the Base Realignment and Closure Act?

· At least 35% of the company’s employees must live in a HUBZone.

The Beginnings of HUBZone certification

Any of the steps below can be answered by your local PTAC counselor, and they can also assist you with them.

· Determine whether your company meets the SBA’s definition of “small”

If you’re not sure, utilize the SBA’s Size Standard Tool.

· Determine whether your company is in a HUBZone

An interactive map on the SBA website will help you figure out if your location qualifies as a HUBZone. HUBZone designations, on the other hand, are updated regularly to integrate new data sources. The SBA published revised HUBZone designations on January 1, 2015, under which several places were labeled as HUBZones for the first time, but a larger number, were “re-designated” (meaning they lost their HUBZone status) until 2018. The interactive map has not yet been updated to reflect these changes. Documents detailing particular eligible census tracts have been provided on the HUBZone map web page. The HUBZone certification status is automatically granted to Indian lands, as well as some facilities closed under the Base Realignment and Closure Act.

· Registration with Dun & Bradstreet

Each headquarters and branch office must be registered with Dun & Bradstreet to receive its own Data Universal Numbering System (DUNS) number.

· Registration for the SAM

The principal office address that is asking for HUBZone certification must be entered in the SAM profile associated with the DUNS appropriate for its specific physical location.

· Small Business Search (DSBS) Profile

Make sure you’ve finished the SBA’s Supplemental page for the DSBS system, which shows your company’s certification status. It is recommended that you update your profiles (SAM and DSBS page) on the SAM website.

The following are some of the advantages of HUBZone certification:

Contracting that is both competitive and sole source

· In full and open contract competitions, as well as subcontracting opportunities, a 10% price evaluation preference is given.

· HUBZone-certified small enterprises are expected to get 3% of all federal prime contracts, according to the federal government.

· A 3 percent HUBZone budgetary objective has been set for all sectors of the federal government. All 600 federal agencies purchasing arms are constantly in need of HUBZone-approved enterprises to complete contracts to satisfy these budgetary goals.

· Large enterprises bidding on government contracts worth more than $550,000 must include a provision in the contract for HUBZone participation. As a result, holding a HUBZone accreditation will enable you to take advantage of these subcontracting opportunities.

The program is run by the Small Business Administration, and it includes the following:

· Establishes which companies are qualified for HUBZone contracts.

· Keeps track of eligible HUBZone small enterprises that federal agencies can use to find suppliers.

· Determines whether or not a company is eligible for HUBZone certification contracts.

· Reports to Congress on the program’s impact on job creation and investment in HUBZones.