Awarding HUBZone Contracts

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

Full & Open Competition: Contracts may 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 provided that the offer of the HUBZone small business is not more than 10 percent higher.

Sole Source: HUBZone contracts may be awarded if the contracting officer does not a 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.

For example:

  1. Company "A", a federal contractor, bids on a government contract.
  2. Compared to other companies, if Company "A" demonstrates higher HUBZone utilization, the Company "A" will receive a ten percent (10%) price preference compared to the other bids.

How do I locate good HUBZone contractor?