HUBZone
Suh’dutsing Technologies is a certified HUBZone company. The HUBZone program, administered by the Small Business Administration (SBA), provides federal contracting opportunities to firms located in “historically underutilized business (HUB) zones,” and the program encourages economic development and employment growth.
HUBZone Program History
The HUBZone (Historically Underutilized Business Zone) program is part of the Federal Small Business reauthorization Act, which sets aside a certain number of contracts for businesses located in Historically Underutilized Business Zones. Contracts reserved for HUBZone are awarded through competitions. The HUBZone program promotes job creation and economic opportunity in communities that are the most in need.
What are the Requirements for HUBZone Eligibility? In order for a business to qualify for the HUBZone program, the business must meet the following criteria:
- 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.
What is a Historically Underutilized Business Zone? 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.
What are the types of HUBZone contracts?
- A competitive 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 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.