Many of the most profitable companies have utilized the advantage of preferential bidding status and 10% price benefits which is afforded to companies located within HUBZones. HUBZones, or Historically Underutilized Business Zones are a result of a program put in place by the United States Small Business Administration with the intent of answering the HUBZone Empowerment Act of 1998. The goal of the program is to create incentives for the federal government to interact with businesses, which have the power to create more jobs in the community.
There are several criteria put in place for the program: The business must be based on the North American Industry Classification system for size standards, must be at least 51% owned and controlled by citizens or permanent US residents, the firm’s principle office must be in the HUBZone, and 35% of the firms workforce must reside in a HUBZone. The benefits of this program far outweigh the application process, and the program provides competitive and sole source contracting. The program also grants 10% price evaluation preference in contract competitions.
Many are unaware of the opportunities set aside for agencies located in the zones, but those who are are able to act as a general contractor that can deploy many subcontractors, thus achieving the intended goal. The biggest issue faced is that many of the companies located in the zones lack communication. Some are without the technology or means in which to advertise their firm, allowing them to make contracts. That is just one of the many problems associated with those aware of the project, many located in the zones are virtually unaware of the program all together.
In order to apply for the program, the business must first be located on a HUBZone, which can determine this by looking at the map HERE. The application process requires a Dun and Bradstreet ID, the firm’s Employer Identification Number, an updated SAM and DSBS page, and a completed registration. The application should be reviewed in 90 days. If you are simply looking for a firm located in a HUBZone to do contracts with, a search of the Dynamic Small Business Search will help you find a contact.
