Status as a HUBZone small business concern
Only businesses officially designated as HUBZone small business concerns by the SBA and listed in DSBS and SAM are eligible for HUBZone contracting preferences at the time of their initial offer.
Overview
FAR 19.1303 outlines the requirements for a business to be recognized as a HUBZone small business concern for federal contracting purposes. The Small Business Administration (SBA) is responsible for determining and designating HUBZone status, which is reflected in both the Dynamic Small Business Search (DSBS) and the System for Award Management (SAM). Only businesses listed as HUBZone concerns in these databases are eligible for HUBZone contracting preferences, regardless of the contract’s place of performance. The section also specifies that joint ventures can qualify as HUBZone small businesses if they meet certain criteria, including size standards, having at least one HUBZone member, and compliance with specific SBA regulations. Importantly, a business must have HUBZone status at the time of its initial offer to be eligible for HUBZone contracts.
Key Rules
- SBA Determination of HUBZone Status
- Only the SBA can designate a business as a HUBZone small business concern, following 13 CFR Part 126.
- Eligibility Listings
- Firms must be listed as HUBZone concerns in both DSBS and SAM to receive HUBZone preferences.
- Joint Venture Eligibility
- Joint ventures may qualify if they meet size standards, include at least one HUBZone concern, and comply with 13 CFR 126.616(a)-(c).
- Timing of Status
- HUBZone status must be valid at the time of the initial offer for contract eligibility.
Responsibilities
- Contracting Officers: Must verify HUBZone status in DSBS and SAM before awarding preferences.
- Contractors: Must ensure their HUBZone status is current and properly listed in DSBS and SAM at the time of offer.
- Agencies: Must rely on SBA’s designation and ensure compliance with eligibility requirements for joint ventures.
Practical Implications
- Ensures only properly certified HUBZone businesses receive set-aside or preference benefits.
- Contractors must maintain up-to-date certifications and listings to remain eligible.
- Joint ventures must pay close attention to compliance with both size and regulatory requirements to qualify.