19.1305 HUBZone set-aside procedures
Source: FAR 19.1305 on acquisition.gov
Contracting officers must prioritize HUBZone set-asides when certain conditions are met and follow strict procedures, including SBA appeal processes, to ensure fair competition for HUBZone small businesses.
Overview
FAR 19.1305 outlines the procedures for setting aside federal acquisitions for competition exclusively among HUBZone small business concerns. The section details when and how contracting officers should consider HUBZone set-asides, the conditions that must be met, and the steps to follow if insufficient offers are received. It also describes the process for handling appeals from the Small Business Administration (SBA) regarding set-aside decisions, including required notifications, suspension of acquisition actions, and timelines for appeals and agency responses. The regulation ensures that HUBZone small businesses are given fair opportunities to compete for federal contracts, supporting economic development in historically underutilized areas.
Key Rules
- Set-Aside Consideration Order
- Contracting officers must first consider HUBZone set-asides before HUBZone sole-source or general small business set-asides.
- Eligibility for HUBZone Set-Aside
- Set-asides are permitted when there is a reasonable expectation of receiving offers from at least two HUBZone small businesses and award can be made at a fair market price.
- Award Procedures
- If only one acceptable HUBZone offer is received, award should be made; if none, the set-aside is withdrawn and the requirement may be set aside for other small businesses.
- SBA Appeal Process
- SBA can appeal a contracting officer’s rejection of a HUBZone set-aside recommendation, triggering suspension of acquisition actions and a defined timeline for resolution.
Responsibilities
- Contracting Officers: Must follow the order of set-aside consideration, document reasonable expectations, manage offers, and comply with appeal procedures.
- Contractors: HUBZone small businesses must submit competitive, acceptable offers.
- Agencies: Must respond to SBA appeals within specified timeframes and ensure compliance with set-aside procedures.
Practical Implications
- This section ensures HUBZone small businesses have priority access to certain federal contracts, promoting economic growth in underutilized areas.
- Contracting officers must carefully document market research and decision-making to justify set-asides or withdrawals.
- Failure to follow procedures can result in appeals, delays, or improper contract awards.
(a) The contracting officer-
(1) Shall comply with 19.203 before deciding to set aside an acquisition under the HUBZone Program;
(2) May set aside acquisitions exceeding the micro-purchase threshold for competition restricted to HUBZone small business concerns when the requirements of paragraph (b) of this section can be satisfied; and
(3) Shall consider HUBZone set-asides before considering HUBZone sole-source awards (see 19.1306) or small business set-asides (see subpart 19.5).
(b) To set aside an acquisition for competition restricted to HUBZone small business concerns, the contracting officer must have a reasonable expectation that-
(1) Offers will be received from two or more HUBZone small business concerns; and
(2) Award will be made at a fair market price.
(c) If the contracting officer receives only one acceptable offer from a HUBZone small business concern in response to a set aside, the contracting officer should make an award to that concern. If the contracting officer receives no acceptable offers from HUBZone small business concerns, the HUBZone set-aside shall be withdrawn and the requirement, if still valid, set aside for small business concerns, as appropriate (see 19.203).
(d) The procedures at 19.202-1 and, at 19.402 apply to this section.
(1) When the SBA intends to appeal a contracting officer’s decision to reject a recommendation of the SBA procurement center representative (or, if a procurement center representative is not assigned, see 19.402(a)) to set aside an acquisition for competition restricted to HUBZone small business concerns, the SBA procurement center representative shall notify the contracting officer, in writing, of its intent within 5 business days of receiving the contracting officer’s notice of rejection.
(2) Upon receipt of notice of SBA’s intent to appeal, the contracting officer shall suspend action on the acquisition until the head of the contracting activity issues a written decision on the appeal, unless the head of the contracting activity makes a written determination that urgent and compelling circumstances, which significantly affect the interests of the Government, exist.
(3) Within 15 business days of SBA’s notification to the contracting officer, SBA must file its formal appeal with the head of the agency, or the appeal will be deemed withdrawn. The head of the agency shall reply to SBA within 15 business days of receiving the appeal. The decision of the head of the agency shall be final.