HUBZone set-aside procedures
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- If only one acceptable HUBZone offer is received, award should be made; if none, the set-aside is withdrawn and the requirement may be set aside for other small businesses.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.