HUBZone sole-source awards
FAR 19.1306 allows sole-source awards to HUBZone small businesses under specific conditions and thresholds, supporting direct contracting opportunities when competition is limited.
Overview
FAR 19.1306 outlines the conditions under which a contracting officer may award a contract to a HUBZone small business concern on a sole-source basis. This section establishes the order of precedence for considering HUBZone sole-source awards before small business set-asides, provided certain criteria are met. It sets specific dollar thresholds for manufacturing ($7 million) and other NAICS codes ($4.5 million), and requires that the contracting officer does not reasonably expect offers from two or more HUBZone firms. The section also prohibits sole-source awards if the requirement is currently performed by or has been accepted by the SBA for the 8(a) program. Additionally, the HUBZone concern must be determined responsible, and the award price must be fair and reasonable. The Small Business Administration (SBA) retains the right to appeal a decision not to make a HUBZone sole-source award.
Key Rules
- Order of Consideration
- Contracting officers must consider HUBZone sole-source awards before small business set-asides if exclusions do not apply.
- Eligibility Criteria
- No reasonable expectation of two or more HUBZone offers, contract value within specified thresholds, not an 8(a) requirement, contractor responsibility, and fair/reasonable price.
- SBA Appeal Rights
- SBA may appeal a decision not to make a HUBZone sole-source award.
Responsibilities
- Contracting Officers: Assess eligibility, document market research, ensure compliance with thresholds and program exclusions, determine responsibility, and justify price reasonableness.
- Contractors: Demonstrate HUBZone eligibility and responsibility, and offer fair and reasonable pricing.
- Agencies: Respond to SBA appeals and maintain documentation.
Practical Implications
- This section enables agencies to directly award contracts to HUBZone firms under specific conditions, supporting small business participation in federal contracting. Contractors must be prepared to prove eligibility and responsibility. Common pitfalls include misapplying thresholds, overlooking 8(a) exclusions, or failing to document market research.