HUBZone sole-source awards
Contracting officers must prioritize HUBZone sole-source awards when specific eligibility criteria are met, ensuring fair access for HUBZone small businesses before considering set-asides.
Overview
FAR 19.1306 outlines the requirements and procedures for awarding contracts to HUBZone small business concerns on a sole-source basis. Contracting officers must consider a HUBZone sole-source award before a small business set-aside, provided certain conditions are met and none of the exclusions at FAR 19.1304 apply. The section specifies dollar thresholds for eligibility ($8.5 million for manufacturing, $5.5 million for other NAICS codes), and requires that there is not a reasonable expectation of receiving offers from two or more HUBZone firms. The requirement must not be currently performed by or accepted for the 8(a) program, the HUBZone firm must be responsible, and the price must be fair and reasonable. Additionally, the Small Business Administration (SBA) retains the right to appeal a contracting officer’s decision not to make a HUBZone sole-source award.
Key Rules
- Sole-Source Consideration Order
- Contracting officers must consider HUBZone sole-source awards before small business set-asides if all criteria are met.
- Eligibility Thresholds
- Contract value must not exceed $8.5 million (manufacturing) or $5.5 million (other NAICS codes).
- Offeror Availability
- Sole-source is only allowed if there is no reasonable expectation of offers from two or more HUBZone firms.
- 8(a) Program Exclusion
- The requirement cannot be currently performed by or accepted for the 8(a) program.
- Responsibility and Price
- The HUBZone firm must be responsible and the price fair and reasonable.
- SBA Appeal Rights
- SBA may appeal a decision not to make a HUBZone sole-source award.
Responsibilities
- Contracting Officers: Must evaluate HUBZone sole-source eligibility, ensure compliance with thresholds and exclusions, and document decisions; must allow for SBA appeals.
- Contractors: HUBZone firms must demonstrate responsibility and offer fair, reasonable pricing.
- Agencies: Must support contracting officers in compliance and respond to SBA appeals as needed.
Practical Implications
- This section ensures HUBZone firms have priority access to sole-source opportunities under specific conditions, supporting small business participation in federal contracting. Contracting officers must carefully document market research and eligibility determinations. Common pitfalls include misapplying thresholds, overlooking 8(a) exclusions, or failing to consider SBA appeal rights.