Notice of HUBZone Set-Aside or Sole-Source Award
Only SBA-certified HUBZone small business concerns (or eligible joint ventures) may compete for and receive contracts set aside or awarded under this clause, with strict eligibility and performance requirements.
Overview
FAR 52.219-3, Notice of HUBZone Set-Aside or Sole-Source Award, establishes requirements for solicitations and contracts that are either set aside or awarded on a sole-source basis to HUBZone small business concerns. The clause defines a HUBZone small business concern as one certified by the SBA and listed on the official SBA HUBZone list. It applies to contracts, parts of multiple-award contracts, and orders specifically set aside for HUBZone firms. Only offers from HUBZone small business concerns will be considered, and awards will only be made to such concerns. The clause also addresses joint ventures, specifying eligibility criteria and performance requirements, including that at least 40% of the aggregate work must be performed by the HUBZone small business parties to the joint venture, and this work must be substantive, not merely administrative.
Key Rules
- Eligibility Restriction
- Only HUBZone small business concerns may submit offers and receive awards under this clause.
- Joint Venture Requirements
- Joint ventures must include at least one HUBZone small business concern and meet SBA requirements; all parties must qualify as small businesses under the solicitation's size standard.
- Performance Requirement for Joint Ventures
- At least 40% of the aggregate contract work must be performed by the HUBZone small business parties, and this work must be substantive.
Responsibilities
- Contracting Officers: Must ensure only eligible HUBZone firms are considered and awarded contracts; verify joint venture compliance.
- Contractors: Must be SBA-certified HUBZone firms or eligible joint ventures; joint ventures must meet performance and eligibility requirements.
- Agencies: Oversee compliance with HUBZone set-aside and sole-source award requirements.
Practical Implications
- Ensures that only qualified HUBZone small businesses compete for and receive certain federal contracts, supporting economic development in historically underutilized business zones. Contractors must maintain certification and compliance, and joint ventures must carefully structure participation and work allocation to meet the 40% rule. Non-compliance can result in disqualification or contract termination.