http://www.sba.gov/hubzone/section05b.htm

Overview

The HUBZone Empowerment Contracting program provides federal contracting opportunities for qualified small businesses located in distressed areas. Fostering the growth of these federal contractors as viable businesses, for the long term, helps to empower communities, create jobs, and attract private investment.

Program History

The HUBZone Empowerment Contracting program was enacted into law as part of the Small Business Re-authorization Act of 1997. The program falls under the auspices of the U.S. Small Business Administration. The program encourages economic development in historically underutilize business zones � �HUBZones� � through the establishment of preferences.

SBA�s HUBZone program is in line with the efforts of both the Administration and Congress to promote economic development and employment growth in distressed areas by providing access to more Federal contracting opportunities.

Native American Tribes and U.S. Citizenship

Pursuant to HUBZone Act, a person(s) that owns and controls a HUBZone entity must also be a United States citizen. Native American Tribes are not specifically defined as United States citizens by federal statue. Therefore, the issue was raised whether for purposes if the HUBZone program, are Native American Tribes eligible to participate in the program?

The SBA�s position is that Native American Tribes are eligible to participate in the HUBZone program and will accept HUBZone applications from these tribes.

The HUBZone program is new and NIBA encourages Native American Tribal Enterprises located on Indian reservations to apply for participation in the HUBZone Empowerment Contracting program. For further information, please contact the SBA web page at www.sba.gov/hubzone.

Following are the facts about the HUBZone Empowerment Contacting Program.

Facts About

HUBZONE EMPOWERMENT CONTRACTING PROGRAM

Contracting Benefits

There are three types of HUBZone contracts:

• Sole-Source HUBZone contracts can be awarded if the Contracting Officer does not have a reasonable expectation that two or more qualified HUBZone small business will submit offers determines that the qualified HUBZone small business is responsible, and determines that the contract will be awarded at a fair price.

• Competitive HUBZone contracts can be awarded if the Contracting Officer has reasonable expectation that at least two qualified HUBZone small businesses will submit offers and that the contract will be awarded at a fair market.

• Full and Open competition contracts can be awarded with a price evaluation preference. The offer of the HUBZone small business must not be about 10 percent higher than the offer of the non-HUBZone/non-small business.

Other Benefits

• Eligible HUBZone firms can qualify for higher SBA-guaranteed surety bonds on construction and service contract bids.

• Firms in Empowerment Zones and enterprise Communities (EZ/EC) can also benefit from employer tax credits, tax-free facility bonds, and investment tax deductions.

• A 10% price evaluation preference in full and open competition for HUBZone businesses.

• A 10% price evaluation preference in full and open competition for Small Disadvantage Businesses, in a HUBZone.

Requirements

To qualify for the program, a small business must meet the following criteria:

Its principal office must be located within a �Historically Underutilized Business   Zone�, includes lands on federally recognized Indian reservation;

• It must be owned and controlled by one or more U.S. Citizens; and

• At least 35% of its employees must reside in a HUBZone.

Existing businesses that choose to move to qualified areas are eligible. To fulfill the requirement that 35% of HUBZone firm�s employees reside in the HUBZone, employees must love in a primary residence within that area for at least 180 days or be a currently registered voter in that area.

Locating Eligible Areas

Computer mapping software available on SBA�s website allows firms to search a database to determine whether or not they are located in a qualified HUBZone. The system allows searches by address, county, or town and displays metropolitan areas, Indian reservations, and areas that qualify by income, unemployment rate, or both.

Applying to the Program

To apply, companies are encouraged to use the electronic applications directly on the HUBZone website at www.sba.gov/hubzone. To expedite contacting, Tribal Enterprises can send applications directly to Mr. Mike McHale, Assistant Administrator for Acquisition and Policy, Small Business Administration 409 Third Street, S.W., Washington, D.C. 20416. Applications can download the paper version from the website or obtain it from any local SBA district office.

Participating Federal Agencies

After September 30, 2000, the program will apply to all federal departments and agencies. Until then it applies only to the procurement of these listed below:

      U.S. Department of Agriculture (USDA)

      U.S. Department of Defense (DOD)

      U.S. Department of Energy (DOE)

      U.S. Department Health of Human Services (HHS)

      U.S. Department of Housing and Urban Development (HUD)

      U.S. Department of Transportation (DOT)

      U.S. Department of Veterans Affairs (VA)

      U.S. Environmental Protection Agency (EPA)

      U.S. General Services Administration (GSA)

      U.S. National Aeronautics and Space Administrate (NASA)

The HUBZone program was enacted into law as part of the Small Business Re-authorization Act of 1997. The SBA regulates and implements the program, determines which businesses are eligible to receive HUBZone contracts, maintains a listing a qualified HUBZone small business federal agency can use to locate vendors, and adjudicates protests of eligibility to receive HUBZone contracts. To search for eligible HUBZone businesses, Contacting Officers can use SBA�s Procurement Marketing and Access Network (PRO-Net).