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Lucille
Maud Corporation is a certified HUBZone
organization. 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
Reauthorization Act of 1997. The program falls
under the auspices of the U.S. Small Business
Administration. The program encourages economic
development in historically underutilized 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.
How the HUBZone Program Works
- The U.S. Small Business Administration (SBA)
regulates and implements the program,
- determines which businesses are eligible to
receive HUBZone contracts,
- maintains a listing of qualified HUBZone small
businesses Federal agencies can use to locate
vendors,
- adjudicates protests of eligibility to receive
HUBZone contracts, and
- reports to the Congress on the program's impact
on employment and investment in HUBZone areas.
Historically Underutilized Business Zone
A "HUBZone" is an area that is located
in one or more of the following:
- a qualified census tract (as defined in section
42(d)(5)(C)(i)(I) of the Internal Revenue Code
of 1986);
- a qualified "non-metropolitan county"
(as defined in section 143(k)(2)(B) of the
Internal Revenue Code of 1986) with a median
household income of less than 80 percent of
the State median household income or with an
unemployment rate of not less than 140 percent
of the statewide average, based on U.S.
Department of Labor recent data; or
- lands within the boundaries of federally
recognized Indian reservations.
Types of HUBZone Contracts
A competitive HUBZone contract
can be awarded if the contracting officer has a
reasonable expectation that at least two qualified
HUBZone small businesses will submit offers and
that the contract can be awarded at a fair market
price.
A sole source HUBZone contract
can be awarded if the contracting officer does not
have a reasonable expectation that two or more
qualified HUBZone small businesses will submit
offers, determines that the qualified HUBZone
small business is responsible, and determines that
the contract can be awarded at a fair price. The
government estimate cannot exceed $5 million for
manufacturing requirements or $3 million for all
other requirements.
A full and open competition
contract can be awarded with a price evaluation
preference. The offer of the HUBZone small
business will be considered lower than the offer
of a non-HUBZone/non-small business-providing that
the offer of the HUBZone small business is not
more than 10 percent higher.
Affected Federal Agencies
Until September 30, 2000, the HUBZone Empowerment
Contracting Program applies only to the
procurements of the following Federal agencies:
U.S. Department of Defense (DOD), U.S. Department
of Agriculture (USDA), U.S. Department of Health
and Human Services (HHS), U.S. Department of
Transportation (DOT), U.S. Department of Energy
(DOE), U.S. Department of Housing and Urban
Development (HUD), U.S. Environmental Protection
Agency (EPA), U.S. National Aeronautics and Space
Administration (NASA), U.S. General Services
Administration (GSA), and U.S. Department of
Veterans Affairs (VA).
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