Georgia Tech Procurement Assistance Center

  • Home
  • About Us
  • Training
    • Class Registration
    • On-demand Training
  • Useful Links
  • Team Directory
    • Albany Counselor
    • Atlanta Counselors
    • Augusta Counselor
    • Carrollton Counselor
    • Columbus Counselor
    • Gainesville Counselor
    • Savannah Counselor
    • Warner Robins Counselor
  • Directions
    • Atlanta – Training Facility
    • Atlanta – Office
    • Albany
    • Augusta
    • Carrollton
    • Columbus
    • Gainesville
    • Savannah
    • Warner Robins
  • New Client Application
  • Contact Us

Congressional Research Service publishes new report on SBA’s HUBZone program

February 22, 2021 By Nancy Cleveland

The Historically Underutilized Business Zone Empowerment Contracting (HUBZone) program provides participating small businesses located in areas with low income, high poverty, or high unemployment with contracting opportunities in the form of set-asides, sole-source awards, and price-evaluation preferences.  Its primary objectives are job creation and increased capital investment in distressed communities.  Firms must be certified by the SBA to participate in the program.  As of February 9, 2021, the SBA’s Dynamic Small Business Search database included 7,720 firms with active HUBZone certifications.

In FY2019, the federal government awarded $11.5 billion to HUBZone-certified businesses.  About $2.0 billion of that amount was awarded with a HUBZone preference ($1.9 billion through a HUBZone set-aside, $95.0 million through a HUBZone sole-source award, and $72.5 million through a HUBZone price-evaluation preference).  About $2.8 billion was awarded to HUBZone certified businesses in open competition with other firms.  The remaining $6.7 billion was awarded with another small business preference (e.g., for small businesses generally or for 8(a), women-owned, and service-disabled veteran-owned small businesses).

The HUBZone program’s administrative cost is about $11.7 million annually.  It received an appropriation of $3.0 million for FY2021, with the additional cost of administering the program provided by the SBA’s appropriation for salaries and general administrative expenses.

Congressional interest in the HUBZone program has increased in recent years, primarily because the program has had difficulty reaching its 3% contracting goal.

This report examines arguments both for and against targeting assistance to geographic areas with specified characteristics as opposed to providing assistance to people or businesses with specified characteristics.  It then assesses the arguments both for and against the program’s continuation.

The report also discusses the HUBZone program’s structure and operation, focusing on the definition of HUBZone areas and HUBZone small businesses and the program’s performance relative to federal contracting goals.  It includes an analysis of the SBA’s administration of the program and the SBA’s performance measures.

This report also examines HUBZone-related legislation, including P.L. 115-91, the National Defense Authorization Act for Fiscal Year 2018, which, among other provisions, allows small businesses that have HUBZone status on or before December 31, 2019, to retain that status until the SBA prepares an updated online tool depicting HUBZone qualified areas based on the 2020 Census (anticipated by the SBA to take place in December 2021).  Once operational, the new online tool (currently called the HUBZone map) must be updated every five years for qualified census tracts and nonmetropolitan counties and when a change in status takes place for other HUBZone types (e.g., when an area becomes or ceases to be a redesignated area or a base closure area).  Also, governors, starting on January 1, 2020, may petition the SBA each year to designate areas located in nonurban areas, with a population of 50,000 or fewer, and an average unemployment rate at least 120% of the national or state average, whichever is lower, as HUBZones.  The SBA is also required, not later than one year after enactment, to publish performance metrics measuring the HUBZone program’s success in promoting economic development in economically distressed areas.

Read the full report here:  https://crsreports.congress.gov/product/pdf/R/R41268

Filed Under: Contracting News Tagged With: HUBZone, SBA

Recent Posts

  • Contractors must update EEO poster
  • SBA scorecard shows federal government continues to prioritize small business contracting
  • The risk of organizational conflicts of interest
  • The gap widens between COFC and GAO on late is late rule
  • OMB releases guidance related to small business goals

Popular Topics

8(a) abuse Army bid protest budget budget cuts certification construction contract awards contracting opportunities cybersecurity DoD DOJ False Claims Act FAR federal contracting federal contracts fraud GAO Georgia Tech government contracting government contract training government trends GSA GSA Schedule GTPAC HUBZone innovation IT Justice Dept. marketing NDAA OMB SBA SDVOSB set-aside small business small business goals spending subcontracting technology VA veteran owned business VOSB wosb

Contracting News

SBA scorecard shows federal government continues to prioritize small business contracting

OMB releases guidance related to small business goals

OMB issues guidance on impact of injunction on government contractor vaccine mandate

Changes coming to DOD’s Cybersecurity Maturity Model Certification under CMMC 2.0

Judge issues nationwide injunction halting enforcement of COVID-19 vaccine mandate

Read More

Contracting Tips

Contractors must update EEO poster

The risk of organizational conflicts of interest

The gap widens between COFC and GAO on late is late rule

Are verbal agreements good enough for government contractors?

CMMC 2.0 simplifies requirements but raises risks for government contractors

Read More

GTPAC News

VA direct access program events in 2022

Sandia National Laboratories seeks small business suppliers

Navy OSBP hosting DCAA overview (part 2) event Jan. 12, 2022

Navy OSBP hosting cybersecurity “ask me anything” event Dec. 16th

State of Georgia hosting supplier systems training on January 26, 2022

Read More

Georgia Tech News

Undergraduate enrollment growth reflects inclusive excellence

Georgia Tech delivers $4 billion in economic impact to the State of Georgia

Georgia Tech awards first round of seed grants to support team-based research

Georgia Tech announces inaugural Associate Vice President of Corporate Engagement

DoD funds Georgia Tech to enhance U.S. hypersonics capabilities

Read More

  • SAM.gov registration is free, and help with SAM is free, too
APTAC RSS Twitter GTPAC - 30th Year of Service

Copyright © 2023 · Georgia Tech - Enterprise Innovation Institute