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The HUBZone Empowerment Contracting Program

            The Small Business Administration (SBA) and Congress have been working together to promote economic development and growth in distressed communities by giving those businesses which are located in such communities opportunities to contract with the federal sector. As a result of this effort the HUBZone Empowerment Contracting Program was created and enacted into law as part of the Small Business Reauthorization Act of 1997. SBA's final ruling was published on June 11, 1998. .
             The HUBZone Empowerment Contracting Program's intent is to stimulate economic development and employment in urban and rural communities by establishing contracting preference standards and employment opportunities for small business concerns that are located in and persons that reside in "historically underutilized business zones" better known as "HUBZones". Small business concerns will have the opportunity to negotiate sole source contracts and participate in restricted competition limited to small business concerns in the program. Such small business concerns will be allowed a 10% Price Evaluation Preference during full and open competition activities. This means that offers of HUBZone small business concerns will be considered lower than the price offered by a non-HUBZone entity so long as the offer of the HUBZone small business concern is not more than 10% higher than that of the otherwise lowest offer. Additionally, the Small Business Reauthorization Act of 1997 established goals for HUBZone contracts activities:.
             Fiscal Year Percent.
             2001 2.
             2002 2.5.
             2003 3.
             SBA regulates the program. SBA determines which businesses are eligible to receive HUBZone contracts and maintains the Listing of Qualified HUBZone Small Business concerns. The SBA is responsible for investigating protests of a business" eligibility to receive HUBZone contracts and maintains the final authority in such challenges. Likewise, the SBA has the authority to protest a CO's decision not to award a contract to a qualified HUBZone small business concern.


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