Great Benefits Await Government Contractors in HUBZone Program
Government contracting opportunities are made more accessible for small business prevailing wage contractors through programs like the Historically Underutilized Business Zones (HUBZone) program of the U.S. Small Business Administration.
These efforts are part of the federal government’s goal of awarding 3% of federal prime contracts to HUBZone-certified small business concerns.
What is the HUBZone Program in Government Contracting?
The HUBZone program was launched under the Small Business Reauthorization Act of 1997. It helps small businesses in urban and rural areas gain preferential access when it comes to government contracting.
Eligible government contractors have a more competitive access to federal procurement opportunities. As a result of the preferences, the program also encourages economic development in the HUBZones.
Small business companies which are qualified and HUBZone-certified receive several benefits. These benefits include competitive and sole source contracting, as well as 10% price evaluation preference. This preference applies in full and open contract competitions and in subcontracting.
How to Qualify for the HUBZone Program
There are several requirements needed to be reviewed to know if your small business can be HUBZone-certified. The following criteria should be met by the small business government contractors:
- Determined by the SBA to be a small business
- At least 51% owned and controlled by U.S. citizens, an Indian tribe, an agricultural cooperative, or a Community Development Corporation
- Have a principal office located in a HUBZone
- Have at least 35% of employees residing in a HUBZone
The principal office refers to the location where the greatest number of employees at any one location actually perform work, with some exemptions.
A small business must be HUBZone-certified in order to receive the benefits of the program. The firm should be qualified both at the time of the initial offer in a bid and at the time of awarding.
The status of a company can be seen in an official list of certified firms within the Dynamic Small Business Search database. Certified small businesses have the obligation to retain copies of documents which demonstrate their compliance to eligibility requirements.
Note that HUBZone-certified small business prevailing wage contractors are still subject to other labor acts, such as the Service Contract Act and the Davis Bacon Act.
Run Your Government Contracting Business Smoothly with Help from ARCHER JORDAN
With our decades of experience as a third party fringe benefits administrator to government contractors, we can help you be more competitive as a HUBZone-certified small business government contractor. ARCHER JORDAN will assist you in staying compliant with existing federal and state prevailing wage laws. For your prevailing wage healthcare and retirement plans, our professional team also offers trust services.
With help from ARCHER JORDAN, you can better focus on your business. Call us now at +1 888-745-0754 for more details about this opportunity.