HUBZone status is a certification, not a self-description. The FAR defines a HUBZone small business concern as one that meets SBA's requirements, certified by SBA and designated by SBA as a HUBZone small business concern in the Dynamic Small Business Search (DSBS) and SAM 1.
Two of SBA's requirements are about place. To be eligible for certification, a concern's principal office must be located in a HUBZone, except for concerns owned in whole or in part by one or more Indian Tribal Governments 2.
The second is about people: at least 35% of a concern's employees must qualify as HUBZone resident employees 3.
Staying eligible after you win
Residency does not stop mattering at award. A certified HUBZone firm awarded a HUBZone contract must "attempt to maintain" having 35% of its employees residing in a HUBZone during the performance of any HUBZone contract 4.
Primes check, too. Where FAR 52.219-8 is in a contract, the contractor must confirm that a subcontractor representing itself as a HUBZone small business concern is certified by SBA as one 5.
The price evaluation preference
HUBZone status can also count in competitions that are not set aside. Where FAR 52.219-4 is in a solicitation, offers will be evaluated by adding a factor of 10 percent to the price of all offers, except those the clause lists 6.
Worked example. Contractor K, a certified HUBZone firm that has not waived the preference, competes against a large business in a solicitation that includes FAR 52.219-4. The large business offers $100,000 and Contractor K offers $105,000. For evaluation, 10 percent is added to the large business's price, making it $110,000, so Contractor K's price is evaluated as the lower one.
Bids2Bank's SAM.gov search can filter notices for HUBZone set-asides 7.
Filter SAM.gov notices for HUBZone set-asides →
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