HUBZone Certification
The government limits competition for certain contracts to businesses in historically underutilized business zones (HUBZones) awarding at least three percent of all Federal prime contracts. It also gives preferential consideration to those businesses in full and open competition.
Program Benefits:
- Joining the HUBZone program makes your business eligible to compete for the program’s set-aside contracts.
- HUBZone-certified businesses also get a 10% price evaluation preference in full and open contract competitions; the price offered by a Hubzone firm will be deemed lower than the price offered by the lowest, responsive large business offeror, as long as the Hubzone firm’s price is not more than 10 percent higher than the price offered by that offeror.
- Ability to negotiate sole source contracts if the contracting officer determines that: only one Hubzone certified firm can satisfy the requirement; the anticipated award price of the contract is not more than $5.5 million for manufacturing requirements, and not more than $3.5 million for all other requirements; the vendor is responsible with respect to performance; and the award can be made at a fair and reasonable price.
- Construction contracts exceeding $1 million, and all other prime contracts exceeding $550,000, must include, to the extent practicable, subcontracting plans that provide opportunities for Hubzone certified firms. That being said, there is no specific goal for award of subcontracts to Hubzone certified firms.
HUBZone-certified businesses can still compete for contract awards under other socio-economic programs they qualify for.
HUBZone Program Qualifications
- Be a small business according to SBA size standards
- Be at least 51% owned and controlled by U.S. citizens, a Community Development Corporation, an agricultural cooperative, an Alaska Native corporation, a Native Hawaiian organization, or an Indian tribe
- Have its principal office located in a HUBZone*
- Have at least 35% of its employees living in a HUBZone*
You can find the full qualification criteria in Title 13 Part 126 Subpart B of the Code of Federal Regulations.
HUBZone Map
The HUBZone map changed on July 1, 2023. Check the new HUBZone map now to determine whether your principal office and employees are located in a HUBZone. Your firm’s eligibility to participate in the program might be impacted if your principal office is located, or your employees reside, in an area that no longer qualifies as a HUBZone. Learn how to navigate the updated HUBZone map.
Every five years the HUBZone program is required to update the HUBZone designations to ensure the program continues to serve the communities that are most in need of assistance. Most areas stay the same but some change. The 2023 map will be updated again in July 2028 to reflect changes to Qualified Census Tracts (QCTs) and Qualified Non-Metropolitan Counties (QNMCs), in 2026 to reflect expiring Redesignated Areas, and throughout any year to reflect new and expiring Governor-designated covered areas and Qualified Disaster Areas as appropriate. Learn about the different types of HUBZone Designations.
Certified HUBZone firms that are no longer eligible as of July 1, 2023 due to the map change may continue to participate in the HUBZone program through their following annual recertification.