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What Is a Hubzone Company
By Zach Arnold | April 13, 2022
HubZone authorization is an ongoing process. A company must qualify at the time of submission of its bid under a HUBZone contract and at the time of award. And once the company is at work, it must “try” to maintain its compliance with the regulations. I repeat, at the time of the call for tenders and at the time of award, the company must actually comply with all the eligibility criteria and not simply try to maintain compliance. In addition, companies that wish to obtain a HUBZone designation must have an active System for Award Management (SAM) account from the U.S. government. If you already have one, you can update your company profile after receiving the certification to indicate that you operate a HUBZone company. To discover what`s new in HUBZone, visit HUBZone: Latest news and articles! Before registering, however, interested parties must first have an active Dun & Bradstreet profile and an associated DuNS (Data Universal Numbering System) number. Dun & Bradstreet offers one of these unique nine-digit numbers for every physical location operated by a business, and they are offered free of charge to businesses that wish to obtain orders from the federal government. There are four basic requirements that a “typical” company must meet to participate in the HUBZone program: This continued eligibility can cause heartburn in some companies. in particular as regards the 35% residence requirement for employees. Consider the following scenario: A company has 10 employees (4 of whom live in a HUBZone) at the time of submitting its bid, but then, before the contract is awarded, one of its HUBZone employees takes a job elsewhere.
At the time of the tender, 40% of employees lived in a HUBZone; At the time of allocation, only 33% had done so. Through no fault of its own, the company would not be entitled to compensation. Pro-West & Associates, Inc. (PWA) is a small, women-led, HUBZone-certified company in northern Minnesota. Although the company with 23 employees is considered a small business by the standards of large cities, it is considered a major employer in the region. They became clients of PTAC in 2005 and have used PTAC-sponsored seminars, offer job shadowing, registration assistance and one-on-one advice to develop strategies to seize government opportunities. Most importantly, support for HUBZone certification; With this certification, many doors have been opened with department stores. In 2013, PWA was named a 2013 Subcontractor of the Year by the U.S. Small Business Administration after being nominated for its “Superior Technical Competencies, Proactive Workload Response, Technology Skills, Profitability, and Labor Relations as a Subcontractor.” The HubZone (Historical Underused Business Zones) program helps small businesses in urban and rural communities gain priority access to federal procurement opportunities. These preferences apply to small businesses that receive HUBZone certification in part by employing employees who live in a HUBZone.
The company must also maintain a “head office” in one of these specially designated areas. This article discusses features and permissions for small businesses to be part of HUBZone, which can be useful for both the small business owner and contract staff. Contract agents may also find this information useful, in addition to some information about regulations to meet their needs for supporting small businesses qualified with HUBZones. The SBA HUBZone office provides assistance with eligibility via the toll-free number: 1-888-858-2144 (access code 1875223#) on Tuesdays and Thursdays from 2 p.m. to 3.m p.m. .m ET. Participants influence the topics through their questions. HUBZone employees facilitate the discussion by providing answers and introducing specific topics when time permits. This format provides an opportunity to learn how to maintain eligibility in order to reduce the possibility of an initial application being rejected or decertified after receiving HUBZone certification. If you`re looking for status information, need help troubleshooting technical issues, or need individual answers from the HUBZone desktop, you can send hubzone@sba.gov an email.
You can also request an appointment by filling out the HUBZone Analyst appointment form. Annette Theroux, President and CEO of PWA, writes: “MN PTAC has played a major role over the past decade of PWA`s growth, including support during the nomination and award process for the SBA. PTAC`s coaching, webinars, courses, and matchmaking events have supported the company`s efforts to win federal contracts and become a team member for several multi-year contracts for the EPA, Army Corps of Engineers, and the USDA Forest Service. The headquarters must be located in a “historically underutilized business area” that includes countries considered “Native American lands” and military installations closed by the Base Realignment and Closure Act Although this may seem intimidating, maintaining eligibility is not impossible for most businesses. It just takes a little vigilance and a solid and effective compliance plan. The goal of the national HUBZone program is to support small businesses in underserved areas of the country. By channelling a portion of government purchases to these businesses, the program aims to encourage entrepreneurship and increase employment in places where jobs are harder to find. A skilled census tract (as defined in section 42(d)(5)(C)(i)(I) of the 1986 Internal Revenue Code); “The program may encourage investment, but it doesn`t have a precision that could be associated with public contributions for a specific geographic area,” Bill Shear, director of financial markets and community investment at the U.S.
Government Accountability Office, told the newspaper. 10% price evaluation preference in full and open contract competitions as well as in subcontracting opportunities. We have seen this scenario several times – and have followed and defended protests that challenge eligibility for HUBZone due to similar circumstances. Maintaining a 35% residence supports the underlying goal of the HUBZone program – how would an economically weak area reap the benefits of a HUBZone contract if its residents are not employed to carry out the work? However, we believe that the SBA should consider changing the rules to avoid potentially difficult outcomes as in the example. Once a company has joined the HUBZone program, it usually needs to recertify each year to retain this designation. Among the benefits of the hubzone certified business program, here are five things you need to know about the HUBZone program. Determine which companies are eligible to receive HUBZone contracts If you`re already part of the HUBZone program, that`s good news. Remember that HUBZone certification is not permanent.
For more information about recertification or decertification, see Managing HUBZone Certification. The program`s stated goal is to award 3% of federal chef and subcontracting contracts to small HUBZone certified companies, even though it has consistently missed that goal. The Small Business Administration`s review of major contracts in 2018 found that 2.05 percent was awarded to HUBZone participants, up from 1.7 percent the year before. The SBA regulates and implements the HUBZone program….
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