If we look at the various types of federal certifications and a firm’s likelihood of obtaining a GSA Schedule, we see that 11.4% of HUBZone firms have taken the additional step in combining their certification with a GSA Schedule. The only certification type that has a greater percentage is the 8(a) Certification at almost ¼ of firms. See table below:
Federal Certification Type |
GSA Schedule Holders |
Number of Firms |
Percentage |
HUBZone |
885 |
7,774 |
11.4% |
SDVOSB |
1,449 |
26,297 |
5.5% |
8(a) |
1,635 |
6,598 |
24.8% |
WOSB |
3,401 |
96,488 |
3.5% |
The results for HUBZone firms obtaining a GSA Schedule are good. The average HUBZone firm with a GSA Schedule has $1.3MM in sales derived from that GSA Schedule. For a further industry breakdown, see the table below:
Industry |
Sales Amount |
Number of Vendors |
Average Sales |
Clothing, Textiles & Substance |
$18,500,000 |
15 |
$1,233,333 |
Electronic & Communication Equipment |
$100,000 |
3 |
$33,333 |
Equipment Related Services |
$7,500,000 |
4 |
$1,875,000 |
Facilities & Construction |
$24,900,000 |
63 |
$395,238 |
Human Capital |
$19,800,000 |
27 |
$733,333 |
Industrial Product & Services |
$106,600,000 |
59 |
$1,806,780 |
IT |
$681,800,000 |
417 |
$1,635,012 |
Miscellaneous S&E |
$900,000 |
6 |
$150,000 |
Office Management |
$44,600,000 |
56 |
$796,429 |
Professional Services |
$186,700,000 |
182 |
$1,025,824 |
Security and Protection |
$9,200,000 |
13 |
$707,692 |
Sustainment S&E |
$5,700,000 |
15 |
$380,000 |
Transportation and Logistics Services |
$42,200,000 |
20 |
$2,110,000 |
Travel & Lodging |
$700,000 |
5 |
$140,000 |
Total |
$1,149,200,000 |
885 |
$1,298,531 |
In addition to the sales numbers, a HUBZone + GSA Schedule combination yields these other benefits.
HUBZone Advantages
A HUBZone is a great certification to hold, with the average HUBZone firm conducting approximately $1.6MM per year in federal sales. This figure is approximately 5x the sales for a small business that does not have a federal certification or VA verification.
1. Contracting Opportunities: The government limits competition for certain contracts to businesses in Historically Underutilized Business Zones. These contracts are called set-aside contracts, and only HUBZone firms are eligible to bid on these contracts.
2. Price Evaluation: It also gives preferential consideration to those businesses in full and open competition. HUBZone-certified businesses receive a 10% price evaluation preference in full and open contract competitions.
3. Federal Spending Goal: There is a congressional goal that 3% of all federal procurement is spent with HUBZone firms. This works out to be approximately $10B annually.
If you have any questions regarding HUBZone or any other federal certification or VA verification, and/or you would like assistance with the application process, I always recommend contacting an industry expert such as ez8a, Advance GSA or Advance 8a. None of the aforementioned charge for an initial consultation.
Comment