Breaking into the federal marketplace and competing with other small businesses is a challenge. Many firms stop in the discovery phase and never find successful inroads. This is a shame, because on average, for businesses that choose to work with the federal government, the federal government is their largest client.

HUBZone Standard Advantage
Being a part of the SBA’s HUBZone program is a feather in a small business’ cap, with the average HUBZone firm earning approximately $1MM per year in Federal Sales. This figure is approximately 3x 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 also get a 10 percent 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.

HUBZone Power Advantage
A HUBZone can be combined with a GSA Schedule to create an additional enhancement. HUBZone firms, when combined with GSA Schedule, gain well over $2MM in federal sales from this contracting vehicle annually. In the GSA realm, it is also interesting to note that HUBZone firms maintain their 3x advantage over their non-GSA small business peers.

For firms seeking these types of advantages, it is best to become familiar with the qualifications for the HUBZone Certification.

HUBZone Qualifications

Employees
35% of the employees of the firm must reside within a Federally Designated HUBZone Area. The residence is established based upon the employee’s voter registration. The HUBZone Map can be found at: https://maps.certify.sba.gov/hubzone/map#center=39.828200,-98.579500&zoom=5

For an Employee who resides within a HUBZone to count towards the certification, he or she must work at least 40 hours per month.

Location
The primary business location, for purposes of HUBZone, is the location where the greatest number of employees work. This location must be located within a HUBZone.

Affiliation
If the firm attempting to qualify for HUBZone is deemed by the SBA to be affiliated with another entity, then the combined entity must meet the rules for HUBZone.

Size
The firm must be classified as a small business, based upon SBA Size standards for the primary line of business.

Citizenship
The firm must be 51% or more owned by an individual or individuals who are U.S. Citizens. Additionally, the firm cannot be owned by another corporation.

If you are interested in exploring whether your 8(a) certified firm might also qualify to be a part of the SBA’s HUBZone Program, and/or what federal or state certification requirements your small business currently meets, I always recommend contacting an industry expert such as ez8a, Advance 8a or Advance GSA. None charge for an initial consultation.