How-To: Sole-Sourcing a HubZone Contract
The Historically Underutilized Business Zones (HUBZone) program, created by the Small Business Administration (SBA), provides federal contracting assistance for qualified small business concerns (SBC) located in historically underutilized business zones. The program is designed to boost small businesses and increase employment opportunities, investment, and economic development in disadvantaged areas.
There are countless HUBZone certified small businesses with unique manufactured products and services available to the government. Key Cyber Solutions (KCS) has obtained HUBZone certification in part by employing team members who live in a HUBZone and having the "principal office" located in a HUBZone designated area in the heart of Downtown Richmond, Virginia- conveniently located only ninety minutes south of the Nation's Capital. As a HUBZone small business, KCS can provide federal and other contracting agencies access to efficient and effective cyber solutions, talented subject matter experts, and in-demand technology partnerships. In FY2018, the federal government awarded nearly $112.6 million through HUBZone sole-source awards.
To obtain a direct opportunity leveraging HUBZone status, there are three (3) types of HUBZone contracts a contracting officer may award to a HUBZone small business on a sole-source basis.
1. Only one qualified HUBZone small business can satisfy the requirement- the HUBZone business must be determined as a responsible and viable organization.
2. Two or more qualified HUBZone SBCs are not likely to submit offers- there is no expectation of more than one HUBZone business submitting an offer and the requirement is not being performed by an 8(a) small business.
3. The anticipated award price of the proposed contract, including options, will not exceed the requirements thresholds established for the associated NAICS codes- the awarded contract cannot exceed $6.5 million for a requirement within the North American Industry Classification System (NAICS) codes for manufacturing or $4 million for a requirement within all other NAICS codes. All sole source HUBZone contract awards must be made with a fair and reasonable price. Based on a comparison of the offered price to historical prices paid for the same or similar items, this helps to ensure the negotiated price point for a good or service is equitable to both parties involved in the transaction.
If you are interested in pursuing a sole-sourced contract as a potential buyer or as a subcontracting partner, visit Key Cyber Solutions online at KCS Government Solutions or reach out to us for more information via email at firstname.lastname@example.org. Our team is available to discuss potential HUBZone sole-source opportunities and to provide clarity about how to do business leveraging the HUBZone program. We look forward to supporting your mission.