Generally speaking, there are two levels of benefit. The first relates directly to Federal contracts, while the second involves specialized assistance.
Federal Contract Benefits –
There are four types of HUBZone contract opportunities:
Competitive: Contracts can be set-aside for HUBZone competition when the contracting officer has a reasonable expectation that at least two qualified HUBZone small business concerns (SBCs) will submit offers and that the contract will be awarded at a fair market price.
Sole-source: HUBZone contracts can be awarded if the contracting officer determines that:
- only one qualified HUBZone SBC is responsible to perform the contract,
- two or more qualified HUBZone SBCs are not likely to submit offers and
- the anticipated award price of the proposed contract, including options, will not exceed:
— $3 million for a requirement within all other NAICS codes
Subcontracting: All subcontracting plans for large business Federal contractors must include a HUBZone subcontracting goal.
Other Specialized Assistance
- Eligible HUBZone firms can qualify for higher SBA-guaranteed surety bonds on construction and service contract bids.
- Firms in Federal Empowerment Zones and Enterprise Communities (EZ/EC) can also benefit from employer tax credits, tax-free facility bonds, and investment tax deductions