HUBZone-certified construction firms win federal building work by competing in HUBZone set-asides, where contracting officers limit bidding to HUBZone companies, and by claiming the 10% price evaluation preference in open competition. Contracts up to $5.5 million can be awarded sole-source without competition. Certification requires a principal office in a HUBZone and 35% of employees living in one.
HUBZone-certified construction firms win federal building work through set-asides that limit bidding to HUBZone companies, a 10% price evaluation preference in open competition, and sole-source awards up to $5.5 million. Certification requires a HUBZone principal office and 35% of employees living in one.
HUBZone-certified construction firms win federal building work by competing in HUBZone set-asides, where contracting officers limit bidding to HUBZone companies, and by claiming the 10% price evaluation preference in open competition. Contracts up to $5.5 million can be awarded sole-source without competition. Certification requires a principal office in a HUBZone and 35% of employees living in one.
This AIGovBid guide covers trades & construction for small business government contractors and explains the next steps contractors should take.
A HUBZone construction set-aside is a federal building contract a contracting officer reserves exclusively for HUBZone-certified small businesses. Under FAR 19.1305, it can be set aside when the officer reasonably expects offers from at least two HUBZone firms and that award can be made at a fair market price.
In full and open competition, the contracting officer adds 10 percent to every non-HUBZone offer before comparing prices for award. Your HUBZone firm's bid is never inflated; only competitors' evaluated prices rise, so you can win even when your actual price is up to 10 percent higher.
Yes. Under FAR 19.1306, a contracting officer may award a HUBZone contract sole-source, without competition, when the anticipated price will not exceed $5.5 million for most NAICS codes or $8.5 million for manufacturing, the firm is found responsible, and award is at a fair and reasonable price.
To certify, a firm must be a small business under its NAICS size standard, be at least 51 percent owned and controlled by U.S. citizens, maintain its principal office in a designated HUBZone, and have at least 35 percent of its employees living in a HUBZone.
On general construction set-asides, the prime may not subcontract more than 85 percent of the contract value to firms that are not similarly situated, per 13 CFR 125.6. In practice it must self-perform at least 15 percent of the cost with its own forces or other HUBZone firms.
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