# Presentation: 549181

## Contractual AssistanceProcurement Methods 

- Set-aside awards
- Sole source awards
- Awards through full and open competition using the price preference mechanism provided for HUBZone SBC
- Subcontracting

## Size Standard Issues  13 CFR §126.203

- At time of application:
- Must meet SBA’s size standard for its _primary_ industry classification (the newly-adopted NAICS)
- At time of contract offer:
- Must be small within the size standard corresponding to the NAICS code assigned to the contract

## HUBZone Contracting       Requirements 13 CFR §126.601

- Firm must certify to the contracting officer:
- it is a qualified HUBZone firm
- (can verify by reviewing SBA’s PRO-*Net *listing or by using the new Contracting Officer’s HUBZone Gateway)
- no material changes in firm that would affect eligibility

## Additional Requirements DuringContract Performance 13 CFR §126.602

- HUBZone SBC must attempt to maintain the required percentage of employees who reside in the HUBZone
- Attempt to maintain means making substantive and documented efforts to maintain the percentage
- (**SBA is responsible for enforcement)**

## HUBZone Set-Aside Procedures 13 CFR §126.607-608

- HUBZone set-asides considered before HUBZone sole-source or small business set-asides
- Contracting Officer (CO) ***may*** set-aside acquisitions exceeding the Micro Purchase ($2,500) and below the Simplified Acquisition Threshold ($100K)

## 19.1305(a) HUBZone Set-Aside Procedures 

-  First paragraph, first sentence:
- A participating contracting officer _**shall**_ set aside acquisitions exceeding the Simplified Acquisition Threshold for competition restricted to HUBZone small business concerns...
- HUBZone set-asides shall be considered before HUBZone sole-source awards or small business set-asides

## 19.1305 HUBZone Set-Aside Procedures 

- CO ***may*** set-aside acquisitions exceeding the Micro Purchase Threshold ($2,500) and below the Simplified Acquisition Threshold ($100K)
- SBA can appeal of CO decision not to set-aside a requirement over $100K:
- PCR launches process

## HUBZone sole sourceawards 13 CFR §126.612

- Anticipated award price, including options will not exceed:
- $5 million - manufacturing
- $3 million - all other NAICS Codes
- Two or more qualified HUBZone firms are not likely to submit offers
- A HUBZone SBC is a responsible contractor to perform the proposed contract

## 19.1306 -- HUBZoneSole Source Awards  

- Only one HUBZone SB available
- Requirement **not currently** being performed by a non-HUBZone SB
- HUBZone SBC must be a responsible contractor - price must be fair/reasonable
- Anticipated price of contract (including options) is less than:
-  		-- $5 M - manufacturing,  or
- 		-- $3M  - all other industries

## Full and Open Competition Price Evaluation Preference 13 CFR §126.613

- A HUBZone firm can displace the apparent low offeror (other than another small buisness) if its price is not more than 10% higher than the otherwise lowest, responsive and responsible offeror [factor applied to ‘base offer’].

## Price Evaluation Preference

**	****	****	****	**_**Offer**_
**Offeror A (HUB):****	****$200K**
**Offeror B ( SB):****	****$198K**
**Offeror C (Lge):****	****$193K**_**	**__**	**_
**WHO IS THE APPARENT SUCCESSFUL OFFEROR?  **

## Price Evaluation Preference

**	****	****	****	**_**Offer**__**	**__**PEP**_
**Offeror A (HUB):****	****$200K****	****$200K****	**
**Offeror B ( SB):****	****$198K****	**
**Offeror C (Lge):****	****$193K**_**	**_**$212.3**_**	**__**	**_
**WHO IS THE APPARENT SUCCESSFUL OFFEROR? ****Offeror A, the HUBZone SBC**

## 19.1307 Price Evaluation Preference for HUBZone SBCs 

- Full and open competition
- Not used when:
- acquisitions less than or equal to the SAT
- Price is not a selection factor
- All fair/reasonable prices are accepted (multiple award schedule contracts)

## 19.1307 Price Evaluation Preference (cont’d)

- 10% factor applied to all offers except offers from:
- HUBZone small businesses
- Small Businesses
- Offers under Trade Agreements and international trade MOUs

## 19.1307 Price Evaluation Preference (cont’d)

- Preference shall be applied to the _**base offer**_:
- on a line item basis or
- any group of items on which award may be made

## SubcontractingRequirements

- There is no specified HUBZone goal for subcontracting, however...
- For most large contracts (over $500,000 or $1 million construction), large business contractors _must_ create a subcontracting plan reflecting HUBZone firm participation
- Factors into the firm’s ‘Past Performance’ analysis on future contracting actions

## Contracts Not Available for HUBZone set-aside 13 CFR §126.605

- * Federal Prison Industries (FPI)
- * Javits-Wagner-O’Day Act (JWOD)
- * Current 8(a) requirements
- * Micro Purchase requirements - dollar value at or below $2,500...and
- others covered under FAR

## 19.1304 -- Exclusions 

- In addition to the SBA Rule the following are excluded from HUBZone consideration
- orders  under existing indefinite delivery contracts
- orders against Federal Supply schedules
- requirements for commissary or exchange resale items

## Contract DecisionHUBZone -- 8(a)

- SBA’s interpretation of the Small Business Act provides for parity between the HUBZone and 8(a) programs, with the CO using his/her best discretion for conditions.
- Documented in an Aug. 17, 2001 letter from SBA’s Acting General Counsel to Senator Bond .
- SBA plans to amend its regulations to clarify this policy.

## SBA Right to Appeal Non-HUBZone set-aside (>$100K) 13 CFR §126.610

- CO must notify cognizant PCR of HUB’s concern
- SBA must notify CO of appeal within 5 business  days of decision not to set-aside
- CO must suspend action on procurement until Head of Contracting Agency decision issued
- unless urgent and compelling circumstances
- SBA must file appeal to HCA within 15 business days of notification to  CO
- Decision - by the HCA