# Presentation: 549170

## FAR Implement	ation, Part 19	

- Case # 97-307 FAC # 97-10
- Published 12/18/98
- Interim Rule
- Effective: I/4/99
- Comment Period: 60 days  - 2/16/99
- Final Rule Issued 9/24/99,
-    effective 11/23/99

## Sec. 19.1303 Status as a Qualified HUBZone SBC  

- HUBZone status determined by SBA
- List of qualified firms on the SBA HUBZone web site
- Joint ventures eligible if with HUB, 8(a), WOB
- Non-manufacturers must furnish the product of a HUBZone SB manufacturer (*will be updated by FAR Council*)

## Sec. 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

## Sec. 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

## Sec. 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

## Sec.19.1305 HUBZoneSet-Aside Procedures (cont’d)

- SBA must Notify CO within 5 Working days of notice of rejection
- CO will suspend action
- within 15 days of SBA notification, SBA shall file a formal appeal with the HCA
- HCA will reply to SBA within 15 days with a Final Decision

## Sec.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

## Sec. 19.1307 Price Evaluation Preference for HUBZone SBCs 

- Full and open competition
- Not used when:
- acquisition is less than or equal to the SAT ($100K)
- Price is not a selection factor
- All fair/reasonable prices are accepted (multiple award schedule contracts)

## Sec. 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

## Sec. 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

## Sec. 19.307(a)(1) Contract Clauses 

- 52.219-1 Small Business Representation
- HUBZone SB
- Firm is on the list of qualified firms
- No material change has taken place in terms of ownership or employee percentage since SBA certification

## Sec. 19.1308(a) Contract Clauses

- 52.219-3 Notice of Total HUBZone Set-Aside
- firm will meet performance percentage requirement
- HUBZone joint ventures subject to the same percentage requirements
- HUBZone non-manufacturers must supply the product of a HUBZone SB manufacturing firm (*this will change with FAR update*)

## Sec. 19.1308(b) Contract Clauses

- 52.219-4 Notice of Price Evaluation Preference for HUBZone Small Business Concerns
- Offers will be evaluated by adding a factor of 10% to the **base offer price** of all offers except as previously noted (HUBZone SBs and SBs)

## Sec. 19.708(a) Contract Clauses

- 52.219-8 Utilization of Small Business Concerns
- Inclusion of HUBZone SBCs is Federal agency policy to provide maximum practical opportunity for contract participation
- Prime contractors may rely upon HUBZone self certification

## FAR on protesting HUB status

- Section 19.306 (c) (e) (k)
- All protest in writing
- Offeror must submit protest to the CO
- All protests must be submitted to the AA/HUB
- AA/HUB will notify the CO and the protestor of the date the protest was received and whether the protest will be processed or dismissed for timeliness or lack of specificity
- Appeal decision by the ADA GC/BD: 5 days