The Historically Underutilized Business Zone (HUBZone) was introduced into law through the Small Business Reauthorization Act of 1977. The SBA has strict oversight over the program through congressional authority. For a small business to become HUBZone certified, it has to meet certain legal requirements and must submit a credible HUBZone application to the SBA.
One of the clear HUBZone advantages and benefits is that your business can get preferential treatment in government procurement such as reducing competition to competitive HUBZone contracts and receiving HUBZone sole source awards. Also, when a government contracting agency solicits a procurement under full and open competition, you can receive a 10% price evaluation.
Although a lucrative program for HUBZone owned small businesses, 40% of HUBZone applications are denied for failure to meet the statutory requirements. After getting SBA HUBZone certified others have a hard time meeting the HUBZone requirements when bidding on federal contracts. There are mandatory rules that must be met. If you are considering applying for your HUBZone status, received an adverse decision from the SBA or are involved in some level of HUBZone investigation, the SBA HUBZone attorneys at Watson & Associates, LLC can help.
- Prompt response
- Costs at a fraction of what other law firms charge
- You get the help of legal professionals that understand the HUBZone Program
SBA HUBZone Certification Attorney Services
With law offices located in Washington, DC and in Colorado, Watson & Associates’ government contract lawyers help clients to navigate through the various nuances associated with the SBA’s HUBZone Program including:
- HUBZone Sole Source matters
- Meeting HUBZone requirements
- Appeals representation of HUBZone small business status
- Teaming, joint ventures and SBA affiliation.
- HUBZone application consulting
- SBA OHA appeals
- HUBZone appeals to the federal circuit court.
- Certificate of competency and contractor responsibility matters.
To schedule a free consultation with our experienced SBA Programs attorneys and consultants, call Watson & Associates, LLC today toll-free at 1-866-601-5518.
HUBZone Requirements — Initial SBA HUBZone Application
Small business must meet the statutory HUBZone qualifications. Your initial SBA HUBZone application must show that (1)you are a small business under the SBA size standards; (2) the company must be owned and controlled at least 51% by U.S. citizens, or a Community Development Corporation, an agricultural cooperative, or an Indian tribe; (3) Its principal office must be located within a “Historically Underutilized Business Zone,” which includes lands considered “Indian Country” and military facilities closed by the Base Realignment and Closure Act; and (4) At least 35% of its employees must reside in a HUBZone.
HUBZone Small Business Certification Compliance: After becoming HUBZone certified, companies still have to comply with SBA compliance regulations. This includes 13 CFR 126.6 and FAR HUBZone requirements. Companies run into legal problems because there is a continuing obligation to meet the statutory HUBZone requirements. A common example of where small contractors get into trouble is not meet the 35 % employee residency requirements
HUBZone Joint Venture Arrangements, HUBZone Sole Source and Teaming Relationships
When applying for sole source or government procurements, bidders must develop a strategic approach either through teaming agreements or through HUBZone joint venture arrangement. Our attorneys can provide legal advice and guidance from beginning to end.
A HUBZone small business may enter into a joint venture agreement with one or more other small businesses, or with an approved mentor authorized by 13 CFR 125.9. The joint venture itself need not be certified as a qualified HUBZone small business. 8a certified companies, with an approved mentor authorized by 13 CFR 124 can also enter into a JV arrangement.
Bid protests and HUBZone status protest litigation. Showing that your company meets the statutory requirements under 13 CFR 126.6 can be a daunting process when your competition challenges the status of your company. Whether there is a traditional protest at the Government Accountability Office or SBA protest, Watson & Associates’ law firm can help either as an intervenor or protestor.
SBA HUBZone procurement fraud matters: Small businesses sometimes are exposed to various levels of procurement fraud. As a result, they can face either jail time or even suspension and debarment. Where situations arise, our HUBzone attorneys apply our vast experience to help you minimize the impact.
Appealing SBA HUBZone determination: When the the SBA makes an adverse decision regarding your status, certificate of competency decisions or other rulings that negatively impact your business’ bottom line, our law firm can analyze your case for appeal to the SBA’s Associate Administrator, Office of Government Contracting and Business Development. Do not make the mistake of filing an appeal with SBA OHA. See . 13 CFR 126.805(a).OHA has no jurisdiction to hear this type of appeal.
Meeting the qualifications at the bidding stages: Another costly mistake made by small businesses if failing to meet the requirements of 13 CFR 126.601 (c) at the various bidding stages. You company “must be a qualified HUBZone [small business] both at the time of its initial offer and at the time of [the] award in order to be eligible for a HUBZone contract.” This means that you must also meet the 35% residency requirement both on the date of the offer and at the time of the award.
HUBZone Certified Employees
At least 35% of the cooperative’s HUBZone employees must reside in a HUBZone. When determining the percentage of employees that reside in a HUBZone, if the percentage results in a fraction, round up to the nearest whole number.
HUBZone qualifications Contract Performance. The concern must represent, as provided in the application, that it will “attempt to maintain” (see 13 CFR 126.103) having 35% of its employees reside in a HUBZone during the performance of any HUBZone contract it receives.
Other 13 CFR 126 Statutory HUBZone Requirements
May a qualified HUBZone SBC have affiliates? A concern may have affiliates provided that the aggregate size of the concern and all of its affiliates is small as defined in part 121 of this title, except as otherwise provided for small agricultural cooperatives in 12 CFR 126.103.
Who does SBA consider to control a HUBZone SBC? Control means both the day-to-day management and long-term decision-making authority for the HUBZone SBC. Many persons share control of a concern, including each of those occupying the following positions: officer, director, general partner, managing partner, managing member and manager. In addition, key HUBZone employees who possess expertise or responsibilities related to the concern’s primary economic activity may share significant control of the concern. SBA will consider the control potential of such key employees on a case by case basis.
May a qualified SBA HUBZone Owned SBC have offices or facilities in another HUBZone or outside a HUBZone? A qualified small business may have offices or facilities in another HUBZone or even outside a HUBZone and still be a qualified HUBZone SBC. However, in order to be certified as a qualified HUBZone SBC and if required by 13 CFR 126.200, the concern’s principal office must be located in a HUBZone.
May non-manufacturers be certified as qualified HUBZone? Non-manufacturers (referred to in the HUBZone Act of 1997 as “regular dealers”) may be certified as qualified HUBZone SBCs if they meet all of the requirements set forth in 13 CFR 126.200.
Watson’s HUBZone application lawyers represent federal contractors in all states regarding litigation and trial matters. We intervene for federal small businesses and large DoD contractors in Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Illinois, Indiana, Kansas, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Mexico, New York, North Carolina, Ohio, Oklahoma, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, U.S. Virgin Islands, Utah, Vermont, Virginia, Washington, Washington, DC, West Virginia, Wisconsin, and Wyoming.
Cities in which our Washington DC government contract HUBZone certification lawyers and consultants include Anchorage, AK; Atlanta, GA; Austin, TX; Chicago, IL; Colorado Springs, CO; Dallas, TX; Denver, Colorado; Indianapolis, IN; Las Vegas, NV; Los Angeles, CA; Miami, FL; Philadelphia, PA; San Antonio, TX; San Diego, CA; San Francisco, CA; San Jose, CA; Santa Clara, CA; and Tampa, FL.
Contact an SBA HUBZone Certification Attorney Today
If you are a HUBZone small business and have been accused of government procurement fraud, need help meeting the SBA HUBZone application requirements and employees, or seeking to appeal an adverse certification decision, call Watson & Associates, LLC to schedule a free consultation. Call toll-free at 1-866-601-5518.