What is a HUBZone Contract? A Comprehensive Legal Overview

Definition & Meaning

A HUBZone contract is a type of government contract awarded specifically to small businesses located in Historically Underutilized Business Zones (HUBZones). These contracts can be awarded through various procurement methods, including:

  • Sole source awards, where the contract is given directly to a HUBZone small business without competition.
  • Set-aside awards, which restrict competition to HUBZone small businesses only.
  • Awards through full and open competition, where HUBZone small businesses receive a price evaluation preference.

Table of content

Real-world examples

Here are a couple of examples of abatement:

Example 1: A HUBZone small business specializing in construction is awarded a sole source contract to build a federal facility, as they are the only qualified bidder in the area.

Example 2: A technology firm located in a HUBZone competes against other HUBZone businesses for a set-aside contract to provide software solutions to a government agency. (hypothetical example)

Comparison with related terms

Term Definition Key Differences
Small Business Contract A contract awarded to a small business without HUBZone designation. HUBZone contracts specifically target businesses in designated areas.
Set-Aside Contract A contract reserved for specific types of businesses, including HUBZone. Set-aside contracts can include various types of small businesses, not just HUBZone.

What to do if this term applies to you

If you believe your business qualifies for HUBZone contracts, you should:

  • Verify your HUBZone eligibility through the SBA.
  • Consider applying for HUBZone certification.
  • Explore US Legal Forms for templates that can assist with the application process.
  • If you encounter complexities, consulting with a legal professional may be beneficial.

Quick facts

  • Typical Fees: Varies based on contract size and type.
  • Jurisdiction: Federal government contracts.
  • Possible Penalties: Disqualification from future contracts if found non-compliant.

Key takeaways

Frequently asked questions

A HUBZone is a designated area that promotes economic development through small business contracts.