Overview
FAR 19.1301 establishes the statutory basis and primary objectives of the Historically Underutilized Business Zone (HUBZone) Program, which was created to stimulate economic growth in distressed areas.
Key Rules
- Legislative Authority: The program was formally established by the Historically Underutilized Business Zone Act of 1997 (15 U.S.C. 631 note).
- Target Entities: Contracting assistance is specifically reserved for "qualified small business concerns" that maintain their principal office in a HUBZone.
- Defined Objectives: The program's mandate is to use federal procurement to increase employment opportunities, encourage capital investment, and foster economic development in historically underutilized geographic areas.
Practical Implications
- Contracting officers use this program as a tool to meet mandated socioeconomic prime contracting goals by setting aside requirements specifically for HUBZone-certified firms.
- Businesses must not only be small but must also meet specific residency and location requirements to qualify for the competitive advantages provided under this subpart.