Overview
FAR 19.1304 identifies specific categories of acquisitions and requirements that are exempt from the mandatory procedures and set-aside considerations of the HUBZone Program.
Key Rules
- Priority of Mandatory Sources: HUBZone requirements do not apply to acquisitions that can be satisfied through Federal Prison Industries, Inc. (UNICOR) or AbilityOne participating non-profit agencies.
- IDV and Schedule Orders: The subpart does not apply to orders placed under Indefinite-Delivery Contracts or Federal Supply Schedules, though contracting officers retain the discretion to perform set-asides for these orders under specific conditions.
- Protection of the 8(a) Program: Requirements currently in the 8(a) Business Development Program, or those accepted by the SBA for the 8(a) program, are excluded unless the SBA formally consents to release them.
- Resale Items: Requirements specifically for commissary or exchange resale items are exempt from the HUBZone program.
Practical Implications
- Contracting officers must prioritize mandatory sources and existing 8(a) commitments before evaluating a requirement for a HUBZone set-aside.
- The exclusion for IDIQs and Federal Supply Schedules provides agencies with flexibility, allowing them to use HUBZone set-asides as a discretionary tool to meet socioeconomic goals rather than a mandatory requirement.