Overview
This section prescribes the specific conditions and dollar thresholds under which a contracting officer may award a sole-source contract to a HUBZone small business concern, establishing its priority over general small business set-asides.
Key Rules
- Order of Precedence: Contracting officers must consider a HUBZone sole-source award before moving to a general small business set-aside, provided no specific exclusions apply.
- The "Rule of Two" Condition: Sole-source awards are only permissible if the contracting officer does not expect to receive offers from two or more HUBZone small business concerns.
- Dollar Thresholds: The total contract value (including options) must not exceed:
- $8.5 million for manufacturing NAICS codes.
- $5.5 million for all other NAICS codes.
- 8(a) Program Protection: The requirement cannot be currently performed by an 8(a) participant or have been previously accepted by the SBA for the 8(a) program.
- Award Criteria: The selected HUBZone concern must be a responsible contractor, and the award must be made at a fair and reasonable price.
- SBA Appeal Rights: The SBA has the authority to appeal a contracting officer's decision if they choose not to pursue a HUBZone sole-source award.
Practical Implications
- Market Research Criticality: Because this authority depends on the "Rule of Two" not being met, thorough market research is essential to justify why a competitive HUBZone set-aside was not possible.
- Strategic Goal Acquisition: This provides agencies with a streamlined mechanism to meet HUBZone participation goals quickly, provided the requirement stays within the $5.5M/$8.5M limits.