Overview
This section prescribes the mandatory Federal Acquisition Regulation (Regulation) clauses that contracting officers must include in solicitations and contracts to implement the HUBZone Program's set-aside, sole-source, and price evaluation preference authorities.
Key Rules
- FAR 52.219-3 (Notice of HUBZone Set-Aside or Sole-Source Award): Must be included in all solicitations and contracts specifically set aside or awarded via sole-source to HUBZone small business concerns, including applicable task orders under multiple-award contracts.
- FAR 52.219-4 (Notice of Price Evaluation Preference for HUBZone Small Business Concerns): Required in solicitations and contracts conducted under full and open competition to provide the statutory 10% price evaluation preference to eligible HUBZone firms.
- Compliance Cross-References: Directs contracting officers to FAR 19.507 for the mandatory inclusion of FAR 52.219-14 (Limitations on Subcontracting) and FAR 52.219-33 (Nonmanufacturer Rule) in HUBZone-related awards.
Practical Implications
- Competitive Advantage: HUBZone firms gain a significant advantage in "full and open" competitions through the price evaluation preference clause, potentially winning awards even if their bid is higher than a non-HUBZone large business.
- Performance Requirements: Contractors must be prepared to meet specific "limitations on subcontracting" (performance of work) requirements, as these clauses shift the burden of proof regarding HUBZone compliance to the awardee during contract performance.