Overview
This section prescribes the procedures for challenging a firm's representation as a certified HUBZone small business concern. It outlines the roles of the SBA and the Contracting Officer, the required timelines for filing, and the administrative actions required based on the SBA's final determination.
Key Rules
- Protest Standing: For sole-source procurements, only the SBA or the Contracting Officer (CO) may protest; for all other procurements, any interested party, the CO, or the SBA may protest.
- Separation of Protests: Challenges to a firm's small business size and its HUBZone status must be filed as two separate protests, though the SBA will process them concurrently.
- Timelines: Interested parties must submit protests in writing within five business days of bid opening (for sealed bids) or notification of the apparent successful offeror (for negotiated procurements).
- Specific Grounds Required: Protests must state specific facts alleging that the firm did not meet HUBZone eligibility requirements at the time of certification or recertification; non-specific assertions will be dismissed.
- Decision Period: The SBA generally has 15 business days to make a determination, during which the CO should typically withhold award unless there is an urgent and documented need.
- "Undue Reliance" Rule: The SBA will consider protests alleging that a HUBZone prime contractor is performing the contract by being unduly reliant on a non-similarly situated subcontractor.
- Appeals: Decisions can be appealed to the SBA’s Associate Administrator, Office of Government Contracting and Business Development (AA/GC&BD) within five business days.
Practical Implications
- Immediate Post-Award Risk: Apparent successful offerors must be prepared to defend their status and subcontractor relationships (to avoid "ostensible subcontractor" issues) within a very narrow five-day window after notification.
- Contract Termination: If a protest is sustained after a contract is awarded, the CO is generally required to either terminate the contract or refrain from exercising any further options or issuing new orders.