HUBZone Regulation

SMALL BUSTNESS

g 3l(a) to

ACT

g

3l(bX2XAXii)

(:a)

IN GENERAL.-There is established within the Administation u OroO*- io
be carried out by the Administator to provide for Federal confacting assistance to qualifiea
HUBZone small business concerns in accordance with this section.

(b)

ELTGTBLE CONTRACTS_

(1)

DEFINITIONS

.-In

this subsection-

(A)

the term "contac"ng officer" has the meaning givern that
in section 2101(1) of title 41, united states code;

and

(B)

the term "full and open competition', has the meaning
that tenn in section 107 of tifle 41, United States

(2)

Code.

AI.]-IHORIry OF CONTRACTING

term

given

;g?:::*t
[4] usc
2l0l(1)l'
'Tulr

and open

competition."
[4I USC IO7].

OFFICER.-73?

(A)

SOLE SOURCE CONTRACTS.-a contracting officermery
award sole source conhacts under this section to any qualified HUBZone small business
concem, if--

(i)

the qualified HUBZone small business concei:r is
determined to be a responsible contractor with respect to perforrnance of such conlract
opportunity, and the contacting officer does not have a reasonable expectation that2 or rnore
qualified WJBT'one small business concems will submit oflers for the contractine
opporturuty;

(ii)

the anticipated award price of he contract (includiqg

options) will not exceed-

this subsection) shall apply only to procurements

(A)
(B)
(C)
(D)
(E)
(F)
(G)
(H)
(I)
(D
(K)
(L)
(M)
737

by-

the Department of Defense;
the Deparment of Agriculture;
the Department of Health snd lJuman Services;
the Deparmenr of Transportatio4
the Department of Energy;
the Departuent of Housing and Urban Development;
the Environmental Protection Agency;
the National Aeronautics and Space ddminis63fisn;
the General Services Administranon;
the Deparment of Vetcrans Affairs;
the Department of Co-merce;
the Department of Justice; and
the Deparment of State.

Phor. "[n]onrithstanding any other provision of
(124 Stat.2547).

lad'

383

deleted by g l3a7(cXl) of

P.L. lll-24l,approvaC

@ev. 13)

Sept. 27, 2010

31(bX2XeXii)tI) to
L

31(bX3XIlXi)

SMALL BUSINESS ACT

(I)

$5,000,000, in the case of a contract opportunity
assigned a standard industrial classification code for manufacturing; or

0l)

$3,000,000, in the case of all other contract

opportunities; and

(iii)

in the estimation of the contracting officer, the cont.act
award can be made at a fair and reasonable price;

(B)

RESTRICTED COMPETITION.-A contract opportunity
to qualified
may?38 be awarded pursuant to this section on the basis of competition restricted
HLIBZ.1, small business concsrns if the contacting officer has a reasonable exPectation that
and that 1Ie
not less than 2 qualified IfIJBZone small business concerns will submit offers
award can be made at a fur market price'

(C)

APPEALS'-NoI later than 5 days from the date the
a contract
Adminisbation is notided of a procurement officer's decision not to award

under this section io a qualified HlJBZone small business concern, flre
contracting
Administator may notify the contracting officer of the intent to appeal the
a rcritten
fi'le
may
Administrator
the
date
officer's decision, and within l5 days of such
of thrl
Secretary
with
the
i"qu.r, for reconsideration of the contracting officer's decision
departrnent or agencY head.
opport

-iry

(3) PRICE EVALUATION PREFERENCE IN FULL,AND OPEN
COMPIiTITIONS.(A) IN GENERAL.-subject to subparagraph (.B), in zury case in

Price evaluatiou
preference
and open

il

competitions'

the price offered
which a contract is to be awarded on the basis of full and open competition,
than ttre
lower
as being
by a qualified HUBZone small business concern shall be deemed
price:
prir. ofo"A by another offieror (other than another small business concern), if t]re
prrcent
trigher
10
than
more
not
is
i11rr.a by the ["ufin"a HLIBZone small business concern
responsible offeror'
than the p.i"e offer"d by the otherwise lowest, responsive, and

PROCUREMENT OF COMMODITIES.-For purchases by
price evaluation preferences
the Secretary of Agriculture of agricultural commodities, the

(B)t',

shail

be-

Procure-

L"il"i*r,"r.

(i)l0percent,fortheportionofacontacttobeawarded
that is not greater than 25 prrt*t
a single

of the fotal volume being procured for each co:mmodity in

invitation;

738,May,, subsriruted for "shall" byg 13a7(cX3XA) and $ 1347O)(l) of P.L. 111-24O,approvecl Sept' 27,2010 (124 Stat'
2547). Section 1347(c) of P.L. I I l-240 added the headings'

t3esubp*ugruphs3t(bX3XB)and(c)wereaddedbyS6l2(a)(2)ofP.L. 106-554,approvedDec'21,2000(l14staL2763)

384

(R.ev. 13)

full

$ 31(bX3XBXii) to
$

SMALL BUSINESS ACT

31(c)(2)

(ii)

5 percent, for the portion of a contract to be awarrled
that is greater than25 percent, but not greater than 40 percent, of the total volurre bein;g
procured for each commodify in a single invitation; and

(iii)

zero,fot the portion of a confract to be aw€rded that is
in a sinlgle

greater than 40 percent of the total volume being procured for each commodity

invitation.

(c)tno PRoCUREMENT oF COMMODITIES FoR
INTERNATIONAL FooD AID E)GORT OPERATIONS.-The price evaluari,on
preference for purchases of agricultural commodities by the Secretary of Agriculture fo:r
export operations through international food aid programs administered by the Firm Service
Agency shall be 5 percent on the first portion of a contract to be awarded that is not greiater
than 20 percent of the total volume of each commodity being procured in a single invitation.

CD)

TREATMENT OF PREFERENCE.-A contract a,rarded to

a

HUBZone small business concern under a preference described in subparagraph riB) sha;lI not
be counted toward the fulfilhnent of any requirernent partially set aside for competition
restricted to small business concerns.

(4)

RELATIONSHIP TO OTHER CONTRACTING PREFER,ENCES.A procurement may not be made from a source on the basis of a preference provi,Ced in
paragraph (2) or (3), if the procurement would otherwise be made from a difterent source
[18 USC 4124].
under section 4124 or 4125 of title 18, United States Code, or chapter 85 of title 4.1.
[4] USC ch 85].

(c)

ENFORCEMENT;PENALTIES-

(1)

VERIFICATION OF ELIGIBILITY.-In carrying out this sectioq the

Administrator shall establish procedures relating

to-

Elisibilify
verification.

(A)

the filing, investigation, and disposition by the Administration
of any challenge to the eligibility of a small business concem to receive assistance: under this
section (lncluding a challenge, filed by an interested party, relating to the veracity of a
certification made or information provided to the Administation by a small busin,sss corlcorl
under section 3(pX5); and

(B)

verification by the Arlministator of the accgracy of any
certification made or inforrnation provided to the Administration by a small business concem
under section 3(pX5).

@

EXAMINATIONS.-The procedures established underparagraph (l)

Examinali6ag.

may provide for program exarninations (including random program examinations) by the
t'oS.,bptugruph3lO)(3XC)redesignated@)andnewsubparagraph3l(bX3XC)addedbygt53ofp.L.
approved Dec, 8, 2004 (118 Stat 2809-650).

385

(Rev. 13)

tilg447,

$ 31(cX3)
$

tc'

32@X3)

SMALL BUShTESS ACT

Administrator of any small business concem making a certification or providing i:nforma.tion
to the Administator under section 3(pX5)

(3)

PROVISION OF DATA.-Upon the request of the Adminishator, the
Secretary of Labor, the Seoetary of Housing and Urban Development, and the Secretary of
the Interior (or the Assistant Secretary for Lndian Affairs), shall promptly provide to the
Administator such information as the Administator determines to be necessary to carry out
this subsection.

(4)

PENALTIES.-In addition to the penalties described in section 1(;(d),
concern
that is determined by the Administator to have misrepresentrod
any small business
Jhe status of that concern as a "HUBZone small business concern" for purposes of'this
section, shall be subject

Penalties.

to-

(A)

section 1001 of title 18, United States Code;

and

(B)

sections 3729 through 3733 of title 31, United States;

[18

Code.

usc

1001]

[3] USC 3729ttt)J

(d)tnt AUTHORIZATION OF APPROPRTATIONS.-There is authorized to be
appropriated to carry out the program established by this section $ 10,000,000 for e;ach of

Authorizatron

fiscal years 2004 throudh2006.
$ 32?{2VETERANS

(a)

PROGRAMS.

;,"Jffi

oFFIcE oF vETERANS BUSINESS DEVELoPMENT.-There

is

15IJsc 657b'

established in the Administration an Office of Veterans Business Development, which shidl Office of
be adminjstered by the Associate Adminisbator for Veterans Business Developme:nt (in tJris leterans
section referred to as the "Associate Adminisfator") appointed under section
;ffi!sot-.*.

4(bX1).

ASSOCIATE ADMINISTRATOR FOR VETERANS BUSINESS
DEVELOPMENT.-The Associate Administrator-

O)

(1)

shall be an appointee in the Senior Executive Service;

(2)

shall be responsible for the formulation, execution, and promotion of
policies and prograrns of the Administration *rat provide assistance to small businerss
concerns owned and controlled by veterans and small business concerns owned and
confolled by service-disabled veterans. The Associate Administrator shall act as an
ombudsman for full consideration of veterans in all programs of the Administration; and

(3)

shall report to and be responsible directly to the Administator.

''4lNewsubsecrion3i(d)addedbyg503(b)ofP.L,

l06-554,approvedDec.2l,2000(114Stat.2763). Sectionl54ofP.L.

108447, approved Dec. 8, 2004 (118 Stat. 2309-650) replaced "2001 through 2003" s'ith "2004 through 20tJ6."

?42

N"*

section 32 addedby g 201 (b)(2)

ofP.L.

106-50, approved August 17, 1999 (1

386

l3 Stat

235).

(tLev. l3)

$

ii 3(pX5XAX'X[)

SMAIL BUSINESS ACT

(iii)

section 2687 of

title

3(pXa)@Xiii) to

F0 usc

10, United States Code; or

26871

(iv)

any other pror"ision of law authorizing or directing the
Secretary of Defense or the Secretary of a military departnent to dispose of real p:roperty' at
the military irstallation for purposes relating to base closures of [sic] redevelopment, while
retaining the authority to enter into a leaseback of ali or a portion of the properfy for military
use,

V tSI
"qualified,"

if-

QUALIFIED HIIBZONE SMALL BUSINESS CONCERN(A)

"Qualified

lfUBZone
smrll

IN GENERAL.-A HUBZone small business concern rs

business

concem."

(i)

the small business concem has certified in w:riting to
the Administrator (or the Administrator otherwise determines, based on informatic'n
submittecl to the Administator by the small business concem, or based on certificertion
procedures, which shall be established by the Administration by regulation) that-

G)50 it is a HLIBZone

(aa)

small business

conceln-

pursuant to subparagraph (A), (B),

@) or (E.tss of paragraph (3), and that its principal office is located in
fewer than 35 percent of its anployees reside in aTIUBZ'one; or

a

((),

HUBZone atrd not

(bb)

pursuant to paragaph (3XC), and no1:
performing
a contract awarded to the
in
fewer than 35 percent of its ernployees engaged
small business concern on the basis of a preference provided under section 3i I (b) reside
within an'f Indian reservation governed by 1 or more of the tnbal govemment ownr3rs, or
reside within any HLIBZone adjoining any such Indian resen'ation;

(Il)

the small business concerrl will attempt to
maintain the applicable emplolnnent percentage under subclause (I) during the perlbrman,le
of any conbact awarded to the small business concern on the basis of a preference provided
under section 31(b); and

approved Dec.27,2000
'o Subclauses 3(pX5XAXi)Q and GD rewriften by $ 603(a) of P.L. 106-554,
of former subclauses is repri:rted below:

0)

(l l4

Stat. 2763). Text

it is aI{lJBZnrc small business concem;

(II)

not l6s5 thrn 35 percent of the employees of the small busir:ess concern reside ia a lfUBZone, and the small
busrness concern will attempt to maintail ttus employment percentage during the performance of a:ry contract
awarded to the small business concern on the basis of a preference provided under section .l 1@); and

5'Ref.r.nc"s to subparagraphs (C)

and (E) added by $ 151(a)(2) of P.L. 108447, approved Dec. 8, 2004 (l;18 Stat. 2809-

648).

11

LI

(FLev. 13)

$ 3(pXsXA)(iXrI) to
$ 3(p)(5xc)

SMALL BUSINESS ACT

(ID

with respect to any subcontract entered into by
business cclncern
the small business concern pursuant to a contract awarded to the small
under section 31, the small business concem will ensure that-

(n)

in the case of a confract for srvices
incurrr*l
(except construction), not less than 50 percent of the cost of contactperformance
HUBZlone smail
ior poro*el will be expended for its ernployees or for employees of other
business concenu;

(bb)

in the case of a contract for procurement
not less than 50
of supplies (other than procurement from a regular dealer in such supplies),
p.r""oi of the cost of manufacturing the supplies (not including the cost of materials) witl be
by 1 or more
incuned in connection with the performance of the contact :rliraHUBZone

HUBZone small business concerns;

("t)tu

in the case of a contract for the
none of the
procurement by the Secretary of Agriculture of agricultural commodities,
a sutrcontractor
commodity being procured will be obtained by the prime cnnfactor through
is
to be supplied
it
which
in
form
final
the
commodity in substantially

i", ar-p*rir*.iit5.

to the Government; and

(ii)

no certification made or inforrration provided by the
with the procedut'es
small business conc€rn under clause (i) has been, in accordance
established under section 3 I (cXl

F

(D

successfully challenged by an interested party;

(ID

otherwise determined by the Administrator to be

or

materialtry false.

(B)CHANGEINPERCENTAGES'-TbeAdministratorma}/

item (aa) or (bb) o:f
utilize
is necessary to
r.tUp*uguph (AXiXm), if the Administator determines that such action
concerns that are below thg
reflect conventionuf iniusq practices among small business
numerical size standard for businesses in that industy category.
in under [sic]
a percentage other than the percentage specified

(C)

CONSTRUCTION AND OTHER CONTRACTS'--The
that ore srimilar to
Administrator shall promulgate final regulations imposing requirements
for general and
thor" specified in items (aaiand (bb) ofsubparagraph (A)(i)GID on contracts
industry category that would not
speciA^t1' constnrction, and on contacts for any other
such
otfrr uit. be zubject to those requirements. The percentage applicable to any
(B)'
requi.ement shali be determined in accordance with subparagraph

t6Item

(cc;) added by $

612(b)(l)@) of P.L. 106-554, approved Dec' 21, 2000 (t 14 Stat' 2763)'

22

@ev. 13)

$ 3GX5XD) to
$ 3(pX6XcXii)

SMALLBUSINESS ACT

L","

(D)

LIST OF QUALIFIED SMALL BUSINESS CONCERNIJ.The Administrator shall establish and maintain a list of qualified HUBZone smal.lbusinrtss
concems, which list shall, to the extent practicable-

(i)

once the Adminisfator has made the certifir:ation
required by subparagaph (A)(i) regarding a qualified HIlBZone small business concern and
has determined that subparagraph (AXii) does not apply to that concam,57 include the narme,
address, and tlpe of business with respect to each such small business concern;

(ii)

be updated by the Administator not less than annu.ally;

(iii)

be provided upon request to any Federal ag€ncy or

and

other entity

(6)tt

NATryE AMERICAN SMALL BUSINESS CONCERNS.-

(A)

ALASKA NATIVE CORPORATION.-The term "Alaska
Native Corporation" has the same meaning as the term 'Native Corporation" in section 3t of

"Alaska Native
Corporation."
[43 USC 1602].

the Alaska Native Claims Settlement Act (43 U.S.C. 1602).

CB) ALASKA NATME VILLAGE.-The term "Alaska Nativre "Alaska Native
Village" has the same meaning as the term'Native village" in section 3 of the Aleska Nertive Village."
[43 USC 1602].
Claims Settlement Act(43 U.S.C. 1602).
(C)

INDIAN RESERVATION,-The term "lndian rese:'vation"-

(i)

section 1151 of title

"Indian
reservation."

has the same meaning as the term "lndian country"
18, United States Code, except that such term does not includ,e-

in
[18 USC

n51].

([)

any lands that are located within a Strte in
which a tribe did not exercise governmental jurisdiction on the date of enactnent of this
paragraph, unless that tribe is recognized after that date of enactnent by either an rtct of
Congress or pursuant to regulations of the Secretary of the Interior for the adminisrfrative
recognition that an lndian goup exists as an lndian tribe (part 83 of title 25, Code,cf Fedmal

Regulations); anA

[25 CFR Part 83].

GD iands taken into trust or acquired by an Indian
tribe after the date of enactnent of this paragraph if such lands are not located with,in the
external boundaries of an lndian reservation or former reservation or are not contieuous tct
the lands held in tnrst or restricted status on that date of enactrnent: and
(ii)

in the State of Oklahoma, means lands

that-

5?

language preceding the footnote signal was added by $ 603(b) of P.L. 106-554, approved Dec.21,2000

58

Newparagraph 3(pX6) added by $ 604 of P.L. l06-554, approved Dec. 21, 2000 (1 14 Stat.2763).

23

Qrev. 13)

(:1

14 Stat.2763).

$ 3(pX6)(cXiiXI) to
$ 3(qX3XA)

SMALL BUSINESS ACT

(l)

are

(U)

are recognized by the Secretary of the lntenLor as

within the jurisdictional a'reas of
and
Okiahoma Indian tribe (as determined by the Secretary of the lnterior);

i1n

(as irt
eligible for trust land status under part 15 1 of title 25, Code of Federal Regulations
effect on the date of enacfinent of this paragraph)'

(7)t'

AGRICULTTIRAL COMMODITY.-T5e term "aglicultu'al
Act of 1978 (7
comrnodity',has the same meaning as in section 102 of the Agricultural Trade

u.s,c.

s6o2).

(q)UO DEFINITIONS RELATING TO VETERANS.-In this ACt, thE
definitions applY:

[25 CFR Part
151.l

"Agncultural

co--odiry."
[7 USC 5602]

fC,IIOWiNg

(t)

SERVICE-DISABLED VETERAN.-Theterm "service-disabled
(as defi'ned in section
veteran" means a veteran with a disability that is service-connected
101(16) of title 38, United States Code).

SMALL BUSINESS CONCERN OWNED AND CONTROLLED BY
concem owned and
SERVICE-DISABLED VETERANS.-The term "small business
concern-'
controlled by service-disabled vetsrans" means a small business

(2)

not less than 51 percent of which is owned by one or mor€
owned business' not lessttran 51
service-disabled veterans or, in the case of anypublicly
p**r,.f the stock of whicir is owned by one ot tttot. service-disabled vel'erans; and

(A)

"Servicedisabled
veteran."

"Small
business

concern
owned and

controlled bY
servicedisabled
y61g1ans."

(B) the management and daily business operations of which are
in the case of a veteran w'th
controlled by one o, -tr. service-disabled vetsrans or,
psrmanent caregiver of such vetertuf'

permanent and severe disability, the spouse or

(3)

BY
SMALL BUSINESS CONCERN OWNED AND 9131s[ftt3LLED
.,small business concern owned and controlled bv veterans" means
terrn

\rETERl\NS.-The
a small business concern-

(A)notlesstharr5lpgrcent6f$/hichisownedbyoneormor€)

not less than 51 percent
veterans or, in the casaof any publicly oqTred business,
of which is owned by one or more veterans; and

.f

the st'ock

"Small
business
cotrcerD
owned and

controlled bY
veterans."

ffioX2)ofP.L,l06-554,approvedDec.2l,2000(lt4Stat,2763).
106@subsecriou3(q)addedbyg r03(a)ofp.L. 106-50,approvedAugust 17,lggg (113 Stat'234)' isection 103(b)ofP'L'
50 provide's:

APPLICASILITY
as added bY

ro rl{is Acr.-ln

this section,

limall Busiress Act,
this Act, the defrmtions conrained in section 3(q) of the

aPPIY

aA

(Rev. 13)

$ 3(p)(6)(c)(iiXI)

o

$ 3(qX3XA)

SN{ALL BUSI\ESS ACT

within the jurisdictional areas of an
of the lnterior); ancl
oklahoma Indian tribe (as determined by the Secretary

G)

are

(IDarerecognizedbytheSecretaryoft}relnterioras

Code of Federal Replrlations (as tn
eiigrble for fiust land status unda part I 51 of title 25,
efflct on the date ofenactrnent ofthis paragraph)'

AGzuCULTLIRAL COI\4MODITY -The term "agriculrural
of the Agricultural Trade Act of
commodity,'has the sarne meaning as in section 102

(1)tn

u.s.c

[25 CFR Pan

15il

19'78 (7

5602).

"Agriculrural
commodiry."
[7 USC 5602]

flrllou'ing
(q)uo DEFINITIONS RELATTNG TO \TETERA.NS.-ln this Act, the
definitions aPPll':
"service-clisabled

"Servtcedisabled
veteran."

sERVICE-DISABLED VETERA.\i.-The term
is senice-connected (as delined irr section
vetsran,, means a veteran with a disabiliry that
101(16) of title 38, United States Code)'

(1)

"Small

(2)SMALLBUSINESSCONCERNO\^^IEDANDCONTROLLE'DBY
SERVICE-DISABLEDVETERANS'-Theterm..smallbusinessconcemowneFile Typeapplication/pdfFile Modified2016-02-25File Created2015-11-18