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This work shop is geared to those who are first time users of SAM. Topics include: successfully creating your personal SAM account, locating and connecting to your migrated old CCR account, updating the old CCR or creating a first time business profile in SAM. The goal of this workshop is for participants to be able to “get it right the first time.”
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Disclaimer: Information is current as of Sept. 7, 2017.
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Kenneth.surmeier@sba.gov
816.426.4919
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Government contracts attorney Steven Koprince's presentation from the 2012 National HUBZone Conference entitled "Best Practices for Ongoing HUBZone Compliance."
Disclaimer: Information is current as of Sept. 7, 2017.
Presented by:
Ken Surmeier
Business Opportunity Specialist
HubZone Program Liaison
Information Technology/Web Developer
US Small Business Administration
Kansas City District Office
1000 Walnut Street, Suite 500
Kansas City, MO 64106
Kenneth.surmeier@sba.gov
816.426.4919
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Understanding the HUBZone Program
1. Minnesota District SBA Office
-- HUBZone Program --
April 30, 2014
Understanding the
HUBZone Program
2. -- HUBZone Program --
• Program is designed to help small firms in certain
communities gain access to federal contract opportunities
• HUBZone areas: typically areas of low median household
incomes or high unemployment, or both
• Three types of Historically Underutilized Business Zones or
HUBZones
– Rural counties
– Urban areas – Census tracts
– Exterior boundaries of an Indian reservation.
• There are currently about 5,700 small firms certified in the
HUBZone program
3. • Provides federal contracting assistance to qualified small
firms in designated HUBZones to:
– Increase employment opportunities
– Stimulate capital investment
– Empower communities through economic leveraging
-- HUBZone Program --
4. • SBA regulates and implements the HUBZone program
– Determines which businesses are eligible
– Maintains a listing of qualified HUBZone firms to fulfill procurement
opportunities
– Adjudicates protests of eligibility regarding HUBZone contracts
-- HUBZone Program --
5. • 3% government-wide prime and subcontracting goals
• Contract set-asides
• 10% price evaluation preference on certain contracts
• Subcontracting goal on large business subcontracting plans.
HUBZone Help Desk…
HUBZone@sba.gov
-- HUBZone Program --
6. • Competition restricted to HUBZone small business concerns.
• Sole Source:
– Only one HUBZone SB available.
– Requirement not currently being performed by a non-
HUBZone SB.
– Anticipated price of contract (including options) is less
than $4.0M service ($6.5M manufacturing).
-- HUBZone Program --
7. • Far Clause 52.219-4 included in solicitations issued under full
and open competition for acquisitions expected to exceed
$150K .
• The clause allows an evaluation preference of 10% for
HUBZone firms when the low offer was made by a large
business.
-- HUBZone Program --
8. • A large business receiving a contract over $650K ($1.5M
construction) must submit a subcontracting plan as part of
the contract.
• Specific goals for all small business categories –including
HUBZone small business concerns.
• HUBZone firms must be certified by SBA to count towards
subcontracting goals.
-- HUBZone Program --
9. • Small business (by SBA standards)
• Owned and controlled by at least 51% U.S. citizens or a
community development corporation, an agricultural
cooperative, or an Indian tribe
• Principal office must be located within a designated HUBZone
• At least 35% of its employees must reside in a HUBZone
• Note: Different rules apply for Tribal Governments, Alaska Native Corporations,
Community Development Corporations and small agricultural cooperatives. These
are delineated in Title 13 of the Code of Federal Regulations, Part 126.
-- HUBZone Program --
10. • Principal office is defines as the location where greatest
number of concern's employees at any one location perform
their work.
• For services or construction operations, the principal office is
location where greatest number of employees perform work,
but excluding those who perform work at job-site locations to
fulfill specific contract obligations.
-- HUBZone Program --
11. • When economic data is updated and a formerly qualified
HUBZone area no longer meets the unemployment or income
criteria, these areas are “grandfathered” for three years.
• These “grandfathered” areas are called redesignated areas.
• The redesignated areas have and end date and HUBZone
certified firms with principal offices in the areas will be
decertified when the “grandfathering” period ends.
-- HUBZone Program --
15. • Most successful HUBZone firms plan for their success
– Long-term and revolving strategies that define how to be and remain
competitive
– Maintain principal office and 35% employee residency requirements
• Planning is everything
-- HUBZone Program --
17. • STEP 1. Verify eligibility compliance
• STEP 2. Gather what you need (supporting documentation)
• STEP 3. Review sample HUBZone application form
• STEP 4. Review and ask questions
• STEP 5. Access SBA’s General Login System (GLS)
• STEP 6. Complete and submit the online HUBZone application
• STEP 7. Submit requested supporting documentation
-- HUBZone Program --
18. • Firm’s principal office is located in a designated HUBZone.
• At least 35% of firm’s employees live in a designated
HUBZone.
• Firm is a small business by SBA size standards.
• Business is directly owned and controlled by at least 51% U.S.
citizens or a community development corporation, an
agricultural cooperative, or an Indian tribe
• Note: Different rules apply for Tribal Governments, Alaska Native Corporations,
Community Development Corporations and small agricultural cooperatives
-- HUBZone Program --
19. General business information SAM profile
DUNS number Appropriate NAICS codes
Business and personal federal tax returns
for the last 3 years
Proof of principal office location, such as
lease agreement
Business ownership documentation –
articles of incorporation, LLC, etc.
Official payroll records and other
information showing employees residing
within HUBZones
Citizen documentation for owners Other information supporting HUBZone
eligibility requirements
-- HUBZone Program --
20. • Review a sample HUBZone application form.
• Critical Step – do not attempt to complete the actual online
HUBZone application until you have reviewed the sample
form and gathered all documents you need to complete it
-- HUBZone Program --
21. • You don’t know what you don’t know…
• Review HUBZone eligibility requirements, sample application
form and the documentation you gathered and ask questions
-- HUBZone Program --
HUBZone Help Desk…
HUBZone@sba.gov
23. • Complete and submit the online HUBZone application
-- HUBZone Program --
24. • After application is submitted and reviewed, supporting
documents will be requested by the SBA
• Documents must be provided to the SBA within two weeks
• Requested documents will include:
– Documentation supporting ownership & control and size standards
– Business and personal tax returns
– Documents showing compliance with HUBZone employment and
principal office requirements
-- HUBZone Program --
25. -- HUBZone Program --
• Application “times-out”
• Unable to access the GLS system
• 35% of employees are not located within HUBZone areas
• Requested supporting documents do not validate information
in the HUBZone application
27. -- HUBZone Program --
• Interactive forum hosted by HUBZone Program Office.
– Tuesdays and Thursdays 1 to 2 p.m. CST
– Call 1-888-858-2144, access code 3061773#
– HUBZone Program Office will discuss specific eligibility topic followed
by a general question and answer session.
• 15 minute phone appointments with HUBZone staff.
– Complete appointment form at: www.sba.gov/hubzone.
28. -- HUBZone Program --
• Electronic newsletter used by the HUBZone program office to
communicate with interested parties.
• HUBZone certified firms automatically on list.
• Anyone interested can subscribe.
• Go to www.sba.gov/hubzone and select Get Email Updates
29. • Thank you for taking the time to learn about the HUBZone
program
• Please contact us with any questions you may have
• National: hubzone@sba.gov
• Local: Randall Czaia 612-370-2314, randall.czaia@sba.gov
-- HUBZone Program --
Editor's Notes
This is about federal contract markets and participating in those markets as a HUBZone certified firm.
Welcome to “The HUBZone Primer” -- a small business guide outlining program eligibility and certification requirements.
The HUBZone program is designed to help small businesses -- in certain urban, rural, BRAC, Indian reservation, and difficult development areas outside the U.S. mainland – to gain access to federal procurement opportunities. HUBZone areas are typically areas of low median household incomes or high unemployment, or both.
At any given time, there are some 6,000 small firms certified in the HUBZone program.
Importantly, the HUBZone program helps small businesses in urban and rural communities.
It provides federal contracting assistance to qualified small firms located in historically underutilized business zones -- or HUBZones -- to increase employment opportunities, stimulate capital investment in those areas, and empower communities through economic leveraging.
The U.S. Small Business Administration regulates and implements the HUBZone program. As such, SBA determines which businesses are eligible for the program, maintains a listing of qualified HUBZone small businesses that can be used by federal agencies to fulfill procurement needs and adjudicates protests of eligibility regarding HUBZone contracts.
The program offers significant benefits to certified HUBZone firms. These benefits include:
Set asides – that is contracting officers can reserve or set-aside specific contracts for qualified HUBZone firms;
Government-wide contracting goals have also been established requiring that at least 3% of all federal prime contracting dollars and 3% of all federal subcontracting dollars flow to certified and qualified HUBZone firms;
In addition, a price evaluation preference of 10% can be applied to certified HUBZone firms in full and open contract competitions.
The U.S. Small Business Administration regulates and implements the HUBZone program. As such, SBA determines which businesses are eligible for the program, maintains a listing of qualified HUBZone small businesses that can be used by federal agencies to fulfill procurement needs and adjudicates protests of eligibility regarding HUBZone contracts.
The U.S. Small Business Administration regulates and implements the HUBZone program. As such, SBA determines which businesses are eligible for the program, maintains a listing of qualified HUBZone small businesses that can be used by federal agencies to fulfill procurement needs and adjudicates protests of eligibility regarding HUBZone contracts.
The U.S. Small Business Administration regulates and implements the HUBZone program. As such, SBA determines which businesses are eligible for the program, maintains a listing of qualified HUBZone small businesses that can be used by federal agencies to fulfill procurement needs and adjudicates protests of eligibility regarding HUBZone contracts.
To be eligible for the HUBZone program a business must meet the following criteria:
It must be a small business by SBA standards;
It must be directly owned and controlled by at least 51% U.S. citizens or a community development corporation, an agricultural cooperative, or an Indian tribe;
Its principal office must be located within a designated HUBZone, which includes lands considered “Indian country” and military facilities closed by the Base Realignment and Closure Act; and,
At least 35% of its employees must reside in a HUBZone.
There are different rules for concerns owned by Tribal Governments, Alaska Native Corporations, Community Development Corporations and small agricultural cooperatives. These are delineated in Title 13 of the Code of Federal Regulations, Part 126.
To be eligible for the HUBZone program a business must meet the following criteria:
It must be a small business by SBA standards;
It must be directly owned and controlled by at least 51% U.S. citizens or a community development corporation, an agricultural cooperative, or an Indian tribe;
Its principal office must be located within a designated HUBZone, which includes lands considered “Indian country” and military facilities closed by the Base Realignment and Closure Act; and,
At least 35% of its employees must reside in a HUBZone.
There are different rules for concerns owned by Tribal Governments, Alaska Native Corporations, Community Development Corporations and small agricultural cooperatives. These are delineated in Title 13 of the Code of Federal Regulations, Part 126.
To be eligible for the HUBZone program a business must meet the following criteria:
It must be a small business by SBA standards;
It must be directly owned and controlled by at least 51% U.S. citizens or a community development corporation, an agricultural cooperative, or an Indian tribe;
Its principal office must be located within a designated HUBZone, which includes lands considered “Indian country” and military facilities closed by the Base Realignment and Closure Act; and,
At least 35% of its employees must reside in a HUBZone.
There are different rules for concerns owned by Tribal Governments, Alaska Native Corporations, Community Development Corporations and small agricultural cooperatives. These are delineated in Title 13 of the Code of Federal Regulations, Part 126.
OK…. So how do you know if your firm or employees are located in a designated HUBZone area?
SBA has created an electronic tool where you can insert the address and zip code of a specific location (or its coordinates) to determine if that location is recognized as a designated HUBZone. HUBZones are determined by the government – using the most current census, unemployment and other data. This is a very helpful and important tool.
At you convenience, return to this slide or the resource section at the end of the course and use the hyperlink to access the HUBZone Maps, tool. This tool will help you determine if your business location and employees are located within a HUBZone area.
To be eligible for the HUBZone program a business must meet the following criteria:
It must be a small business by SBA standards;
It must be directly owned and controlled by at least 51% U.S. citizens or a community development corporation, an agricultural cooperative, or an Indian tribe;
Its principal office must be located within a designated HUBZone, which includes lands considered “Indian country” and military facilities closed by the Base Realignment and Closure Act; and,
At least 35% of its employees must reside in a HUBZone.
There are different rules for concerns owned by Tribal Governments, Alaska Native Corporations, Community Development Corporations and small agricultural cooperatives. These are delineated in Title 13 of the Code of Federal Regulations, Part 126.
To be eligible for the HUBZone program a business must meet the following criteria:
It must be a small business by SBA standards;
It must be directly owned and controlled by at least 51% U.S. citizens or a community development corporation, an agricultural cooperative, or an Indian tribe;
Its principal office must be located within a designated HUBZone, which includes lands considered “Indian country” and military facilities closed by the Base Realignment and Closure Act; and,
At least 35% of its employees must reside in a HUBZone.
There are different rules for concerns owned by Tribal Governments, Alaska Native Corporations, Community Development Corporations and small agricultural cooperatives. These are delineated in Title 13 of the Code of Federal Regulations, Part 126.
The HUBZone program is a powerful contracting initiative with many benefits to certified businesses. However, it is only intended for qualified firms who are competitive and remain in compliance.
SBA has found that the most successful HUBZone firms are those who plan for their success. That is, they have a long-term and continuingly evolving strategy that defines and refines how to be and remain competitive in government contracting markets.
In addition, successful HUBZone firms must be vigilant about principal office and residency requirements – which must always be maintained, but can change quickly. Firms without a strategy to maintain principal office and 35% employee residency requirements can find themselves out of compliance and promptly decertified.
Planning is everything….. Plan for your success as a HUBZone certified firm.
The application process.
If you feel you are qualified and only when you are ready to apply – should you apply for HUBZone certification. The application process is not difficult. However, like any important application process it does require solid preparation, meaningful thought and a certain level of due diligence. It makes sense to do it right, the first time. No business wants to waste time and resources going through the motions and then not realizing what is expected.
So, we recommend that seven steps be followed in the application process. They are: verify eligibility compliance; gather all information and documentation that you need; review a sample HUBZone application form; review your documentation and ask questions; access SBA’s General Login System – GLS; complete and submit the online HUBZone application; and finally, submit all requested supporting documentation to the SBA.
Each of these steps is discussed in the following.
Not every business is eligible for the HUBZone program.
Before you begin the application process, make sure you meet core eligibility requirements. That is:
verify that your firm is a small business by SBA standards;
confirm ownership and control, such that the business is directly owned and controlled by at least 51% U.S. citizens or a community development corporation, an agricultural cooperative, or an Indian tribe; and,
make certain the firm’s principal office is, and at least 35% of its employees reside in a designated HUBZone.
As mentioned earlier, different rules apply for Tribal Governments, Alaska Native Corporations, Community Development Corporations and small agricultural cooperatives. Learn more about eligibility requirements by clicking on the hyperlink to access 13-CFR-Part 126.
The HUBZone program is statutorily authorized and specific eligibility requirements are strictly adhered-to and monitored by the SBA.
As you prepare to apply for HUBZone certification, you will be asked to provide, identify, demonstrate and validate much information. Therefore, it’s important to assemble key business, ownership, tax and other pertinent information to have readily available during the application process and BEFORE you attempt to complete the online HUBZone application.
Such information at a minimum, should include: general business information, CCR profile data, DUNS number, appropriate NAICS codes, recent business tax returns, personal federal tax returns for principals, proof of principal office location, such as a lease agreement, citizen documentation for owners, ownership documentation, such as articles of incorporation or LLC agreement, official payroll records and other information that can demonstrate employees’ living within designated HUBZones and other basic information that supports HUBZone eligibility requirements. Use the hyperlinked – document request checklist – to better understand what supporting documentation will be requested by the SBA.
Step 3 is critical. Review a sample HUBZone application. The sample application describes a fictitious corporation. However, it will give you the opportunity – together with the documentation checklist highlighted in the prior slide -- to familiarize yourself with what you will be asked and what information is needed to complete the official application.
Importantly, do not attempt to complete the actual online HUBZone application until you have reviewed the sample form and gathered all documents you need to complete it.
When you are ready, use the hyperlink on this page or at the end of the course to review the sample HUBZone application form.
As mentioned earlier, no business wants to waste time and resources going through the motions and then not getting what is expected. That is why Step 4 is particularly important.
Remember, you don’t know what you don’t know. Make a point of becoming informed. Carefully review HUBZone eligibility requirements, the sample application form and the supporting documentation you gathered, and then importantly, ask questions of SBA HUBZone staff and others qualified in the HUBZone program.
This is also a good time to review and update your firm’s CCR and Dynamic Small Business Search or DSBS profiles. The information in these profiles must be consistent throughout the firm’s documentation. Again, review and ask questions.
To apply for HUBZone certification, you must register for an account in SBA's General Log-in System, more commonly referred to as GLS. The GLS system provides a single log-in point for all SBA services. This streamlines and simplifies service delivery to our clients.
It is easy to register for an account, if you don’t already have a GLS account. Once you register and establish a GLS ID and password, keep this information in a safe and readily available place. It is also important to note, that you will have to update your password every 90 days.
To access the online HUBZone application, you will first have to login to SBA’s GLS system.
OK, so after you’ve determined that your firm is eligible, looked at the sample application, gathered the information and documentation you need, updated the firm’s CCR and DSBS profiles and obtained a GLS login ID and password – you are now ready to complete and submit the online application.
The application is comprehensive and includes multiple sections. Some sections can be completed in a few minutes, while others will take longer. However, it is important to note that each section once accessed will time-out in one hour, if the section is not completed in the time frame. If that happens, all information entered up to that point is lost and the application has to be started over.
Therefore, access the HUBZone application only after you have completed Steps 1-5 and you are ready to apply.
Once your HUBZone application is submitted online, SBA will review it and, if its complete and accepted, request documentation to support your application. The request will come in the form of an e-mail and will request specific documents. You will have two weeks to fulfill the document request.
Requested documents will include: documentation supporting ownership and control and size standards requirements; business and personal tax returns; and, documents showing compliance with HUBZone employment and principal office requirements.
Some common mistakes in the HUBZone application process can be easily avoided.
Make sure you have all required information before completing the online application – so it doesn’t time out. Make sure you can access the GLS system. Make certain 35% of employees are located within HUBZone areas. Importantly, make sure requested supporting documents can validate information entered in the application; for example, you will be asked to provide evidence of the HUBZone residency for each employee. In other words, make sure you follow the steps recommended in this training module.
Resources and tools.
Some common mistakes in the HUBZone application process can be easily avoided.
Make sure you have all required information before completing the online application – so it doesn’t time out. Make sure you can access the GLS system. Make certain 35% of employees are located within HUBZone areas. Importantly, make sure requested supporting documents can validate information entered in the application; for example, you will be asked to provide evidence of the HUBZone residency for each employee. In other words, make sure you follow the steps recommended in this training module.
Some common mistakes in the HUBZone application process can be easily avoided.
Make sure you have all required information before completing the online application – so it doesn’t time out. Make sure you can access the GLS system. Make certain 35% of employees are located within HUBZone areas. Importantly, make sure requested supporting documents can validate information entered in the application; for example, you will be asked to provide evidence of the HUBZone residency for each employee. In other words, make sure you follow the steps recommended in this training module.
Thank you for taking the time to learn about the HUBZone program. Much information has been discussed and we hope it is helpful.
However, please contact us with any additional questions you may have about the program or application process.
Thank you.