13 C.F.R. § 126.700

What are the limitations on subcontracting requirements for HUBZone contracts?

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(a) Other than Multiple Award Contracts. For other than a Multiple Award Contract, a prime contractor receiving an award as a certified HUBZone small business concern must meet the limitations on subcontracting requirements set forth in § 125.6 of this chapter.

(b) Multiple Award Contracts—(1) Total Set-Aside Contracts. For a Multiple Award Contract that is totally set aside for certified HUBZone small business concerns, a certified HUBZone small business concern must comply with the applicable limitations on subcontracting (see § 125.6), or if applicable, the nonmanufacturer rule (see § 121.406 of this chapter), during the base term and during each subsequent option period. However, the contracting officer, at his or her discretion, may also require the concern to comply with the limitations on subcontracting or the nonmanufacturer rule for each individual order awarded under the Multiple Award Contract.

(2) Partial Set-Aside Contracts. For Multiple Award Contracts that are partially set aside for certified HUBZone small business concerns, paragraph (b)(1) of this section applies to the set-aside portion of the contract. For orders awarded under the non-set-aside portion of a Multiple Award Contract, a certified HUBZone small business concern need not comply with any limitations on subcontracting or nonmanufacturer rule requirements.

(3) Orders Set Aside for certified HUBZone small business concerns. For each individual order that is set aside for certified HUBZone small business concerns under a Multiple Award Contract that is not itself set aside for certified HUBZone small business concerns, a certified HUBZone small business concern must comply with the applicable limitations on subcontracting (see § 125.6 of this chapter), or if applicable, the nonmanufacturer rule (see § 121.406 of this chapter), in the performance of such order.

(4) Reserves. For an order that is set aside for certified HUBZone small business concerns against a Multiple Award Contract with a HUBZone reserve, a certified HUBZone small business concern must comply with the applicable limitations on subcontracting (see § 125.6 of this chapter), or if applicable, the nonmanufacturer rule (see § 121.406 of this chapter), in the performance of such order. However, the certified HUBZone small business concern does not have to comply with the limitations on subcontracting or the nonmanufacturer rule for any order issued against the Multiple Award Contract if the order is competed amongst certified HUBZone small business concerns and one or more other-than-small business concerns.

[84 FR 65249, Nov. 26, 2019, as amended at 86 FR 61673, Nov. 8, 2021]

Notes of Decisions

Cited in 3 cases, 2004–2018 · leading case: Vanhook Enters., Inc. v. Kay & Kay Contracting, LLC, 543 S.W.3d 569 (Mo. Ct. App. 2018).

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Vanhook Enters., Inc. v. Kay & Kay Contracting, LLC, 543 S.W.3d 569 (Mo. Ct. App. 2018). · cites it 6× “Two regulations, 13 C.F.R. § 126.700 and 13 C.F.R. § 125.6 , are of particular relevance in this case.”

Metro Mach. Corp. v. United States Small Bus. Admin., 305 F. Supp. 2d 614 (E.D. Va. 2004). · cites it 2× “First, Metro Machine points out that another regulation, 13 C.F.R. § 126.700 , ensures that at least 50% of the labor cost of any contract awarded to a qualified HUBZone SBC must come from employees of qualified HUBZone SBCs.”

Vanhook Enter., Inc. v. Kay & Kay Contracting, LLC (Ky. 2018). · cites it 3× “§ 126 . 700 promulgated on June 17, 2005, and taking effect on August 30, 2005, and of 13 C.”

— 13 C.F.R. § 126.700(b) — 1 case

Vanhook Enters., Inc. v. Kay & Kay Contracting, LLC, 543 S.W.3d 569 (Mo. Ct. App. 2018). “Two regulations, 13 C.F.R. § 126.700 and 13 C.F.R. § 125.6 , are of particular relevance in this case.”

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