C.F.R. » Title 48 » CHAPTER 1—FEDERAL ACQUISITION REGULATION › SUBCHAPTER D—SOCIOECONOMIC PROGRAMS › PART 19—SMALL BUSINESS PROGRAMS › Subpart 19.13—Historically Underutilized Business Zone (HUBZone) Program

48 C.F.R. § 19.1305

19.1305 HUBZone set-aside procedures.

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(a) The contracting officer—

(1) Shall comply with 19.203 before deciding to set aside an acquisition under the HUBZone Program;

(2) May set aside acquisitions exceeding the micro-purchase threshold for competition restricted to HUBZone small business concerns when the requirements of paragraph (b) of this section can be satisfied; and

(3) Shall consider HUBZone set-asides before considering HUBZone sole-source awards (see 19.1306) or small business set-asides (see subpart 19.5).

(b) To set aside an acquisition for competition restricted to HUBZone small business concerns, the contracting officer must have a reasonable expectation that—

(1) Offers will be received from two or more HUBZone small business concerns; and

(2) Award will be made at a fair market price.

(c) If the contracting officer receives only one acceptable offer from a HUBZone small business concern in response to a set aside, the contracting officer should make an award to that concern. If the contracting officer receives no acceptable offers from HUBZone small business concerns, the HUBZone set-aside shall be withdrawn and the requirement, if still valid, set aside for small business concerns, as appropriate (see 19.203).

(d) The procedures at 19.202-1 and at 19.402 apply to this section.

(1) When the SBA intends to appeal a contracting officer's decision to reject a recommendation of the SBA procurement center representative (or, if a procurement center representative is not assigned, see 19.402(a)) to set aside an acquisition for competition restricted to HUBZone small business concerns, the SBA procurement center representative shall notify the contracting officer, in writing, of its intent within 5 business days of receiving the contracting officer's notice of rejection.

(2) Upon receipt of notice of SBA's intent to appeal, the contracting officer shall suspend action on the acquisition until the head of the contracting activity issues a written decision on the appeal, unless the head of the contracting activity makes a written determination that urgent and compelling circumstances, which significantly affect the interests of the Government, exist.

(3) Within 15 business days of SBA's notification to the contracting officer, SBA must file its formal appeal with the head of the agency, or the appeal will be deemed withdrawn. The head of the agency shall reply to SBA within 15 business days of receiving the appeal. The decision of the head of the agency shall be final.

[63 FR 70272, Dec. 18, 1998, as amended at 71 FR 36927, June 28, 2006; 75 FR 77730, Dec. 13, 2010; 76 FR 14568, Mar. 16, 2011; 77 FR 12932, Mar. 2, 2012; 87 FR 58236, Sept. 23, 2022]
Notes of Decisions
Cited in 5 cases, 2003–2006 · leading case: Contract Management, Inc. v. Rumsfeld
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Contract Management, Inc. v. Rumsfeld (2003) hid · cites it 4× “607; 48 C.F.R. § 19.1305 . Plaintiff contends that § 657a does not authorize or require the designation of contracts to be limited to bidding by qualified HUBZone businesses and that the HUBZone regulations, specifically 48 C.”
Mark Dunning Industries, Inc. v. United States (2003) uscfc “The solicitation provided that bidders certified by the SBA as small business concerns located in a HUBZone would receive a 10% price evaluation preference, pursuant to 48 C.F.R. §§ 19.1305 and 52.219-4. 2 The bid opening for the solicitation was held on October 11, 2002.”
Blue Dot Energy Co. v. United States (2004) uscfc “See AR at 716-18; see also 48 C.F.R. § 19.1305 (a). On July 23, 2003, the Air Force issued Solicitation F45613-03-Q-A028 for HUBZone qualified companies.”
Blue Dot Energy Co. v. United States (2004) uscfc · cites it 2× “See AR at 716-18; see also 48 C.F.R. § 19.1305 (a), (b) (requiring a contracting officer to set aside acquisitions exceeding the simplified acquisition threshold to HUBZone small business concerns when the contracting officer has a reasonable expectation that offers will be…”
Contract Management, Inc. v. Rumsfeld (2006) ca9 “28, 2005); accord 48 C.F.R. § 19.1305 . 4 B. CMI qualifies for certain small-business set-asides but is neither a Section 8(a) nor a HUBZone designee.”
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