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Abstract Background

Contracting with HUBZone Certified Small Businesses

Lucayan Technology Solutions is a HUBZone-certified business (Historically Underutilized Business).

HUBZone Certification Date: 10 February 2017

HUBZone Certification Number: 56757

The HUBZone Program is a part of the Small Business Reauthorization Act of 1997, and a part of the Federal Government’s efforts to promote economic development and employment growth in historically underutilized business zones by awarding small businesses at least 3% of Federal contract dollars. The U.S. Small Business Administration manages the program, and encourages economic development in HUBZone’s by establishing preferences for participant businesses.

Contract Types

There are four (4) contract types in the HUBZone program:

1. Competitive HUBZone Contract - Created if the Contracting Officer has a reasonable belief that at least two (2) qualified HUBZone small businesses will submit offers and that the contract can be given at a fair market price.

2. Sole Source HUBZone Contract - Created if the Contracting Officer does not have a reasonable belief that two (2) or more qualified HUBZone small businesses will submit offers, determines that the qualified HUBZone small business is responsible, and determines that the contract can be awarded at a fair price. The Government’s estimate cannot exceed $5.5 million for manufacturing requirements or $3.5 million for all other requirements.

3. Full and Open Competition Contract - Given with a price evaluation preference of 10%. The offer of the HUBZone small business will be considered lower than the offer of a non-HUBZone business.

4. Subcontract - Can be awarded by a large Prime contractor. Federal rules require these contractors to include HUBZone contracting goals.

HUBZone Sole Source Process

A sole source or no-bid contract is awarded when there is only one person or company that can provide the contractual services needed, and any attempt to obtain bids would only result in one person or company being available to meet the need(s). It is awarded usually, but not always, by a Government group after soliciting and negotiating with only one firm. Specific steps and internal procedures may vary depending on the agency, but the basic process for sole sourcing is below:

  1. Determine the need for a sole source contract;

  2. Evaluate the Contractor’s offer;

  3. Submit a sole source justification;

  4. Receive approval for the sole source award; and

  5. Proceed with standard agency purchasing procedures.

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