Why Lucayan Is the HUBZone Partner You Can Trust

A HUBZone Partner That Protects Your Reputation, Ratings, and Revenue

In federal contracting, compliance isn’t optional — it’s foundational. For prime contractors, especially those managing large portfolios with small business subcontracting goals, the risk of SBA penalties and FAR violations is real. From missed HUBZone targets to inaccurate reporting, even minor missteps can lead to CPARS downgrades, audit flags, and lost recompete opportunities.

At Lucayan Technology, we understand the stakes. As a certified HUBZone small business, we’ve built a compliance-first model that helps federal primes meet their HUBZone goals, avoid SBA penalties, and maintain a strong performance record. In this blog, we break down the key compliance risks and show how Lucayan’s approach keeps your program on track.

The Compliance Landscape: What’s at Risk?

Federal prime contractors are required to submit and execute Small Business Subcontracting Plans under FAR 52.219-9. These plans must include specific goals for HUBZone participation and are subject to:

• Quarterly and annual reporting to the SBA and contracting agencies.

• Performance reviews tied to CPARS ratings.

• Potential penalties for noncompliance, including liquidated damage and reputational harm.
  

The SBA has increased oversight in recent years, and contracting officers are paying closer attention to whether primes are meeting their HUBZone subcontracting goals — especially considering the government’s continued failure to meet its 3% HUBZone prime contracting goal (approximately 2.75% achieved in FY 2024).

Common Compliance Pitfalls for Primes

Even well-intentioned primes can fall short of HUBZone compliance due to:

1. Late Teaming Decisions

Waiting until the proposal phase to add HUBZone firms often results in superficial participation that doesn’t align with the technical solution — leading to lower evaluation scores and missed goals.

2. Inaccurate Reporting

Failure to track HUBZone subcontracting accurately can trigger SBA audits and penalties. Inconsistent data between proposal commitments and actual performance is a red flag.

3. Unverified HUBZone Status

Teaming with firms that have expired or invalid HUBZone certifications can invalidate your subcontracting plan and expose you to compliance risk.

4. Lack of Performance Documentation

Without clear evidence of HUBZone contributions, primes may struggle to justify their small business utilization during CPARS evaluations or SBA reviews.

SBA Enforcement: What You Need to Know

The SBA has the authority to impose liquidated damages on prime contractors who fail to make a good faith effort to comply with their subcontracting plans. According to FAR 52.219-16, penalties may include:

• Financial damages based on the shortfall in subcontracting.

• Negative CPARS ratings that impact future awards.

• Increased scrutiny in future acquisitions and audits.
  

📌 “Failure to make a good faith effort to comply with the subcontracting plan may result in the assessment of liquidated damages.” — FAR 52.219-16

Lucayan’s Compliance-First HUBZone Model

Lucayan Technology is a certified HUBZone small business with a proactive approach to compliance. We help federal primes avoid penalties and meet their HUBZone goals through:

1. Verified Certification and Recertification

Lucayan maintains active certification in the SBA’s Dynamic Small Business Search (DSBS) database and completes annual recertification to ensure uninterrupted eligibility. 👉 https://search.certifications.sba.gov/profile/N8BZNAQJAP43/7HSE7?page=1

2. Early Capture Engagement

We work with primes during the capture phase to align HUBZone participation with technical and management volumes — ensuring our role is strategic, not superficial.

3. Performance Tracking and Reporting Support

Lucayan provides detailed documentation of our contributions, labor hours, and deliverables to support accurate reporting under FAR 52.219-9.

4. Workforce Compliance

We meet and exceed the SBA requirement that 35% of our employees reside in HUBZone areas, with verified documentation and workforce development initiatives.

Real-World Example: Compliance That Prevented Penalties

On a recent DHS cybersecurity contract, Lucayan was engaged as a HUBZone subcontractor during the capture phase. Our team:

• Provided cleared personnel from HUBZone areas.

• Delivered endpoint protection and vulnerability management services.

• Supported the prime’s subcontracting plan with accurate labor projections.

• Supplied quarterly performance data for SBA reporting.
  

The result? The prime exceeded its HUBZone goals, earned an “Exceptional” CPARS rating, and avoided any compliance flags during post-award audits.

How Lucayan Supports Your Subcontracting Plan

Lucayan helps primes build and execute compliant subcontracting plans by:

• Providing realistic HUBZone participation percentages

• Aligning our capabilities with technical and staffing volumes

• Delivering past performance documentation
  

We also offer guidance on SBA and FAR compliance, helping primes navigate:

• FAR 52.219-9 (Subcontracting Plan Requirements)

• FAR 52.219-16 (Liquidated Damages for Noncompliance)

• SBA HUBZone Program Rules (13 CFR § 126)

Why Early Teaming Matters for Compliance

Engaging HUBZone firms early in the capture process allows primes to:

• Shape acquisition strategy through RFIs and industry days.

• Integrate HUBZone value into the technical solution.

• Avoid last-minute teaming that leads to compliance gaps.

• Demonstrate proactive small business engagement to contracting officers.
  

Lucayan’s early engagement model ensures HUBZone compliance is built into your bid from day one — not patched in after the fact.

Lucayan’s Workforce Model: Built for HUBZone Integrity

Lucayan invests in workforce development to maintain HUBZone eligibility and support federal missions:

• STEM internships and apprenticeships in HUBZone communities.

• Veteran hiring and upskilling programs.

• Partnerships with local colleges and workforce boards.
  

This ensures our teams are technically capable, locally based, and compliant with SBA residency rules.

Partner with Lucayan to Stay Compliant

Lucayan Technology is a trusted HUBZone partner that helps federal primes:

• Avoid SBA penalties and FAR violations

• Meet and exceed HUBZone subcontracting goals

• Strengthen proposal competitiveness and CPARS ratings

• Deliver high-performance solutions aligned with federal missions

Explore our HUBZone capabilities and teaming model: 👉 https://www.lucayantechnology.com/hubzone

Summary / Key Takeaways

• SBA and FAR enforcement of HUBZone compliance is increasing.

• Primes risk penalties, CPARS downgrades, and audit exposure for noncompliance.

• Lucayan helps primes stay compliant through verified certification, early teaming, and performance tracking.

• Our HUBZone workforce model supports federal missions and meets SBA residency rules.