LDF Construction has recently received it’s HUBZone Certification. What is HUBZone you ask? It is a United States Small Business Administration (SBA) program for small companies that operate and employ people in Historically Under-utilized Business Zones (HUBZones).
The program was created in response to the HUBZone Empowerment Act created by the US Congress in 1998. Based on the Act, small businesses will be designated as certified if they have the following criteria:
The firm must be a small business based on the North American Industry Classification System (NAICS) for size standards;
The business must be at least 51% owned and controlled by U.S. citizens, or a Community Development Corporation, an agricultural cooperative, or an Indian tribe (including Alaska Native Corporations);
The firm’s principal office (the location where the greatest number of employees perform their work, excluding contract sites) must be in a HUBZone;
35% of the firm’s total workforce must reside in a HUBZone.
Program benefits are limited competition for certain contracts to businesses in historically underutilized business zones. It also gives preferential consideration to those businesses in full and open competition. Joining the program makes a business eligible to compete for the program’s set-aside contracts.
HUBZone-certified businesses also get a 10 percent price evaluation preference in full and open contract competitions. Certified businesses can still compete for contract awards under other socio-economic programs they qualify for.
Notable facts about HUBZone are: The first business to receive a contract under the program’s simplified acquisition program was Garrett Container based in Accident, Maryland; The US federal government approved $13+ BILLION dollars for annual distribution to certified firms. Unfortunately, barely HALF of the money is actually being distributed. Many qualified businesses still encounter barriers to entry and are intimidated by the process; The program has not generated enough contract dollars to have an impact on a national scale.
When spread over an eight-year period across 2,450 metropolitan areas and counties with qualified census tracts, qualified counties, and Indian reservations, $6 billion has a limited impact; HUBZone set-asides are the most frequently used tool to award contracts. HUBZone sole source and price preferences were least often used by contracting officers; Progress on HUBZone and all small business contracting rates is available on the government’s Small Business Dashboard; Businesses need to re-certify for the program every three years. There is no limit to the length of time a business can continue to re-certify as long as it continues to qualify.
LDF Construction is proud to be a part of this program and is looking forward to helping to train, and employ Tribal and community members.