CONTRACTING INFORMATION

Pentecom is an SBA HUBZone contractor. The HUBZone Empowerment Contracting program provides federal contracting opportunities for qualified small businesses located in distressed areas. Fostering the growth of these federal contractors as viable businesses, for the long term, helps to empower communities, create jobs, and attract private investment.

Program History
The HUBZone Empowerment Contracting program was enacted into law as part of the Small Business Reauthorization Act of 1997. The program falls under the auspices of the U.S. Small Business Administration. The program encourages economic development in historically underutilized business zones - "HUBZones" - through the establishment of preferences.

SBA's HUBZone program is in line with the efforts of both the Administration and Congress to promote economic development and employment growth in distressed areas by providing access to more Federal contracting opportunities.

Types of Contracts
A competitive HUBZone contract can be awarded if the contracting officer has a reasonable expectation that at least two qualified HUBZone small businesses will submit offers and that the contract can be awarded at a fair market price.

A sole source HUBZone contract can be awarded if the contracting officer does not have a reasonable expectation that two 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 estimate cannot exceed $5 million for manufacturing requirements or $3 million for all other requirements.

A full and open competition contract can be awarded with a price evaluation preference. The offer of the HUBZone small business will be considered lower than the offer of a non-HUBZone/non-small business-providing that the offer of the HUBZone small business is not more than 10 percent higher.

Goaling
The Small Business Reauthorization Act of 1997 increases the overall government wide procurement goal for small business from 20% to 23%. The statute sets the goal for HUBZone contracts as follows: 1999 - 1%; 2000 - 1 ½ %; 2001 - 2%; 2002 - 2 ½ %; 2003; and each year thereafter - 3%.

Affected Federal Agencies
Until September 30, 2000, the HUBZone Empowerment Contracting Program applies only to the procurements of the following Federal agencies: U.S. Department of Defense (DOD), U.S. Department of Agriculture (USDA), U.S. Department of Health and Human Services (HHS), U.S. Department of Transportation (DOT), U.S. Department of Energy (DOE), U.S. Department of Housing and Urban Development (HUD), U.S. Environmental Protection Agency (EPA), U.S. National Aeronautics and Space Administration (NASA), U.S. General Services Administration (GSA), and U.S. Department of Veterans Affairs (VA).

For more information visit the Small Business Administration.