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U.S. Code as of:
01/19/04
Section 657a. HUBZone program
(a) In general
There is established within the Administration a program to be
carried out by the Administrator to provide for Federal contracting
assistance to qualified HUBZone small business concerns in
accordance with this section.
(b) Eligible contracts
(1) Definitions
In this subsection -
(A) the term "contracting officer" has the meaning given that
term in section 423(f)(5) of title 41; and
(B) the term "full and open competition" has the meaning
given that term in section 403 of title 41.
(2) Authority of contracting officer
Notwithstanding any other provision of law -
(A) a contracting officer may award sole source contracts
under this section to any qualified HUBZone small business
concern, if -
(i) the qualified HUBZone small business concern is
determined to be a responsible contractor with respect to
performance of such contract opportunity, and the contracting
officer does not have a reasonable expectation that 2 or more
qualified HUBZone small business concerns will submit offers
for the contracting opportunity;
(ii) the anticipated award price of the contract (including
options) will not exceed -
(I) $5,000,000, in the case of a contract opportunity
assigned a standard industrial classification code for
manufacturing; or
(II) $3,000,000, in the case of all other contract
opportunities; and
(iii) in the estimation of the contracting officer, the
contract award can be made at a fair and reasonable price;
(B) a contract opportunity shall be awarded pursuant to this
section on the basis of competition restricted to qualified
HUBZone small business concerns if the contracting officer has
a reasonable expectation that not less than 2 qualified HUBZone
small business concerns will submit offers and that the award
can be made at a fair market price; and
(C) not later than 5 days from the date the Administration is
notified of a procurement officer's decision not to award a
contract opportunity under this section to a qualified HUBZone
small business concern, the Administrator may notify the
contracting officer of the intent to appeal the contracting
officer's decision, and within 15 days of such date the
Administrator may file a written request for reconsideration of
the contracting officer's decision with the Secretary of the
department or agency head.
(3) Price evaluation preference in full and open competitions
(A) In general
Subject to subparagraph (B), in any case in which a contract
is to be awarded on the basis of full and open competition, the
price offered by a qualified HUBZone small business concern
shall be deemed as being lower than the price offered by
another offeror (other than another small business concern), if
the price offered by the qualified HUBZone small business
concern is not more than 10 percent higher than the price
offered by the otherwise lowest, responsive, and responsible
offeror.
(B) Procurement of commodities
For purchases by the Secretary of Agriculture of agricultural
commodities, the price evaluation preference shall be -
(i) 10 percent, for the portion of a contract to be awarded
that is not greater than 25 percent of the total volume being
procured for each commodity in a single invitation;
(ii) 5 percent, for the portion of a contract to be awarded
that is greater than 25 percent, but not greater than 40
percent, of the total volume being procured for each
commodity in a single invitation; and
(iii) zero, for the portion of a contract to be awarded
that is greater than 40 percent of the total volume being
procured for each commodity in a single invitation.
(C) Treatment of preference
A contract awarded to a HUBZone small business concern under
a preference described in subparagraph (B) shall not be counted
toward the fulfillment of any requirement partially set aside
for competition restricted to small business concerns.
(4) Relationship to other contracting preferences
A procurement may not be made from a source on the basis of a
preference provided in paragraph (2) or (3), if the procurement
would otherwise be made from a different source under section
4124 or 4125 of title 18 or the Javits-Wagner-O'Day Act (41
U.S.C. 46 et seq.).
(c) Enforcement; penalties
(1) Verification of eligibility
In carrying out this section, the Administrator shall establish
procedures relating to -
(A) the filing, investigation, and disposition by the
Administration of any challenge to the eligibility of a small
business concern to receive assistance under this section
(including a challenge, filed by an interested party, relating
to the veracity of a certification made or information provided
to the Administration by a small business concern under section
632(p)(5) of this title); and
(B) verification by the Administrator of the accuracy of any
certification made or information provided to the
Administration by a small business concern under section
632(p)(5) of this title.
(2) Examinations
The procedures established under paragraph (1) may provide for
program examinations (including random program examinations) by
the Administrator of any small business concern making a
certification or providing information to the Administrator under
section 632(p)(5) of this title.
(3) Provision of data
Upon the request of the Administrator, the Secretary of Labor,
the Secretary of Housing and Urban Development, and the Secretary
of the Interior (or the Assistant Secretary for Indian Affairs),
shall promptly provide to the Administrator such information as
the Administrator determines to be necessary to carry out this
subsection.
(4) Penalties
In addition to the penalties described in section 645(d) of
this title, any small business concern that is determined by the
Administrator to have misrepresented the status of that concern
as a "HUBZone small business concern" for purposes of this
section, shall be subject to -
(A) section 1001 of title 18; and
(B) sections 3729 through 3733 of title 31.
(d) Authorization of appropriations
There is authorized to be appropriated to carry out the program
established by this section $10,000,000 for each of fiscal years
2001 through 2003.
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