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How Prime Contractors Benefit From HUBZone Subcontractors

By Lori Benson

bigsky1As prime contractors compete for federal opportunities, one of the most effective ways they can develop a competitive advantage is to partner with HUBZone firms – companies located in “historically underutilized business areas,” whether urban or rural.

The HUBZone program is aimed at stimulating business in economically disadvantaged areas, and there is more than good intentions standing behind the effort: the federal government sets out to spend 3% of all procurement dollars on HUBZone contracts.

By definition, HUBZone-certified firms are relatively small, and many subcontract with primes, which opens opportunities for prime contractors seeking to generate new federal work.

Advantages of Working with a HUBZone Firm

For prime contractors, there are some important benefits to partnering with a HUBZone firm. Let’s take a look at three key advantages.

1. Eligibility for HUBZone Dollars

First and foremost, by engaging a HUBZone firm a prime contractor becomes eligible to win the dollars set aside for the HUBZone program, opening up new avenues of business.

2. Preferential Consideration

With this status, a prime enjoys the preferential considerations designated to HUBZone providers as well. For example, as long as a HUBZone team’s offer is no more than 10% higher than the offers of non-HUBZone competition, the HUBZone team’s offer will be considered lower.

3. Agencies are Seeking HUBZone-Certified Teams

Federal agencies are actively seeking HUBZone-certified teams. Many agencies are not meeting their goals for HUBZone spending, and HUBZone status makes their buying decisions easier. Numerous HUBZone firms have lost their certification as a result of updatedeligibility maps over the last few years, so many procurers are scrambling to find new certified teams. 

It’s clear that there are some major advantages to working with a HUBZone-certified subcontractor. So how can you get started?

Finding a HUBZone Partner

To find a HUBZone-certified firm like Big Sky Associates, one of the most convenient tools available is called the Dynamic Small Business Search, provided by the U.S. Small Business Administration. This tool allows you to run a search for HUBZone-certified firms according to criteria like geography and industry.

Many firms will also note their HUBZone certification on their websites, so an online search for HUBZone firms in a relevant region or industry may be helpful. If you’re searching for a HUBZone-certified consulting firm in the Washington, D.C. area, please give us a call – we’d be more than happy to share our experience and answer any questions you may have.

Easy Contracting with HUBZone