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Barry McVay's FEDERAL CONTRACTS DISPATCH

DATE: April 7, 2000

FROM: Barry McVay, CPCM

SUBJECT: Small Business Administration Registers 1,000th HUBZone Concern

SOURCE: Small Business Administration News Release, April 4, 2000

AGENCIES: Small Business Administration (SBA)

ACTION: Announcement

SYNOPSIS: On April 4, 2000, the SBA announced that it has certified its 1,000th firm as an Historically Underutilized Business Zone (HUBZone) concern, giving the HUBZone program representation in every state and the District of Columbia. The company qualifying as the 1,000th HUBZone small business is Pioneer Flooring & Design of Washington, DC, which installs and maintains a variety of floor covering materials.

FOR FURTHER INFORMATION CONTACT: D.J. Caulfield, 202-205-6740.

SUPPLEMENTAL INFORMATION: Title VI of the Small Business Reauthorization Act of 1997 (Public Law 105-135) established the HUBZone program to provide federal contract assistance to qualified small business concerns located in distressed communities. The SBA published implementing regulations on June 11, 1998, and Federal Acquisition Regulation (FAR) Subpart 19.13, Historically Underutilized Business Zone (HUBZone) Program, was added on December 18, 1998.

Until September 30, 2000, ten agencies are required to participate in the HUBZone Program (the agencies are the departments of Agriculture, Defense, Energy, Health and Human Services, Housing and Urban Development, Transportation, Veterans Affairs; Environmental Protection Agency, General Services Administration, and National Aeronautics and Space Administration). After that date, all federal agencies will be required to participate.

Public Law 105-135 established a HUBZone annual contracting goal of 3% of overall prime contracting, which means the HUBZone program could account for about $6 billion a year in federal contracts by Fiscal Year 2003, when the full 3% goal becomes effective.

To participate in the HUBZone program, a small business' principal office must be located in a HUBZone. More than 7,000 urban census tracts and 900 rural counties currently qualify as HUBZones. Also, all federally-recognized Native American reservations qualify. Potential applicants can see if their company is located in a HUBZone by using a mapping system available on the SBA's web site at http://www.sba.gov/hubzone.

In addition, the firm must be owned and operated by U.S. citizens, and 35% of its work force must reside within a HUBZone location (not necessarily the same HUBZone as the small business). SBA is responsible for certifying that firms are eligible to participate.

To apply, companies may use the electronic application on the HUBZone web site or submit a paper application to SBA headquarters in Washington, DC. The paper version can be downloaded from the web or picked up at any local SBA district office.

FOR FURTHER INFORMATION CONTACT: Barry McVay at 703-451-5953 or by e-mail to BarryMcVay@FedGovContracts.com.

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