There is established within the Administration a program (to be known as the HUBZone program) to be carried out by the Administrator to provide for Federal contracting assistance, including promoting economic development in economically distressed areas (as defined in section 636(m)(11)),1
The term “qualified census tract” means a census tract that is covered by the definition of “qualified census tract” in section 42(d)(5)(B)(ii) of title 26 and that is reflected in an online tool prepared by the Administrator described under subsection (d)(7).
The term “redesignated area” means any census tract that ceases to be qualified under subparagraph (A) and any nonmetropolitan county that ceases to be qualified under subparagraph (B) for a period of 3 years after the date on which the census tract or nonmetropolitan county ceased to be so qualified.
A census tract or nonmetropolitan county described in clause (i) shall be considered to be a base closure area for a period beginning on the date on which the Administrator designates such census tract or nonmetropolitan county as a base closure area and ending on the date on which the base closure area ceases to be a qualified census tract under subparagraph (A) or a qualified nonmetropolitan county under subparagraph (B) in accordance with the online tool prepared by the Administrator described under subsection (d)(7), except that such period may not be less than 8 years.
The term “census tract” means a census tract delineated by the United States Bureau of the Census in the most recent decennial census that is not located in a nonmetropolitan county and does not otherwise qualify as a qualified census tract.
The term “nonmetropolitan county” means a county that was not located in a metropolitan statistical area (as defined in section 143(k)(2)(B) of title 26) at the time of the most recent census taken for purposes of selecting qualified census tracts and does not otherwise qualify as a qualified nonmetropolitan county.
Subject to clause (ii), the term “qualified disaster area” means any census tract or nonmetropolitan county located in an area where a major disaster has occurred or an area in which a catastrophic incident has occurred if such census tract or nonmetropolitan county ceased to be qualified under subparagraph (A) or (B), as applicable, during the period beginning 5 years before the date on which the President declared the major disaster or the catastrophic incident occurred.
The term “major disaster” means a major disaster declared by the President under section 5170 of title 42.
The terms “census tract” and “nonmetropolitan county” have the meanings given such terms in subparagraph (D)(iii).
A “Governor-designated covered area” means a covered area that the Administrator has designated by approving a petition described under clause (ii).
Each calendar year, a Governor may submit not more than 1 petition described under clause (ii). Such petition shall include all covered areas in a State for which the Governor seeks designation as a Governor-designated covered area, except that the total number of covered areas included in such petition may not exceed 10 percent of the total number of covered areas in the State.
If the Administrator grants a petition described under clause (ii), the Governor of the Governor-designated covered area shall, not less frequently than annually, submit data to the Administrator certifying that each Governor-designated covered area continues to meet the requirements of clause (v)(I).
The term “Governor” means the chief executive of a State.
The term “State” means each of the several States, the District of Columbia, the Commonwealth of Puerto Rico, the United States Virgin Islands, Guam, the Commonwealth of the Northern Mariana Islands, and American Samoa.
The term “qualified HUBZone small business concern” means a HUBZone small business concern that has been certified by the Administrator in accordance with the procedures described in this section.
The term “Alaska Native Corporation” has the same meaning as the term “Native Corporation” in section 1602 of title 43.
The term “Alaska Native Village” has the same meaning as the term “Native village” in section 1602 of title 43.
The term “agricultural commodity” has the same meaning as in section 5602 of title 7.
A contract opportunity may 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.
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.
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.
The price evaluation preference for purchases of agricultural commodities by the Secretary of Agriculture for export operations through international food aid programs administered by the Farm Service Agency shall be 5 percent on the first portion of a contract to be awarded that is not greater than 20 percent of the total volume of each commodity being procured in a single invitation.
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.
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 chapter 85 of title 41.
The Administrator shall verify the eligibility of a HUBZone small business concern using the procedures described in paragraph (2) within a reasonable time and not later than 60 days after the date on which the Administrator receives sufficient and complete documentation from a HUBZone small business concern under paragraph (1).
Not later than 3 years after the date that such HUBZone small business concern was certified as a qualified HUBZone small business concern, and every 3 years thereafter, the Administrator shall verify the accuracy of any documentation provided by a HUBZone small business concern under paragraph (1) to determine if such HUBZone small business concern remains a qualified HUBZone small business concern.
The Administrator shall conduct program examinations of qualified HUBZone small business concerns, using a risk-based analysis to select which concerns are examined, to ensure that any concern examined meets the requirements of paragraph (1).
A HUBZone small business concern that, based on the results of an examination conducted pursuant to paragraph (5) no longer meets the requirements of paragraph (1), shall have 30 days to submit documentation to the Administrator to be eligible to be certified as a qualified HUBZone small business concern. During the 30-day period, such concern may not compete for or be awarded a contract under this section. If such concern fails to meet the requirements of paragraph (1) by the last day of the 30-day period, the Administrator shall not certify such concern as a qualified HUBZone small business concern.
The online tool required under subparagraph (A) shall clearly and conspicuously provide access to the data used by the Administrator to determine whether or not an area is a HUBZone in the year in which the online tool was prepared.
The Administrator shall include in the online tool a notification of the date on which the online tool, and the data used to create the online tool, will be updated.
Upon the request of the Administrator, the Secretary of Labor, the Administrator of the Federal Emergency Management Agency, 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.
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 “qualified HUBZone small business concern” for purposes of this section shall be subject to liability for fraud, including section 1001 of title 18 and sections 3729 through 3733 of title 31.
Not later than 1 year after
The Administrator shall develop processes to incentivize each regional office of the Administration to collect and manage data on HUBZones within the geographic area served by such regional office.
There is authorized to be appropriated to carry out the program established by this section $10,000,000 for each of fiscal years 2020 through 2025.
Section 636(m)(11) of this title, referred to in subsec. (a), no longer defines the term “economically distressed areas”. See 1994 Amendment note for subsec. (m)(11)(D) under section 636 of this title.
The text of section 632(p) of this title, which was transferred to this section and redesignated as subsec. (b) by Pub. L. 115–91, div. A, title XVII, § 1701(a)(2),
In subsec. (c)(1)(A), “section 2101(1) of title 41” substituted for “section 27(f)(5) of the Office of Federal Procurement Policy Act (41 U.S.C. 423(f)(5))” on authority of Pub. L. 111–350, § 6(c),
In subsec. (c)(1)(B), “section 107 of title 41” substituted for “section 4 of the Office of Federal Procurement Policy Act (41 U.S.C. 403)” on authority of Pub. L. 111–350, § 6(c),
In subsec. (c)(4), “chapter 85 of title 41” substituted for “the Javits-Wagner-O’Day Act (41 U.S.C. 46 et seq.)” on authority of Pub. L. 111–350, § 6(c),
A prior section 2[31] of Pub. L. 85–536 was renumbered section 2[49] and is set out as a note under section 631 of this title.
2017—Subsec. (a). Pub. L. 115–91, § 1701(h)(2)(A), inserted “(to be known as the HUBZone program)” after “program” and “, including promoting economic development in economically distressed areas (as defined in section 636(m)(11)) of this title,” after “assistance”.
Subsec. (b). Pub. L. 115–91, § 1701(a)(2)(A), substituted “In this section:” for “In this chapter:” in introductory provisions.
Pub. L. 115–91, § 1701(a)(2), transferred subsec. (p) of section 632 of this title and redesignated it as subsec. (b) of this section. See Codification note above. Former subsec. (b) redesignated (c).
Subsec. (b)(1). Pub. L. 115–91, § 1701(a)(2)(B), substituted “terms” for “term” and “or ‘HUBZone’ mean” for “means” in introductory provisions.
Subsec. (b)(1)(G). Pub. L. 115–91, § 1701(e)(1), added subpar. (G).
Subsec. (b)(2). Pub. L. 115–91, § 1701(a)(2)(C), redesignated par. (3) as (2) and struck out former par. (2) which defined the term “HUBZone”.
Subsec. (b)(3). Pub. L. 115–91, § 1701(a)(2)(C), redesignated par. (4) as (3). Former par. (3) redesignated (2).
Subsec. (b)(3)(A)(i). Pub. L. 115–91, § 1701(b)(1)(A)(i), amended cl. (i) generally. Prior to amendment, text read as follows: “The term ‘qualified census tract’ has the meaning given that term in section 42(d)(5)(B)(ii) of title 26.”
Subsec. (b)(3)(A)(ii). Pub. L. 115–91, § 1701(b)(1)(A)(ii), inserted “and that is reflected in the online tool described under clause (i)” after “such section” in introductory provisions.
Subsec. (b)(3)(B). Pub. L. 115–91, § 1701(b)(1)(B)(i), inserted “that is reflected in the online tool described under subparagraph (A)(i) and” after “any county” in introductory provisions.
Subsec. (b)(3)(B)(i). Pub. L. 115–91, § 1701(b)(2)(A), substituted “section 42(d)(5)(B)(ii) of title 26” for “section 42(d)(5)(C)(ii) of title 26”.
Subsec. (b)(3)(B)(ii)(I). Pub. L. 115–91, § 1701(b)(1)(B)(ii), struck out “nonmetropolitan” before “State” and substituted “a 5-year average of the available data” for “the most recent data available”.
Subsec. (b)(3)(B)(ii)(II). Pub. L. 115–91, § 1701(b)(1)(B)(ii)(II), substituted “a 5-year average of the available data” for “the most recent data available”.
Subsec. (b)(3)(B)(ii)(III). Pub. L. 115–91, § 1701(b)(2)(B), substituted “section 42(d)(5)(B)(iii) of title 26” for “section 42(d)(5)(C)(iii) of title 26”.
Subsec. (b)(3)(C). Pub. L. 115–91, § 1701(d), amended subpar. (C) generally. Prior to amendment, text defined the term “redesignated area”.
Subsec. (b)(3)(D)(ii). Pub. L. 115–91, § 1701(c)(1), amended cl. (ii) generally. Prior to amendment, text read as follows: “A base closure area shall be treated as a HUBZone—
“(I) with respect to a census tract or nonmetropolitan county described in clause (i), for a period of not less than 8 years, beginning on the date the military installation undergoes final closure and ending on the date the Administrator makes a final determination as to whether or not to implement the applicable designation described in subparagraph (A) or (B) in accordance with the results of the decennial census conducted after the area was initially designated as a base closure area; and
“(II) if such area was treated as a HUBZone at any time after 2010, until such time as the Administrator makes a final determination as to whether or not to implement the applicable designation described in subparagraph (A) or (B), after the 2020 decennial census.”
Subsec. (b)(3)(E). Pub. L. 115–91, § 1701(c)(2), amended subpar. (E) generally. Prior to amendment, subpar. (E) consisted of cls. (i) and (ii) defining “qualified disaster area” generally and limiting the period of time a qualified disaster is treated as a HUBZone, respectively.
Subsec. (b)(3)(F). Pub. L. 115–91, § 1701(e)(2), added subpar. (F).
Subsec. (b)(4). Pub. L. 115–91, § 1701(g), amended par. (4) generally. Prior to amendment, par. (4) consisted of subpars. (A) and (B) defining qualified HUBZone small business concern and requiring the Administrator shall establish and maintain a list of qualified HUBZone small business concerns, respectively.
Pub. L. 115–91, § 1701(a)(2)(C), redesignated par. (5) as (4). Former par. (4) redesignated (3).
Subsec. (b)(5) to (7). Pub. L. 115–91, § 1701(a)(2)(C), redesignated pars. (6) and (7) as (5) and (6), respectively.
Subsec. (c). Pub. L. 115–91, § 1701(a)(1), redesignated subsec. (b) as (c). Former subsec. (c) redesignated (d).
Subsec. (d). Pub. L. 115–91, § 1701(h)(1), amended subsec. (d) generally. Prior to amendment, subsec. (d) related to enforcement procedures for verifying eligibility under this section and penalties for misrepresenting the status of a concern as a “HUBZone small business concern” for purposes of this section.
Pub. L. 115–91, § 1701(a)(1), redesignated subsec. (c) as (d). Former subsec. (d) redesignated (e).
Subsec. (e). Pub. L. 115–91, § 1701(h)(2)(C), added subsec. (e). Former subsec. (e) redesignated (f).
Pub. L. 115–91, § 1701(a)(1), redesignated subsec. (d) as (e).
Subsec. (f). Pub. L. 115–91, § 1701(h)(2)(B), (3), redesignated subsec. (e) as (f) and substituted “fiscal years 2020 through 2025” for “fiscal years 2004 through 2006”.
2015—Subsec. (c)(3). Pub. L. 114–92 inserted “the Administrator of the Federal Emergency Management Agency,” after “the Secretary of Labor,”.
2010—Subsec. (b)(2). Pub. L. 111–240, § 1347(c)(1), struck out introductory provisions which read as follows: “Notwithstanding any other provision of law—”.
Subsec. (b)(2)(A). Pub. L. 111–240, § 1347(c)(2)(A), inserted heading and substituted “A contracting” for “a contracting” in introductory provisions.
Subsec. (b)(2)(A)(iii). Pub. L. 111–240, § 1347(c)(2)(B), substituted period for semicolon at end.
Subsec. (b)(2)(B). Pub. L. 111–240, § 1347(c)(3), which directed amendment of subpar. (B) by inserting heading and substituting “A contract opportunity may” for “a contract opportunity shall”, and period for “; and”, was executed by inserting heading and substituting “A contract opportunity may” for “a contract opportunity may” and period for “; and”, to reflect the probable intent of Congress and the intervening amendment by Pub. L. 111–240, § 1347(b)(1). See below.
Pub. L. 111–240, § 1347(b)(1), substituted “may” for “shall”.
Subsec. (b)(2)(C). Pub. L. 111–240, § 1347(c)(4), inserted heading and substituted “Not later” for “not later”.
2004—Subsec. (b)(3)(C), (D). Pub. L. 108–447, § 153, which directed amendment of par. (3) by redesignating subpar. (C) as (D) and adding a new subpar. (C) at the end, was executed by making the redesignation as directed but by adding the new subpar. (C) after subpar. (B) to reflect the probable intent of Congress.
Subsec. (d). Pub. L. 108–447, § 154, substituted “2004 through 2006” for “2001 through 2003”.
2000—Subsec. (b)(3). Pub. L. 106–554, § 1(a)(9) [title VI, § 612(a)], designated existing provisions as subpar. (A), inserted heading, substituted “Subject to subparagraph (B), in any” for “In any”, and added subpars. (B) and (C).
Subsec. (d). Pub. L. 106–554, § 1(a)(9) [title V, § 503(b)], added subsec. (d).
Pub. L. 115–91, div. A, title XVII, § 1701(j),
Section effective
Pub. L. 105–135, title VI, § 602(b)(2),
Pub. L. 115–91, div. A, title XVII, § 1701(i),
Pub. L. 105–135, title VI, § 606,