Federal HUB Zone

About

The City of Hampton has an area designated as Federal Historically Underutilized Business Zone (HUBZone), which encompasses sections within the city. The United States Small Business Administration (SBA) manages this program and areas are designated based on poverty and unemployment criteria. HUBZone designated areas can change every six to nine months. To see if your business is located in a HUBZone, please review the HUBZone Map.

If you have additional questions, please contact the Hampton Dept. of Economic Development at 757-727-6237.

The HUB Zone Empowerment Contracting Program is for small companies that operate and employ people in HUBZones. The HUBZone program was created in response to the HUBZone Empowerment Act created by the US Congress in 1998. Small businesses will be designated as HUBZone certified if they meet the following criteria:

  • The firm’s principal office (the location where the greatest number of employees perform their work, excluding contract sites) must be in a HUBZone (HUBZone Map).
  • The firm must be a small business based on the North American Industry Classification System (NAICS) for size standards.
  • 35% of the firm’s total workforce must reside in a HUBZone.
  • The business must be at least 51% owned and controlled by U.S. citizens, or a Community Development Corporation, an agricultural cooperative, or an Indian tribe (including Alaska Native Corporations).

Federal Contract Opportunities

There are four (4) types of HUBZone contract opportunities:

  1. Competitive: Contracts can be set-aside for HUBZone competition when the contracting officer has a reasonable expectation that at least two qualified HUBZone small business concerns (SBCs) will submit offers and that the contract will be awarded at a fair market price.
  2. Sole-source: HUB Zone contracts can be awarded if the contracting officer determines that:
    • only one qualified HUB Zone SBC is responsible to perform the contract
    • Two or more qualified HUB Zone SBCs are not likely to submit offers, and
    • the anticipated award price of the proposed contract, including options, will not exceed: $5 million for a requirement within the North American Industry Classification System (NAICS) code for manufacturing or $3 million for a requirement within all other NAICS codes.
  3. Full and open: Competitive contracts can be awarded with a price evaluation preference. The offer of the HUBZone small business must not be 10 percent higher than the offer of a non-small business.
  4. Subcontracting: All subcontracting plans for large business Federal contractors must include a HUBZone subcontracting goal.

Other Specialized Assistance

Eligible HUBZone firms (that are also located in an Enterprise Zone) may qualify for higher SBA-guaranteed surety bonds for construction and service contract bids.