HUBZone Small Businesses: Don’t Forget to Inform the SBA of “Material Changes”

Posted on June 8, 2012 by Steven Koprince

After GAO reports described the HUBZone program as vulnerable to fraud and abuse, the SBA has cracked down in recent years—making site visits, decertifying HUBZone small businesses, even threatening some with suspension and debarment for violating the regulations.

The SBA should be commended, of course, for taking steps to ensure that HUBZone participants remain on the up-and-up, but the stricter enforcement can spell trouble for HUBZone firms that mean well, but don’t fully understand their ongoing compliance obligations under the HUBZone regulations. Case in point: the SBA has apparently proposed to decertify some HUBZone firms for failing to keep the SBA informed of “material changes” that may affect their program eligibility.

Continue reading →

Event: Best Practices for Remaining HUBZone Compliant

Posted on June 1, 2012 by Steven Koprince

HUBZone small businesses, circle your calendars. The 2012 National HUBZone Conference is coming September 5-7 in Washington, DC. The conference will feature matchmaking sessions, exhibits, and educational sessions–including one you won’t want to miss on “Best Practices for Remaining HUBZone Compliant,” presented by yours truly.

If you’re a HUBZone company, you know how difficult it can be to maintain ongoing compliance. It’s easy to inadvertently slip below the 35% threshold or even fall out of compliance with the principal office requirement. My session will explain the nuances of the rules, including common compliance mistakes HUBZone firms make. And, as the title suggests, I will provide “Best Practice” tips on remaining on the straight and narrow.

I’m tentatively scheduled to speak on the morning of Thursday, September 6. If you can’t make the full session, I will be offering an abbreviated version during the afternoon of Wednesday, September 5.

Many thanks to Mark Crowley and the HUBZone Council for inviting me to speak at what promises to be a wonderful conference. I hope to see you there!

GAO: HUBZone Price Preference Applies to GSA Lease Procurements

Posted on January 24, 2012 by Steven Koprince

Is the GAO the new best friend of small businesses? That might be going a bit too far, but in recent years, the GAO has sided with small businesses in several important bid protests regarding the scope of small business preferences and set-asides.

First, in Delex Systems, Inc., B-400403 (Oct. 8, 2008), the GAO held that the small business set-aside provisions of FAR 19.502-2(b)—the so-called “rule of two”—apply to competitions for task and delivery orders under multiple-award contracts. In Aldevra, B-405271, B-405524 (Oct. 11, 2011) and Kingdomware Technologies, B-405727 (Dec. 19, 2011), the GAO sided with service-disabled veteran-owned small businesses against the very federal agency created to support veterans, holding that the VA had improperly used the Federal Supply Schedule rather than set-asides for SDVOSBs. The decision in The Argos Group, LLC, B-406040 (Jan. 24, 2012), follows in this vein—and this time is a nice win for HUBZone small businesses.

Continue reading →

GAO: HUBZone Price Preference Not Optional

Posted on July 19, 2011 by Steven Koprince

When a contract contains FAR 52.219-4, the so-called “HUBZone price preference” clause, a procuring agency must apply the HUBZone price preference by adding a factor of 10 percent to the price of all other offerors, except HUBZone firms and otherwise successful small businesses.

For procuring agencies, applying the HUBZone price preference is not optional. In Explo Systems, Inc., B-404952 (July 8, 2011), the GAO sustained a bid protest because the procuring agency failed to apply the HUBZone price preference.

Continue reading →