House Passes HUBZone Price Evaluation Preference Clarification Act of 2021

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The U.S. House of Representatives recently passed H. R. 5879, clarifying the application of the price evaluation preference for qualified HUBZone small business concerns to certain contracts. If this becomes law, the Act would make sure the HUBZone Price Evaluation Preference applies to certain orders under partially restricted multiple award contracts.

H. R. 5879, cited as “The HUBZone Price Evaluation Preference Clarification Act of 2021,” was passed by the House on June 8, 2022. The Act amends Section 31(c)(3) of the Small Business Act (15 U.S.C. 657a(c)(3)) a by adding to the end the following new subparagraph:

(E) APPLICATION TO CERTAIN CONTRACTS.—The requirements of subparagraph (A) shall apply to an unrestricted order issued under an unrestricted multiple award contract or the unrestricted portion of a contract that is partially set aside for competition restricted to small business concerns.

The subparagraph (A) referenced in the above section, if the Act passes, would apply to unrestricted orders under unrestricted multiple award contracts, or the unrestricted portion of a contract partially set aside for small business competition. It states:

3) Price evaluation preference in full and open competitions
(A) In general . . . 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.

As you may remember from Schoolhouse Rock, to become an effective law, H. R. 5879 still must pass the Senate and be approved by the President (or, if vetoed by the president, have the veto overridden).

If the Act does in fact become law, it will help procuring agencies and offerors alike in understanding exactly when the HUBZone price preference will apply to certain types of contracts, portions of those contracts, and/or orders thereunder.

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